Document:

exv10w1

Exhibit 10.1

EXECUTION COPY

THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

     THIS
THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT dated as
of January 19, 2010
(this “Amendment”) relating to the Credit Agreement referenced below, is by and among
COLEMAN CABLE, INC., a Delaware corporation (the “Company”), the Subsidiaries of the
Company identified on the signature pages hereto as a Borrower (collectively referred to as the
“Subsidiary Borrowers” or individually referred to as a “Subsidiary Borrower”)
(hereinafter, the Company and the Subsidiary Borrowers collectively referred to as the
“Borrowers” or individually referred to as a “Borrower”), each of the financial
institutions identified as Lenders on the signature pages hereto (referred to individually as a
“Lender” and, collectively, as the “Lenders”), and WACHOVIA BANK, NATIONAL
ASSOCIATION, as administrative agent for the Lenders (in such capacity, the “Administrative
Agent” or the “Agent”).

W I T N E S S E T H

     WHEREAS, the Lenders have extended a revolving credit facility to the Borrowers pursuant to
the terms of that certain Amended and Restated Credit Agreement dated as of April 2, 2007 (as
amended, modified or otherwise supplemented from time to time, the “Credit Agreement”)
among the Borrowers, the Lenders and the Administrative Agent;

     WHEREAS, in anticipation of the incurrence of Indebtedness by the Borrowers, the proceeds of
which will be used for the payment of principal, interest and premium (if any) in order to redeem,
retire or repurchase Senior Note Debt (2004) and/or Senior Note Debt (2007), the Borrowers have
requested that the Administrative Agent and the Lenders agree to amend the Credit Agreement; and

     WHEREAS, the Administrative Agent, the Lenders and the other parties hereto have agreed to
amend the Credit Agreement, on the terms and conditions provided herein;

     NOW, THEREFORE, in consideration of these premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

PART 1

DEFINITIONS

     SUBPART 1.1 Certain Definitions. The following terms used in this Amendment,
including its preamble and recitals, have the following meanings:

     “Amended Credit Agreement” means the Credit Agreement, as amended hereby and as
further amended, supplemented or otherwise modified from time to time.

     “Third Amendment Date” is defined in Subpart 3.1.

     SUBPART 1.2 Other Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Amendment, including its preamble and recitals, have the
meanings provided in the Amended Credit Agreement.

 

 

PART 2

AMENDMENTS TO CREDIT AGREEMENT

     SUBPART 2.1 Amendments to Section 1.1. Section 1.1 of the Credit Agreement is hereby
amended as follows:

     (a) The definition of “Asset Disposition” is hereby deleted in its entirety and
replaced with the following:

     “Asset Disposition” shall mean the disposition (other than (x)
a disposition described in clauses (a) or (b) of Section 9.3 or (y)
a disposition described in clauses (c) or (d) of Section 9.3, so
long as the proceeds thereof are used to repair existing assets or acquire
other assets or property useful in the relevant Credit Party’s business
within 365 days of such disposition) of any or all of the assets (including,
without limitation, the Capital Stock of a Credit Party or Subsidiary of a
Credit Party) of any Credit Party or its Subsidiaries, whether by sale,
lease, transfer or otherwise, in a single transaction, or in a series of
related transactions in any consecutive 12-month period (a) that have a fair
market value in the aggregate in excess of $2,000,000 or (b) for Net Cash
Proceeds in the aggregate in excess of $2,000,000.

     (b) The definition of “Fixed Charge Coverage Ratio” is hereby amended by deleting the
last sentence thereof in its entirety and replacing it with the following:

     The Fixed Charge Coverage Ratio shall be determined on a Pro Forma
Basis after giving effect to the consummation of any Permitted Acquisition.

     (c) The definition of “Material Adverse Change” is hereby deleted in its entirety and
replaced with the following:

     “Material Adverse Change” shall mean a material adverse change
in (a) the business, operations, results of operations, assets, liabilities
or condition (financial or otherwise) of the Credit Parties, taken as a
whole, (b) a material portion of the Collateral, (c) the Credit Parties’
ability to perform their respective obligations under the Credit Documents,
or (d) the rights and remedies of the Lenders hereunder.

