Document:

Unassociated Document

EXHIBIT 10.75

 

Small Business Side Letter

 

October 29, 2012

 

Reference is made to that certain Securities Purchase Agreement and Security Agreement (the “Purchase Agreement”), dated as of the date hereof, and as may be amended and in effect from time to time, by and between, among others, FUSION NBS ACQUISITION CORP., a Delaware corporation (“Borrower”), with its principal place of business at 420 Lexington Avenue, Suite 1718, New York, New York, FUSION TELECOMMUNICATIONS INTERNATIONAL, INC., a Delaware corporation with its principal place of business at 420 Lexington Avenue, Suite 1718, New York, New York (“Parent”) each subsidiary from time to time party thereto, PRAESIDIAN CAPITAL OPPORTUNITY FUND III-A, LP, a Delaware limited partnership with its principal place of business at 419 Park Avenue South, New York, New York(“PCOF”), PRAESIDIAN CAPITAL OPPORTUNITY FUND III, LP, a Delaware limited partnership with its principal place of business at 419 Park Avenue South, New York, New York, as a lender and as agent thereunder, and PLEXUS FUND II, LP, a Delaware limited partnership with its principal place of business at 4601 Six Forks Road, Suite 528, Raleigh, North Carolina, pursuant to which, among other things, PCOF has agreed (i) to provide necessary financing to Borrower by making a term loan to Borrower on the terms set forth in the Purchase Agreement and (ii) to purchase from Borrower warrants to purchase capital stock of Borrower (the “Warrants”), on the terms and conditions set forth in the Purchase Agreement.

 

PCOF is a Small Business Investment Company (“SBIC”) licensed by the United States Small Business Administration (“SBA”).  In order for the PCOF to lend to Borrower and purchase the Warrants, it must obtain from Borrower certain representations and rights as set forth below. As a material inducement to PCOF to enter into the Purchase Agreement, Borrower hereby makes the following representations and warranties and agrees to comply with the following covenants:

 

1.   Small Business Matters.

 

(a) Borrower, together with Borrower’s Affiliates, is a “small business concern” within the meaning of the Small Business Investment Act of 1958, as amended (“SBIA”), and the regulations thereunder, including Title 13, Code of Federal Regulations. § 121.30l(c) because, as of the date hereof, it either:

 

Check One

 

	
þ

	
(i)

	
including its affiliates, has a tangible net worth not in excess of $18 million and average net income after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years not in excess of $6 million; or

 

	
 ̈

	
(ii)

	
does not exceed the size standard in number of employees or millions of dollars in revenue under the SIC (Standard Industrial Classification) System for the industry in which it, combined with its affiliate, is primarily engaged; and in which it alone is primarily engaged.

 

  

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(b) The information set forth in the Small Business Administration Forms 480, 652 and Parts A and B of Form 1031 regarding Borrower and its Affiliates, when delivered to PCOF, will be accurate and complete and will be in form and substance acceptable to PCOF.  Copies of Forms 480 and 652 shall be completed and executed by Borrower and delivered to PCOF at the Purchase Agreement closing (the “Closing”), and Parts A and B of Form 1031 shall be completed and executed by Borrower and delivered to PCOF within 15 days of the Closing.

 

(c) The proceeds will be used by Borrower (1) for the purposes described in the Purchase Agreement, and (2) to pay expenses related to the transactions contemplated by the Purchase Agreement.  No portion of such proceeds will be used to provide capital to business ineligible for financing as described in 13 C.F.R. § 107.720.

 

(d) At Closing or within one year thereafter, no more than 49 percent of the employees or tangible assets of Borrower and its Subsidiaries will be located outside the United States (unless Borrower can show, to SBA’s satisfaction, that the proceeds will be used for a specific domestic purpose).  This subsection (e) does not prohibit such proceeds from being used to acquire foreign materials and equipment or foreign property rights for use or sale in the United States.

 

(e) Neither Borrower, nor any officer, director, employee or equity owner of the business was or is an Associate (as such term is defined in 13 C.F.R. § 107.50) of PCOF.

 

2.   Regulatory Compliance.

 

(a) Information Rights and Related Covenants.

