Document:

trtx-ex101_689.htm

 

Exhibit 10.1

Execution Version

SIXTH AMENDMENT TO MASTER REPURCHASE AND SECURITIES CONTRACT AGREEMENT

This  SIXTH  AMENDMENT  TO  MASTER  REPURCHASE  AND  SECURITIES CONTRACT AGREEMENT, dated as of January 10, 2020 (this “Amendment”), is made by and between TPG RE FINANCE 12, LTD., a Cayman Islands exempted company (“Seller”), and MORGAN STANLEY BANK, N.A., a national banking association (“Buyer”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Repurchase Agreement (as defined below).

RECITALS

WHEREAS, Seller and Buyer are parties to that certain Master Repurchase and Securities Contract Agreement, dated as of May 4, 2016 (as amended by that certain First Amendment to Master Repurchase and Securities Contract Agreement, dated as of February 10, 2017, as further amended by that certain Second Amendment to Master Repurchase and Securities Contract Agreement, dated as of July 21, 2017, as further amended by that certain Third Amendment to Master Repurchase and Securities Contract Agreement, dated as of December 27, 2017, as further amended by that certain Fourth Amendment to Master Repurchase and Securities Contract Agreement, dated as of February 14, 2018, as further amended by that certain Fifth Amendment to Master Repurchase and Securities Contract Agreement, dated as of May 4, 2018, as amended hereby and as further amended, restated, supplemented or otherwise modified and in effect from time to time, the “Repurchase Agreement”); and

WHEREAS, Seller and Buyer have agreed, subject to the terms and conditions hereof, that the Repurchase Agreement shall be amended as set forth in this Amendment; and TPG RE Finance Trust Holdco, LLC (“Guarantor”) has agreed, subject to the terms and conditions hereof, to make the acknowledgements set forth herein.

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer hereby agree as follows:

SECTION 1.Repurchase Agreement Amendments. The Repurchase Agreement is hereby amended as follows:

(a)   Section 2 of the Repurchase Agreement is hereby amended by adding the following definitions in correct alphabetical order:

“Applicable Index” shall mean:

(a)initially, the LIBOR Rate; and

(b)on and after an Index Transition Date, the Replacement Index in effect on such Index Transition Date.

 

 

 

LEGAL_US_E # 144570876.6

 

“Compounded SOFR’” shall mean the compounded average of SOFR, as calculated and published by, or at the direction of, a Relevant Governmental Body.

“Conforming Changes” means any technical, administrative or operational changes, which Buyer determines is both:

(a)appropriate to implement the Index Transition; and

(b)substantially consistent with Market Practice.

“Index” shall mean LIBOR Rate, Term SOFR, Compounded SOFR, the ISDA Fallback Rate and any other interest rate benchmark published for use in, among others, master repurchase facilities for similar commercial real estate assets.

“Index Rate” shall mean, with respect to an applicable Pricing Period and Pricing Rate Reset Date, the per annum rate of interest of the Applicable Index; provided, however, that the Index Rate shall never be less than 0.0%.

“Index Transition” shall mean a transition or replacement of an Index with a Replacement Index as the Applicable Index.

“Index Transition Date” shall mean the next subsequent Pricing Rate Reset Date following an Index Transition Notice.

“Index Transition Event” shall mean the occurrence of a determination by Buyer that one of the following events has occurred with respect to the then-current Applicable Index:

(a)a public statement or publication of information by or on behalf of the administrator of such Applicable Index announcing that such administrator has ceased or will cease to provide such Applicable Index permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Applicable Index;

(b)a public statement or publication of information by the regulatory supervisor for the administrator of such Applicable Index, a Relevant Governmental Body, an insolvency official with jurisdiction over the administrator for such Applicable Index, a resolution authority with jurisdiction over the administrator for such Applicable Index or a court or an entity with similar insolvency or resolution authority over the administrator for such Applicable Index, which states that the administrator of such Applicable Index has ceased or will cease to provide such Applicable Index permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Applicable Index;

-2-

LEGAL_US_E # 144570876.

