Document:

Exhibit
10.1

 

EXECUTION
VERSION

 

AMENDED
AND RESTATED SECOND AMENDMENT TO CREDIT AGREEMENT

 

AMENDED AND RESTATED SECOND
AMENDMENT TO CREDIT AGREEMENT (this “Second Amendment”), dated as of October 29,
2010, by and among INTERNATIONAL ADVISORY HOLDINGS CORP., a Delaware
corporation (“Holdings”), INTERNATIONAL CONSULTING ACQUISITION
CORP., a Delaware corporation (the “Borrower”), the lenders party to the
Credit Agreement referred to below (the “Lenders”) and DEUTSCHE BANK
TRUST COMPANY AMERICAS, as Administrative Agent (in such capacity, the “Administrative
Agent”). Unless otherwise indicated, all capitalized terms used herein and
not otherwise defined shall have the respective meanings provided such terms in
the Credit Agreement.

 

W I T N E S S E T H :

 

WHEREAS, Holdings, the
Borrower, the Lenders and the Administrative Agent are parties to a Credit
Agreement, dated as of November 16, 2007 (as amended, modified or
supplemented through, but not including, the date hereof, the “Credit
Agreement”); 

 

WHEREAS, Holdings, the
Borrower, the Lenders party thereto and the Administrative Agent are parties to
a Second Amendment to Credit Agreement, dated as of September 27, 2010
(the “Original Second Amendment”); and 

 

WHEREAS, subject to the
terms and conditions of this Second Amendment, the parties hereto wish to amend
and restate the Original Second Amendment in its entirety in the form of this
Second Amendment in order to amend certain provisions of the Credit Agreement
as herein provided;

 

NOW, THEREFORE, it is agreed:

 

I.                 Amendments to
Credit Agreement.

 

1.             The definition of “Consolidated
EBITDA” appearing in Section 1.01 of the Credit Agreement is hereby
amended by deleting the text “December 31, 2008” appearing in clause
(vi) of the first sentence thereof and inserting the text “December 31,
2011” in lieu thereof.

 

2.             Section 9.15(a) of the Credit Agreement is
hereby amended by inserting the following new sentence at the end thereof: 

 

“In addition to the
Aggregate Consideration payable for Permitted Acquisitions pursuant to clause
(v) of the immediately preceding sentence, the Borrower or a Wholly-Owned
Domestic Subsidiary thereof which is a Subsidiary Guarantor may consummate the
acquisition of all of the outstanding Equity Interests of, or all or substantially
all of the assets of, a company previously identified to the Administrative
Agent on or about September 27, 2010 so long as (i) such Permitted
Acquisition is consummated on or before December 31, 2010, (ii) each
of the other requirements of this Section 9.15 and the definition of
Permitted Acquisition are satisfied,

 

 

(iii) the Aggregate
Consideration payable for such Permitted Acquisition does not exceed the sum of
(I) an initial upfront cash payment not to exceed $9,000,000 plus
(II) an earn-out payment tied to the financial performance of such
Acquired Entity or Business not to exceed $8,000,000, which earn-out payment
(A) shall be paid out over a four-year (or longer) period commencing with
Holdings’ fiscal year ending December 31, 2011 and (B) may only be
paid to the extent that (x) no Default or Event of Default exists at the
time of the respective payment or immediately after giving effect thereto and
(y) such payment does not exceed $4,000,000 in any fiscal year of Holdings
and (iv) the purchase agreement for such Permitted Acquisition expressly
conditions the payment of such earn-out consideration on the satisfaction of
the foregoing conditions.”

 

3.             Section 10.07 of the Credit
Agreement is hereby amended by deleting the text “September 30, 2010
through and including March 30, 2011” and the corresponding ratio of “3.00:1.00”
set forth opposite such text and inserting the following text and ratios in
lieu thereof:

 

	
  “September 30,
  2010 through and including December 30, 2010

  	
   

  	
  3.35:1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2010 through and including March 30, 2011

  	
   

  	
  3.00:1.00”.