     (d) The definition of “Material Adverse Effect” is hereby deleted in its entirety and
replaced with the following:

     “Material Adverse Effect” shall mean a material adverse effect
on (a) the business, operations, results of operations, assets, liabilities
or condition (financial or otherwise) of the Credit Parties, taken as a
whole, (b) a material portion of the Collateral, (c) the Credit Parties’
ability to perform their respective obligations under the Credit Documents,
or (d) the rights and remedies of the Lenders hereunder.

     (e) The definition of “Permitted Indebtedness” is hereby deleted in its entirety and
replaced with the following:

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     “Permitted Indebtedness” shall mean:

     (i) Indebtedness to the Lenders with respect to the Revolving Loans,
the Letters of Credit or otherwise, pursuant to the Credit Documents;

     (ii) trade payables incurred in the ordinary course of the Credit
Parties’ business;

     (iii) Indebtedness, including under Capital Leases, incurred to finance
the acquisition, construction, repair or improvement of property in an
aggregate amount not exceeding $5,000,000 provided that (A) such
Indebtedness when incurred shall not exceed the purchase price of the
asset(s) financed; and (B) no such Indebtedness shall be refinanced for a
principal amount in excess of the principal balance outstanding thereon at
the time of such refinancing plus any premium, interest, fees and costs
incurred in connection with such refinancing;

     (iv) obligations of a Borrower or other Credit Party in respect of
Hedging Agreements entered into in order to manage existing or anticipated
interest rate, exchange rate or commodity risks and not for speculative
purposes and otherwise in accordance with Section 9.18;

     (v) Indebtedness described on Schedule 1.1C attached hereto
(excluding the Senior Note Debt (2004) and the Senior Note Debt (2007)) and
any refinancings of such Indebtedness; provided that the aggregate
principal amount of such Indebtedness is not increased, the scheduled
maturity dates of such Indebtedness are not shortened and such refinancing
is on terms and conditions no more restrictive, when taken as a whole, than
the terms and conditions of the Indebtedness being refinanced;

     (vi) the Senior Note Debt (2004) and the Senior Note Debt (2007) and
any refinancings of such Indebtedness; provided that (a) the
aggregate principal amount of such refinancing Indebtedness does not exceed
$275,000,000, (b) the scheduled maturity dates of such Indebtedness are not
shortened, and (c) such refinancing is on terms and conditions no more
restrictive, when taken as a whole, than the terms and conditions of the
Senior Note Debt (2004) and the Senior Note Debt (2007);

     (vii) Indebtedness of Foreign Subsidiaries in an aggregate amount not
to exceed the greater of (i) the sum of 85% of the aggregate book value of
accounts receivable of the Foreign Subsidiaries plus 60% of the aggregate
book value of inventory of the Foreign Subsidiaries and (ii) $25,000,000
(not counting for the purposes of such limit intercompany Indebtedness of
such Foreign Subsidiaries permitted under clause (ix));

     (viii) Intercompany Indebtedness (i) among the Credit Parties, (ii) among
Subsidiaries of the Company that are not Credit Parties, (iii) owing from a
Credit Party to a Subsidiary of the Company that is not a Credit Party or
(iv)
owing from a Subsidiary of the Company that is not a Credit Party to a
Credit Party in an aggregate principal amount outstanding at any time not to
exceed $25,000,000; provided, that upon the request of the Administrative
Agent at any time, any such Indebtedness in the preceding clause (iii) shall
be fully subordinated to the

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Obligations on terms reasonably satisfactory to
the Administrative Agent and shall be evidenced by promissory notes having
terms reasonably satisfactory to the Administrative Agent, the sole
originally executed counterpart of which shall be pledged and delivered to
the Administrative Agent as security for the Obligations;

     (ix) Indebtedness incurred to finance insurance premiums in the
ordinary course of business;

     (x) Indebtedness in an aggregate amount of up to $2,000,000 under
performance bonds, surety bonds, release, appeal and similar bonds,
statutory obligations or with respect to workers’ compensation claims, in
each case, incurred in the ordinary course of business, and reimbursement
obligations in respect of any of the foregoing (including in respect of
letters of credit issued in support of any of the foregoing);

     (xi) unsecured Indebtedness assumed in connection with a Permitted
Acquisition (and refinancings thereof, provided that such refinancing meets
the conditions set forth below) which Indebtedness was in existence at the
time of acquisition of such entity (or the assets thereof), and not incurred
in contemplation of such acquisition, so long as such Indebtedness is
included in the total consideration for such Permitted Acquisition and any
refinancing indebtedness is for a principal amount not in excess of the
principal balance outstanding thereon at the time of such acquisition plus
any premium, interest, fees and costs incurred in connection with such
refinancing;

     (xii) Indebtedness in the form of any earnout or other similar
contingent payment obligation incurred in connection with an acquisition
permitted hereunder, so long as such Indebtedness is included in the total
consideration for such Permitted Acquisition; and

     (xiii) other Indebtedness which does not exceed a principal amount of
$10,000,000 in the aggregate at any time outstanding.