 

(i) Borrower shall provide to PCOF or any of its Affiliates and the SBA at such times as PCOF or the SBA may request access to its books and records for the purpose of confirming the use of the proceeds of such financing and for all other purposes required by the SBA.

 

(ii) Borrower shall provide to PCOF or any of its Affiliates such financial and other information as PCOF or any of its Affiliates may from time to time reasonably request to enable it to comply with the provisions of 13 C.F.R. Section 107.620(b)(1), and such information shall be certified by such Borrower’s President, Chief Executive Officer, Treasurer or Chief Financial Officer as required by 13 C.F.R. Section 107.620(b)(2).

 

(iii) Prior to the Closing, Borrower shall provide to PCOF or any of its Affiliates and the SBA a certificate of its Chief Financial Officer (1) certifying the use of such proceeds and (2) certifying compliance by such Borrower with the provisions of this letter (provided that such certificate may be truthfully given).

 

(iv) Within 45 days after the end of each fiscal year of Borrower, Borrower shall provide to PCOF or any of its Affiliates a written assessment, in form and substance reasonably satisfactory to PCOF, of the economic impact of PCOF's financing hereunder, specifying the full-time equivalent jobs created or retained, the impact of the financing on the consolidated revenues and profits of the Business and on taxes paid by the Business and its employees (See 13 CFR § 107.630(e)).

 

  

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(v) Upon the request of PCOF or any of its Affiliates, Borrower will (A) provide to such Person such financial statements and other information as such Person may from time to time reasonably request for the purpose of assessing such Borrower's financial condition and (B) furnish to such Person all information reasonably requested by it in order for it to prepare and file SBA Form 468 and any other information reasonably requested or required by any governmental agency asserting jurisdiction over such Person.

 

(vi) For a period of one year following the date hereof, neither Borrower nor any of its Subsidiaries will change its business activity if such change would render Borrower ineligible to receive financial assistance from an SBIC under the SBIA and the regulations thereunder (within the meanings of 13 CFR §§ 107.720 and 107.760(b)).

 

(vii) Borrower shall at all times comply with the non-discrimination requirements of 13 CFR Parts 112, 113 and 117.

3.   Definitions.

 

(a) “Affiliate” shall have the meaning set forth in Title 13, Code of Federal Regulations. § 121.103.

 

(b) “Control” means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

(c) “Person” shall be construed broadly and shall include an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity (or any department, agency or political subdivision thereof).

 

(d) “Subsidiary” means, with respect to any Person, any other Person of which the securities having a majority of the ordinary voting power in electing the board of directors (or other governing body), at the time as of which any determination is being made, are owned by such first Person either directly or through one or more of its Subsidiaries.

 

4.    Miscellaneous.

 

(a) This letter may be executed in counterparts, each of which shall be an original and both of which taken together shall constitute one and the same instrument.

 

(b) This letter shall be governed by the laws of the State of New York (without giving effect to the conflicts of laws principles thereof).

 

[SIGNATURE PAGES FOLLOW]

 

  

3

  

 

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

 

	

FUSION NBS ACQUISITION CORP.

	 
	 	 	 
	
By: 

	 	 
	Name:	 	 
	Title:	 	 

 

 

[Signature Page to Praesidian Capital Opportunity Fund III-A, LP SBA Letter]

 

  

4

  

 

 

	

PRAESIDIAN CAPITAL OPPORTUNITY FUND III-A, LP

	 
	 	 	 
	By:	
Praesidian Capital Opportunity GP III-A, LLC,

its General Partner

	 
	 	 	 
	
By:

	 	 
	 	Name:	 
	 	Title: Manager	 

  

 

 

[Signature Page to Praesidian Capital Opportunity Fund III-A, LP SBA Letter]

 

 

 

