Document:

Unassociated Document

Exhibit No. 10.6

 

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of February 28, 2011 (this "Amendment"), is entered into by and among SPECIAL VALUE CONTINUATION PARTNERS, LP, a Delaware limited partnership (the "Borrower"), and WELLS FARGO SECURITIES, LLC (f/k/a WACHOVIA CAPITAL MARKETS, LLC), as administrative agent and arranger for the Lenders (in such capacity, the "Administrative Agent"), and various financial institutions set forth on the signature pages hereto, as Lenders under the Credit Agreement (together, the "Lenders").

WITNESSETH:

WHEREAS, the Borrower, various financial institutions, as Lenders, the Administrative Agent and the Arranger have entered into the Credit Agreement, dated as of July 31, 2006 (the "Credit Agreement");

WHEREAS, in connection with conversion of the Borrower into a business development company, the Borrower desires to amend certain provisions of the Credit Agreement in accordance with the provisions of Section 9.12 thereof to (1) permit the Borrower to cease being a registered investment company under the Investment Company Act, and (2) transfer the key man provisions from the Investment Management Agreement into the Credit Agreement;

WHEREAS, the Required Lenders (as determined in accordance with the Credit Agreement) have consented to this Amendment, as indicated on the signature pages hereto; and

WHEREAS, the Rating Agency Condition has been satisfied;

NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as follows:

SECTION 1.

AMENDMENT TO THE CREDIT AGREEMENT

1.1           Section 6.1.10 . At the end of Section 6.1.10 of the Credit Agreement immediately following the word "therein" the following phrase is inserted: "and the Borrower will at all times maintain fundamental investment policies in accordance with the Investment Company Act of 1940, as amended, for registered investment companies."

1.2           Section 7.1.11. In Section 7.1.11 of the Credit Agreement, immediately after the phrase "The Borrower ceases to be a registered 'investment company'" the following phrase is inserted: "or business development company." The following sentence is added to the end of Section 7.1.11 of the Credit Agreement: "Borrower shall provide written notice to the Administrative Agent, S&P and Moody's within three (3) Business Days after any conversion from a registered investment company to a business development company or any conversion from a business development company to a registered investment company."

  

  

  

1.3           Section 7.1.13. In Section 7.1.13 of the Credit Agreement, a period shall be inserted after the phrase "or a Trigger Event shall have occurred" and the balance of Section 7.1.13 shall be deleted.

1.4           Trigger Event. The definition of Trigger Event is deleted and the following is inserted: "'Trigger Event' means if (i) any of Michael Tennenbaum, Howard Levkowitz or Mark Holdsworth dies, becomes incapacitated or departs from the Investment Manager and ceases to be actively involved in the management of the Borrower and (ii) the Investment Manager fails to notify the Administrative Agent promptly and identify a replacement with reasonably comparable skills within 180 days."

1.5           Key Man Provision. A new Section 9.26 shall be inserted: "Key Man. If any two of Michael Tennenbaum, Howard Levkowitz and Mark Holdsworth die, become incapacitated or depart from the Investment Manager and cease to be actively involved in the management of the Borrower, the Administrative Agent may veto a proposed replacement for one of such individuals and may veto portfolio transactions in excess of 15% of the total assets of the Borrower until a replacement principal has been appointed to fill one of such positions."

SECTION 2.

MISCELLANEOUS

2.1           Credit Agreement in Full Force and Effect as Amended. Except as specifically amended hereby, all of the terms and conditions of the Credit Agreement shall remain in full force and effect. This Amendment shall not constitute a novation of the Credit Agreement, but shall constitute amendment of specific provisions thereof.

2.2           Defined Terms. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.

2.3           Counterparts. This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent.

2.4           Effectiveness. This Amendment shall become effective on the date that the Rating Agency Condition has been satisfied; provided that the Borrower, the Required Lenders shall have signed a copy hereof (whether the same or different copies) and shall have delivered the same to the Administrative Agent or, in the case of the Required Lenders, shall have given to the Administrative Agent telephonic (confirmed in writing), written telex or facsimile transmission notice (actually received) that the same has been signed and mailed to it; and provided further that the provisions of Sections 1.3, 1.4, and 1.5 above shall become applicable upon conversion of the Borrower into a business development company.

