Document:

FIRST
AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT

 

This First Amendment
to Second Amended and Restated Loan Agreement (the “Amendment”) is made and entered into as of November 9, 2015
by and among Black Diamond, Inc., a Delaware corporation, Black Diamond Equipment, Ltd., a Delaware corporation, Black Diamond
Retail, Inc., a Delaware corporation, Everest/Sapphire Acquisition, LLC, a Delaware limited liability company, BD North American
Holdings, LLC, a Delaware limited liability company, PIEPS Service, LLC, a Delaware limited liability company, and BD European
Holdings, LLC, a Delaware limited liability company (collectively, the “Borrowers”), and Zions First National
Bank, a national banking association (the “Lender”).

 

Recitals

 

1.Lender has previously
extended a loan to the Borrowers consisting of a revolving loan in the maximum principal amount of $30,000,000 (the “Loan”),
which is governed by that certain Second Amended and Restated Loan Agreement dated as of October 31, 2014 (as amended from time
to time, the “Loan Agreement”) among the Borrowers, the other Loan Parties from time to time party thereto and
the Lender. The Loan is evidenced by that certain Second Amended and Restated Promissory Note (Revolving Loan) dated October 31,
2014 executed by the Borrowers in favor of the Lender in the maximum principal amount of $30,000,000 (the “Note”).

 

2.On October 7,
2015, Black Diamond, Inc. sold all of the issued and outstanding membership interests of POC USA, LLC, previously a “Borrower”
under the Loan Agreement, as consented to by the Lender pursuant to a consent letter dated as of October 5, 2015.

 

3.The Borrowers
and the Lender desire to modify and amend the Loan Agreement as provided herein.

 

Amendment

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Lender and the Borrowers hereby agree and amend
and modify the Loan Agreement as follows:

 

1.Recitals.
Each of the Borrowers and the Lender hereby acknowledges the accuracy of the Recitals, which are incorporated herein by reference.

 

2.Definitions.
Except as otherwise provided herein, terms defined in the Loan Agreement shall have the same meaning when used herein. Terms defined
in the singular shall have the same meaning when used in the plural and vice versa.

 

3.Amendment
of Loan Agreement. The Loan Agreement is hereby modified and amended as follows:

 

(a)Net
Worth. Section 6.14(b) Net Worth is hereby amended and restated in its entirety to read as follows:

 

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b.Net
Worth. Black Diamond and its Subsidiaries, on a Consolidated basis, will maintain a Net Worth, measured at each reporting period
set forth in Section 6.7 Financial Statements and Reports, of not less than $170,000,000 through the Fiscal Year End for
2015, plus an increase of $2,000,000 during each Fiscal Year thereafter.

 

(b)Duplicate
Originals; Counterpart Execution. Section 10.24 Duplicate Originals; Counterpart Execution is hereby amended and restated
in its entirety to read as follows:

 

10.24Duplicate
Originals; Counterpart Execution; Electronic Copies

 

Two or more
duplicate originals of the Loan Documents may be signed by the parties, each duplicate of which shall be an original but all of
which together shall constitute one and the same instrument. Any of the Loan Documents may be executed in several counterparts,
without the requirement that all parties sign each counterpart. Each of such counterparts shall be an original, but all counterparts
together shall constitute one and the same instrument. Receipt by Lender and the Loan Parties of an executed copy of this Agreement
by facsimile or electronic mail shall constitute conclusive evidence of execution and delivery of this Agreement by the signatory
thereto.

