Document:

Exhibit 10.1

 

 

INCREMENTAL ASSUMPTION AGREEMENT

 

dated as of August 19, 2015,

 

relating to the

 

SENIOR SECURED REVOLVING CREDIT AGREEMENT

 

dated as of October 17, 2014,

 

among

 

CAPITALA
FINANCE CORP.,

as Borrower,

 

the Lenders from time to time party thereto,

 

and

 

ING CAPITAL LLC,

as Administrative Agent,

Arranger and Bookrunner 

 

 

     

     

    

 

INCREMENTAL ASSUMPTION
AGREEMENT, dated as of August 19, 2015 (this “Assumption Agreement”), by and among CAPITALA
FINANCE CORP. (the “Borrower”), ING CAPITAL LLC, in its capacity as Administrative Agent (the “Administrative
Agent”), and each lender set forth on Schedule 1 hereto as an “Assuming Lender” (the “Assuming Lenders”
and each an “Assuming Lender”), relating to the SENIOR SECURED REVOLVING CREDIT AGREEMENT, dated as of October 17,
2014 (as amended by Amendment No. 1 to Senior Secured Revolving Credit Agreement, dated as of May 22, 2015, and as further amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower,
the Administrative Agent and the several lenders from time to time party to the Credit Agreement.

 

A.           The
Borrower has requested that each Assuming Lender provide an additional Commitment in an aggregate amount equal to the amount set
forth opposite such Assuming Lender’s name on Schedule 1 hereto (each an “Incremental Commitment”), in
each case pursuant to Section 2.06(f) of the Credit Agreement.

 

B.           Each
Assuming Lender is willing to make such an Incremental Commitment to the Borrower on the terms and subject to the conditions set
forth herein and in the Credit Agreement.

 

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

 

SECTION 1. Defined
Terms; Interpretation; Etc. Capitalized terms used and not defined herein shall have the meanings assigned to such terms
in the Credit Agreement. The rules of construction set forth in Section 1.03 of the Credit Agreement shall apply equally to
this Assumption Agreement. This Assumption Agreement shall be a “Loan Document” for all purposes of the Credit Agreement
and the other Loan Documents.

 

SECTION 2. Incremental
Commitment. (a) Pursuant to Section 2.06(f) of the Credit Agreement and subject to the terms and conditions hereof, each Assuming
Lender hereby agrees to make the applicable Incremental Commitment to the Borrower effective on and as of the Increase Effective
Date (as defined below). The Incremental Commitment shall constitute an additional “Commitment” and a “Commitment
Increase” for all purposes of the Credit Agreement and the other Loan Documents, and the Increase Effective Date shall be
the “Commitment Increase Date” of the Incremental Commitment for purposes of Section 2.06(f) of the Credit Agreement.

 

(b)          The
terms of the Incremental Commitment shall be the same as the other Commitments made under the Credit Agreement.

 

(c)          On
the Increase Effective Date, in connection with the adjustments to any outstanding Loans and participation interests contemplated
by Section 2.06(f)(iv) of the Credit Agreement, each Assuming Lender shall make a payment to the Administrative Agent, for account
of the other Lenders, in an amount calculated by the Administrative Agent in accordance with such section, so that after giving
effect to such payment and to the distribution thereof to the other Lenders in accordance with such section, the Loans are held
ratably by the Lenders in accordance with the respective Commitments of such Lenders (after giving effect to the Incremental Commitment
and any other Commitment Increases, if any, occurring on the date hereof).

 

     

     

    

 

(d)          As
of the Increase Effective Date, each Assuming Lender shall become a Lender under the Credit Agreement and shall have all rights
and obligations of a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto.

 

SECTION 3. Conditions
Precedent to Incremental Commitment. This Assumption Agreement, and the obligations of each Assuming Lender to make its Incremental
Commitment, shall become effective on and as of the Business Day (the “Increase Effective Date”) occurring on
or before August 19, 2015, on which the following conditions precedent have been satisfied:

 

(a)          the
Administrative Agent shall have received counterparts of this Assumption Agreement that, when taken together, bear the signatures
of the Borrower, the Administrative Agent and the Assuming Lenders;

 

(b)          on
the date hereof, each of the conditions set forth or referred to in Section 2.06(f)(i) of the Credit Agreement shall be satisfied,
and pursuant to Section 2.06(f)(ii)(x) of the Credit Agreement the Administrative Agent shall have received a certificate of a
duly authorized officer of the Borrower dated the date hereof certifying as to the foregoing;

 

(c)          the
Administrative Agent shall have received for the account of the Lenders the amounts, if any, payable under Section 2.13 of the
Credit Agreement as a result of the adjustments of Borrowings pursuant to Section 2(c) of this Assumption Agreement; and

 

(d)          each
Assuming Lender and the Administrative Agent shall have received all documented fees and expenses related to this Assumption Agreement
and any fee letter owing on the date hereof, including any upfront fees due to such Assuming Lender on the date hereof.