5Exhibit 4.20

Exhibit 4.20
EXECUTION VERSION

HARLAND CLARKE HOLDINGS CORP.
AMENDMENT AGREEMENT
This AMENDMENT AGREEMENT, dated as of May 10, 2012 (this "Amendment Agreement"), is entered into by and among Harland Clarke Holdings Corp., a Delaware corporation (the "Borrower"), CA Acquisition Holdings, Inc., a Delaware corporation ("Holdings"), the Subsidiary Co-Borrowers, the Subsidiary Guarantors, the Issuing Bank, the Swingline Lender, the Lenders party hereto and Credit Suisse AG, Cayman Islands Branch ("Credit Suisse"), as administrative agent and collateral agent for the Lenders (in such capacities, the "Agent") and is made with reference to that certain Credit Agreement, dated as of April 4, 2007 (as amended by that certain first amendment dated May 4, 2007, the "Existing Credit Agreement"), entered into by and among the Borrower, the Subsidiary Co-Borrowers, the Lenders party thereto and the Agent and to that certain Guarantee and Collateral Agreement, dated as of May 1, 2007, entered into by and among Holdings, the Borrower, the Subsidiary Guarantors and the Agent.  Capitalized terms used herein and not otherwise defined herein or otherwise amended hereby shall have the meanings ascribed to them in the Existing Credit Agreement.

A.    Each existing Lender with outstanding Tranche B Term Loans (an "Existing Tranche B Term Loan Lender") that executes and delivers a signature page to this Amendment Agreement specifically checking the box labeled "Extending Lender" (an "Extending Tranche B Term Loan Lender") will be deemed (x) upon the Amendment Agreement Closing Date (as defined below) to have agreed to the terms of this Amendment Agreement and (y) upon the Second Amendment Effective Date (as defined below) to have (i) irrevocably offered for conversion its Tranche B Term Loans outstanding immediately prior to the Second Amendment Effective Date ("Existing Tranche B Term Loans"), or a portion thereof equal to the amount set forth on Schedule I to such Lender's signature page hereto (such Lender's "Submitted Amount"), into Tranche B-2 Term Loans, (ii) agreed that its Existing Tranche B Term Loans in the amount of its Submitted Amount will be converted into Tranche B-2 Term Loans (such Lender's "Converted Tranche B-2 Amount"), and (iii) agreed that the remainder of its Existing Tranche B Term Loans will be converted into Tranche B-1 Term Loans.  Each Extending Lender that executes and delivers a signature page to this Amendment Agreement specifically checking the box labeled "Accepts the Payment" will be deemed to have irrevocably elected to receive its pro rata portion of any prepayment of Tranche B-2 Term Loans described in Section 4.A of this Amendment Agreement (each such Extending Lender, an "Opt-In Lender").  Each Extending Lender that executes and delivers a signature page to this Amendment Agreement specifically checking the box labeled "Rejects the Payment" (or who executes and delivers a signature page to this Amendment Agreement but fails to specifically check the box labeled "Accepts the Payment") will be deemed to have irrevocably elected not to receive its pro rata portion of any prepayment of Tranche B-2 Term Loans described in Section 4.A of this Amendment Agreement.  Each Existing Tranche B Term Loan Lender that executes and delivers this Amendment Agreement solely in the capacity as an Existing Tranche B Term Loan Lender and not specifically as an Extending Tranche B Term Loan Lender, as set forth on such Lender's signature page hereto, shall continue its Existing Tranche B Term Loans as Tranche B-1 Term Loans and shall be deemed to have agreed to this Amendment Agreement, but will not be deemed by virtue of such execution and delivery to have agreed to convert any of its Existing Tranche B Term Loans into Tranche B-2 Term Loans.

B.    Any other Lender that executes and delivers a signature page to this Amendment Agreement shall be deemed to have agreed to this Amendment Agreement.
C.    The Required Lenders are willing to effect the amendments set forth herein, and the Extending Tranche B Term Loan Lenders are willing to convert their Existing Tranche B Term Loans into Tranche B-2 Term Loans, in each case, on the terms and subject to the conditions of this Amendment 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.
	AMENDMENTS

