Document:

c56535_ex10-3.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.3

SEVENTH AMENDMENT TO 

CREDIT FACILITIES AGREEMENT

      This SEVENTH AMENDMENT TO CREDIT FACILITIES AGREEMENT (this “Agreement”) is entered into as of February 3, 2009 and effective on the date of unless other otherwise expressly provided herein, by and among MTM
TECHNOLOGIES, INC., a New York corporation, MTM TECHNOLOGIES (US), INC., a Delaware corporation, MTM TECHNOLOGIES (MASSACHUSETTS), LLC, a Delaware limited liability company, and INFO SYSTEMS, INC., a Delaware corporation (collectively, and
separately referred to as, "Borrower" or "the Borrower"), and GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION ("CDF"), as Administrative Agent, and CDF, as the sole lender (the “Lender”). 

Recitals:

	
A. 		
Borrower, Administrative Agent and the Lender are parties to that certain Credit Facilities Agreement dated as of August 21, 2007, as amended by the First Amendment to Credit Facilities Agreement entered
into and effective as of August 21, 2007, as amended by the Second Amendment to Credit Facilities Agreement entered into and effective as of February 4, 2008, as amended by the Third Amendment to Credit Facilities Agreement entered into and
effective as of February 28, 2008, as amended by the Fourth Amendment to Credit Facilities Agreement entered into as of May 16, 2008, as amended by the Fifth Amendment to Credit Facilities Agreement entered into as of June 11, 2008 (the “Fifth
Amendment”), and as amended by the Sixth Amendment to Credit Facilities Agreement entered into as of November 13, 2008 (as amended, the “Loan Agreement”).

	
	 
	
B. 		
Administrative Agent, Lender and Borrower have agreed to the provisions set forth herein on the terms and conditions contained herein.

	
	 

Agreement

      Therefore, in consideration of the mutual agreements herein and other sufficient consideration, the receipt of which is acknowledged, Borrower, Administrative Agent and the Lender hereby agree as follows: 

1.      Definitions. All references to the “Agreement” or the “Loan Agreement” in
the Loan Agreement and in this Agreement shall be deemed to be references to the Loan Agreement as it may be amended, restated, extended, renewed, replaced, or otherwise modified from time to time.  Capitalized terms used and not otherwise defined
herein have the meanings given them in the Loan Agreement. 

2.      Effectiveness of Agreement. This Agreement shall become effective as of the date first written
above (or such earlier date as may be expressly stated herein), but only if this Agreement has been executed by Borrower, Administrative Agent and the Lender, each of the other documents listed on Exhibit A have been duly executed and delivered to
Administrative Agent in form and substance satisfactory to Lender, and if the Seventh Amendment Fee has been paid in same day funds.  On the date hereof, Borrower hereby irrevocably authorizes and directs Administrative Agent to make a Revolving
Loan Advance to pay the Seventh Amendment Fee.

3.      Waiver of breach of Maximum Total Funded Indebtedness to EBITDA. Borrower has notified the
Administrative Agent that it breached its Maximum Total Funded Indebtedness to EBITDA covenant as set forth in Section 15.4 of the Loan Agreement for the fiscal quarter ending December 31, 2008 (the “Financial Covenant Default”).

Upon the effectiveness of this Amendment, Lender hereby waives the Financial Covenant Default. The waiver contained in this Section 3 is specific in intent and is valid only for the specific purpose for which given. Nothing
contained herein obligates the Administrative Agent and the Lender to agree to any additional waivers of any provisions of any of the Loan Documents. The waiver contained in this Section 3 shall not operate as a waiver of Lender’s right to
exercise remedies resulting from any other Defaults or Events of Default, whether or not of a similar nature and whether or not known to Lender.

4.      Default Rate. The parties agree that the Default Rate, which has been in effect beginning on
July 1, 2008, as provided for in Fifth Amendment, was agreed to by Borrower, Administrative Agent and Lender in consideration for the agreement by Administrative Agent and the Lender to modify certain loan covenants, and not the result of any
existing Default or Event of Default by Borrower, and the Administrative Agent, the Lender and Borrower agree that the Default Rate shall remain in effect until the Borrower presents a quarterly Compliance Certificate, beginning with the fiscal
quarter ending June 30, 2009, showing compliance with all covenants in Section 15 of the Loan Agreement and certifying that no Default or Event of Default has occurred and is continuing and, upon delivery of such a Compliance Certificate showing
compliance with all such covenants and certifying that no Default or Event of Default has occurred and is continuing, the Default Rate shall no longer be in effect beginning on the first day of the month in which such Compliance Certificate is
delivered to Administrative Agent.  The Default Rate shall be in addition to the interest rate otherwise in effect under the Loan Agreement (as amended hereby). 

	
5. 		
Amendment. The Loan Agreement is hereby amended as follows:
	
	 
	 	
 

		5.1.      Borrowing Base.
	 	 	 
	Effective December 31, 2008, Section
    3.1.4.2 of the Loan Agreement is deleted and replaced with the following: 
	 	 	 
	 	 	“3.1.4.2. $1,750,000; minus”
	 	 	 
	 	 	5.2.     Representations
    and Warranties.
	 	 	 
	Section 11.24 is deleted in its entirety
    and replaced with the following: 
	 	 	 
	 	 	“11.24.     
          Other Creditor Indebtedness; Intercreditor Documents; Subordinated
          Indebtedness, FirstMark Indebtedness.  There
          is no breach or default with respect to the Other Creditor Indebtedness,
          and the Other Creditor Indebtedness has been incurred in accordance
          with the terms of this Agreement. There is no breach or default by
          or attributable to a Covered Person of any obligation set forth in
          any Intercreditor Agreement or any Other Creditor Indebtedness Document.
          There is no breach or default with respect to the Subordinated Indebtedness,
          and the Subordinated Indebtedness has been incurred in accordance with
          the terms of this Agreement. There is no breach or default by or attributable
          to any holder of the Subordinated Indebtedness under the Subordination
          Agreement. There is no breach or default with respect to the FirstMark
          Indebtedness, and the FirstMark Indebtedness has been incurred in accordance
          with the terms of this Agreement.” 