 

Furthermore,
Lender shall be entitled, in its sole discretion, to image or make copies of all or any selection of the agreements, instruments,
documents, and items and records governing, arising from or relating to the Loan, including, without limitation, this Agreement
and the other Loan Documents, and Lender may destroy (other than any promissory note) or archive the paper originals. Each of the
Borrowers hereto (i) waives any right to insist or require that Lender produce paper originals (other than in respect of any promissory
note), (ii) agrees that such images shall be accorded the same force and effect as the paper originals (other than negotiability
in respect of any promissory note), (iii) agrees that Lender is entitled to use such images in lieu of destroyed or archived originals
for any purpose (other than negotiability in respect of any promissory note), including as admissible evidence in any demand, presentment
or other proceedings, and (iv) further agrees that any executed facsimile (faxed), scanned, or other imaged copy of this Agreement
or any other Loan Document shall be deemed to be of the same force and effect as the original manually executed document (other
than negotiability in respect of any promissory note).

 

4.Conditions
Precedent to Closing this Amendment. This Amendment shall not become effective until the following conditions have been completed
and proof of their completion has been provided to the Lender:

 

(a)On
or prior to the execution and delivery of this Amendment, the Borrowers shall have executed and delivered, or caused to be executed
and delivered, to the Lender, each in form and substance satisfactory to the Lender, such other documents, instruments, resolutions,
subordinations, and other agreements as the Lender may require in its sole discretion.

 

    	 	2	 

     

    

  

(b)Each
of the Borrowers shall perform all of the obligations of such Borrower under the Loan Documents or this Amendment to be performed
contemporaneously with the execution and delivery of this Amendment.

 

(c)The
Borrowers shall pay the Lender an amendment fee in the amount of $5,000 in cash. No portion of such fee shall be refunded in the
event of early termination of the Loan Documents or any termination or reduction of the right of the Borrowers to request advances
under the Loan Documents. The Lender is authorized and directed to disburse a sufficient amount of the Loan proceeds to pay this
amendment fee in full.

 

(d)The
Borrowers shall pay all fees and expenses in accordance with Section 6.

 

All conditions precedent
set forth in this Amendment are for the sole benefit of the Lender and may be waived unilaterally by the Lender.

 

5.Conforming
Modifications. Each of the Loan Documents is modified to be consistent herewith and to provide that it shall be a default or
an Event of Default thereunder if the Borrowers shall fail to comply with any of the covenants of the Borrowers herein or if any
representation or warranty by the Borrowers herein is materially incomplete, incorrect, or misleading as of the date hereof.

 

6.Fees and Expenses;
Closing Fee

 

(a)Fees and Expenses.
In consideration of the Lender’s agreement to amend and modify the Loan and the Loan Documents, each of the Borrowers has
agreed to pay to the Lender (i) all reasonable legal fees and expenses incurred by the Lender in connection herewith or with the
Loan and the Loan Documents accrued and unpaid as of the date hereof and (ii) all other reasonable costs and expenses incurred
by the Lender in connection with this Amendment.

 

(b)Method of Payment.
The foregoing fees and expenses shall be paid by the Borrowers to the Lender on the date hereof or at such later date as such fees,
costs and expenses are incurred by the Lender; provided, however, that if such fees and expenses are not promptly paid, the Lender
is authorized and directed, upon execution of this Amendment and fulfillment of all conditions precedent hereunder, to disburse
a sufficient amount of the Loan to pay these fees and expenses in full. Each of the Borrowers acknowledges and agrees that such
fees, costs, and expenses are fully earned and nonrefundable as of the date this Amendment is executed and delivered by the parties
hereto, and that no portion of such fee shall be refunded in the event of early termination of the Loan Agreement or any termination
or reduction of the right of any Borrower to request advances under the Loan Agreement or the Note.

 

7.Borrowers
Representations and Warranties. Each of the Borrowers hereby affirms and again makes the representations and warranties set
forth in Section 5 of the Loan Agreement as of the date of this Amendment, except to the extent that any such representations and
warranties refer specifically to an earlier date.

 

    	 	3	 

     

    

 

8.Borrowers
Covenants

 

(a)The Borrowers
shall execute, deliver, and provide to the Lender such additional agreements, documents, and instruments as reasonably required
by the Lender to effectuate the intent of this Amendment.

