Document:

Exhibit 10.1

 

THIRD AMENDMENT AGREEMENT

 

This
THIRD AMENDMENT AGREEMENT (this “Amendment”) is made as of the 17th day of July, 2017 among:

 

(a) ZAGG
INC, a Delaware corporation (the “Borrower”);

 

(b) the
Lenders, as defined in the Credit Agreement, as hereinafter defined; and

 

(c) KEYBANK
NATIONAL ASSOCIATION, a national banking association, as the administrative agent for the Lenders under the Credit Agreement (the
“Administrative Agent”).

 

WHEREAS,
the Borrower, the Administrative Agent and the Lenders are parties to that certain Credit and Security Agreement, dated as of
March 3, 2016 (as amended and as the same may from time to time be further amended, restated or otherwise modified, the “Credit
Agreement”);

 

WHEREAS,
the Borrower, the Administrative Agent and the Lenders desire to amend the Credit Agreement to modify certain provisions thereof
and add certain provisions thereto;

 

WHEREAS,
each capitalized term used herein and defined in the Credit Agreement, but not otherwise defined herein, shall have the meaning
given such term in the Credit Agreement; and

 

WHEREAS,
unless otherwise specifically provided herein, the provisions of the Credit Agreement revised herein are amended effective as
of the date of this Amendment;

 

NOW,
THEREFORE, in consideration of the premises and of the mutual covenants herein and for other valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Borrower, the Administrative Agent and the Lenders agree as follows:

 

1. Amendment
to Definitions in the Credit Agreement. Section 1.1 of the Credit Agreement is hereby amended to delete the definitions of
“Borrowing Base”, “Letter of Credit Commitment”, “Maximum Amount”, “Maximum Revolving
Amount”, “Permitted Foreign Subsidiary Loans, Guaranties and Investments”, “Seasonal Increase Period”,
“Swing Line Commitment” and “Total Commitment” therefrom and to insert in place thereof, respectively,
the following:

 

“Borrowing
Base” means an amount equal to the total of the following:

 

(a) up
to eighty-five percent (85%) of the aggregate amount due and owing on Eligible Accounts Receivable of the Borrowing Base Companies;
plus

 

(b) up
to eighty-five percent (85%) of the Appraised Inventory NOLV; plus

 

     

     

    

 

(c) during
the Seasonal Increase Period, Fifteen Million Dollars ($15,000,000); minus

 

(d) Reserves,
if any;

 

provided
that (A) the aggregate amount of Eligible In-Transit Inventory included in the calculation of subpart (b) above shall not
exceed the Eligible In-Transit Inventory Maximum Amount, (B) at no time shall the amount calculated pursuant to subpart (b)
above exceed the amount calculated pursuant to subpart (a) above, and (C) anything herein to the contrary notwithstanding,
the Administrative Agent shall at all times have the right to modify or reduce such percentages or dollar amount caps or other
components of the Borrowing Base from time to time in its reasonable credit judgment.

 

“Letter
of Credit Commitment” means the commitment of the Issuing Lender, on behalf of the Revolving Lenders, to issue Letters of
Credit in an aggregate face amount of up to Forty Million Dollars ($40,000,000).

 

“Maximum
Amount” means, for each Lender in accordance with its Applicable Commitment Percentage, the amount set forth opposite such
Lender’s name under the column headed “Maximum Amount” as set forth on Schedule 1 hereto, subject to
(a) decreases pursuant to Section 2.9(e) hereof, (b) adjustments in the Maximum Revolving Amount as set forth in the
definition thereof, (c) decreases of the Term Loan by virtue of principal payments made, and (d) assignments of interests
pursuant to Section 11.11 hereof; provided that the Maximum Amount for the Swing Line Lender shall exclude the Swing Line Commitment
(other than its pro rata share), and the Maximum Amount of the Issuing Lender shall exclude the Letter of Credit Commitment (other
than its pro rata share thereof).

 

“Maximum
Revolving Amount” means (a) for the period from the Third Amendment Effective Date through December 31, 2017, One Hundred
Thirty-Five Million Dollars ($135,000,000); (b) for the period from January 1, 2018 through May 31, 2018, One Hundred Ten
Million Dollars ($110,000,000); and (c) for the period from June 1, 2018 and thereafter, One Hundred Million Dollars ($100,000,000),
as such amount may be reduced pursuant to Section 2.9(e) hereof.