	 	 	 

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		5.3.     Notices.
	 	 	 
	Section 13.10.7 is deleted in its
    entirety and replaced with the following: 
	 	 	 
	 	 	“13.10.7. Borrower
      shall promptly deliver notice to Administrative Agent of the assertion
      by the holder of any Capital Securities in a Covered Person, the FirstMark
      Indebtedness, the Subordinated Indebtedness or any other Indebtedness of
      a Covered Person in the outstanding principal amount in the aggregate in
      excess of $500,000 that a default exists with respect thereto or that
      such Covered Person is not in compliance with the terms thereof, or of
      the threat or commencement by such holder of any enforcement action because
    of such asserted default or noncompliance.” 
	 	 	 
	 	 	5.4.      Subordinated Indebtedness.
	 	 	 
	Section 14.2.4 of the Loan Agreement
    is deleted in its entirety and replaced with the following: 
	 	 	 
	 	 	 “14.2.4.
        The Subordinated Indebtedness up to an aggregate of $40,000,000 outstanding
        in principal at any time if a Subordination Agreement remains in effect
        with respect thereto and the Subordinated Indebtedness contains terms
    and provisions acceptable to Administrative Agent.”  

	 	 	 
	 	 	5.5.     FirstMark
    Indebtedness.
	 	 	 
	Section 14.2.12 of the Loan Agreement
    is deleted in its entirety and replaced with the following: 
	 	 	 
	 	 	“14.2.12. Unsecured
      subordinated Indebtedness owing to FirstMark III, L.P. (formerly known
      as Pequot Equity Fund III, L.P.), FirstMark III Offshore Partners, L.P.
      (formerly known as Pequot Offshore Private Equity Partners III, L.P.),
      Constellation Venture Capital II, L.P., CVC II Partners, LLC, The BSC Employee
      Fund VI, L.P. and/or Constellation Venture Capital Offshore II, L.P., up
      to
$7,000,000 in the aggregate principal amount with interest payable in preferred
Capital Securities of MTM Technologies, Inc. and which may be coupled with warrants
for the Capital Securities of MTM Technologies, Inc. (so long as the exercise
thereof shall not result in a Change of Control) (the “FirstMark Indebtedness”)
which such FirstMark Indebtedness may not be repaid without the prior written
consent of the Required Lenders, provided, however, if the FirstMark Indebtedness
has a stated maturity of December 15, 2009 or later, then the FirstMark Indebtedness
may be repaid without the consent of the Required Lenders by Borrower paying
the principal balance and all accrued interest thereon at any time from and after
December 15, 2009, if and only if no Default or Event of Default exists at the
time of such payment and no Default or Event of Default would reasonably like
to occur from making of any such payment.” 
	 	 	 
	 	 	5.6.     Payment
    on other Indebtedness.
	 	 	 
	Section 14.3 is deleted in its entirety
    and replaced with the following: 
	 
	 	 	“14.3.
        Payments on Other Creditor Indebtedness; Subordinated Indebtedness; FirstMark
        Indebtedness. Make any nonscheduled
        prepayment of principal or interest on any Other Credit Indebtedness
        unless both immediately before and after giving effect to any such prepayment,
        there shall be no Default or Event of Default; make any payment of principal
        on the Subordinated Indebtedness; make any payment of interest on the
        Subordinated Indebtedness unless such payment of interest is scheduled
    to be made 
	 	 	 

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	 	 	under the Subordinated Indebtedness
        Documents and such payment is expressly permitted by the terms of the
        applicable Subordination Agreement and Section 6.3.3.2 hereof; make any
        payment of principal on the FirstMark Indebtedness unless such payment
        of principal is schedule to be made under the FirstMark Indebtedness
        Documents and such payment is expressly permitted by the terms of Section
        14.2.12 hereof or make any cash interest payment on the FirstMark Indebtedness;
        or modify, amend, supplement, compromise, satisfy, release or discharge
        any of the Subordinated Indebtedness Documents, any collateral securing
        the same, the FirstMark Indebtedness Documents, or any Person liable
    directly or indirectly with respect thereto.” 
	 	 	 
	 	 	5.7.     Prepayments.
	 	 	 
	Section 14.4 is deleted
    in its entirety and replaced with the following: 
	 	 	 
	 	 	“14.4.
          Prepayments. Prepay, whether voluntarily
          or otherwise, any Indebtedness, including without limitation, the Subordinated
          Indebtedness and the FirstMark Indebtedness, other than (a) the Loan
          Obligations in accordance with the terms of the Loan Documents, (b)
          trade payables in the ordinary course of business consistent with past
    practices, (c) as permitted by Section 14.3. ” 
	 	 	 
	 	 	5.8.     Total
    Funded Indebtedness.
	 	 	 
	The definition of Total
        Funded Indebtedness is deleted in its entirety and replaced with the
    following:
	 	 	 
	 	 	“"Total Funded Indebtedness" means the
        sum of the following, without duplication (i) outstanding principal and
        interest of the Loans (including any fees paid to Administrative Agent
        or any Lender in connection with the execution and delivery of this Agreement)
        excluding the principal outstanding under the Aggregate Floorplan Loan
        Facility and, without duplication, the Interim Floorplan Loan Facility
        and unfunded Approvals, (ii) the face amount of any letters of credit
        issued on the account of any Borrower, (iii) the aggregate outstanding
        principal balance of all other Indebtedness for borrowed money, including,
        without limitation, the Capital Expenditure Equivalent, and (iv) the
        maximum amount payable under any guaranty executed by a Borrower, but, excluding,
        the Subordinated Indebtedness if a Subordination Agreement is in effect
        and excluding the
    FirstMark Indebtedness.” 
	 	 	 