 

(b)Each of the Borrowers
fully, finally, and forever releases and discharges the Lender and its successors, assigns, directors, officers, employees, agents,
and representatives from any and all actions, causes of action, claims, debts, demands, liabilities, obligations, and suits, of
whatever kind or nature, in law or equity, that such Borrower has or in the future may have, whether known or unknown, in respect
of the Loan, the Loan Documents, or the actions or omissions of the Lender in respect of the Loan or the Loan Documents arising
from events occurring prior to the date of this Amendment.

 

9.Loan Documents
Remain in Full Force and Effect; Collateral. The Loan Documents are ratified and affirmed by each of the Borrowers and shall
remain in full force and effect as modified hereby. Any property rights or rights to or interests in property granted as security
in the Loan Documents shall remain as security for the Loan and the obligations of the Borrowers in the Loan Documents.

 

10.Integrated
Agreement; Amendment. This Amendment, together with the Loan Agreement and the other Loan Documents, constitutes the entire
agreement between the Lender and the Borrowers concerning the subject matter hereof, and may not be altered or amended except by
written agreement signed by Lender. PURSUANT TO UTAH CODE SECTION 25-5-4, EACH BORROWER IS NOTIFIED THAT THESE AGREEMENTS
ARE A FINAL EXPRESSION OF THE AGREEMENT BETWEEN THE LENDER AND THE BORROWERS AND THESE AGREEMENTS MAY NOT BE CONTRADICTED BY EVIDENCE
OF ANY ALLEGED ORAL AGREEMENT.

 

11.Governing
Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS (WITHOUT REGARD TO THE CONFLICT OF
LAWS PROVISIONS) OF THE STATE OF UTAH.

 

12.Time.
Time is of the essence with respect to this Amendment.

 

13.Counterpart
Execution. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of
which together shall constitute one and the same document. Signature pages may be detached from the counterparts and attached to
a single copy of this Amendment to physically form one document. Receipt by the Lender of an executed copy of this Amendment by
facsimile or electronic mail shall constitute conclusive evidence of execution and delivery of this Amendment by the signatory
thereto.

 

All other prior and
contemporaneous agreements, arrangements, and understandings between the parties hereto as to the subject matter hereof are, except
as otherwise expressly provided herein, rescinded.

 

This Amendment and
the Loan Agreement (together with any other amendment thereto) shall be read and interpreted together as one agreement.

 

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IN WITNESS WHEREOF,
this Amendment has been executed and becomes effective as of the date first written above.

 

Lenders:

 

Zions First National Bank

 

 

By: /s/ Michael R. Brough

Name: Michael R. Brough

Title: Senior Vice President

 

Borrower:

 

Black Diamond, Inc.

 

 

By:/s/ Aaron J. Kuehne

Name: Aaron J. Kuehne

Title: Chief Financial Officer, Treasurer and Secretary

 

 

 

Black Diamond Equipment, Ltd.

 

 

By:/s/ Aaron J. Kuehne

Name: Aaron J. Kuehne

Title: Chief Financial Officer and Secretary

 

 

Black Diamond Retail, Inc.

 

 

By:/s/ Aaron J. Kuehne

Name: Aaron J. Kuehne

Title: Chief Financial Officer and Secretary

 

    
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
LOAN AGREEMENT
Signature Pages

     

    

  

Everest/Sapphire Acquisition, LLC

 

 

By:/s/ Aaron J. Kuehne

Name: Aaron J. Kuehne

Title: Treasurer and Secretary

 

 

BD North American Holdings, LLC

 

 

By:/s/ Aaron J. Kuehne

Name: Aaron J. Kuehne

Title: Treasurer

 

 

PIEPS Service, LLC

 

 

By:/s/ Aaron J. Kuehne

Name: Aaron J. Kuehne

Title: Treasurer and Secretary

 

 

BD European Holdings, LLC

 

 