 

(c)a public statement or publication of information by the regulatory supervisor for the administrator of such Applicable Index announcing that such Applicable Index is no longer representative; or

(e)a change in Requirement of Law or in the interpretation or application thereof, prohibiting, restricting or limiting the use of such Applicable Index.

“Index Transition Notice” shall mean a notice given by Buyer to Seller which:

(a)sets forth in reasonable detail the circumstances of the Index Transition, including explanation of Buyer’s determination that an Index Transition Event has occurred;

(b)designates an Index Transition Date; and

(c)if feasible, identifies other Interest Determinations and Conforming Changes to implement such Index Transition.

“Interest Determination” shall mean any determination related to an Index or an Index Transition.

 

“ISDA” shall mean the International Swaps and Derivatives Association, Inc.

“ISDA Definitions” shall mean the 2006 ISDA Definitions published by ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

“ISDA Fallback Adjustment” shall mean the adjustment (which may be zero or a positive or negative value) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an Index Transition.

“ISDA Fallback Rate” shall mean, with respect to and at the time of any Index Transition, the Index identified by ISDA as a fallback for derivatives transactions referencing the ISDA Definitions to be effective at such time.

“Market Practice” shall mean the practice and course of dealing, including the manner of implementing Index Transitions, within the market for master repurchase facilities involving similar commercial real estate assets.

-3-

LEGAL_US_E # 144570876.

 

“Rate Adjustment” shall mean, an adjustment which may be zero or a positive or negative value, and:

(a)if the Applicable Index is the LIBOR Rate, than equal to zero; or

(b)if the Index Transition is a transition to:

(i)Term SOFR, then the adjustment that has been selected, endorsed or recommended by the Relevant Governmental Body for such Index Transition;

(ii)Compounded SOFR, then the adjustment that has been selected, endorsed or recommended by the Relevant Governmental Body for such Index Transition;

(iii)the ISDA Fallback Rate, then the ISDA Fallback Adjustment; or

(iv)a Replacement Index other than Term SOFR, Compounded SOFR, or the ISDA Fallback Rate, an adjustment, consistent with Market Practice for handling such Index Transition, selected by Buyer giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such adjustment, for the replacement of the then-current Applicable Index with the applicable Replacement Index for U.S. dollar denominated floating rate commercial real estate loans at the time as of the relevant Index Transition Date.

“Relevant Governmental Body” shall mean:

(a)the Federal Reserve Board or the Federal Reserve Bank of New York; or

(b)a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

“Replacement Index” shall mean, as of the relevant Index Transition Date and thereafter until a subsequent Index Transition Date or, for any Purchased Asset, the applicable Repurchase Date, the first alternative Index set forth in the order below that Buyer determines is available, appropriate for the transaction and consistent with Market Practice:

(a)Term SOFR;

(b)Compounded SOFR;

(c)an Index selected or recommended by the Relevant Government Body as the replacement for the then-current Applicable Index for the applicable Pricing Period giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Applicable Index for U.S. dollar denominated floating rate commercial real estate loans at such time; or

-4-

LEGAL_US_E # 144570876.

 

(d)the ISDA Fallback Rate.

“Replacement Index Transaction” shall mean any Transaction with respect to which the Pricing Rate is determined with reference to a Replacement Index.

“SOFR” shall mean, with respect to any day, the secured overnight financing rate published for such day by the Relevant Governmental Body.

“Term SOFR” shall mean an Index which Buyer determines meets each of the following criteria:

(a)is a forward-looking term rate;

(b)is based on SOFR;

(c)has a tenor of one (1) month (disregarding business day adjustment); and

(d)has been selected, recommended or endorsed by the Relevant Governmental Body.

(b)   Section 2 of the Repurchase Agreement is hereby further amended by amending and restating the following definitions as follows:

“Extension Period” shall have the meaning specified in Section 9(a) of this Agreement.

“Pricing Rate” shall mean, for any Pricing Period with respect to a Purchased Asset, an annual rate equal to the sum of the Index Rate, the Rate Adjustment, and the Applicable Spread for the related Purchased Asset (subject to adjustment and/or conversion as provided in Sections 3(l), 3(m), and 3(p) of this Agreement).