 

SECTION 4. Representations
and Warranties of the Borrower. To induce the other parties hereto to enter into this Assumption Agreement, the Borrower represents
and warrants to the Administrative Agent and each Assuming Lender that, as of the date hereof:

 

(a)          This
Assumption Agreement has been duly authorized, executed and delivered by the Borrower, and constitutes a legal, valid and binding
obligation of the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

 

    	 	2	 

     

    

 

(b)          Each
of the representations and warranties made by the Borrower in or pursuant to the Loan Documents are true and correct in all material
respects as if made on such date (except to the extent they relate specifically to an earlier date, in which case they are true
and correct in all material respects as of such earlier date, and unless a representation or warranty is already qualified by materiality
or by Material Adverse Effect, in which case it is true and correct in all respects).

 

(c)          No
Default has occurred and is continuing on the date hereof or shall result from the Incremental Commitment.

 

SECTION 5. Representations,
Warranties and Covenants of the Assuming Lenders. Each Assuming Lender (a) represents and warrants that (i) from and after
the Increase Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent
of the Incremental Commitment, shall have the obligations of a Lender thereunder, and (ii) it has received a copy of the Credit
Agreement, together with such other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assumption Agreement and to make the Incremental Commitment on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative Agent or any other Lender; and (b) agrees that (i)
it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, make its own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required
to be performed by it as a Lender.

 

SECTION 6. Consent
and Reaffirmation. (a)  each of the Obligors agrees that, notwithstanding the effectiveness of this Assumption Agreement,
the Guarantee and Security Agreement and each of the other Security Documents continue to be in full force and effect, (b) each
of the Obligors acknowledges that the terms “Revolving Credit Agreement Obligations,” “Guaranteed Obligations”
and “Secured Obligations” (each as defined in the Guarantee and Security Agreement) include any and all Loans made
now or in the future by the Assuming Lenders in respect of the Incremental Commitments and all interest and other amounts owing
in respect thereof under the Loan Documents (including all interest and expenses accrued or incurred subsequent to the commencement
of any bankruptcy or insolvency proceeding with respect to any Obligor, whether or not such interest or expenses are allowed as
a claim in such proceeding), and (c) each of the Obligors confirms its grant of a security interest in its assets as Collateral
for the Secured Obligations, all as provided in the Loan Documents as originally executed (and amended prior to the date hereof
and supplemented hereby).

 

SECTION 7. Notices.
All notices hereunder shall be given in accordance with the provisions of Section 9.01 of the Credit Agreement.

 

SECTION 8. Expenses.
The Borrower agrees to pay all reasonable out-of-pocket expenses incurred by the Administrative Agent in connection with this Assumption
Agreement in accordance with the Credit Agreement, including the reasonable and documented fees, charges and disbursements of one
outside counsel for the Administrative Agent.

 

    	 	3	 

     

    

 

SECTION 9. Counterparts.
This Assumption Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but
one and the same contract. Delivery of an executed counterpart of a signature page of this Assumption Agreement by facsimile or
electronic transmission shall be as effective as delivery of a manually executed counterpart hereof.

 

SECTION 10. Applicable
Law; Jurisdiction; Consent to Service of Process; Other. THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK. THE PROVISIONS OF SECTION 9.09 OF THE CREDIT AGREEMENT (AND ALL OTHER APPLICABLE PROVISIONS OF ARTICLE IX OF THE CREDIT
AGREEMENT) ARE HEREBY INCORPORATED BY REFERENCE.

 

SECTION 11. Headings.
The headings of this Assumption Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning
hereof.

 

SECTION 12. No Third
Party Beneficiaries. This Assumption Agreement is intended to be solely for the benefit of the parties hereto and is not intended
to confer any benefits upon, or create any rights in favor of, any other person or entity. No person or entity other than the parties
hereto shall have any rights under or be entitled to rely upon this Assumption Agreement.

 

[Remainder of page intentionally left
blank]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assumption Agreement to be duly executed and delivered by their proper and duly authorized representatives
as of the day and year first above written.