The parties hereto agree that (x) the Existing Credit Agreement (and, to the extent provided in Exhibit A, any exhibits and schedules thereto) shall be amended on the Second Amendment Effective Date such that, on such date, the terms set forth in the composite form of Credit Agreement attached hereto as Exhibit A (the "Amended Credit Agreement") shall replace the terms of the Existing Credit Agreement as in effect immediately prior to the Second Amendment Effective Date; provided, that for purposes of permitting the Borrower to effect the prepayment contemplated by Section 4.A.  below, and, in connection therewith, to issue senior secured notes the net proceeds of which would be applied to such prepayment, the amendments to the Existing Credit Agreement set forth in the Amended Credit Agreement which add Sections 2.09(b)(i) and 6.01(b)(xxv) and the definition of "Credit Agreement Refinancing Indebtedness" and modify the definition of "Permitted Collateral Sharing Liens" and Section 2.08 (and any related modifications made to any of the defined terms used in such provisions and definitions) shall be effective on the Amendment Agreement Closing Date; provided, further that prior to the Second Amendment Effective Date the term "Tranche B-2 Term Loans" shall mean the Submitted Amount of all Existing Tranche B Term Loans of Extending Tranche B Term Loan Lenders, and "Tranche B-1 Term Loans" shall mean all Existing Tranche B Term Loans other than such Tranche B-2 Term Loans and (y) the Guarantee and Collateral Agreement shall be amended on the Second Amendment Effective Date such that, on such date, the terms set forth in the composite form of Guarantee and Collateral Agreement hereto as Exhibit B (the "Amended Guarantee and Collateral Agreement" and, together with the Amended Credit Agreement, the "Amended Loan Documents") shall replace the terms of the Guarantee and Collateral Agreement as in effect immediately prior to the Second Amendment Effective Date.
		
	SECTION 2.
	REPRESENTATIONS AND WARRANTIES

A.Organization.

Each Loan Party has full power and authority and holds all requisite governmental licenses, permits and other approvals to enter into this Amendment Agreement.
B.    Due Authorization, Non-Contravention, etc.

The execution, delivery and performance by each Loan Party of this Amendment Agreement have been duly authorized by all necessary corporate action, and do not (i) contravene such Loan Party charter documents or (ii) contravene any contractual restriction, law or governmental regulation or court decree or order binding on or affecting the Borrower, where such contravention, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

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C.    Validity, etc.

This Amendment Agreement constitutes the legal, valid and binding obligation of each Loan Party enforceable against each Loan Party in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors' rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

D.    Credit Agreement Representations.

The representations and warranties set forth in the Loan Documents shall be true and correct in all material respects as of the Amendment Agreement Closing Date except (x) to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects on and as of such earlier date and (y) to the extent any such representation and warranty is qualified as to "materiality" or "Material Adverse Effect", in which case such representations and warranties shall be true and correct in all respects.
		
	SECTION 3.
	CONDITIONS TO AMENDMENT AGREEMENT CLOSING DATE.

The effectiveness of this Amendment Agreement (including the amendments to the Existing Credit Agreement contemplated by the proviso to Section 1 above, but not the other amendments contemplated by Section 1 above the effectiveness of which is also subject to Section 4 below), is subject to the satisfaction of the following conditions (the date on which such conditions are satisfied, the "Amendment Agreement Closing Date"):
A.Due Execution and Delivery.

Counterparts of this Amendment Agreement, duly executed by the Loan Parties, the Agent, the Issuing Bank, the Swingline Lender, the Lenders who comprise the Required Lenders and Extending Tranche B Term Loan Lenders representing an amount of Existing Tranche B Term Loans acceptable to the Borrower (but in no event less than fifty percent (50%) of the Tranche B Term Loans), shall have been delivered to the Agent.
B.Legal Opinions.

The Agent shall have received executed legal opinions from (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to the Co-Borrowers and Holdings, (ii) Troutman Sanders LLP, local Georgia counsel, and (iii) Schwabe Williamson & Wyatt, local Oregon counsel, in each case as to such matters as are reasonably required by the Agent (but excluding opinions relating to Mortgaged Properties), which opinions shall be reasonably satisfactory to the Agent.
Each Lender that submits an executed counterpart to this Amendment Agreement acknowledges and agrees that such submission is irrevocable in the absence of a modification to the terms and conditions of this Amendment Agreement (including Exhibit A hereto), in each case, that is (x) made after the submission of such Lender's executed counterpart and (y) materially adverse to the Lenders.
		