 

“Permitted
Foreign Subsidiary Loans, Guaranties and Investments” means:

 

(a) the
investments by the Borrower or a Domestic Subsidiary in a Foreign Subsidiary, in such amounts existing as of the Closing Date
and set forth on Schedule 5.11 hereto;

 

(b) the
loans by the Borrower or a Domestic Subsidiary to a Foreign Subsidiary, in such amounts existing as of the Closing Date and set
forth on Schedule 5.11 hereto (and any extension, renewal or refinancing thereof but, only to the extent that the principal
amount thereof does not increase after the Closing Date);

 

    	 	2	 

     

    

 

(c) any
investment by a Foreign Subsidiary in, or loan from a Foreign Subsidiary to, or guaranty from a Foreign Subsidiary of Indebtedness
of, a Company;

 

(d) the
loan from Borrower to ZAGG International Distribution Limited, a company organized under the laws of Ireland, in the amount of
Two Million Dollars ($2,000,000), pursuant to that certain Intercompany Note dated as of April 5, 2017; and

 

(e) any
other loan or investment by a Borrower or a Domestic Subsidiary in or to, or guaranty of Indebtedness of, a Foreign Subsidiary
for the period from the Third Amendment Effective Date through March 31, 2018, in an aggregate amount for all such loans, investments
and guaranties not to exceed Eight Million Dollars ($8,000,000) at any time outstanding during such period.

 

“Seasonal
Increase Period” means the period from August 1, 2017 through September 30, 2017.

 

“Swing
Line Commitment” means the commitment of the Swing Line Lender to make Swing Loans to the Borrower, on a discretionary basis,
up to the aggregate amount at any time outstanding equal to ten percent (10%) of the Maximum Revolving Amount.

 

“Total
Commitment Amount” means the sum of the Maximum Revolving Amount plus the principal outstanding on the Term Loan, as such
amount may be decreased pursuant to Section 2.9(e) hereof.

 

2. Addition
to Definitions in the Credit Agreement. Section 1.1 of the Credit Agreement is hereby amended to add the following new definition
thereto:

 

“Third
Amendment Effective Date” means July 17, 2017.

 

3. Amendment
to Schedule 1. The Credit Agreement is hereby amended to delete Schedule 1 (Commitments of Lenders) therefrom
and to insert in place thereof a new Schedule 1 in the form of Schedule 1 hereto.

 

4. Closing
Deliveries. Concurrently with the execution of this Amendment, the Borrower shall:

 

(a) deliver
to the Administrative Agent, for delivery to each Lender, a replacement Revolving Credit Note in the amounts specified in Schedule 1
to the Credit Agreement;

 

(b) deliver
to the Administrative Agent certified copies of the resolutions of the board of directors of the Borrower evidencing approval
of the execution and delivery of this Amendment and the execution of any other Loan Documents and Related Writings required in
connection therewith;

 

    	 	3	 

     

    

 

(c) execute
and deliver to the Administrative Agent the Third Amendment Closing Fee Letter and pay to the Administrative Agent, for the benefit
of the Lenders, the fees stated therein;

 

(d) cause
each Guarantor of Payment to execute the attached Guarantor Acknowledgment and Agreement; and

 

(e) pay
all fees and expenses of the Administrative Agent in connection with this Amendment and any other Loan Documents.

 

5. Representations
and Warranties. The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that (a) the
Borrower has the legal power and authority to execute and deliver this Amendment; (b) the officers executing this Amendment
have been duly authorized to execute and deliver the same and bind the Borrower with respect to the provisions hereof; (c) the
execution and delivery hereof by the Borrower and the performance and observance by the Borrower of the provisions hereof do not
violate or conflict with the Organizational Documents of the Borrower or any law applicable to the Borrower or result in a breach
of any provision of or constitute a default under any other agreement, instrument or document binding upon or enforceable against
the Borrower; (d) no Default or Event of Default exists, nor will any occur immediately after the execution and delivery
of this Amendment or by the performance or observance of any provision hereof; (e) each of the representations and warranties
contained in the Loan Documents is true and correct in all material respects as of the Third Amendment Effective Date as if made
on the Third Amendment Effective Date, except to the extent that any such representation or warranty expressly states that it
relates to an earlier date (in which case such representation or warranty is true and correct in all material respects as of such
earlier date); (f) the Borrower is not aware of any claim or offset against, or defense or counterclaim to, the Borrower’s
obligations or liabilities under the Credit Agreement or any other Related Writing; and (g) this Amendment and the Credit
Agreement, as amended by this Amendment, constitute a valid and binding obligation of the Borrower in every respect, enforceable
in accordance with its terms.