By:/s/ Aaron J. Kuehne

Name: Aaron J. Kuehne

Title: Treasurer and Secretary

 

 

 

    
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
LOAN AGREEMENT
Signature PagesExhibit

Exhibit 10.1

FIFTH AMENDMENT TO 
CREDIT AND SECURITY AGREEMENT

THIS FIFTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Amendment”), dated as of October 5, 2015, is entered into by and among NOVATEL WIRELESS, INC., a Delaware corporation (“Novatel”), ENFORA, INC., a Delaware corporation (“Enfora”), and FEENEY WIRELESS, LLC, an Oregon limited liability company (“Feeney Wireless”; Novatel, Enfora and Feeney Wireless are sometimes referred to in this Amendment individually as a “Borrower” and collectively as the “Borrowers”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”).  Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement defined below.

RECITALS

A.    The Lender and Borrowers have previously entered into that certain Credit and Security Agreement dated as of October 31, 2014 (as amended, modified and supplemented from time to time, the “Credit Agreement”), pursuant to which the Lender has made certain loans and financial accommodations available to Borrowers.

B.    Pursuant to that certain Fourth Amendment to Credit and Security Agreement, dated as of June 11, 2015, among Borrowers and Lender, Lender consented to the acquisition by Novatel, through a wholly-owned subsidiary of Novatel to be formed to effectuate such acquisition, of all of the ordinary shares (other than treasury shares) of DigiCore Holdings Limited, a company incorporated under the company laws of the Republic of South Africa
(“DigiCore”).

C.    Borrowers have now informed Lender that Novatel desires to acquire directly all of the Ordinary Shares (other than the Excluded Shares) (as each of the foregoing terms is defined in that certain Transaction Implementation Agreement, dated June 18, 2015, between DigiCore and Novatel (the “Transaction Implementation Agreement”)) of DigiCore pursuant to the Transaction Implementation Agreement, and all other material documents related thereto and executed in connection therewith, copies of which have previously been provided to Lender (collectively, the “DigiCore Transaction Documents”).

D.        Borrowers now wish for the Lender to, and Lender is willing to, (i) consent to the DigiCore Acquisition, as modified by this Amendment, and (ii) amend the Credit Agreement on the terms and conditions set forth herein.

AGREEMENT

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

1.    Amendments to Credit Agreement.

1.1    Section 6.16 of the Credit Agreement is hereby amended to read in its entirety as follows:

“6.16    Formation of Subsidiaries.  At the time that any Loan Party forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, such Loan Party shall (a) within 10 days after such formation or acquisition and the capitalization of such Subsidiary in excess of $25,000 (or such later date as permitted by Lender in its sole discretion) cause any such new Subsidiary to provide to Lender a joinder to this Agreement or a Guaranty (as determined by Lender), together with such other security documents (including mortgages with respect to any Real Property owned in fee simple by such new Subsidiary with a fair market value of at least $500,000), as well as appropriate financing statements (and with respect to all property subject to a mortgage, fixture filings), all in form and substance reasonably satisfactory to Lender (including being sufficient to grant Lender a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary); provided that the Guaranty and such other security documents shall not be required to be provided to Lender with respect to any Subsidiary of Borrower that is a CFC or a Subsidiary of a CFC, (b) within 10 days after such formation or acquisition (or such later date as permitted by Lender in its sole discretion) provide to Lender a pledge agreement and appropriate certificates and powers or financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary reasonably satisfactory to Lender; provided that only 65% of the total outstanding voting Stock of any first tier Subsidiary of a Borrower that is a CFC (and none of the Stock of any Subsidiary of such CFC) shall be required to be pledged, and (c) within 10 days after such formation or acquisition (or such later date as permitted by Lender in its sole discretion) provide to Lender all other documentation, including one or more opinions of counsel reasonably satisfactory to Lender, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance or other documentation with respect to all Real Property owned in fee and subject to a mortgage). Any document, agreement, or instrument executed or issued pursuant to this Section 6.16 shall be a Loan Document.”