	 	 	5.9. Minimum
    EBITDA.
	 	 	 
	Effective for all reporting periods after December
        1, 2008, Section 15.3 of the Loan Agreement is deleted in its entirety
    and replaced with the following:
	 	 	 
	 	 	“15.3. Minimum EBITDA. Each
        Borrower covenants that as of the last day of each fiscal quarter, for
        the fiscal quarter then ended, Borrower’s EBITDA shall not be less
    than the amounts set forth in the table below:  
	 	 	 
	 	 	 

	 	 	
The Fiscal Quarter Ending On:		 		
Minimum EBITDA	
	 	 	
December 31, 2008		 	
  $600,000	
	 	 	
March 31, 2009		 	
  $800,000	

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	 	 	June
    30, 2009	 	$2,000,000”

	 	 	5.10.      Defaults.
	 	 	 
	Section 16.1.11 is deleted in its
    entirety and replaced with the following:
	 	 	 
	 	 	“16.1.11.
          Other Creditor Indebtedness; Subordinated Indebtedness; FirstMark Indebtedness. The
          occurrence of (a) any breach, default or event of default with respect
          to any of the Other Creditor Indebtedness in excess of $250,000
          in the aggregate which is not cured or waived within any applicable
          grace period or any acceleration thereof or right to accelerate, or
          (b) the termination of any Intercreditor Agreement by any party thereto,
          other than Administrative Agent, prior to the payment in full of all
          of the Other Creditor Indebtedness covered thereby. The occurrence
          of (a) any breach or default with respect to the Subordinated Indebtedness
          that is not cured within any applicable grace period or any acceleration
          thereof or right to accelerate, or (b) any breach or default of the
          Subordination Agreement by the holder of any of the Subordinated Indebtedness.
          The occurrence of any breach or default with respect to the FirstMark
          Indebtedness that is not cured within any applicable grace period or
          any acceleration thereof or right to accelerate. On or before 5:00
          p.m. Atlanta, Georgia time on February 13, 2009, the failure of any
          of the FirstMark Indebtedness with a maturity date prior to December
          15, 2009 to have such maturity date extended to December 15, 2009 or
          a later date in a writing that contains terms and provisions acceptable
    to Lender.” 
	 	 	 
	 	 	5.11.     Definitions.
	 	 	 
	The definitions of “Pequot
        Indebtedness” and “Pequot Indebtedness Documents” are
        deleted from Exhibit 2.1, and the following new definitions are inserted
    in alphabetical order to Exhibit 2.1: 
	 	 	 
	 	 	“FIRSTMARK INDEBTEDNESS --
    is defined in Section 14.2.12. ” 
	 	 	 
	 	 	“FIRSTMARK INDEBTEDNESS DOCUMENTS --
        each document, instrument and agreement evidencing all or any portion
    of the FirstMark Indebtedness.” 
	 	 	 
	The definition of Material Agreement is deleted
    in its entirety and replaced with the following:
	 	 	 
	 	 	“MATERIAL AGREEMENT --
        as to Borrower, any Guarantor or any other Covered Person, any Contract
        to which Borrower, any Guarantor or any Covered Person is a party or
        by which any such Borrower, any Guarantor or any other Covered Person
        is bound which, if violated or breached, has or is reasonably likely
        to have a Material Adverse Effect, including, without limitation, all
        Other Creditor Indebtedness Documents, all Subordinated Indebtedness
        Documents, all FirstMark Indebtedness Documents, all documents referenced
        in any Intercreditor Agreement, including, without limitation, the Other
    Creditor Indebtedness Documents.” 
	 	 	 
	6.     General
          Representations and Warranties of Borrower. Each Borrower hereby represents
          and warrants to Administrative Agent and the Lender that (i) such Borrower’s
          execution of this Agreement has been duly authorized by all requisite
          action of such Borrower, (ii) no consents are necessary from any third
          parties for such Borrower’s execution, delivery or performance
          of this Agreement except for those already duly obtained, (iii) this
          Agreement, the Loan Agreement, and each of the other Loan Documents,
          constitute the legal, valid and binding obligations of such Borrower
          enforceable against such 
	 	 	 

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Borrower in accordance with their terms, except to the extent that the enforceability thereof against such Borrower may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors rights generally or by equity principles of general application, (iv)
except as disclosed on the Disclosure Schedule attached hereto (which amends and restates in its entirety the Disclosure Schedule attached to the Loan Agreement), all of the representations and warranties contained in Section 11 of the Loan
Agreement are true and correct with the same force and effect as if made on and as of the date of this Agreement with such exceptions as have been disclosed to Administrative Agent and the Lenders in writing, (v) there is no Existing Default, (vi)
the execution, delivery and performance of this Agreement by Borrower does not violate, contravene, or conflict with any Material Law or Material Agreement, (vii) there are no Material Proceedings pending or, to the knowledge of Borrower, threatened, and (viii)
since August 21, 2007, no Borrower’s Charter Documents have been amended,
restated or otherwise modified in any manner which has or is reasonably likely to have a Material Adverse Effect on any Covered Person or which will or is reasonably likely to cause a Default or Event of Default. 