“Pricing Rate Reset Date” shall mean, with respect to a Purchased Asset:

(a)if the Applicable Index with respect to such Pricing Period is the LIBOR Rate, then (x) in the case of the first (1st) Pricing Period for such Purchased Asset, the original Purchase Date for such Purchased Asset, and (y) in the case of each subsequent Pricing Period, two (2) Business Days preceding the Remittance Date on which such Pricing Period begins; and

(b)if the Applicable Index with respect to such Pricing Period is a Replacement Index, a date Buyer determines, on or prior to the applicable Index Transition Date, is consistent with Market Practice in implementing the applicable Index Transition.

-5-

LEGAL_US_E # 144570876.

 

(c)   Section 2 of the Repurchase Agreement is hereby further amended by deleting the following definitions contained therein: “Unused Fee”, “Alternative Rate”, “Alternative Rate Transaction”.

(d)   Section 3(l) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

 

(l)   Index  Transition  Event.Upon  Buyer’s  determination  that  an  Index Transition Event has occurred:

(i)Notice. Buyer shall, within three (3) Business Days, provide an Index Transition Notice to Seller;

(ii)Replacement Index. The Applicable Index for all outstanding Transactions shall transition, as of the Index Transition Date, to a Replacement Index identified in accordance with the definition thereof and the provisions hereof; and

(iii)Rate Adjustment. The Rate Adjustment shall transition in accordance with the definition thereof as of the Index Transition Date.

Such Index Transition Notice, as certified to Seller, shall set forth such information as required in the definition thereof in reasonable detail and Buyer’s calculation shall be conclusive absent manifest error.

(e)   Section 3(m) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

(m)Conforming Changes.Notwithstanding anything to the contrary herein or in any other Transaction Document, but subject to and in accordance with Section 3(l) hereof, Buyer shall make Conforming Changes to the Transaction Documents from time to time in connection with the implementation of a Replacement Index and such Conforming Changes shall become effective without any further action or consent.

(f)   Section 5(b)(ii) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

(ii) second, to Buyer, any and all Transaction Costs  and  all  other amounts due and payable by Seller and outstanding hereunder and under the other Transaction Documents (other than the Repurchase Price)

-6-

LEGAL_US_E # 144570876.

 

(g)   Section 5(c)(ii) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

(ii)  second, to Buyer, any Transaction Costs and all other amounts due and payable by Seller and outstanding hereunder and under the other Transaction Documents (other than the Repurchase Price) to the extent the same have not been paid pursuant to Section 5(b);

(h)   Section 5(d)(i)(B) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

(ii)second, to Buyer, any Transaction Costs and all other amounts due and payable by Seller and outstanding hereunder and under the other Transaction Documents (other than the Repurchase Price) to the extent the same have not been paid pursuant to Section 5(b);

(i)   Section 5(d)(ii)(B) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

second, to Buyer, any Transaction Costs and all other amounts due and payable by Seller and outstanding hereunder and under the other Transaction Documents (other than the Repurchase Price) to the extent the same have not been paid pursuant to Section 5(b);

(j)   Section 5(d)(iii)(B) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

(ii)second, to Buyer, any Transaction Costs and all other amounts due and payable by Seller and outstanding hereunder and under the other Transaction Documents (other than the Repurchase Price) to the extent the same have not been paid pursuant to Section 5(b);

(k)   Section 27(a) of the Repurchase Agreement is hereby amended by deleting the phrase “Unused Fee,” contained in the fourth (4th) sentence thereof.

(l)   Section 9(a) of the Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

(a)Extension of Facility Termination Date. Seller shall have the option to extend the then current Facility Termination Date for two (2) successive periods of one (1) year each (each, an “Extension Period” and the commencement date of each such Extension Period shall be referred to as the “Extension Effective Date”) upon satisfaction of the following terms and conditions: (i) Seller shall deliver to Buyer no earlier than ninety (90) days and no later than thirty (30) days before the then current Facility Termination Date its election to extend the Facility Termination Date, (ii) no Default, Event of Default or Margin Deficit shall exist and be continuing on the date of Seller’s request to extend or on the relevant 

-7-

LEGAL_US_E # 144570876.