 

6. Waiver
and Release. The Borrower, by signing below, hereby waives and releases the Administrative Agent, and each of the Lenders,
and their respective directors, officers, employees, attorneys, affiliates and subsidiaries, from any and all claims, offsets,
defenses and counterclaims, such waiver and release being with full knowledge and understanding of the circumstances and effect
thereof and after having consulted legal counsel with respect thereto.

 

7.
 References to Credit Agreement and Ratification. Each reference to the Credit
Agreement that is made in the Credit Agreement or any other Related Writing shall hereafter be construed as a reference to the
Credit Agreement as amended hereby. Except as otherwise specifically provided herein, all terms and provisions of the Credit Agreement
are confirmed and ratified and shall remain in full force and effect and be unaffected hereby. This Amendment is a Loan Document.

 

    	 	4	 

     

    

 

8. Counterparts.
This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile
or other electronic signature, each of which, when so executed and delivered, shall be deemed to be an original and all of which
taken together shall constitute but one and the same agreement.

 

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

 

10. Severability.
Any provision of this Amendment that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

11. Governing
Law. The rights and obligations of all parties hereto shall be governed by the laws of the State of New York.

 

[Remainder
of page intentionally left blank.]

 

    	 	5	 

     

    

 

JURY
TRIAL WAIVER. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, TO THE EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER,
THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED
OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 

IN
WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date first set forth above.

  

	 	ZAGG
    INC
	 	 
	 	By:	/s/
    RANDALL L. HALES
	 	 	Randall
    L. Hales
	 	 	President

 

    	 	Signature Page 1 of 4 to
 Third Amendment Agreement
	 

     

    

 

	 	KEYBANK NATIONAL ASSOCIATION  

                                                                                     as the Administrative Agent and as a Lender

	 	 
	 	By:	/s/
    MICHAEL GUTIA
	 	 	Michael
    Gutia
	 	 	Vice
    President

 

    	 	Signature Page 2 of 4 to
 Third Amendment Agreement
	 

     

    

 

	 	ZB,
    N.A. DBA ZIONS FIRST NATIONAL BANK
	 	 
	 	By:	/s/
    ADAM WHITEFIELD
	 	 	Name: Adam
    Whitefield
	 	 	Title:
    Vice President

  

    	 	Signature Page 3 of 4 to
 Third Amendment Agreement
	 

     

    

 

	 	JPMORGAN
    CHASE BANK, N.A.
	 	 
	 	By:	/s/
    JAMES FALLAHAY
	 	 	Name:
    James Fallahay
	 	 	Title:
    Authorized Officer

 

    	 	Signature Page 4 of 4 to
 Third Amendment Agreement
	 

     

    

 

GUARANTOR
ACKNOWLEDGMENT AND AGREEMENT

 

The
undersigned consent and agree to and acknowledge the terms of the foregoing Third Amendment Agreement dated as of July 17, 2017.
The undersigned further agree that the obligations of the undersigned pursuant to the Guaranty of Payment executed by the undersigned
are hereby ratified and shall remain in full force and effect and be unaffected hereby.

 

The
undersigned hereby waive and release the Administrative Agent and the Lenders and their respective directors, officers, employees,
attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of any kind or nature, absolute
and contingent, of which the undersigned are aware or should be aware, such waiver and release being with full knowledge and understanding
of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.

 

JURY
TRIAL WAIVER. THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING
ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT, THE LENDERS AND THE
UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
THEM IN CONNECTION WITH THIS GUARANTOR ACKNOWLEDGMENT AND AGREEMENT, THE AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR
AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

  

	ZAGG LLC	 	
        IFROGZ INC.

         

	 	 	 	 	MOPHIE INC.
	 	 	 	 	 
	By:	ZAGG Inc, its Managing Member  	 	
        ZAGG INTELLECTUAL PROPERTY HOLDING CO., INC.