1.2    Clause (e) of Section 7.12 of the Credit Agreement is hereby amended to read in its entirety as follows:

“(e) transactions among DigiCore and one or more Loan Parties to the extent the respective transaction is undertaken in good faith, upon terms that are fair and reasonable to such Loan Party or Loan Parties, and no less favorable to such Loan Party or Loan Parties as would be obtained in a comparable arm’s length transaction with a non- Affiliate.”

1.3    Clause (b) of Section 7.13 of the Credit Agreement is hereby amended to read in its entirety as follows:

“(b) on the Closing Date and thereafter, consistent with the terms and conditions hereof, for general corporate and working capital purposes, including the making of loans pursuant to clause (s) of the definition of “Permitted Investments” (provided that no part of the proceeds of the loans made to Borrowers will be used to purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates the provisions of Regulation T, U
or X of the Board of Governors of the Federal Reserve System).”

1.4    The following new defined terms are hereby added to Schedule 1.1 to the Credit
Agreement in the appropriate alphabetical position:

““DigiCore” means DigiCore Holdings Limited, a company incorporated under the 

company laws of the Republic of South Africa.”

““Fifth Amendment” means that certain Fifth Amendment to Credit and Security Agreement, dated as of October 5, 2015, among the Borrowers and Lender.”

““Investment Balance” means, as of any date of determination, the aggregate amount of loans and capital contributions made in accordance with clause (s) of the definition of “Permitted Investment”, as such amount is reduced by the amounts actually received by Borrowers (i) upon repayment of any such loans by DigiCore and (ii) in respect of dividends and distributions made by DigiCore; provided that in no event shall the amount of any dividends or distributions that are added at any time to EBITDA in accordance with clause (a) thereof reduce the Investment Balance.”

1.5    The definition of “DigiCore Acquisition” set forth in  Schedule 1.1 to the Credit
Agreement is hereby amended to read in its entirety as follows:

““DigiCore Acquisition” shall have the meaning set forth in the Fifth Amendment.”

1.6    Clause (a) of the  definition of “EBITDA” set forth in  Schedule 1.1 to the Credit
Agreement is hereby amended to read in its entirety as follows:

“(a)    Borrowers’ and their Subsidiaries’ consolidated net earnings (or loss), plus, without duplication, the amount of dividends and distributions actually received by Borrowers from DigiCore during such period so long as the Investment Balance has been reduced to zero (excluding the amount of any dividends or distributions included in the calculation of such reduction),”

1.7    The definition of “Excluded Subsidiary” set forth in Schedule 1.1 to the Credit Agreement is hereby deleted in its entirety.

1.8    Clauses (n) and (s) of the definition of “Permitted Investment” set forth in Schedule 1.1 to the Credit Agreement are hereby amended to read in their entirety as follows:

“(n)    Permitted Acquisitions; provided, however, that Novatel Wireless, Inc. shall consummate the DigiCore Acquisition solely with the proceeds of the offering under the Convertible Note Documents in an aggregate amount not to exceed ZAR 1,100,000,000 (or the Dollar Equivalent of such amount as of the date such proceeds were transferred to the account or accounts maintained by Novatel at Standard Bank in South Africa);”
“(s)    Investments made in the form of loans and/or capital contributions made by Novatel Wireless, Inc. to DigiCore (x) within 90 days following the closing of the DigiCore Acquisition, in an aggregate amount not to exceed $5,000,000, and (y) for the calendar year ending December 31, 2016 and each calendar year thereafter, in an aggregate amount not to exceed $1,000,000.”

1.9    The definition of “Subsidiary” set forth in  Schedule 1.1 to the Credit Agreement is hereby to read in its entirety as follows:

““Subsidiary” of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock 

having ordinary voting power to elect a majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited liability company, or other entity; provided that, except as expressly provided elsewhere in this Agreement, in no event shall DigiCore constitute a Subsidiary of Novatel.”