  	
   

  

 

II.             Miscellaneous
Provisions.

 

1.             In order to induce the Lenders to
enter into this Second Amendment, each of Holdings and the Borrower hereby
represents and warrants that (i) no Default or Event of Default exists as
of the Second Amendment Effective Date (as hereinafter defined), both
immediately before and after giving effect to this Second Amendment and
(ii) all of the representations and warranties contained in the Credit
Agreement and in the other Credit Documents, are true and correct in all
material respects on the Second Amendment Effective Date, both immediately
before and after giving effect to this Second Amendment, with the same effect
as though such representations and warranties had been made on and as of the
Second Amendment Effective Date (it being understood that any representation or
warranty which by its terms is made as of a specific date shall be true and
correct in all material respects only as of such specific date).

 

2.             The Credit Agreement is modified only by the express
provisions of this Second Amendment and this Second Amendment shall not
constitute a modification, acceptance or waiver of any other provision of the
Credit Agreement or any other Credit Document.

 

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

 

2

 

4.             THIS SECOND AMENDMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

5.             This Second Amendment shall become effective on the date
(the “Second Amendment Effective Date”) when Holdings, the Borrower and
the Required Lenders shall have signed a counterpart hereof (whether the same
or different counterparts) and shall have delivered (including by way of
facsimile or other electronic transmission) the same to White & Case
LLP, 1155 Avenue of the Americas, New York, NY 10036; Attention: Stanley Boris
(facsimile number: 212-354-8113 / email: sboris@whitecase.com) and
(ii) the Borrower shall have paid the outstanding fees and expenses of
White & Case LLP in connection with the Credit Agreement.

 

6.             From and after the Second Amendment Effective Date, all
references in the Credit Agreement and each of the other Credit Documents to
the Credit Agreement shall be deemed to be references to the Credit Agreement
as modified hereby.

 

7.             This Second Amendment amends and restates in full the
Original Second Amendment and the Original Second Amendment shall no longer
have any further force or effect.

 

*      *      *

 

3

 

IN WITNESS WHEREOF, the parties hereto have
caused their duly authorized officers to execute and deliver this Second
Amendment as of the date first above written.

 

	
   

  	
  INTERNATIONAL ADVISORY HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randy Scheller

  
	
   

  	
   

  	
  Name:

  	
  Randy Scheller

  
	
   

  	
   

  	
  Title:

  	
  Vice President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL CONSULTING ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randy Scheller

  
	
   

  	
   

  	
  Name:

  	
  Randy Scheller

  
	
   

  	
   

  	
  Title:

  	
  Vice President & Treasurer

  

 

Signature
page to Amended and Restated Second Amendment to TPI Credit Agreement

 

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS,

  
	
   

  	
   

  	
  Individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Erin Morrissey

  
	
   

  	
   

  	
  Name:

  	
  Erin
  Morrissey

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Scottye Lindsey

  
	
   

  	
   

  	
  Name:

  	
  Scottye
  Lindsey

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

Signature
page to Amended and Restated Second Amendment to TPI Credit AgreementEXHIBIT 10.1

 

Summary of Executive Bonus Plan

(adopted August 18, 2010)

 

On August 18, 2010, the
Compensation Committee of our Board of Directors adopted a new executive
incentive bonus plan for our eligible executive officers to be effective for
the fiscal year ending December 31, 2010 in replacement of a prior
executive bonus plan, previously adopted on August 21, 2009 for the
quarterly periods ending September 30, 2009 and December 31, 2009.
The new plan was adopted by the Compensation Committee after consideration by
the Committee of our compensation philosophies, principles and processes as
described in our Annual Report on Form 10-K/A for the fiscal year ended
December 31, 2009 filed with the Securities and Exchange Commission on
April 30, 2010. These philosophies, principles and processes provide for
periodic review by the Committee of the performance of our executive officers,
the components of their compensation and the effectiveness of our compensation
programs in rewarding the contributions of our executive officers towards
enhancing our specific business goals while retaining and motivating high
quality individuals. In adopting the new executive incentive bonus plan for the
fiscal year ending December 31, 2010, the Committee also considered a new report
from an independent third party compensation consultant, Towers Watson,
together with other recent competitive market data.