     (f) The definition of “Permitted Investments” is hereby deleted in its entirety and
replaced with the following:

     “Permitted Investments” shall mean:

     (i) Cash Equivalents;

     (ii) interest-bearing demand or time deposits (including certificates
of deposit) which are insured by the Federal Deposit Insurance Corporation
(“FDIC”) or a similar federal insurance program; provided, however, that the
Credit Parties may, in the ordinary course of their respective businesses,
maintain in their disbursement accounts from time to time amounts in excess
of then applicable FDIC or other program insurance limits;

     (iii) Investments existing on the Closing Date and set forth on
Schedule 1.1D attached hereto;

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     (iv) advances to officers, directors and employees for expenses
incurred or anticipated to be incurred in the ordinary course;

     (v) loans and Investments in (A) the Credit Parties and (B) newly
created Domestic Subsidiaries, provided that the applicable
requirements of Section 7.16 are satisfied;

     (vi) Investments (including debt obligations) received in connection
with the bankruptcy or reorganization of suppliers and customers and in
settlement of delinquent obligations of, and other disputes with, customers
and suppliers arising in the ordinary course of business;

     (vii) Hedging Agreements entered into by a Borrower or other Credit
Party in order to manage existing or anticipated interest rate, exchange
rate or commodity risks and not for speculative purposes and otherwise in
accordance with Section 9.18;

     (viii) Investments (a) by Subsidiaries which are not Credit Parties in
Subsidiaries which are not Credit Parties, and (b) by Credit Parties in
Subsidiaries which are not Credit Parties (because they are Foreign
Subsidiaries or they are not Material Subsidiaries); provided, that,
solely with respect to Investments under clause (b) above, (I) no Default or
Event of Default shall then exist or would exist after giving effect
thereto, (II) Excess Availability for each day during the thirty days
preceding the date of such Investment and immediately after giving effect to
such Investment shall not be less than the greater of (x) thirty-five
percent (35%) of the Revolving Credit Committed Amount then in effect and
(y) $50,000,000 and (III) the Credit Parties shall demonstrate to the
reasonable satisfaction of the Administrative Agent that, after giving
effect to such Investment on a Pro Forma Basis, the Fixed Charge Coverage
Ratio shall be not less than 1.1 to 1.0;

     (ix) Permitted Acquisitions;

     (x) Investments, advances and other transactions permitted under
Sections 9.2, 9.3 or 9.4;

     (xi) Investments consisting of deposits made to secure the obligations
of the Company or any of its Subsidiaries under leases entered into in the
ordinary course of business and not restricted by this Agreement in an
aggregate amount not to exceed $10,000,000; and

     (xii) other Investments not described above; provided that (x)
no Default or Event of Default shall then exist or would exist after giving
effect thereto, (y) Excess Availability for each day during the thirty days
preceding the
date of such Investment and immediately after giving effect to such
Investment shall not be less than the greater of (x) thirty-five percent
(35%) of the Revolving Credit Committed Amount then in effect and (y)
$50,000,000 and (z) the Credit Parties shall demonstrate to the reasonable
satisfaction of the Administrative Agent that, after giving effect to such
Investment on a Pro Forma Basis, the Fixed Charge Coverage Ratio shall be
not less than 1.1 to 1.0.

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     (g) The definition of “Permitted Liens” is hereby amended by deleting the “.” at the
end of clause (ix), replacing it with a “;” and inserting the following new clauses:

     (x) Liens created by a Foreign Subsidiary securing Indebtedness
permitted under clause (viii) of the definition of “Permitted Indebtedness”;

     (xi) Liens consisting of any interest of a lessor under, and Liens
arising from UCC financing statements (or equivalent filings in foreign
jurisdictions) relating to, and deposits made to secure the obligations
under, leases entered into in the ordinary course of business and not
restricted by this Agreement; and

     (xii) other Liens securing obligations not to exceed $1,000,000 in an
aggregate principal amount at any time outstanding.