7.     Reaffirmation; No Claims. Each Borrower hereby represents, warrants, acknowledges and confirms
that (i) the Loan Agreement and the other Loan Documents remain in full force and effect, (ii) the Security Interests of the Administrative Agent under the Security Documents secure all the Loan Obligations under the Loan Agreement, continue in full
force and effect, and have the same priority as before this Agreement, (iii) no Borrower has any defenses to its obligations under the Loan Agreement and the other Loan Documents, and (iv) no Borrower has any claim against Administrative Agent or
the Lenders arising from or in connection with the Loan Agreement or the other Loan Documents, and each Borrower hereby releases and waives and discharges forever any such claims it may have against Administrative Agent or the Lenders arising from
or in connection with this Agreement, the Loan Agreement or the other Loan Documents which have arisen or accrued on or prior to the date hereof.  Until the Loan Obligations
are paid in full in good funds and all obligations and liabilities of Borrower under the Loan Agreement and the Loan Documents are performed and paid in full in good funds, Borrower agrees and covenants that it is bound by the covenants and
agreements set forth in the Loan Agreement, the Loan Documents and in this Agreement.  Borrower hereby ratifies and confirms the Loan Obligations. This Agreement is a part of the Loan Documents.

8.     Payments. Each Borrower reaffirms, covenants and agrees to direct all Account Debtors to remit
payments on their Accounts to a Lockbox, including, without limitation, the Account owing from Defense Finance and Accounting Services. 

9.     Effect of Agreement. The execution, delivery and effectiveness of this Agreement shall not and
does not operate as a waiver of any right, power or remedy of Administrative Agent or the Lenders under the Loan Agreement or any of the other Loan Documents, nor constitute a waiver of any provision of the Loan Agreement or any of the other Loan
Documents or any Existing Default or Event of Default.  The execution, delivery and effectiveness of this Agreement shall not and does not act as a release or subordination of the liens and Security Interests of Administrative Agent under the Loan
Documents.

10.    Payment of Fees and Expenses. Borrower shall promptly pay to Administrative Agent an amount
equal to all reasonable fees, costs, and expenses, incurred by the Administrative Agent (including all reasonable attorneys fees and expenses) in connection with the preparation, negotiation, execution, and delivery of this Agreement, and any
further documentation which may be required in connection herewith. 

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11.    Governing Law. This Agreement and the rights and obligations of the parties hereunder and
thereunder shall be governed by and construed and interpreted in accordance with the internal Laws of the State of Illinois applicable to contracts made and to be performed wholly within such state, without regard to choice or conflicts of law
principles. 

12.    Patriot Act. Administrative Agent and each Lender hereby notifies the Borrowers that, pursuant
to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (as amended from time to time (including any successor statute) and together with all rules promulgated thereunder, collectively, the
“Act”), it is required to obtain, verify and record information that identifies the Borrowers and any Guarantor, which information includes the name and address of the Borrowers and any Guarantor and other information that will allow
Administrative Agent and each Lender to identify the Borrowers and each Guarantor in accordance with the Act. 

13.     Section Titles. The section titles in this Agreement are for convenience of reference only and
shall not be construed so as to modify any provisions of this Agreement. 

14.    Counterparts; Facsimile Transmissions. This Agreement may be executed in one or more
counterparts and on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures to this Agreement may be given by facsimile or other electronic transmission,
and such signatures shall be fully binding on the party sending the same. 

15.    Binding Arbitration. This Agreement is subject to the binding arbitration provisions contained
in the Loan Agreement and the Loan Documents as applicable to the parties hereto. 

16.    Incorporation By Reference. Administrative Agent, Lender and Borrower hereby agree that all of
the terms of the Loan Documents are incorporated in and made a part of this Agreement by this reference. 

17.    Notice—Oral Commitments Not Enforceable. 

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH
IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 

18.    Statutory Notice-Insurance. 

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UNLESS YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US, WE MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT YOUR INTERESTS. THE COVERAGE THAT WE PURCHASE MAY NOT PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN CONNECTION WITH THE COLLATERAL.  YOU MAY
LATER CANCEL ANY INSURANCE PURCHASED BY US, BUT ONLY AFTER PROVIDING EVIDENCE THAT YOU HAVE OBTAINED INSURANCE AS REQUIRED BY OUR AGREEMENT.  IF WE PURCHASE INSURANCE FOR THE COLLATERAL, YOU WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE,
INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE.  THE COSTS OF THE INSURANCE MAY BE ADDED TO
YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION.  THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE YOU MAY BE ABLE TO OBTAIN ON YOUR OWN. 

{remainder of page intentionally left blank; signature page immediately follows} 

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 IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first above written. 

GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION,  

as Administrative Agent and sole Lender 

	
By:		 	/s/  David Mintert 
	
Name:		 	David Mintert
	
Title:		 	Operations
	    Director

MTM TECHNOLOGIES, INC., as
a Borrower

	
By:		 	/s/  J.W. Braukman, III 
	
Name:		 	
J.W. Braukman, III	
	
Title:		 	
Senior Vice President and Chief Financial Officer	

MTM TECHNOLOGIES (US), INC., as a Borrower

	
By:		 	/s/  J.W.
    Braukman, III 
	
Name:		 	
J.W. Braukman, III	
	
Title:		 	
Senior Vice President and Chief Financial Officer	

MTM TECHNOLOGIES (MASSACHUSETTS), LLC, as a Borrower

	
By:		 	/s/  J.W.
    Braukman, III 
	
Name:		 	
J.W. Braukman, III	
	
Title:		 	
Senior Vice President and Chief Financial Officer	

INFO SYSTEMS, INC., as a Borrower

	
By:		 	/s/  J.W.
    Braukman, III 
	
Name:		 	
J.W. Braukman, III	
	
Title:		 	
Senior Vice President and Chief Financial Officer	

9c56535_ex10-4.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.4

     AMENDMENT No. 7, dated as of January 29, 2009 and effective as provided herein (“Amendment”) is executed in connection with the Credit
Agreement, dated as of November 23, 2005, and entered into by and among MTM Technologies, Inc., a New York corporation (“MTM”), MTM Technologies (US), Inc., a Delaware corporation (“MTM-US”), MTM Technologies (Massachusetts),
LLC, a Delaware limited liability company (“MTM-MA”) and Info Systems, Inc., a Delaware corporation (“ISI”, MTM, MTM-US, MTM-MA and ISI being collectively, the “Borrowers” and each a “Borrower”); Columbia
Partners, L.L.C. Investment Management, as Investment Manager; and National Electrical Benefit Fund, as Lender (as amended or modified, the “Credit Agreement”). Terms which are capitalized in this Amendment and not otherwise defined shall
have the meanings ascribed to such terms in the Credit Agreement. 