  

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2.5           Representations and Warranties. The Borrower hereby represents and warrants that (i) the Borrower has the authority to execute and deliver this Amendment and that this Amendment shall constitute a valid and enforceable obligation against it, (ii) the financial statements most recently furnished by or on behalf of the Borrower to each Lender, and the Administrative Agent for the purpose of or in connection with the Credit Agreement or any transaction contemplated thereby have been prepared in accordance with GAAP consistently applied, and present fairly the consolidated and consolidating financial condition of the Borrower as of the date thereof for the periods then ended, subject, in the case of quarterly and financial statements, to normal year-end audit adjustments, purchase accounting adjustments and such other exceptions specifically noted in the notes thereto, (iii) no Default or Event of Default has occurred or is continuing and (iv) all representations and warranties contained in the Credit Agreement are true and correct in all material respects on and as of the date hereof as if made on and as of the date hereof.

 

[Signatures begin on the next page.]

 

  

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

 

SPECIAL VALUE CONTINUATION PARTNERS, LP

By:  Tennenbaum Capital Partners, LLC

Its:   Investment Manager

 

 

By:  /s/ Howard M. Levkowitz     

Name: Howard M. Levkowitz

Title: Managing Partner

 

 

WELLS FARGO SECURITIES, LLC

(f/k/a Wachovia Capital Markets, LLC)

As Administrative Agent

 

 

By:  /s/ Jason Powers         

Name: Jason Powers

Title: Director

 

 

VARIABLE FUNDING CAPITAL COMPANY LLC

By: Wells Fargo Securities, LLC (f/k/a Wachovia 

Capital Markets, LCC), as attorney-in-fact

As Lender

 

 

By:  /s/ Haojin Wu           

Name: Haojin Wu

Title: Vice President

 

 

 

[Signature Page to First Amendment to Credit Agreement]

  

  

  

NIEUW AMSTERDAM RECEIVABLES CORPORATION

 

 

By:  /s/ Damian Perez         

Name: Damian Perez

Title: Vice President

 

 

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK BA., "RABOBANK INTERNATIONAL", NEW YORK BRANCH

As Designated CP Conduit Lender to Nieuw Amsterdam Receivables Corporation

 

 

By:  /s/ Brett Delfino           

Name: Brett Delfino

Title: Executive Director

 

By:  /s/ Raymond Dizon         

Name: Raymond Dizon

Title: Executive Director

 

[Signature Page to First Amendment to Credit Agreement]

  

  

  

NATIXIS FINANCIAL PRODUCTS LLC

 

 

By:  /s/ David A. Powar         

Name: David A. Powar

Title: Managing Director

 

By:  /s/ Adam W. True         

Name: Adam W. True

Title: Managing Director, Senior CounselWebFilings | EDGAR view

 

    

HEARTLAND PAYMENT SYSTEMS, INC.
2008 EQUITY INCENTIVE PLAN
NOTICE OF RESTRICTED STOCK UNIT GRANT
 
 
Grantee Name:    _____  
        Pursuant to the terms of the Heartland Payment Systems, Inc. 2008 Equity Incentive Plan (the “Plan”), you have been granted performance based Restricted Stock Units (“RSUs”) of Heartland Payment Systems, Inc. (the “ Company ”) upon the terms and conditions set forth herein and in the Restricted Stock Unit Agreement (the “Agreement”) which is attached hereto :	
							
	Number of RSUs Granted:
	_________________

	 
	 

	Date of Grant:
	_________________

	 
	 

	Vesting Commencement Date:
	_________________

	 
	 

	Vesting/Payment Schedule:
	Subject to the performance benchmarks enumerated below, and so long as you are in Continuous Service status with the Company (as defined in the Plan), the RSUs shall vest and the Shares underlying such RSUs shall be paid pursuant to Section 4 of the Agreement in accordance with the following schedule:
                                        
 
 

	 
	 
	 
	Date
	RSUs Vested

	 
 
 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
 
 
	 
	 
	 

	 
	 
	The Company must achieve at least the following performance benchmarks:

	 
 
	 
	EPS Performance Thresholds (for the twelve month period ended):

	 
	 
	December
 31, 2012
	December
 31, 2013
	December
 31, 2014

	 
	Diluted
EPS (1)
	 
	$1.48
	$1.74
	$2.04

	 
	 
	(1
	)
	Calculated on a Pro Forma basis to exclude non-operating gains and losses, if any, and excluding the after-tax impact of Stock Compensation Expense.