 

The new executive incentive
bonus plan covers the following executive officers, with applicable incentive
targets under the plan indicated as a percentage of base salary for each as
follows: Frank F. Khulusi, Chairman, President and Chief Executive Officer —
50% of base salary; Brandon H. LaVerne, Chief Financial Officer — 40% of base
salary; Kristin M. Rogers, Executive Vice President of Sales and Marketing —
40% of base salary; and Joseph B. Hayek, Executive Vice President of Corporate
Development and Investor Relations — 40% of base salary.

 

The plan will be funded at
the above amounts if the company achieves 100% of a target of adjusted EBITDA
for the 2010 calendar year. Adjusted EBITDA is defined under the plan as
consolidated earnings before interest, taxes, depreciation and amortization,
and adjusted for stock-based compensation and non-recurring special charges, if
any, to be excluded from the calculation of EBITDA in the discretion of the
Compensation Committee.

 

The plan also has a minimum
adjusted EBITDA for any incentive bonuses to be paid under the plan and
contains incentive bonus decelerators based on performance below the
performance target. If the company performance falls below the performance
target, but is at least 90% of the performance target, the incentive bonuses
may be reduced by a percentage of the incentive bonus target equal to two times
the percentage points by which adjusted EBITDA falls below the performance
target. For example, if the company achieves 90% of the performance target,
incentive bonuses under the plan may be funded at 80% of the target incentive
bonus amounts described above.  If the company achieves less than 90% of
the performance target, the plan will not be funded and no incentive bonuses
will be paid under the plan.

 

The plan also contains
accelerators under which the incentive bonus amounts can exceed the above
described target incentive bonus amounts. If the company’s performance is
between 100% and 110% of the performance target, the incentive bonuses may be
increased at a rate of two times the percentage points by which adjusted EBITDA
exceeds 100% of the performance target.  For example, if the company
achieves 110% of the performance target, the incentive bonuses may be paid at
120% of the above described incentive bonus target amounts.

 

Additional accelerators are
available if the company’s performance is between 111% and 130% of the
performance target. In such event, in addition to the first accelerator
described above for performance between 100% and 110% of the performance
target, the incentive bonus amounts may be further increased by an additional
four times the percentage points by which the performance target exceeds 110%,
with a maximum funding of 200% of the incentive bonus targets. For
example, if the company achieves 120% of the performance target, the plan may
be funded and incentive bonuses paid at 160% of the above described incentive
bonus target amounts. If the company achieves 130% or more of the
performance target, the plan may be funded and incentive bonuses paid at 200%
of the above described incentive bonus target amounts.

 

Joe Hayek was a participant
in an individual incentive plan during the period of January 1, 2010
through June 30, 2010. Such plan is terminated and replaced with this
plan effective July 1, 2010. The previous plan was prorated at
$25,000 for the respective period, and is preliminarily funded for
$21,875. Joe Hayek’s annual incentive bonus target under the new plan for
2010 is set at $102,077, leaving $77,077 remaining as available for the period
from July 1, 2010 to December 31, 2010, after deducting the prorated
$25,000 for the first half of 2010.

 

 

The Compensation Committee
may in its sole discretion reduce the amounts that would otherwise be payable
to any participant for any period (including a complete elimination of all
amounts to be paid under the bonus plan). Any such reduction may be based on
quantitative or qualitative factors determined in the discretion of the
Compensation Committee, which may be based in part upon qualitative
recommendations from our Chief Executive Officer (for executives other than the
Chief Executive Officer).

 

In addition to participation
in the executive incentive bonus plan, as described above, all of our executive
officers are eligible for discretionary bonuses as determined from time to time
by our Compensation Committee. At the August 18, 2010 Compensation
Committee meeting, the Committee also awarded Brandon LaVerne a discretionary
bonus outside of the plan in the amount of $30,000.

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