 

Extension Effective Date and (iii) all representations and warranties in this Agreement shall be true, correct, complete and accurate in all respects as of the relevant Extension Effective Date (except such representations which by their terms speak as of a specified date and subject to any exceptions disclosed to Buyer in an Exception Report prior to such date and approved by Buyer).

(m)   Annex I to the Repurchase Agreement is hereby amended by deleting the notice information for “SELLER” and replacing the same with the following:

 

			
	
SELLER
	
 
	
TPG RE Finance 12, Ltd.

	
 
	
 
	
c/o TPG RE Finance Trust Management, L.P.

	
 
	
 
	
888 Seventh Avenue, 27th Floor

	
 
	
 
	
New York, NY 10106

	
 
	
 
	
Attention: Deborah Ginsburg

	
 
	
 
	
Telephone:  (212) 405-8426

	
 
	
 
	
Email:  dginsberg@tpg.com

	
 
	
 
	
 

	
 
	
 
	
and

	
 
	
 
	
 

	
 
	
 
	
TPG RE Finance 12, Ltd.

	
 
	
 
	
c/o TPG RE Finance Trust Management, L.P.

	
 
	
 
	
888 Seventh Avenue, 27th Floor

	
 
	
 
	
New York, NY 10106

	
 
	
 
	
Attention:  Jason Ruckman

	
 
	
 
	
Telephone:  (212) 430-4125

	
 
	
 
	
Email:  jruckman@tpg.com

	
 
	
 
	
 

	
With a copy to:
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Ropes & Gray LLP

	
 
	
 
	
1211 Avenue of the Americas

	
 
	
 
	
New York, New York 10036-8704

	
 
	
 
	
Attention:  Daniel L. Stanco, Esq.

	
 
	
 
	
Telephone:  (212) 841-5758

	
 
	
 
	
Email:  Daniel.Stanco@ropesgray.com

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

-8-

LEGAL_US_E # 144570876.

 

SECTION 2.Conditions Precedent.  This Amendment shall become effective on the date hereof provided that the following conditions precedent are satisfied:

(a)   this Amendment is duly executed and delivered by each of Seller and Buyer; and

(b)   Buyer and Seller shall execute the Third Amendment to Fee Letter, dated as of the date hereof.

SECTION 3.Representations and Warranties. On and as of the date first above written, Seller hereby represents and warrants to Buyer that (a) it is in compliance with all the terms and provisions set forth in the Repurchase Agreement on its part to be observed or performed, (b) after giving effect to this Amendment, no Default or Event of Default under the Repurchase Agreement has occurred and is continuing, and (c) after giving effect to this Amendment, the representations and warranties contained in Article 9 of the Repurchase Agreement are true and correct in all respects as though made on such date (except for any such representation or warranty that by its terms refers to a specific date other than the date first above written, in which case it shall be true and correct in all respects as of such other date).

SECTION 4.Acknowledgments of Guarantor. Guarantor hereby acknowledges the execution and delivery of this Amendment by Seller and Buyer and agrees that it continues to be bound by that certain Amended and Restated Guaranty, dated as of May 4, 2018 (as may be amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”), made by Guarantor in favor of Buyer, notwithstanding the execution and delivery of this Amendment and the impact of the changes set forth herein and therein.

SECTION 5.Limited Effect. Except as expressly amended and modified by this Amendment, the Repurchase Agreement and each of the other Transaction Documents shall continue to be, and shall remain, in full force and effect in accordance with their respective terms; provided, however, that upon the date hereof, (a) all references in the Repurchase Agreement to the “Transaction Documents” shall be deemed to include, in any event, this Amendment, and (b) each reference to the “Repurchase Agreement” in any of the Transaction Documents shall be deemed to be a reference to the Repurchase Agreement as amended hereby.

SECTION 6.Counterparts. This Amendment may be executed in counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment in Portable Document Format (.PDF) or by facsimile transmission shall be effective as delivery of a manually executed original counterpart thereof.