     WHEREAS, the Borrowers have requested that (i) the Lender make an additional advance to the Borrowers under the Credit Agreement in an amount equal to
One Million Dollars ($1,000,000) (the “Additional Advance”), and (ii) Investment Manager and Lender a) consent to and approve the incurrence by MTM of certain
unsecured subordinated indebtedness to FirstMark III L.P. and/or FirstMark Offshore Partners, L.P., in the aggregate principal amount up to $1,000,000, and the issuance of
warrants in connection therewith (collectively, the “FirstMark Debt”), (b) amend financial covenants contained in Section 6.3 of the Credit Agreement, and (c) waive
certain terms of the Credit Agreement in relation to the foregoing requests on the terms contained in this Amendment; and the Investment Manager and the Lender are willing to consent to the foregoing but only on the condition that the Credit
Agreement be amended as set forth terms contained in this Amendment; 

     NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows: 

 

     Section One. Consent and Waiver. At the request of Borrowers, each of Investment Manager and Lender hereby (a) consents to and approves of the incurrence
by MTM of the FirstMark Debt, on terms and conditions substantially as set forth in the Subordinated Promissory Notes and Warrants attached hereto as Schedule I (collectively, the “FirstMark Notes”) and the warrants to purchase stock as
set forth in the FirstMark Notes, to fund working capital needs of the Borrower, provided however, that the FirstMark Notes shall not be amended without the written consent of Investment Manager and Lender, (b) agrees that the subordination terms
set forth in the FirstMark Notes shall satisfy the requirement for a subordination agreement, and (c) consents to and approves of payments being made under the FirstMark Notes in accordance with the subordination terms set forth therein. 

     Section Two. Additional Advance under Amendment to Credit Agreement.  Subject to
the terms and conditions of this Amendment and the Credit Agreement, and in reliance upon the representations and warranties set forth herein, the Lender shall make the Additional Advance upon receipt by Investment Manager on the date hereof of an
amended and restated secured promissory note in the form attached hereto as Schedule II, which note shall be payable to the order of Lender in the aggregate principal amount of Twenty Nine Million Dollars ($29,000,000) (the “Second Amended
Note”).  Thereafter, for all references to the “Note” set forth in the Credit Agreement and the other Loan Documents shall be deemed to refer to the Second Amended Note.

     Section Three. Amendments to Credit Agreement.

     (a)      For all reporting periods after December 1 2008, Section 6.3(b) of the Credit Agreement is deleted in its entirety,
and following is substituted in lieu thereof: 

           “(b) Minimum EBITDA. Each Borrower covenants that as of the last day of each fiscal quarter, for the fiscal quarter then ended, Borrowers’
EBITDA shall not be less than the amounts set forth in the table below: 

	 	
The Fiscal Quarter Ending On:		
Minimum EBITDA	
	 	
December 31, 2008		
540,000	
	 	
March 31, 2009		
720,000	
	 	
June 30, 2009		
1,800,000	
	 	

     (b)     For all reporting periods after December 1, 2008, Section 6.3(d) of the Credit Agreement is deleted in its entirety, and following is substituted in lieu thereof:

           “(b) Excess Cash/Marketable Securities plus Availability.  Each Borrower covenants that on the last day of each calendar month that the sum of
(A) the amount of cash or marketable securities permitted by Section 14.1.4 of the GE Financing Agreement, plus (B) the difference between (i) the Borrowing Base (as defined in the GE Financing Agreement) on such date, minus (ii) the sum of (a) the
Swingline Loan (as defined in the GE Financing Agreement), (b) the Floorplan Shortfall (as defined in the GE Financing Agreement), (c) the Letter of Credit Exposure (as defined in the GE Financing Agreement) on such date (except to the extent that a
Revolving Loan Advance (as defined in the GE Financing Agreement) will be used immediately to reimburse Letter of Credit Issuer (as defined in the GE Financing Agreement) for unreimbursed draws on a Letter of Credit (as defined in the GE Financing
Agreement)), (d) without duplication, the outstanding Aggregate Revolving Loans (as defined in the GE Financing Agreement), (e) the amount of the Other Creditor Indebtedness (as defined in the GE Financing Agreement) (unless an Intercreditor
Agreement in form and substance satisfactory to GE has been executed between GE and the holder of such Other Creditor Indebtedness (as defined in the GE Financing Agreement)), and (f) the amount of Bid Bonds (as defined in the GE
Financing

2

 

Agreement), shall be greater than or equal to $1,000,000; provided, however, for the September 30, 2008, October 31, 2008 and November 30, 2008 calculation dates, the foregoing amount shall be $1,125,000.”