	SECTION 4.
	CONDITIONS TO SECOND AMENDMENT EFFECTIVE DATE.

The effectiveness of the amendments to the Existing Credit Agreement and the Guarantee and Collateral Agreement contemplated by Section 1 above (other than those contemplated by the proviso 

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to Section 1 above which shall become effective on the Amendment Agreement Closing Date) is subject to the satisfaction of the following conditions (the date on which such conditions are satisfied, the "Second Amendment Effective Date"):

A.Prepayment of Tranche B -2 Term Loans.

On or prior to the date that is ninety (90) days (or such longer period as may be agreed in writing by the Extending Tranche B Lenders having more than 50% of the aggregate Submitted Amount of all Extending Tranche B Lenders) after the Amendment Agreement Closing Date, and concurrently with the conversion of the Submitted Amounts of Tranche B Term Loans of Extending Tranche B Term Loan Lenders into Tranche B-2 Term Loans, the Borrower shall prepay an aggregate principal amount equal to thirty percent (30%) of the aggregate principal amount of Tranche B-2 Term Loans of Opt-In Lenders outstanding on the Second Amendment Effective Date (after giving effect to such conversion) in accordance with Section 2.08 or 2.09, as applicable, of the Amended Credit Agreement.

B.Fees and Expenses.

The Agent shall have received (i) on behalf of each Lender who has executed this Amendment Agreement, a nonrefundable amendment fee equal to 0.05% of the sum of such Lender's Revolving Credit Commitment (whether used or unused) and outstanding Term Loans as of the Second Amendment Effective Date (provided that such amendment fee payable in respect of an Extending Tranche B Lender's Term Loans shall be determined (x) by treating such Lender's Submitted Amount on an as-converted basis and (y) after giving effect to the prepayment of Tranche B-2 Term Loans required under Section 4.A above), which fee shall be fully earned and payable upon the Second Amendment Effective Date, (ii) on behalf of each Lender who has executed this Amendment Agreement as an Extending Tranche B Term Loan Lender, a nonrefundable extension fee equal to 0.20% of the sum of such Lender's Term Loan Converted Tranche B-2 Amount after giving effect to the prepayment of Tranche B-2 Term Loans required under Section 4.A above, which fee shall be fully earned and payable upon the Second Amendment Effective Date, (iii) the fees payable to the joint lead arrangers pursuant to that certain Engagement Letter dated as of May 1, 2012 between the Borrower and Credit Suisse and (iv) to the extent invoiced before the Second Amendment Effective Date, reimbursement or other payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder or under any other Loan Document (including all reasonable fees, charges and disbursements of Latham & Watkins LLP, counsel to the Agent), incurred in connection with this Amendment Agreement.
C.No Default.

No Default or Event of Default shall have occurred and be continuing either before or immediately after giving effect to this Amendment Agreement and the occurrence of the Second Amendment Effective Date.
Notwithstanding anything herein to the contrary, if the Borrower has not elected to satisfy the conditions set forth in this Section 4 by the time specified in Section 4.A., then the amendments referred to in this Section 4 shall not become effective and the fees set forth in clauses (i), (ii) and (iii) of Section 4.B shall not be payable.

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	SECTION 5.
	POST-EFFECTIVE DATE COVENANTS

The Loan Parties shall deliver, or cause to be delivered, to the Agent no later than the date occurring ninety (90) days after the Second Amendment Effective Date (or such later date as may be acceptable to the Agent in its reasonable discretion), to the extent determined by the Agent to be reasonably necessary or desirable, each of the following items:
(i)to the extent necessary, fully executed and notarized mortgage modifications (each, a "Mortgage Modification"), in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering each applicable Mortgaged Property;

(ii)an opinion of counsel (which counsel shall be reasonably satisfactory to the Agent) in each state in which a Mortgaged Property for which a Mortgage Modification is required, is located with respect to the enforceability of such Mortgage as modified by the form of Mortgage Modification to be recorded in such state with respect to the Mortgaged Properties located therein and such other matters as the Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Agent; and

(iii)In the Agent's sole discretion, either (a) with respect to the lender's title insurance policy insuring each Mortgaged Property for which a Mortgage Modification is required, a mortgage modification endorsement with respect to such Mortgaged Property, executed by a title company reasonably satisfactory to the Agent, in form and substance reasonably satisfactory to the Agent, insuring that the validity, enforceability and priority of the applicable mortgage, and the effectiveness of such title policy, shall remain unchanged following recordation of the related Mortgage Modification or (b) a title search conducted by a title company reasonably acceptable to the Agent with respect to each applicable Mortgaged Property.