SECTION 7.Costs and Expenses. Seller shall pay Buyer’s reasonable actual out of pocket costs and expenses incurred in connection with the preparation, negotiation, execution and consummation of this Amendment in accordance with the Repurchase Agreement.

-9-

LEGAL_US_E # 144570876.

 

SECTION 8.Submission   to   Jurisdiction.     Each    party     irrevocably    and unconditionally (i) submits to the non-exclusive jurisdiction of any United States Federal or New York State court sitting in Manhattan, and any appellate court from any such court, solely for the purpose of any suit, action or proceeding brought to enforce its obligations under this Amendment or relating in any way to this Amendment and (ii) waives, to the fullest extent it may effectively do so, any defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and any right of jurisdiction on account of its place of residence or domicile.

To the extent that either party has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from jurisdiction of any court or from set off or any legal process (whether service or notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) with respect to itself or any of its property, such party hereby irrevocably waives and agrees not to plead or claim such immunity in respect of any action brought to enforce its obligations under this Amendment or relating in any way to this Amendment.

The parties hereby irrevocably waive, to the fullest extent each may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding and irrevocably consent to the service of any summons and complaint and any other process by the mailing of copies of such process to them at their respective address specified in the Repurchase Agreement. The parties hereby agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Section 8 shall affect the right of Buyer to serve legal process in any other manner permitted by law or affect the right of Buyer to bring any action or proceeding against Seller or its property in the courts of other jurisdictions.

SECTION 9.WAIVER OF JURY TRIAL. EACH OF THE PARTIES HEREBY IRREVOCABLY  WAIVES  ALL  RIGHT  TO  A  TRIAL  BY  JURY  IN  ANY  ACTION,PROCEEDING  OR  COUNTERCLAIM  ARISING  OUT  OF  OR  RELATING  TO  THIS AMENDMENT.

SECTION 10.GOVERNING   LAW. THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AMENDMENT, THE RELATIONSHIP OF THE PARTIES TO THIS AMENDMENT, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES TO THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW RULES THEREOF. THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AMENDMENT.

 

[Signature Pages to Follow]

 

 

-10-

LEGAL_US_E # 144570876.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

	
BUYER:

	
 

	
MORGAN STANLEY BANK, N.A., a

	
 
	
national banking association

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/Anthony Preisano

	
 
	
Name:
	
Anthony Preisano

	
 
	
Title:
	
Authorized Signatory

	
 
	
 
	
 

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

Signature Page to Sixth Amendment to Master Repurchase and Securities Contract Agreement

 

 

	
SELLER:

	
 

	
TPG RE FINANCE 12, LTD.,

	
an exempted company incorporated with limited liability under the laws of the Cayman Islands

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/Matthew Coleman

	
 
	
Name:
	
Matthew Coleman

	
 
	
Title:
	
Vice President

	
 
	
 
	
 

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

 

Signature Page to Sixth Amendment to Master Repurchase and Securities Contract Agreement

 

Acknowledged:

 

	
TPG RE FINANCE TRUST HOLDCO,

	
LLC, a Delaware limited liability company, in

	
its capacity as Guarantor, and solely for

	
purposes of making the acknowledgement set

	
forth in Section 4 of this Amendment:

	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/Matthew Coleman

	
 
	
 

	
 
	
Name:
	
Matthew Coleman

	
 
	
Title:
	
Vice President

	
 
	
 
	
 

 

 

Signature Page to Sixth Amendment to Master Repurchase and Securities Contract Agreementex_185147.htm

Exhibit 10.1

 

AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS AMENDMENT No. 1 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment"), dated February 21, 2020, is made and entered into by and among ASURE SOFTWARE, INC., a Delaware corporation ("Borrower"), the Guarantors party hereto, WELLS FARGO BANK, NATIONAL ASSOCIATION a national banking association, as administrative agent for each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in such capacity, "Agent") and the Lenders party hereto.