3

 

     Section Four. Waiver.  Borrower has notified the Investment Manager and Lender that it breached its Maximum Total Funded Indebtedness to EBITDA covenant
as set forth in Section 6.3(c) of the Credit Agreement for the fiscal quarter ending December 31, 2008 (the “Financial Covenant Default”). Upon the effectiveness of this Amendment, Investment Manager and Lender hereby waive the Financial
Covenant Default. The waiver contained in this Section is specific in intent and is valid only for the specific purpose for which given. Nothing contained herein obligates the Investment Manager and the Lender to agree to any additional waivers of
any provisions of any of the Loan Documents. The waiver contained in this Section shall not operate as a waiver of Lender’s right to exercise remedies resulting from any other Defaults or Events of Default, whether or not of a similar nature
and whether or not known to Investment Manager or Lender.

     Section Five. Release of Claims. To induce the Investment Manager and the Lender to enter into this Amendment, each of the Borrowers hereby agrees as
follows: 

     (a)     each Borrower hereby represents and warrants that there are no known claims, causes of actions, suits, debts, liens,
obligations, liabilities, demands, losses, costs and expenses (including attorneys’ fees) of any kind, character or nature whatsoever, fixed or contingent, which such Borrower may have or claims to have against Investment Manager or Lender,
existing or occurring on or prior to the date of this Amendment, arising from or in connection with the Credit Agreement or any of the Loan Documents. 

     (b)     each Borrower hereby releases, waives and forever discharges and relieves Investment Manager and Lender and all their
respective parents, subsidiaries and affiliates and the officers, directors, agents, attorneys and employees of each of the foregoing (hereinafter “Releasees”) from
any and all claims, liabilities, demands, actions, suits, covenants, losses, costs, offsets and defenses of any nature and kind whatsoever, whether at law or equity of otherwise, whether known or unknown, which such Borrower ever had, now has , or
have been caused by any act of commission or omission of Investment Manager or Lender, existing or occurring on or prior to the date of this Agreement, against or related to the Releasees. 

     Section Six. Representations and Warranties.  To induce the Investment Manager and the Lender to enter into this Amendment, each of the Borrowers hereby
warrants and represents to the Investment Manager and the Lenders as follows: 

     (a)     all of the representations and warranties contained in the Credit Agreement and each other Loan Document to which such
Borrower is a party continue to be true and correct in all material respects as of the date hereof, as if repeated as of the date hereof, except as otherwise disclosed in MTM’s filings pursuant to the Securities Exchange Act of 1934, as
amended, since the date of the Credit Agreement, and (ii) to the extent of changes resulting from transactions expressly permitted by the Credit Agreement, this Amendment or any of the other Loan Documents, or to the extent that such representations
and warranties are expressly made only as of an earlier date; 

     (b)     the execution, delivery and performance of this Amendment by such Borrower is within its corporate powers, has been
duly authorized by all necessary corporate action, and such Borrower has received all necessary consents and approvals, if any are required, for the execution and delivery of this Amendment; 

     (c)     upon the execution of this Amendment, this Amendment shall constitute the legal, valid and binding obligation of such
Borrower, enforceable against such Borrower in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency or similar laws affecting creditors’ rights generally and (ii) general principles of equity;
and 

4

 

     (d)     neither the execution and delivery of this Amendment, nor the consummation of the transactions herein contemplated,
nor compliance with the provisions hereof will (i) violate any law or regulation applicable to any Borrower, (ii) cause a violation by any Borrower of any order or decree of any court or government instrumentality applicable to it, (iii) conflict
with, or result in the breach of, or constitute a default under, any indenture, mortgage, deed of trust, or other material agreement or material instrument to which any Borrower is a party or by which it may be bound, (iv) result in the creation or
imposition of any lien, charge, or encumbrance upon any of the property of any Borrower, except in favor of the Investment Manager and the Lender, to secure the Obligations, (v) violate any provision of the Certificate of Incorporation, By-Laws or
any capital stock provisions of any Borrower, or (vi) be reasonably likely to have a Material Adverse Effect. 

     Section Seven. General Provisions.

     (a) Except as herein expressly amended, the Credit Agreement and all other agreements, documents, instruments and
certificates executed in connection therewith, are ratified and confirmed in all respects and shall remain in full force and effect in accordance with their respective terms.

     (b) To induce the Investment Manager and the Lender to enter into this Amendment, the Borrowers, jointly and severally,
represent and warrant to the Investment Manager and the Lender that except for the Events of Default set forth herein or in any prior waiver letter executed by parties no other Event of Default has occurred. 

     (c) This Amendment embodies the entire agreement between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements, commitments, arrangements, negotiations or understandings, whether written or oral, of the parties with respect thereto. 

     (d) This Amendment shall be governed by and construed in accordance with the internal laws of the State of New York,
without regard to the conflicts of law principles thereof. 

     (e) The effectiveness of this Amendment is conditioned on receipt by Investment Manager of each of the following: (i) this
Amendment and the Second Amended Note, each duly executed by the Borrowers, (ii) a consent from GE Commercial Distribution Finance Corporation in form and substance reasonably acceptable to Investment Manager, (iii) payment of a one-time fee in the
amount of $20,000 in respect of the Additional Advance, which fee shall be fully earned when paid and shall be in addition to, and not in lieu of, any other fees payable under the Credit Agreement or any of the  other Loan Documents, and (iv)
payment of all fees and expenses which are due and payable pursuant to Section 1.6 of the Credit Agreement. 

5

 

     IN WITNESS WHEREOF, the parties to this Amendment have signed below to indicate their agreement with the foregoing and their intent to be bound thereby.

  	COLUMBIA PARTNERS, L.L.C. INVESTMENT

      MANAGEMENT, 

    as Investment Manager 

    	 
	 	 	 
	BY:	/s/  Jason
      Crist	 
	Name:      	Jason Crist	 
	Title:	Managing Director 	 
	 	 	 
	NATIONAL ELECTRICAL BENEFIT FUND,

      as Lender 

      By: Columbia Partners, L.L.C. 