1.10    Schedule 6.1 to the Credit Agreement is amended to read in its entirety as set forth on Annex B attached to this Amendment.

2.    Consents. Upon satisfaction of the conditions precedent set forth in Section 4 of this Amendment and notwithstanding any restrictions in the Credit Agreement, Lender hereby consents to the DigiCore Acquisition, which shall be deemed to constitute a “Permitted Acquisition” under the Credit Agreement, so long as (a) the DigiCore Acquisition shall be consummated in accordance with the terms of the DigiCore Transaction Documents in all material respects, and no terms or conditions of the DigiCore Transaction Documents (other than any immaterial terms or conditions) shall have been waived without the consent of Lender, (b) Novatel shall have obtained stockholder approval, in accordance with the NASDAQ Listing Rules, to use the gross proceeds of the offering under the Convertible Note Documents to cover the full amount of consideration, and all fees, costs and expenses, required to consummate the DigiCore Acquisition unless such approval is not required by law, regulation or any Governmental Authority (including, without limitation, under the NASDAQ Listing Rules), and (c) there has not occurred any Company Material Adverse Change (as defined in the Transaction Implementation Agreement) that is continuing.

3.    Amendment Fee.  Intentionally Omitted.

4.    Effectiveness of this Amendment.  This Amendment shall be effective upon Lender’s receipt of the following items, in form and content acceptable to the Lender:

4.1    This Amendment, duly executed in a sufficient number of counterparts for distribution to all parties;

4.2    The Acknowledgment by Guarantors, in the form attached to this Amendment;

4.3    The representations and warranties set forth in this Amendment must be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof); and
4.4    All other documents and legal matters in connection with the transactions contemplated by this Amendment shall have been delivered or executed or recorded, as reasonably required by the Lender.

5.    Representations and Warranties.  Each Borrower represents and warrants as follows:

5.1    Authority. Each Borrower has the requisite corporate or limited liability company, as applicable, power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Loan Documents (as amended or modified hereby) to which it is a party.  The execution, delivery and performance by Borrowers of this Amendment have been duly approved by all necessary corporate or limited liability company, as applicable, action and no other corporate or limited liability company, as applicable, proceedings are necessary to consummate such transactions.

5.2    Enforceability.  This Amendment has been duly executed and delivered by Borrowers. 

This Amendment and each Loan Document (as amended or modified hereby) is the legal, valid and binding obligation of each Borrower, enforceable against each Borrower in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally, and is in full force and effect.

5.3    Representations and Warranties.  The representations and warranties contained in each Loan Document (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof) are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof.

5.4    Due Execution.  The execution, delivery and performance of this Amendment are within the corporate or limited liability company, as applicable, power of each Borrower, have been duly authorized by all necessary action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual restrictions binding on any Borrower except to the extent that any such contravention could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change.

5.5    No Default.  No event has occurred and is continuing that constitutes a Default or an Event of Default.

6.    No Waiver.  Except as otherwise expressly provided herein, the execution of this Amendment and the acceptance of all other agreements and instruments related hereto shall not be deemed to be a waiver of any Default or Event of Default under the Credit Agreement or a waiver of any breach, default or event of default under any other Loan Document or other document held by Lender, whether or not known to Lender and whether or not existing on the date of this Amendment.

7.    Release.  Each of the Borrowers and Guarantors hereby absolutely and unconditionally releases and forever discharges Lender, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which Borrowers or Guarantors have had, now have or have made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.  It is the intention of the Borrowers and Guarantors in executing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified and in furtherance of this intention Borrowers and Guarantors each waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California, which provides:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MIGHT HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

The parties acknowledge that each may hereafter discover facts different from or in addition to those 

now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.