 

	 	CAPITALA FINANCE CORP.,
	 	as Borrower
	 	 	 
	 	By:	/s/ Steven A. Arnall
	 	Name: Steven A. Arnall
	 	Title: Chief Financial Officer

 

[Signature Page to Incremental Assumption
Agreement]

 

     

     

    

 

	 	ING CAPITAL LLC,
	 	as Administrative Agent
	 	 	 
	 	By:	/s/ Patrick Frisch
	 	 	Name: Patrick Frisch
	 	 	Title: Managing Director
	 	 	 
	 	By:	/s/ Kunduck Moon
	 	 	Name: Kunduck Moon
	 	 	Title: Managing Director

 

[Signature Page to Incremental Assumption
Agreement]

 

     

     

    

 

	 	FIFTH THIRD BANK,
	 	as Assuming Lender
	 	 	 
	 	By:	 /s/ Fred H. Bumgardner, Jr.
	 	Name: Fred H. Bumgardner, Jr.
	 	Title: Vice President

 

[Signature Page to Incremental Assumption
Agreement]

 

     

     

    

 

	 	COMMUNITYONE BANK, N.A.,
	 	as Assuming Lender
	 	 	 
	 	By:	/s/ Scott Barrier
	 	Name: Scott Barrier
	 	Title: Scott Barrier

 

[Signature Page to Incremental Assumption
Agreement]

 

     

     

    

 

	 	FIRST BANK,
	 	as Assuming Lender
	 	 	 
	 	By:	/s/ Michael R. Wollinger
	 	Name: Michael R. Wollinger
	 	Title: Corporate Banker, Senior Vice President

 

[Signature Page to Incremental Assumption
Agreement]

 

     

     

    

 

SCHEDULE 1

 

Assuming Lenders

 

	Lender	 	Incremental Commitment	 
	Fifth Third Bank	 	$	18,000,000	 
	CommunityOne Bank, N.A.	 	$	12,000,000	 
	First Bank	 	$	10,000,000Exhibit 10.1

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933.  IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITY
UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.

CROWDGATHER,
INC.

SECURED
SUBORDINATED PROMISSORY NOTE

$100,000                                                                                                

Woodland Hills,
California

August 19, 2015

CrowdGather, Inc., a Nevada
corporation (the "Company"), for value received, hereby promises to pay
to Vinay Holdings ("Holder"),
the sum of One-Hundred Thousand Dollars ($100,000) on the
terms and conditions set forth in this Secured Promissory Note (the "Note"). 
Payment for all amounts due hereunder shall be made by mail to the registered
address of Holder. The performance of the obligations of the Company hereunder
are secured in accordance with the terms of a Security Agreement of even date
herewith and all other present and future security agreements between the
Company and Holder.

The following is a statement of the rights of Holder of this
Note and the conditions to which this Note is subject, and to which Holder
hereof, by the acceptance of this Note, agrees:

1.         Maturity.  The
principal hereof and any unpaid accrued interest hereon, as set forth below,
shall be due and payable on the earlier to occur of:  (i) October 18, 2015 ("Maturity
Date"); and (ii) when declared due and payable by Holder upon the
occurrence of an Event of Default (as defined below).   

2.         Interest.  This
Note shall accrue interest on the principal for a period of one year from the
date of this Note at a rate of the lower of (i) twelve percent (12%) per annum;
or (ii) the maximum allowable rate under applicable laws (such rate, the "Interest
Rate").  Interest shall be calculated on the basis of a 360-day year for
the actual number of days elapsed.  If there occurs an acceleration or
prepayment of the Note prior to the Maturity Date in accordance with the terms
hereof, all interest due and payable at such time on the principal amount due
shall be paid in full.  All payments hereunder are to be applied first to
reasonable costs and fees referred to herein, second to the payment of accrued
interest, and the remaining balance to the payment of principal.

-1-

3.         Events of Default. 
If any of the events specified in this Section 3 shall occur (herein
individually referred to as an "Event of Default"), Holder may, so long
as such condition exists, declare the entire principal and unpaid accrued
interest hereon immediately due and payable, by notice in writing to the
Company:

                        (a)        Default in
the payment of the principal or unpaid accrued interest of this Note when due
and payable;  

                        (b)        The
institution by the Company of proceedings to be adjudicated as bankrupt or
insolvent, or the consent by it to institution of bankruptcy or insolvency
proceedings against it or the filing by it of a petition or answer or consent
seeking reorganization or release under the Federal Bankruptcy Act, or any
other applicable Federal or state law, or the consent by it to the filing of
any such petition or the appointment of a receiver, liquidator, assignee,
trustee or other similar official of the Company, or of any substantial part of
its property, or the making by it of an assignment for the benefit of
creditors, or the taking of corporate action by the Company in furtherance of
any such action;  

                        (c)        If, within
60 calendar days after the commencement of an action against the Company,
without the consent or acquiescence of the Company (and service of process in
connection therewith on the Company) seeking any bankruptcy, insolvency,
reorganization, liquidation, dissolution or similar relief under any present or
future statute, law or regulation, such action shall not have been resolved in
favor of the Company or all orders or proceedings thereunder affecting the
operations or the business of the Company stayed, or if the stay of any such
order or proceeding shall thereafter be set aside, or if, within 60 calendar
days after the appointment without the consent or acquiescence of the Company
of any trustee, receiver or liquidator of the Company or of all or any
substantial part of the properties of the Company, such appointment shall not
have been vacated; or  

                        (d)
       Any material breach of the Security Agreement between the parties of
even date herewith that remains uncured after notice of breach and failure to
timely cure such breach.