      Investment Management, its Authorized Signatory	 
	 	 	 
	BY:	/s/  Jason
      Crist	 
	Name:	Jason Crist	 
	Title:	Managing Director	 

 

MTM TECHNOLOGIES, INC., 

for itself and as Borrowing Agent 

BY:   /s/ J.W.
Braukman III                          

 Name: J.W. Braukman III 

Title:  Senior Vice President and Chief Financial Officer

MTM TECHNOLOGIES (US), INC.

By:   /s/  J.W. Braukman III                          

Name: J.W. Braukman III 

Title:  Senior Vice President and Chief Financial Officer

INFO SYSTEMS, INC.

By:   /s/  J.W. Braukman III                          

Name: J.W. Braukman III 

Title:  Senior Vice President and Chief Financial Officer

	
MTM
TECHNOLOGIES
(MASSACHUSETTS),

LLC					

By:   /s/  J.W. Braukman III                          

Name: J.W. Braukman III 

Title:  Senior Vice President and Chief Financial Officer

 

Schedule I 

FirstMark Notes

Attached as Exhibits 10.1 and 10.2 to this Form 8-K.

 

Schedule II 

Second Amended Note

THIS INSTRUMENT IS SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT DATED AS OF AUGUST 17, 2007, AS THE SAME MAY BE AMENDED, MODIFIED, SUPPLEMENTED OR RESTATED FROM TIME TO TIME, IN FAVOR OF GE COMMERCIAL DISTRIBUTION FINANCE
CORPORATION, AS AGENT FOR CERTAIN LENDERS, WHICH AGREEMENT IS INCORPORATED HEREIN BY REFERENCE. NOTWITHSTANDING ANY STATEMENT TO THE CONTRARY CONTAINED IN THIS INSTRUMENT, NO PAYMENT OR PREPAYMENT OF ANY NATURE ON ACCOUNT OF THE OBLIGATIONS
HEREUNDER, WHETHER OF PRINCIPAL, INTEREST OR PREMIUM, SHALL BE MADE, PAID, RECEIVED OR ACCEPTED, AND NO REMEDIES SHALL BE PURSUED, EXCEPT IN ACCORDANCE WITH THE TERMS OF SUCH AGREEMENT. 

SECOND AMENDED AND RESTATED SECURED PROMISSORY NOTE 

		
	
$29,000,000		
January 29, 2009	

          FOR VALUE RECEIVED, the undersigned, MTM TECHNOLOGIES, INC., a New
York corporation (“MTM”), MTM TECHNOLOGIES (US), INC., a
Delaware corporation (“MTM-US”), MTM TECHNOLOGIES (MASSACHUSETTS), LLC, a Delaware limited liability company (“MTM-MA”) and INFO SYSTEMS, INC., a Delaware corporation (“ISI”, MTM, MTM-US, MTM-MA and ISI are collectively, the “Borrowers” and each a “Borrower”), jointly and severally promise to pay to the order of National Electrical Benefit
Fund (“Lender”) or its permitted assigns, in lawful money of the United States of America and in immediately available
funds, the principal sum of Twenty-Nine Million Dollars ($29,000,000), together with interest thereon as set out herein, at its offices or such other place as Lender may designate in
writing. 

          This Amended and Restated Secured Promissory Note (this “Note”) amends and restates, in its entirety, that certain Secured
Promissory Note dated November 23, 2005 which was issued by the Borrowers in favor of the Lender in the original principal amount of $25,000,000, as amended and restated on June 16, 2008 to increase the principal amount to $28,000,000 (the
“Original Note”). This Note shall not constitute a novation of the Original Note, or an accord and satisfaction of the obligations of the Borrowers evidenced thereby. The
Original Note is being further amended and restated hereby in consideration for the Lender’s agreement to extend additional monies to the Borrowers. 

          1.     Credit Agreement. This Note is subject to the terms of a certain Credit Agreement dated as of
November 23, 2005, by and among Borrowers, Lender and certain other parties named therein (as amended, restated, modified or supplemented from time to time, the “Credit Agreement”). Lender is entitled to the benefits of the Credit Agreement and all of the exhibits thereto, and reference is made thereto for a description of all rights and remedies thereunder. Neither reference to the Credit Agreement, nor
any provision thereof or security for the other obligations evidenced hereby, shall affect or impair the absolute and unconditional, joint and several, obligations of Borrowers to pay the principal amount hereof, together with all interest accrued
thereon, any applicable Payment Premium (as defined in the Credit Agreement) and 

1. 

expenses, when due. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Credit Agreement. 

          2.     Interest Rate; Payment Premium Payments; Prepayments. 

                    2.1     From the date of disbursement of funds until such time as all principal, interest and other amounts outstanding hereunder are
unconditionally and irrevocably paid and performed in full, interest shall accrue on the unpaid principal amount at the rate specified in Section 1.3 of the Credit Agreement. Upon any payment or prepayment of any or all of the principal due
hereunder, a Payment Premium shall also be due and payable pursuant to Section 1.4 of the Credit Agreement. Payments of interest, principal, any applicable Payment Premium and any prepayments hereunder shall be made in accordance with the Credit
Agreement. 

                    2.2     Other Payment Provisions. Borrowers shall make each payment hereunder not later than 2:00
P.M. (Eastern time) on the day when due, without offset, in lawful money of the United States of America to Investment Manager, for the benefit of Lender, in same day funds at Investment Manager’s offices or pursuant to a wire transfer to
Lender’s designated bank account, which shall initially be: Federal Reserve Bank of Boston, ABA No.: 011001234, Credit DDA A/C No.: 108111, Further Credit A/C No.: A/C IBWF 0003 MELLON, Contact: Lacy Meybohm, tel:
617-382-9254, Reference: MTM Loan. All payments will be applied in accordance with the terms of the Credit Agreement. If the date for any payment or prepayment hereunder falls on a day which is not a Business Day, then
for all purposes of this Note the same shall be deemed to have fallen on the next following Business Day, and such extension of time shall in such case be included in the computation of payments of interest. 