8.    Costs and Expenses.  Borrowers hereby reaffirm their agreement under the Credit Agreement to pay or reimburse Lender on demand for all Lender Expenses incurred by Lender in connection with the Loan Documents. Without limiting the generality of the foregoing, Borrowers specifically agree to pay all reasonable and documented (to the extent such documentation is reasonably requested by Borrowers) out-of-pocket fees and disbursements of counsel to Lender for the services performed by such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto.  Borrowers hereby agree that Lender may, at any time or from time to time in its sole discretion and without further authorization by Borrowers, make an Advance to the Borrowers under the Credit Agreement, or apply the proceeds of any Advance, for the purpose of paying any such fees, disbursements, costs and expenses.

9.    Choice of Law; Venue; Jury Trial Waiver; Arbitration.  The validity of this Amendment, its construction, interpretation and enforcement, and the rights of the parties hereunder shall be determined under, governed by, and construed in accordance with the internal laws of the State of California governing contracts only to be performed in that State.  All of the terms of Section 13 of the Credit Agreement are hereby incorporated by reference into this Amendment, mutatis mutandis.

10.    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by telefacsimile or “pdf” file or other similar method of electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

11.    Reference to and Effect on the Loan Documents.

11.1    Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.

11.2    Except as specifically amended by this Amendment, the Credit Agreement and all other Loan Documents, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of the Borrowers to the Lender and Bank Product Providers, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally.

11.3    The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

11.4    To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to 

reflect the terms and conditions of the Credit Agreement as modified or amended hereby.

11.5    This Amendment shall be deemed to be a “Loan Document” (as defined in the Credit Agreement).

12.    Ratification. Borrowers hereby restate, ratify and reaffirm each and every term and condition set forth in the Credit Agreement and the other Loan Documents, in each case as amended by this Amendment, effective as of the date hereof.

13.    Estoppel.  To induce the Lender to enter into this Amendment and to continue to make Advances or issue Letters of Credit to or for the account of the Borrowers under the Credit Agreement, Borrowers hereby acknowledge and agree that, as of the date hereof, there exists no right of offset, defense, counterclaim or objection in favor of Borrowers as against the Lender or any Bank Product Provider with respect to the Obligations.

14.    Integration; Conflict; Successors and Assigns; Amendment.  This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof. In the event of any conflict between this Amendment and the Credit Agreement, the terms of this Amendment shall govern.  This Amendment shall bind and inure to the benefit of the respective successors and assigns of each of the parties, subject to the provisions of the Credit Agreement and the other Loan Documents.  No amendment or modification of this Amendment shall be effective unless it has been agreed to by Lender in a writing that specifically states that it is intended to amend or modify this Amendment.

15.    Severability. In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

[signature pages follow]

IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.

BORROWERS:
	
		
	NOVATEL WIRELESS, INC.

	 
	 

	By:
	/s/ Michael A. Newman

	Name:
	Michael A. Newman

	Title:
	Chief Financial Officer

	 
	 

	ENFORA, INC.

	 
	 

	By:
	/s/ Michael A. Newman

	Name:
	Michael A. Newman

	Title:
	Secretary

	 
	 

	FEENEY WIRELESS, LLC

	 
	 

	By:
	/s/ Michael A. Newman

	Name:
	Michael A. Newman

	Title:
	Secretary

[Fifth Amendment to Credit and Security Agreement]

LENDER:
	
		
	WELLS FARGO BANK, 
NATIONAL ASSOCIATION

	 
	 

	By:
	/s/ Robin Van Meter

	Name:
	Robin Van Meter

	Title:
	Authorized Signatory

[Fifth Amendment to Credit and Security Agreement]