     (h) The following definitions are hereby added to Section 1.1 of the Credit Agreement
in appropriate alphabetical order:

     “Material Subsidiary” shall mean, as of any date of
determination, any direct or indirect Domestic Subsidiary of the Company (a)
in which the Company or its Subsidiaries that are Credit Parties have
invested more than $1,000,000 in the aggregate, (b) that holds the Capital
Stock of a Credit Party or (c) that generates more than five percent (5%) of
the Consolidated EBITDA for the period of four consecutive fiscal quarters
ending as of the end of the fiscal quarter immediately preceding such date
of determination on a pro forma basis (in the case of a newly acquired
Subsidiary).

     “Permitted Acquisition” shall mean an acquisition or any series
of related acquisitions by the Company or any of its Subsidiaries of (a) all
or substantially all of the assets or a majority of the Voting Stock of a
Person, (b) a Person by a merger, amalgamation or consolidation or any other
combination with such Person or (c) any division, line of business or other
business unit of a Person (such Person or such division, line of business or
other business unit of such Person shall be referred to herein as the
“Target”), in each case that is a type of business (or assets used
in a type of business) permitted to be engaged in by the Credit Parties and
their Subsidiaries pursuant to Section 7.3, so long as (i) no Default or
Event of Default shall then exist or would exist after giving effect
thereto, (ii) the Credit Parties shall demonstrate to the reasonable
satisfaction of the Administrative Agent that, after giving effect to the
acquisition on a Pro Forma Basis, the Fixed Charge Coverage Ratio shall be
not less than 1.1 to 1.0, (iii) the Administrative Agent, on behalf of the
Lenders, shall have received (or shall receive reasonably promptly following
the closing of such acquisition) a first priority perfected security
interest (subject to Permitted
Liens) in all property (including, without limitation, Capital Stock)
acquired with respect to the Target in accordance with the terms of Section
7.16 and the Target, if a Person, shall have complied with the terms of
Section 7.16 (it being understood that no Inventory of any such Person shall
be Eligible Inventory until the Agent shall have received a satisfactory
Appraisal and no Accounts of any such Person shall be Eligible Accounts
Receivables until the Agent shall have received all documentation that it
reasonably requests with respect thereto, including, without limitation, a
satisfactory field examination), (iv) the Administrative Agent shall have
received (A) a description of the material terms of such acquisition, and
(B) audited

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financial statements (or, if unavailable, management-prepared
financial statements) of the Target for its two most recent fiscal years
and, if available, for any fiscal quarters ended within the fiscal year to
date, (v) such acquisition shall not be a “hostile” acquisition, and (vi)
Pro Forma Excess Availability for each day during the thirty days preceding
the date of such acquisition and immediately after giving effect to such
acquisition shall not be less than the greater of (x) thirty-five percent
(35%) of the Revolving Credit Committed Amount then in effect and (y)
$50,000,000

     “Permitted Acquisition Consideration” shall mean the aggregate
amount of purchase price, including, but not limited to, any Indebtedness
incurred or assumed in connection therewith, earnouts (valued at the maximum
amounts reasonably expected to be payable thereunder as determined in good
faith by the Company), deferred payments, or Capital Stock of the Company,
net of the applicable acquired company’s cash and Cash Equivalents (as shown
on its most recent financing statements delivered in connection with the
applicable acquisition) to be paid in connection with any applicable
Permitted Acquisition as set forth in the applicable documentation for such
Permitted Acquisition.