 

 

 

	
								
	 
	 
	Ÿ
	“Catch up” Provision - Allows vesting of RSUs from earlier years in which the EPS goals were not attained if the EPS performance thresholds are attained in the later years. For the purpose of illustration only, if the Company achieves EPS of $1.00 and $1.50 in the 12 months ending 12/31/12 and 12/31/13 but achieves $2.04 in 12/31/14, no RSUs would vest until 3/1/2015 at which time all RSUs would vest.

	Transferability:
	 
	 
	The RSUs granted hereunder may not be transferred.

 
No Employment or Service Contract. In addition, you agree and acknowledge that your rights to the RSUs (and any Shares to be issued to you upon vesting of the RSUs) will be earned only as you provide services to the Company over time, that the grant of the RSUs is not as consideration for services you rendered to the Company prior to your Vesting Commencement Date, and that nothing in this Notice or the attached Plan or Agreement shall confer upon you any right to continue your employment or consulting relationship with the Company for any period of time, nor does it interfere in any way with your right or the Company's right to terminate that relationship at any time, for any reason, with or without Cause.
Change of Control.  If the Company receives an offer, which is lawfully accepted by the Company's Board of Directors and a majority of the Shareholders of the Company, representing a twenty-five percent (25%) or greater premium in the Company's common stock price over the average trading price of the Company's common stock over the thirty (30) trading days prior to the date of the offer for the Company, and the acquisition of the Company is completed pursuant thereto, then all of the RSUs granted hereunder shall vest and the Shares underlying such RSUs shall be issued and delivered pursuant to Section 4 of the Agreement.
Definitions. All capitalized terms in this Notice shall have the meaning assigned to them in this Notice, the attached Agreement or the Plan.
By your signature and the signature of the Company's representative below, you and the Company agree that the RSUs are granted under and governed by the terms and conditions of the Plan and the Agreement, both of which are attached and made a part of this document. You further acknowledge receipt of a copy of the Plan and the Agreement, represent that you have read and are familiar with their provisions, and hereby accept the RSUs subject to all of their terms and conditions.

 

 

 
 
HEARTLAND PAYMENT SYSTEMS, INC.  
By: /s/ Robert H. B. Baldwin Jr
Name: Robert H. B. Baldwin Jr
Title:  President 
 
This award of RSUs is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.
Dated:  ________________________          _______________________________________                            
Grantee's Signature
Grantee's name and address:
_____________________
_____________________                
                
 
CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) (i) was not intended or written to be used, and cannot be used, for the purpose of avoiding any tax penalties and (ii) was not written to promote, market or recommend the transaction or matter addressed in the communication.  Each taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

 

 

 
 
 

HEARTLAND PAYMENT SYSTEMS, INC.
2008 EQUITY INCENTIVE PLAN
RESTRICTED STOCK UNIT AGREEMENT
 
 
1.Grant of RSUs. Heartland Payment Systems, Inc., a Delaware corporation (the “Company”), hereby grants to ______ (the “Grantee”), the total number of Restricted Stock Units (“RSUs”) set forth in the Notice of Restricted Stock Unit Grant (the “Notice”), subject to the terms, definitions and provisions of the Heartland Payment Systems, Inc. 2008 Equity Incentive Plan (the “Plan”) adopted by the Company, which is incorporated in this Agreement by reference. Unless otherwise defined in this Agreement, the terms used in this Agreement shall have the meanings defined in the Plan.
 
2.Restrictions and Conditions.  Prior to the vesting of the RSUs as described in the Notice, the Grantee shall have no rights in the RSUs except as specifically provided herein.
 
(a)No Voting Rights or Dividends.  Until such time as the RSUs are paid to the Grantee in Shares, the Grantee shall have no voting rights and shall not be entitled to payment or accrual of any dividends, Dividend Equivalents or other distributions with respect to the RSUs or the Shares underlying the RSUs.
 
(b)Restrictions on Transfer.  The RSUs granted pursuant to this Agreement  may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated and any such attempt to transfer any RSU will not be honored.
 
3.Vesting of RSUs.  The RSUs shall vest pursuant to the vesting schedule set forth in the Notice, so long as the Grantee remains in Continuous Service status with the Company through each such vesting date.  The Grantee's rights to all RSUs granted herein and not yet vested in accordance with the provisions of the Notice shall automatically terminate upon the Grantee's termination of Continuous Service status with the Company, whether voluntarily or involuntarily, for any reason (including death) or no reason.
 