ACKNOWLEDGMENT BY GUARANTORS 
Dated as of October 5, 2015
Each of the undersigned, being a “Guarantor” (“Guarantor”) under that certain Continuing Guaranty, dated as of March 27, 2015, executed in favor of Wells Fargo Bank, National Association (“Lender”) (as amended, modified or supplemented, the “Guaranty”), hereby (i) acknowledges and agrees to the foregoing Fifth Amendment to Credit and Security Agreement (the “Amendment”; to which reference is made for capitalized terms used but not defined in this Acknowledgment by Guarantors), including, without limitation, the release set forth in Section 7 of the Amendment, and (ii) confirms and agrees that the Guaranty is and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that, upon the effectiveness of, and on and after the date of the Amendment, each reference in the Guaranty to the Credit Agreement (as defined in the Amendment), “thereunder”, “thereof” or words of like import referring to the “Credit Agreement”, shall mean and be a reference to the Credit Agreement as amended or modified by the Amendment.  Although Lender has informed each Guarantor of the matters set forth above, and each Guarantor has acknowledged the same, each Guarantor understands and agrees that Lender has no duty under the Credit Agreement, the Guaranty or any other agreement with any Guarantor to so notify any Guarantor or to seek such an acknowledgement, and nothing contained herein is intended to or shall create such a duty as to any advances or transaction hereafter.

	
		
	R.E.R. ENTERPRISES, INC.

	 
	 

	By:
	/s/ Michael A. Newman

	Name:
	Michael A. Newman

	Title:
	Secretary

	 
	 

	FEENEY WIRELESS IC-DISC, INC.

	 
	 

	By:
	/s/ Michael A. Newman

	Name:
	Michael A. Newman

	Title:
	Secretary

[Fifth Amendment to Credit and Security Agreement]

ANNEX A TO AMENDMENT

Schedule 6.1

TO CREDIT AND SECURITY AGREEMENT

Deliver to Lender, each of the financial statements, reports, or other items set forth below at the following times in form satisfactory to Lender:

	
		
	as soon as available, but in any event within 30 days after the end of each month
	(a)    an (i) unaudited consolidated balance sheet, income statement, statement of cash flow, and statement of shareholder’s equity with respect to the Borrowers and their respective Subsidiaries (which, for the avoidance of doubt, shall exclude the DigiCore and its subsidiaries) during such period and compared to the prior period and plan, prepared in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes, together with a corresponding discussion and analysis of financial results from management and (ii) an unaudited consolidated balance sheet, income statement, statement of cash flow, and statement of shareholder’s equity with respect to DigiCore and its subsidiaries during such period, prepared in accordance with past practice, subject to year-end audit adjustments and the absence of footnotes;

(b)    a Compliance Certificate along with the  underlying calculations, including the calculations to establish compliance with the financial covenants set forth in Section 8 and certain other covenants under this Agreement; and

(c)    a backlog report.

	as soon as available, but in any event within 90 days after the end of each
fiscal year
	(a)    consolidated  and  consolidating  financial  statements  of Borrowers and their respective Subsidiaries and DigiCore for such fiscal year, audited by independent certified public accountants reasonably acceptable to Lender, prepared in accordance with GAAP, and certified, without any qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or (C) qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item), by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, statement of cash flow, and statement of shareholder’s equity and, if prepared, such accountants’ letter to management); and

(b)    a Compliance Certificate along with the  underlying calculations, including the calculations to establish compliance with the  financial  covenants  set  forth  in  Section  8  and  certain  other covenants under this Agreement.

	
		
	as soon as available, but in any event within 30 days after the start of each of Borrowers’ fiscal years, with drafts due no later than 10 days prior to the beginning of each such year
	(a)    copies of Borrowers’ and Guarantors’ Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Lender, in its Permitted Discretion, for the forthcoming fiscal year, on a monthly basis, certified by the chief financial officer of Administrative Borrowers as being such officer’s good faith estimate of the financial performance of the Borrowers, Guarantors, and their respective Subsidiaries during the period covered thereby.

	if and when prepared by any Borrower or Guarantor,
	

(a)    any other information that is provided by any Borrower or
Guarantor to its shareholders generally.

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