 

RECITALS

 

WHEREAS, Borrower, the lenders party thereto as "Lenders" and Agent have entered into that certain Third Amended and Restated Credit Agreement dated as of December 31, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement;

 

WHEREAS, Borrower has informed Agent and Required Lenders that Borrower desires to request the issuance of a Letter of Credit, upon which, without the amendments set forth herein, the Letter of Credit Usage would exceed the allowable amount set forth in the Credit Agreement;

 

WHEREAS, Borrower has requested that Agent and Required Lenders agree to certain amendments to the Credit Agreement as more fully set forth herein; and

 

WHEREAS, Agent and the Required Lenders are willing to agree to certain amendments to the Credit Agreement, subject to the terms and conditions set forth herein;

 

NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

 

ARTICLE I

AMENDMENTS TO THE CREDIT AGREEMENT

 

Notwithstanding anything to the contrary in the Credit Agreement or elsewhere in the Loan Documents, subject to the satisfaction of the conditions set forth herein, and in reliance on the representations and warranties set forth herein, effective as of the Effective Date (as defined below), Section 2.11(b)(i) of the Credit Agreement is hereby amended by amending and restating the amount "$250,000" therein as "$1,000,000".

 

 

 

 

ARTICLE II

NO WAIVER

 

This Amendment is a limited consent and amendment and other than as set forth above in Article I hereof, nothing contained in this Amendment shall be construed as a consent or amendment to or waiver by Agent or any Lender of any covenant or provision of the Credit Agreement, the other Loan Documents, this Amendment, or of any other contract or instrument between any Loan Party and Agent or any Lender, and the failure of Agent or any Lender at any time or times hereafter to require strict performance by the Loan Parties of any provision thereof shall not waive, affect or diminish any right of Agent to thereafter demand strict compliance therewith. Agent and each Lender hereby reserves all rights granted under the Credit Agreement, the other Loan Documents, this Amendment and any other contract or instrument between any Loan Party and Agent or any Lender.

 

ARTICLE III

CONDITIONS PRECEDENT AND SUBSEQUENT

 

This Amendment shall become effective only upon the satisfaction in full, in a manner satisfactory to Agent and Required Lenders, of the following conditions precedent (the first date upon which all such conditions have been satisfied being herein called the "Effective Date"):

 

(a)     Agent and each Lender party hereto shall have received a copy of this Amendment executed and delivered by Agent, Required Lenders and Borrower;

 

(b)     All corporate and other proceedings, and all documents instruments and other legal matters in connection with the transactions contemplated by each of this Amendment shall be satisfactory in form and substance to Agent and its counsel.

 

(c)     After giving effect to this Amendment, the representations and warranties made by Borrower contained herein and by each Loan Party in the Credit Agreement and the other Loan Documents, shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of the date hereof, as if those representations and warranties were made for the first time on such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier date);

 

(d)     After giving effect to this Amendment, each Loan Party is in compliance with all applicable covenants and agreements contained in the Credit Agreement and the other Loan Documents; and

 

(e)     After giving effect to this Amendment, no Default or Event of Default shall exist under any of the Loan Documents, and no Default or Event of Default will result under any of the Loan Documents from the execution, delivery or performance of this Amendment.

 

-2-

 

 

ARTICLE IV

RATIFICATIONS, REPRESENTATIONS AND WARRANTIES

 

4.01     Ratifications. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement and the other Loan Documents, and, except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect. Borrower and the other Loan Parties hereby agree that all liens and security interest securing payment of the Obligations under the Credit Agreement are hereby collectively renewed, ratified and brought forward as security for the payment and performance of the Obligations. Borrower and the other Loan Parties, and Agent, on behalf of itself and the Lenders, agree that the Credit Agreement and the other Loan Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective terms, and that this Amendment shall not constitute a novation.