         

	 	 	 	 	ZAGG RETAIL, INC.
	 	By:	/s/ RANDALL L. HALES	 	 	 
	 	 	Randall L. Hales	 	By:	/s/ RANDALL L. HALES
	 	 	President	 	 	Randall L. Hales
	 	 	 	 	 	President
	 	 	 	 	 	 
	MOPHIE LLC 	 	 	 
	 	 	 	 	 	 
	By:	mophie Inc, its Managing Member  	 	 	 
	 	 	 	 	 	 
	 	By:	/s/ RANDALL L. HALES	 	 	 
	 	 	 Randall L. Hales	 	 	 
	 	 	 President 	 	 	 

 

Signature
Page to

Guarantor
Acknowledgment and Agreement

     

     

    

 

SCHEDULE
1

 

COMMITMENTS
OF LENDERS*

  

	LENDERS	 	REVOLVING CREDIT 
COMMITMENT 
PERCENTAGE	 	 	REVOLVING 
CREDIT 
COMMITMENT 
AMOUNT	 	 	TERM LOAN COMMITMENT PERCENTAGE	 	 	TERM LOAN 
COMMITMENT 
AMOUNT	 	 	MAXIMUM AMOUNT	 
	KeyBank National Association	 	 	36.36	%	 	$	49,090,909.08	 	 	 	36.36	%	 	$	6,060,606.06	 	 	$	55,151,515.14	 
	ZB, N.A. d/b/a Zions First National Bank	 	 	31.82	%	 	$	42,954,545.46	 	 	 	31.82	%	 	$	5,303,030.25	 	 	$	48,257,575.71	 
	JPMorgan Chase Bank, N.A.	 	 	31.82	%	 	$	42,954,545.46	 	 	 	31.82	%	 	$	5,303,030.25	 	 	$	48,257,575.71	 
	Total Commitment Amount	 	 	100	%	 	$	135,000,000.00	 	 	 	100	%	 	$	16,666,666.56	 	 	$	151,666,666.56	 

 

*
Amounts as of the date of the Third Amendment Agreement.

 

 

S-1Exhibit 10.2

 

REVOLVING
CREDIT NOTE

 

	$49,090,909.08	July 17, 2017

 

FOR
VALUE RECEIVED, the undersigned, ZAGG INC, a Delaware corporation (the “Borrower”), promises to pay, on the last day
of the Commitment Period, as defined in the Credit Agreement (as hereinafter defined), to the order of KEYBANK NATIONAL ASSOCIATION
(“Lender”) at the main office of KEYBANK NATIONAL ASSOCIATION, as the Administrative Agent, as hereinafter defined,
127 Public Square, Cleveland, Ohio 44114-1306 the principal sum of

 

FORTY-NINE
MILLION NINETY THOUSAND NINE HUNDRED NINE AND 08/100 DOLLARS

 

or
the aggregate unpaid principal amount of all Revolving Loans, as defined in the Credit Agreement, made by Lender to the Borrower
pursuant to Section 2.2(a) of the Credit Agreement, whichever is less, in lawful money of the United States of America.

 

As
used herein, “Credit Agreement” means the Credit and Security Agreement dated as of March 3, 2016, among the Borrower,
the Lenders, as defined therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative
Agent”), as amended and as the same may from time to time be further amended, restated or otherwise modified. Each capitalized
term used herein that is defined in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it
in the Credit Agreement.

 

The
Borrower also promises to pay interest on the unpaid principal amount of each Revolving Loan from time to time outstanding, from
the date of such Revolving Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance
with the provisions of Section 2.4(a) of the Credit Agreement. Such interest shall be payable on each date provided for in such
Section 2.4(a); provided that interest on any principal portion that is not paid when due shall be payable on demand.

 

The
portions of the principal sum hereof from time to time representing Base Rate Loans and Eurodollar Loans, interest owing thereon
and payments of principal and interest of any thereof, shall be shown on the records of Lender by such method as Lender may generally
employ; provided that failure to make any such entry shall in no way detract from the obligations of the Borrower under this Note
or the Credit Agreement.

 

If
this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision
for acceleration of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear
interest, pursuant to the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All payments
of principal of and interest on this Note shall be made in immediately available funds.

 

This
Note is one of the Revolving Credit Notes referred to in the Credit Agreement and is entitled to the benefits thereof. Reference
is made to the Credit Agreement for a description of the right of the undersigned to anticipate payments hereof, the right of
the holder hereof to declare this Note due prior to its stated maturity, and other terms and conditions upon which this Note is
issued.

 

Except
as expressly provided in the Credit Agreement, the Borrower expressly waives presentment, demand, protest and notice of any kind.
This Note shall be governed by and construed in accordance with the laws of the State of New York.

 

JURY
TRIAL WAIVER. THE BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING
ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR
ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION
WITH THIS NOTE OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS
RELATED THERETO.

 

	 	ZAGG
                                         INC

	 	 	 
	 	By:	/s/
    RANDALL L. HALES
	 	 	Randall
    L. Hales
	 	 	President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]