4.Receipt of Shares Upon Vesting.  As soon as practicable following the vesting of the RSUs as set forth in the Notice (but in no event later than 30 days following the applicable vesting date), the Grantee shall receive one Share for each vested RSU.  Shares to be acquired pursuant to this Award shall be issued and delivered to the Grantee either in actual stock certificates or by electronic book entry, subject to tax withholding as provided in Paragraph 6, below.
 
5.Transferability.  This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.
 
 

 

 

6.Tax Consequences.  The Company has not provided any tax advice with respect to the RSUs or the disposition of the Shares.  The Grantee should obtain advice from an appropriate independent professional adviser with respect to the taxation implications of the grant, payment, assignment, release, settlement, cancellation or any other disposition of the RSUs (each, a “Trigger Event”) and on any subsequent sale or disposition of the Shares.  The Grantee should also take advice in respect of the taxation indemnity provisions under Section 8 below.  The Grantee shall, not later than the date as of which the receipt of any RSU becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event.  The Grantee may elect to have the required minimum tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from Shares to be issued, or (ii) transferring to the Company, a number of Shares with an aggregate Fair Market Value that would satisfy the withholding amount due.
 
7.Data Protection.
 
(a)To facilitate the administration of the Plan and this Agreement, it will be necessary for the Company (or its payroll administrators) to collect, hold and process certain personal information about the Grantee and to transfer this data to certain third parties such as brokers with whom the Grantee may elect to deposit any share capital under the Plan.  The Grantee consents to the Company (or its payroll administrators) collecting, holding and processing the Grantee's personal data and transferring this data to the Company or any other third parties insofar as is reasonably necessary to implement, administer and manage the Plan.
 
(b)The Grantee understands that the Grantee may, at any time, view the Grantee's personal data, require any necessary corrections to it or withdraw the consents herein in writing by contacting the Company, but acknowledges that without the use of such data it may not be practicable for the Company to administer the Grantee's involvement in the Plan in a timely fashion or at all and this may be detrimental to the Grantee.
 
8.Grantee's Taxation Indemnity.
 
(a)To the extent permitted by law, the Grantee hereby agrees to indemnify and keep indemnified the Company and the Company as trustee for and on behalf of any affiliate entity, in respect of any liability or obligation of the Company and/or any affiliate entity to account for income tax or any other taxation provisions under the laws of the Grantee's country or citizenship and/or residence to the extent arising from a Trigger Event or arising out of the acquisition, retention and disposition of the Shares.
 
(b)The Company shall not be obliged to allot and issue any of the Shares or any interest in the Shares unless and until the Grantee has paid to the Company such sum as is, in the opinion of the Company, sufficient to indemnify the Company in full against any liability the Company has for any amount of, or representing, income tax or any other tax arising from a Trigger Event (the “RSU Tax Liability”), or the Grantee has made such other arrangement as in the opinion of the Company will ensure that the full amount of any RSU Tax Liability will be recovered from the Grantee within such period as the Company may then determine.
 
9.Miscellaneous
 
(a)This Agreement and all acts and transactions pursuant hereto and the rights and 

 

 

obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of New Jersey, without giving effect to principles of conflicts of law.
 
(b)The Grantee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof (and has had an opportunity to consult counsel regarding the terms of this award of RSUs), and hereby accepts the RSUs and agrees to be bound by the contractual terms as set forth herein and in the Plan. The Grantee hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Administrator regarding any questions relating to the RSUs.  In the event of a conflict between the terms and provisions of the Plan and the terms and provisions of the Notice and this Agreement, the Plan terms and provisions shall prevail.  This Agreement, the Notice and the Plan, constitute the entire agreement between the Grantee and the Company on the subject matter hereof and supersedes all proposals, written or oral, and all other communications between the parties relating to such subject matter.
 
(c)The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement.
 
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one document.
	
		
	GRANTEE
_____________________________
(Signature)
 
_____________________________
(Printed Name)
 
Dated: _______________________
	HEARTLAND PAYMENT SYSTEMS, INC.
 
By:  /s/ Robert H. B. Baldwin Jr
Name: _ Robert H. B. Baldwin Jr 
Title: _ President

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