          3.     Maturity Date. All of the amounts due hereunder including the entire principal amount
then-outstanding, all accrued and unpaid interest thereon and all other Obligations and any applicable Payment Premium, shall be due and payable on November 23, 2010 (the “Maturity Date”) or such earlier date as such maturity may be accelerated pursuant to the terms hereof and as provided in the Credit Agreement. 

          4.     Collateral. This Note is secured by the Collateral under the terms of the Security Agreement
and the other Collateral Documents. 

          5.     Assignment. There shall be no assignment or transfer of this Note or any Borrower’s
obligations hereunder except as set forth in the Credit Agreement, and any purported assignment or transfer in contravention thereof shall be invalid.  Lender may assign its rights hereunder in accordance with the terms of the Credit Agreement,
including, without limitation, in connection with a syndication, participation or securitization.

          6.     Default and Remedies.  The occurrence of an Event of Default under the Credit Agreement
(which has not been waived by the Investment Manager and the Lender) shall constitute a default hereunder and shall entitle Lender and Investment Manager to exercise the rights and remedies specified in the Credit Agreement and the various Loan
Documents, as well as those available at law or in equity. These rights and remedies include, but are not limited to, the right to

accelerate the maturity of this Note and to sell or otherwise dispose of any or all of the Collateral by public or private sale; in each case, subject to and in accordance with the Credit Agreement and the other Loan Documents.

          7.     Miscellaneous. 

                    7.1     No Usury. This Note is subject to the express condition that at no time shall any Borrower
be obligated or required to pay interest hereunder at a rate which could subject Lender to either civil or criminal liability as a result of being in excess of the maximum rate which borrowers are permitted by law to contract or agree to pay. If, by
the terms of this Note, any Borrower is at any time required or obligated to pay interest at a rate in excess of such maximum rate, the rate of interest hereunder shall be deemed to be immediately reduced to such maximum rate and interest payable
hereunder shall be computed at such maximum rate and the portion of all prior interest payments in excess of such maximum rate shall be applied and shall be deemed to have been payments in reduction of the principal balance of this Note. 

                    7.2     Controlling Law. This Note shall be construed in accordance with and governed by the laws of
the State of New York, without regard to its principles of conflicts of law. Venue for any adjudication hereof shall be only in the courts of the State of New York, the jurisdiction of such courts each Borrower hereby consents to as the agreement of
the parties, as not inconvenient and as not subject to review by any court other than such courts in the State of New York.  Each Borrower intends that the courts of the jurisdiction in which such Borrower is incorporated and conducts business
should afford full faith and credit to any judgment rendered by a court of the State of New York against such Borrower, and should hold that the State of New York courts have jurisdiction to enter a valid, in
personam judgment against such Borrower.  Each Borrower agrees that service of any summons or complaint, and other process which may be served in any action, may be made by mailing via registered mail or delivering a
copy of such process to such Borrower, and each Borrower hereby agrees that this submission to jurisdiction and consent to service of process are reasonable and made for the express benefit of Lender and Investment Manager. 

                    7.3     Waiver of Notice and Presentment.  Each Borrower hereby waives presentment, demand, notice,
protest, stay of execution, and all other defenses to payment generally, in each case to the extent permitted or not otherwise prohibited by applicable law, assents to the terms hereof, and agrees that any renewal, extension, or postponement of the
time for payment or any other indulgence or any substitution, exchange, or release of collateral may be affected without notice to and without releasing any Borrower from any liability hereunder. 

                    7.4     No Rescission Right or Set-Off. This Note is not subject to any valid right of rescission,
set-off, abatement, diminution, counterclaim or defense as against Lender or Investment Manager, including the defense of usury, in each case to the extent permitted or not otherwise prohibited by applicable law, and the operation of any of the
terms of the loan, or the exercise of any right thereunder, will not render this Note unenforceable, in whole or in part, or subject to any right of rescission, set-off, abatement, diminution, counterclaim or defense, including the defense of usury,
in each case to the extent permitted or not otherwise prohibited by applicable law, and Lender has

not taken any action which would give rise to the assertion of any of the foregoing and no such right of rescission, set-off, abatement, diminution, counterclaim or defense, including the defense of usury, has
been asserted with respect thereto. 

                    7.5     Severability. The invalidity, illegality, or unenforceability in any jurisdiction of any
provision under this Note shall not affect or impair the remaining provisions in this Note. Furthermore, in lieu of any such provision, there shall be added automatically as part of the applicable agreement a legal and enforceable provision as
similar in terms to such provision as may be possible. 

IN WITNESS WHEREOF, the undersigned has duly caused this Note to be executed and its seal, if any, affixed as of the date first set forth above. 

			
	 	
      MTM TECHNOLOGIES, INC.,	
	 	
      a New York corporation	
	 	 	 	
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	
      MTM TECHNOLOGIES, (US), INC.,	
	 	
      a Delaware corporation	
	 	 	 	
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	
      INFO SYSTEMS, INC.,	
	 	
      a Delaware corporation	
	 	 	 	
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	
      MTM TECHNOLOGIES (MASSACHUSETTS),	
	 	
      LLC,	
	 	
      a Delaware limited liability company	
	 	 	 	
	 	By: 	 
	 	Name:	 
	 	Title:	 

Accepted: 

NATIONAL ELECTRICAL BENEFIT FUND,

as Lender

By: Columbia Partners, L.L.C.

Investment Management, its Authorized Signatory

By:

Name: 

Title:

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