 

4.02     Representations and Warranties. Borrower and each Guarantor each hereby represents and warrants, jointly and severally, to Agent and the Lender Group as of the date hereof as follows: (a) it is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization; (b) the execution, delivery and performance by it of this Amendment, the Credit Agreement and all other Loan Documents executed and/or delivered in connection herewith are within its powers, have been duly authorized, and do not contravene (i) its Governing Documents or (ii) any applicable law; (c) no consent, license, permit, approval or authorization of, or registration, filing or declaration with any governmental body or other Person, is required in connection with the execution, delivery, performance, validity or enforceability of this Amendment, the Credit Agreement or any of the other Loan Documents executed and/or delivered in connection herewith by or against it, except for those consents, approvals or authorizations which (i) will have been duly obtained, made or compiled prior to the Effective Date and which are in full force and effect or (ii) the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Effect; (d) this Amendment, the Credit Agreement and all other Loan Documents executed and/or delivered in connection herewith have been duly executed and delivered by it; (e) this Amendment, the Credit Agreement and all other Loan Documents executed and/or delivered in connection herewith constitute its legal, valid and binding obligation enforceable against it in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally or by general principles of equity; (f) no Default or Event of Default exists, has occurred and is continuing or would result by the execution, delivery or performance of this Amendment; (g) each Loan Party is in compliance with all applicable covenants and agreements contained in the Credit Agreement and the other Loan Documents, as consented to, amended or expressly waived herein; and (h) the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified in the text thereof) on and as of the date hereof as though made on and as of each such date, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and complete on and as of such earlier date).

 

-3-

 

 

ARTICLE V

MISCELLANEOUS PROVISIONS

 

5.01     Survival of Representations and Warranties. All representations and warranties made in the Credit Agreement or the other Loan Documents, including, without limitation, any document furnished in connection with this Amendment, shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by Agent shall affect the representations and warranties or the right of Agent to rely upon them.

 

5.02     Expenses of Agent and the Lender Group. The Borrower agrees to pay on demand all Lender Group Expenses incurred by Agent and any Lender in connection with this Amendment any and all amendments, modifications, and supplements to the other Loan Documents, including, without limitation, the reasonable costs and fees of legal counsel, and all costs and expenses incurred by Agent in connection with the enforcement or preservation of any rights under the Credit Agreement or any other Loan Documents, including, without, limitation, the costs and fees of Agent's and Required Lenders' legal counsel.

 

5.03     Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

5.04     Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of Agent and each Loan Party and their respective successors and assigns, except that no Loan Party may assign or transfer any of its respective rights or obligations hereunder without the prior written consent of Agent and each Lender.

 

5.05     Counterparts. This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment. Receipt by telecopy or electronic mail of any executed signature page to this Amendment shall constitute effective delivery of such signature page. This Amendment to the extent signed and delivered by means of a facsimile machine or other electronic transmission including email transmission of a PDF image), shall be treated in all manner and respects and for all purposes as an original agreement or amendment and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto shall raise the use of a facsimile machine or other electronic transmission to deliver a signature or the fact that any signature or agreement or amendment was transmitted or communicated through the use of a facsimile machine or other electronic transmission as a defense to the formation or enforceability of a contract and each such party forever waives any such defense.

 

5.06     Effect of Amendment. No consent or amendment, express or implied, by Agent to or for any breach of or deviation from any covenant or condition by any Loan Party shall be deemed a consent to or waiver or amendment of any other breach of the same or any other covenant, condition or duty.

 

-4-

 

 

5.07     Headings. The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

 

5.08   Applicable Law. THE VALIDITY OF THIS AMENDMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO, AND ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.

 

5.09     Final Agreement. THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS, EACH AS MODIFIED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED. THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS MODIFIED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AGREEMENT OF ANY PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY THE BORROWER AND AGENT.