     “Pro Forma Basis” shall mean, with respect to any Permitted
Acquisition, that for purposes of calculating the Fixed Charge Coverage
Ratio, such Permitted Acquisition (and any related payments of Indebtedness)
shall be deemed to have occurred as of the first day of the most recent four
fiscal quarter period preceding the date of such transaction for which
financial statements were required to be delivered pursuant to Section
7.1(a) or (b). In connection with the foregoing, with respect to any
Permitted Acquisition, (i) income statement and cash flow statement items
attributable to the Person or property acquired shall be included to the
extent relating to any period applicable in such calculations provided that
(A) such items are not otherwise included in such income statement and cash
flow statement items for the Company and its Subsidiaries in accordance with
GAAP and (B) such items are supported by financial statements or other
information reasonably satisfactory to the Administrative Agent and (ii) any
Indebtedness incurred or assumed by any Credit Party or any Subsidiary
(including the Person or property acquired) or repaid in connection with
such transaction and any Indebtedness of the Person or property acquired
which is not retired in connection with such transaction (A) shall be deemed
to have been incurred or repaid as of the first day of the applicable period
and (B) if such Indebtedness has a floating or formula rate, shall have an
implied rate of interest for the applicable period for purposes of this
definition determined by utilizing the rate which is or would be in effect
with respect to such Indebtedness as at the relevant date of determination.

     “Pro Forma Excess Availability” shall mean, as used in the
definition of “Permitted Acquisition”, Excess Availability calculated on a
pro forma basis to include (i) any Eligible Accounts Receivable and Eligible
Inventory to be acquired in connection with such acquisition (determined
pursuant to field exams, appraisals or other methodologies reasonably
acceptable to the Administrative Agent), (ii) the borrowing of any Loans
used to finance such acquisition, as applicable, and (iii) prepayments of
the Loans occurring on the date of such acquisition made from the proceeds
from the incurrence of Indebtedness or the issuance of Capital Stock of the

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     Company (or a combination thereof) in excess of the Permitted Acquisition
Consideration for such acquisition.

     “Third Amendment Effective Date” shall mean January ___, 2010.

     SUBPART 2.2 Amendment to Section 2.3(b)(ii). Section 2.3(b)(ii) of the Credit Agreement is
hereby deleted in its entirety and replaced with the following:

     (ii) Casualty Loss. To the extent of cash proceeds received in
connection with a Casualty Loss, the Borrowers shall prepay the Loans in an amount
equal to one hundred percent (100%) of such cash proceeds if the Agent shall have
elected to apply the proceeds realized from such Casualty Loss to the prepayment of
the Loans pursuant to Section 7.10 (such prepayment to be applied as set forth in
clause (iv) below), subject to the right of the Credit Parties to use proceeds of
any Casualty Loss to repair, replace or rebuild in accordance with Section 7.10.

     SUBPART 2.3 Amendment to Section 6.7. The third sentence of Section 6.7 of the Credit
Agreement is hereby amended by deleting the words “and each of their Subsidiaries” from clauses
(ii) and (iii).

     SUBPART 2.4 Amendment to Section 6.30. Section 6.30 of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

     6.30 [Intentionally Omitted].

     SUBPART 2.5 Amendment to Section 7.3. Section 7.3 of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

     7.3 Corporate Existence.

     Each Credit Party and each of its Subsidiaries (a) will, subject to Section
9.4, maintain their current corporate or other organizational existence, will
maintain in full force and effect all material licenses, bonds, franchise, leases,
trademarks and qualifications to do business, (b) will obtain or maintain patents,
contracts and other rights necessary or desirable to the profitable conduct of their
businesses, (c) will continue in, and limit their operations to, substantially the
same general lines of business as presently conducted by the Company and its
Subsidiaries, and business activities reasonably related, ancillary or complementary
thereto and (d) will comply with all applicable laws and regulations of any federal,
state or local Governmental Authority, except where noncompliance could not
reasonably be expected to have a Material Adverse Effect. Notwithstanding the
foregoing, the following shall be expressly
permitted: (i) the dissolution, liquidation or winding up of any Subsidiary of
the Company that is not a Credit Party; and (ii) upon prior written notice to the
Administrative Agent, the dissolution, liquidation or winding up of any Credit Party
(other than the Company); provided that the assets of any such Credit Party shall be
transferred to another Credit Party.

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     SUBPART 2.6 Amendment to Section 7.9. The last sentence of Section 7.9 of the Credit
Agreement is hereby deleted in its entirety and replaced with the following:

     If any Credit Party leases any Real Estate or acquires any Real Property with a
fair market value in excess of $1,000,000 after the date hereof, such Credit Party
will promptly (i) submit to the Agent an updated Schedule 6.19 pursuant to
Section 7.23 and (ii) with respect to all such Real Estate with a fair
market value in excess of $1,000,000 that is owned by a Credit Party, execute and
deliver to the Agent a Mortgage on such Real Estate, and deliver to the Agent the
other items reasonably requested by the Agent in connection therewith, including,
without limitation, surveys and flood hazard certificates, and all provisions of
this Credit Agreement (including, without limitation, the foregoing provisions of
this Section 7.9 and all other applicable representations, warranties and
covenants) that are applicable to Real Estate or Mortgages shall apply thereto.