                        (e)     
Any breach of the Secured Promissory Note described on Exhibit A hereto.

                        (f)     
Any bulk sale of a majority of the assets of the corporation without the
consent of the Holder of this Note.

4.         Holder's Rights Upon Event of Default.  Upon the
occurrence and continuance of any Event of Default, Holder in his sole and
absolute discretion shall have the right to declare all unpaid interest and
principal immediately due and payable and exercise all other legal rights in
connection therewith.

 

-2-

 5.         Prepayment. 
The Company may at any time prepay in whole or in part, the principal sum, plus
accrued interest to date of such prepayment, of this Note.

6.         Successors and Assigns; Assignment.  Except
as otherwise expressly provided herein, the provisions hereof shall inure to
the benefit of, and be binding upon, the successors, assigns, heirs, executors
and administrators of the parties hereto.  Nothing in this Note, express or
implied, is intended to confer upon any party, other than the parties hereto
and their successors and assigns, any rights, remedies, obligations or
liabilities under or by reason of this Note, except as expressly provided
herein.  The Company may not assign this Note or any of the rights or
obligations referenced herein without the prior written consent of Holder.

7.         Waiver and Amendment. 
Any provision of this Note may be amended, waived or modified upon the written
consent of the Company and Holder.

8.         Waiver of Notice. 
The Company hereby waives notice, presentment, demand, protest and notice of
dishonor.

9.         Treatment of Note. 
To the extent permitted by generally accepted accounting principles, the
Company will treat, account and report the Note as debt and not equity for
accounting purposes and with respect to any returns filed with Federal, state
or local tax authorities.

10.       Notices.  Any
notice, request or other communication required or permitted hereunder shall be
in writing and shall be deemed to have been duly given if personally delivered
or if sent by nationally recognized courier service or mailed by registered or
certified mail, postage prepaid, to the respective addresses of the parties as
set forth on the signature page hereof or if sent by facsimile to the
respective facsimile numbers of the parties set forth on the signature page
hereof.  Any party hereto may by notice so given change its address for future
notice hereunder.  Notice shall conclusively be deemed to have been given and
received when personally delivered or 3 business days after deposited in the
mail or one business day after sent by courier or upon confirmation of
facsimile delivery in the manner set forth above.

11.       No Stockholder Rights. 
Nothing contained in this Note shall be construed as conferring upon Holder or
any other person the right to vote or to consent or to receive notice as a
stockholder in respect of meetings of stockholders for the election of
directors of the Company or any other matters or any rights whatsoever as a
stockholder of the Company.

12.       Governing Law. 
This Agreement shall be governed by and construed in accordance with the laws
of the State of California, excluding that body of law relating to conflict of
laws.

 

-3- 

13.       Heading;
References.  All headings used herein are used for convenience only and
shall not be used to construe or interpret this Note.  Except as otherwise
indicated, all references herein to Sections refer to Sections hereof.

14.      Subordination.      This Note
is subordinate to all of the terms and conditions of all Promissory Notes
issued by the Company described on Exhibit A hereto, and any Pledge and
Security Agreement securing such Note, including all of the default terms and
interest rates.

-4- 

            IN WITNESS WHEREOF,
the Company has caused this Note to be issued as of the date first written
above.

 

	

  	
  CrowdGather,
  Inc.     

              

  By:                                                       

  Name:  Sanjay Sabnani             

  Its:        President

  23945
  Calabsas Rd. Suite 115

  Calabasas,
  CA 91302

  
	

  Holder:           Vinay
  Holdings

  Address:
           ______________________

  ______________________

  Telephone:
       ______________________ 

  Facsimile:       ______________________

  	

  
			

 -5- 

Exhibit A

Senior Secured
Promissory Notes

  

	
  Note Date

  	
  Principal Amount

  
	

  	

  
	
  November 20, 2014

  	
  150,000

  
	
  November 21, 2014

  	
  100,000

  
	
  December 1, 2014

  	
  165,000

  
	
  December 1, 2014

  	
  165,000

  
	
  December 1, 2014

  	
  770,000

  
	
  December 2, 2014

  	
  200,000

  
	
  April 13, 2015

  	
  50,000

  
	
  July 16, 2015

  	
  96,000

  
	
  July 16, 2015

  	
  50,000

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