SECTION 6.ACKNOWLEDGEMENT AND CONSENT

Holdings and each Subsidiary Guarantor hereby acknowledges that it has reviewed the terms and provisions of the Existing Credit Agreement and the Guarantee and Collateral Agreement and this Amendment Agreement and consents to the amendment of the Existing Credit Agreement and the Guarantee and Collateral Agreement effected pursuant to this Amendment Agreement.  Holdings and each Subsidiary Guarantor hereby confirms that each Loan Document to which it is a party or otherwise bound and all Collateral encumbered thereby will continue to guarantee or secure, as the case may be, in accordance with the Loan Documents, as amended by this Amendment Agreement, the payment and performance of all "Obligations" under each of the Loan Documents to which is a party (as each such term is defined in the applicable Loan Document).
Holdings and each Subsidiary Guarantor acknowledges and agrees that each of the Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Amendment Agreement.
Holdings and each Subsidiary Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment Agreement, the consent of Holdings and the Subsidiary Guarantors are not required by the terms of the Existing Credit Agreement or any other Loan Document for the amendments to the Existing Credit Agreement or the Guarantee and Collateral Agreement effected pursuant to this Amendment Agreement and (ii) nothing in the Existing Credit Agreement, the 

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Guarantee and Collateral Agreement, this Amendment Agreement or any other Loan Document shall be deemed to require the consent of Holdings or such Subsidiary Guarantor, as the case may be, to any future amendments to the Existing Credit Agreement, the Guarantee and Collateral Agreement or any Amended Loan Document.
		
	SECTION 7.
	MISCELLANEOUS

A.Binding Effect

This Amendment Agreement shall be binding upon and shall inure to the benefit of the parties hereto and each of the Lenders and their respective successors and assigns.
B.    Severability

Any provision of this Amendment Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Amendment Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
C.    Reference to Credit Agreement and Guarantee and Collateral Agreement

On and after the Amendment Agreement Closing Date, each reference in the Existing Credit Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import referring to the Existing Credit Agreement, and each reference in the other Loan Documents to the "Credit Agreement," "thereunder," "thereof," or words of like import referring to the Credit Agreement shall mean and be a reference to the Existing Credit Agreement as amended by this Amendment Agreement.  On and after the Amendment Agreement Closing Date, each reference in the Guarantee and Collateral Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import referring to the Guarantee and Collateral Agreement, and each reference in the other Loan Documents to the "Guarantee and Collateral Agreement," "thereunder," "thereof," or words of like import referring to the Guarantee and Collateral Agreement shall mean and be a reference to the Guarantee and Collateral Agreement as amended by this Amendment Agreement.
D.    Effect on Credit Agreement and other Loan Documents

Except as specifically amended by this Amendment Agreement, the Existing Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.
E.    Execution

The execution, delivery and performance of this Amendment Agreement shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the Agent or any Lender under the Existing Credit Agreement or any of the other Loan Documents.
F.    Headings

The various headings of this Amendment Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment Agreement or any provisions hereof.

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G.    APPLICABLE LAW

THIS AMENDMENT AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.
H.    Counterparts

This Amendment 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 instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.
I.    Loan Document

This Amendment Agreement is a Loan Document.
[The remainder of this page is intentionally left blank ]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.
HARLAND CLARKE HOLDINGS CORP.

By:    /s/ Peter A. Fera, Jr.    
Name:    Peter A. Fera, Jr.
Title:    Executive Vice President and Chief 
Financial Officer

CA ACQUISITION HOLDINGS, INC.

By:      /s/ Paul G. Savas    
Name:    Paul G. Savas
Title:    Executive Vice President and Chief
Financial Officer

CHECKS IN THE MAIL, INC.