 

5.10     Release. AS A MATERIAL PART OF THE CONSIDERATION FOR AGENT AND LENDERS ENTERING INTO THIS AMENDMENT, ON THE DATE HEREOF EACH LOAN PARTY, ON BEHALF OF ITSELF AND ITS SUCCESSORS (INCLUDING, WITHOUT LIMITATION, ANY TRUSTEES ACTING ON BEHALF OF SUCH LOAN PARTY AND ANY DEBTOR-IN-POSSESSION WITH RESPECT TO SUCH LOAN PARTY), ASSIGNS, SUBSIDIARIES AND AFFILIATES HEREBY RELEASES AND FOREVER DISCHARGES AGENT AND EACH LENDER AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS, AFFILIATES, SUBSIDIARIES, PARENTS, SUCCESSORS AND ASSIGNS FROM ANY AND ALL LIABILITIES, OBLIGATIONS, ACTIONS, CONTRACTS, CLAIMS, CAUSES OF ACTION, DAMAGES, DEMANDS, COSTS AND EXPENSES WHATSOEVER, OF EVERY KIND AND NATURE, HOWEVER EVIDENCED OR CREATED, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE EFFECTIVE DATE INVOLVING THE EXTENSION OF CREDIT UNDER OR ADMINISTRATION OF THE CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENTS OR COLLATERAL, THE OBLIGATIONS INCURRED BY BORROWERS OR ANY OTHER TRANSACTIONS EVIDENCED BY THE CREDIT AGREEMENT OR THE LOAN DOCUMENTS.

 

5.11     Consent of Guarantors. The Borrower and each Guarantor, hereby (a) consent to the transactions contemplated by this Amendment and (b) agree that the Credit Agreement and the other Loan Documents (as amended, restated, supplemented or otherwise modified from time to time) are and shall remain in full force and effect. Although each Guarantor has been informed of the matters set forth herein and has acknowledged and agreed to the same, each understands that neither the Agent nor any Lender has any obligation to inform it of such matters in the future or to

 

-5-

 

 

seek its acknowledgment or agreement to future amendments, and nothing herein shall create such a duty. Borrower and each Guarantor, acknowledges that its Guaranty is in full force and effect and ratifies the same, acknowledges that the undersigned has no defense, counterclaim, set-off or any other claim to diminish the undersigned's liability under such document.

 

[Remainder of page intentionally left blank; signature pages follow]

 

 

 

 

 

 

-6-

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first above written.

 

 

	
			ASURE SOFTWARE, INC.,

			a Delaware corporation

			

			

			By: /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			MANGROVE EMPLOYER SERVICES, INC.,

			a Florida corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			ASURE PAYROLL SERVICES, INC., f/k/a MANGROVE PAYROLL SERVICES, INC.,

			a Florida corporation 

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			MANGROVE SOFTWARE, INC.,

			a Florida corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			

 

Signature Page to Amendment No. 1 to Third Amended and Restated Credit Agreement

 

 

 

	
			ASURE CONSULTING, INC. f/k/a PERSONNEL MANAGEMENT SYSTEMS, INC.,

			a Washington corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			COMPASS HRM, INC.,

			a Florida corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			ISYSTEMS INTERMEDIATE HOLDCO, INC.,

			a Delaware corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			ISYSTEMS LLC,

			a Vermont limited liability company

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			EVOLUTION PAYROLL PROCESSING LLC,

			a Delaware limited liability company

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			

 

Signature Page to Amendment No. 1 to Third Amended and Restated Credit Agreement

 

 

 

	
			ASSOCIATED DATA SERVICES, INC.,

			an Alabama corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			TELEPAYROLL, INC.,

			a California corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			SAVERS ADMINISTRATIVE SERVICES, INC.,

			a North Carolina corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			
	
			USA PAYROLLS INC.,

			a New York corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			

 

Signature Page to Amendment No. 1 to Third Amended and Restated Credit Agreement

 

 

 

	
			PAYROLL MAXX LLC,

			a Colorado limited liability company

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			PAY SYSTEMS OF AMERICA, INC.,

			a Tennessee corporation

			

			

			By:  /s/ Patrick Goepel

			Name: Patrick Goepel

			Title: Chief Executive Officer and President

			 

			

 

 

Signature Page to Amendment No. 1 to Third Amended and Restated Credit Agreement

 

 

 

 

	
			WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent and as a Lender

			

			

			By: /s/ Reza Sabahi

			Name:   Reza Sabahi

			Title:  Authorized Signatory

			

 

Signature Page to Amendment No. 1 to Third Amended and Restated Credit Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]