By:    /s/ Peter A. Fera, Jr.    
Name:    Peter A. Fera, Jr.
Title:    Executive Vice President and Chief 
Financial Officer

SCANTRON CORPORATION

By:    /s/ Peter A. Fera, Jr.    
Name:    Peter A. Fera, Jr.
Title:    Executive Vice President and Chief 
Financial Officer

HARLAND CLARKE CORP.

By:    /s/ Peter A. Fera, Jr.    
Name:    Peter A. Fera, Jr.
Title:    Executive Vice President and Chief
     Financial Officer

HARLAND FINANCIAL SOLUTIONS, INC.

By:    /s/ Peter A. Fera, Jr.    
Name:    Peter A. Fera, Jr.
Title:    Executive Vice President and Chief
     Financial Officer

JOHN H.  HARLAND COMPANY OF PUERTO RICO

By:    /s/ Peter A. Fera, Jr.    
Name:    Peter A. Fera, Jr.
Title:    Executive Vice President and Chief
     Financial Officer

HFS SCANTRON HOLDINGS CORP.

By:    /s/ Peter A. Fera, Jr.    
Name:    Peter A. Fera, Jr.
Title:    Executive Vice President and Chief
     Financial Officer

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as Agent

		
	By:  
	/s/ Robert Hetu    

		
	Name:
	Robert Hetu

		
	Title:
	Managing Director

		
	By:
	/s/ Patrick Freytag    

		
	Name:
	Patrick Freytag

		
	Title:
	Associate

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as Issuing Bank and Swingline Lender

		
	By:  
	/s/ Robert Hetu    

		
	Name:
	Robert Hetu

		
	Title:
	Managing Director

		
	By:
	/s/ Patrick Freytag    

		
	Name:
	Patrick Freytag

		
	Title:
	Associate

LENDER:
_________________________________________    
(Name of Lender)
By:     _________________________________________    
Name:
Title:

For any Lender requiring a second signature line:

By:     _________________________________________    
Name:
Title:

The above-referenced institution is executing this signature page in the capacity indicated by the box or boxes checked below:1 
		
	o
	Consenting Lender:     agrees to the terms of the Amendment Agreement and the Amended Credit Agreement and elects not to convert its Existing Tranche B Term Loans, if any, into Tranche B-2 Term Loans.

OR
		
	o
	Extending Lender:    agrees to the terms of the Amendment Agreement and the Amended Credit Agreement and elects to convert its Existing Tranche B Term Loans (in each case, in the amounts and for the Loans and Commitments as set forth on Schedule I below) into Tranche B-2 Term Loans, as applicable, on the Second Amendment Effective Date, subject to the terms of the Amendment Agreement.

The Extending Lender named above hereby irrevocably accepts or rejects ALL (but not less than ALL) the prepayment referenced in Section 4.A of the Amendment Agreement.2
o    Accepts the Payment
o    Rejects the Payment
__________________________
1A Lender who executes this signature page but does not specifically check the box “Consenting Lender” or “ Extending Lender” below shall be deemed to have agreed to the Amendment Agreement as a Consenting Lender.
2A Lender's failure to indicate either acceptance or rejection of the prepayment will be deemed a rejection of the total amount of such prepayment.
    

Schedule I3 
PLEASE NOTE THAT THE AMOUNTS SET FORTH BELOW FOR CURRENT AMOUNTS HELD MUST BE CONSISTENT WITH THE AMOUNT IN THE REGISTER MAINTAINED BY THE AGENT.  If more than one Lender is listed on the signature page, please fill in the following information for each Lender listed on the signature page.
TERM LOANS
	
			
	Lender Name
	Amount ($) Held of Existing Tranche B Term Loans
	Submitted Amount ($) of 
Existing Tranche B Term 
Loans Offered for 
Conversion into Tranche B-2 Term Loans

	 
	 
	 

	 
	 
	 

__________________________

3If any Lender's Submitted Amount is greater than the amount of Tranche B Term Loans of such Lender recorded in the Agent's Register, such Lender shall be deemed to have offered for conversion all of its Tranche B Term Loans into Tranche B-2 Term Loans.

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