     SUBPART 2.7 Amendment to Section 7.10. The eighth sentence of Section 7.10 of the
Credit Agreement is hereby deleted in its entirety and replaced with the following:

     The Agent may, at its election and in its sole discretion but subject to the
Credit Parties’ ability to reinvest the proceeds of any Casualty Loss, either (a)
apply the proceeds realized from Casualty Losses received by the Agent to payment of
accrued and unpaid interest or outstanding principal of the Revolving Loans or (b)
pay such proceeds to the Credit Parties to be used to repair, replace or rebuild the
asset or property or portion thereof that was the subject of the Casualty Loss, it
being agreed that, so long as no Default or Event of Default has occurred and is
continuing at the time of the receipt of the proceeds of any Casualty Loss, the
Credit Parties shall have the right to use such proceeds to repair, replace or
rebuild the asset or property or portion thereof that was the subject of the
Casualty Loss for a period of up to 365 days following the occurrence of the
Casualty Loss.

     SUBPART 2.8 Amendment to Section 7.13. Section 7.13 of the Credit Agreement is hereby
amended by adding the words “and Permitted Acquisitions” after the words “including capital
expenditures” on the fifth line.

     SUBPART 2.9 Amendment to Section 7.16. Section 7.16 of the Credit Agreement is hereby
amended as follows:

	 	(a)	 	Section 7.16(a) is hereby deleted in its entirety and replaced with the following:

	 	(a)	 	[Intentionally Omitted].

	 	(b)	 	Section 7.16(b) is hereby deleted in its entirety and replaced with the following:

     Promptly upon any Person becoming a direct or indirect Subsidiary of
the Company (other than any Foreign Subsidiary and any Subsidiary which is
not a Material Subsidiary), the Credit Parties will provide the Agent with
written notice thereof setting forth information in reasonable detail
describing all of the assets of such Person and shall (i) cause such Person
to execute and deliver to the Agent a Joinder Agreement in substantially the
form of Exhibit M, causing such Subsidiary to become a party to (A)
this Credit Agreement, as a joint and

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several “Borrower” (it being
understood that no Inventory of any such Person shall be Eligible Inventory
until the Agent shall have received a satisfactory Appraisal and no Accounts
of any such Person shall be Eligible Accounts Receivables until the Agent
shall have received all documentation that it reasonably requests with
respect thereto, including, without limitation, a satisfactory field
examination), (B) the Security Agreement, as an “Obligor” granting a first
priority Lien on its personal property, subject to Permitted Liens, (C) the
Contribution Agreement, as a “Contributing Party” and (D) as appropriate,
the Pledge Agreement, as a “Pledgor”, causing all of its Capital Stock (or
in the case of any Foreign Subsidiary directly owned by such Domestic
Subsidiary, sixty-five percent (65%) of its Capital Stock) to be delivered
to the Agent (together with undated stock powers signed in blank and pledged
to the Agent), (ii) cause any such Person to execute and deliver to the
Agent Revolving Notes in favor of the Lenders, and, if it owns any Real
Estate, a Mortgage thereon (to the extent required by Section 7.9) in favor
of the Agent and (iii) deliver such other documentation as the Agent may
reasonably request in connection with the foregoing, including, without
limitation, appropriate UCC-1 financing statements, Acknowledgment
Agreements, certified resolutions and other organizational and authorizing
documents of such Person and favorable opinions of counsel to such Person
(which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to above), all in
form, content and scope reasonably satisfactory to the Agent;
provided, however, in lieu of the foregoing, at the option
of the Agent, the Credit Parties shall cause such Person to execute and
deliver to the Agent a joinder agreement in substantially the form of
Exhibit M causing such Subsidiary to become a party to the Guaranty
Agreement, as a joint and several “Guarantor”, and each of the Contribution
Agreement and the Security Documents described in clauses (i)(B) through (D)
above, as applicable and with the same effect set forth above, and (3), if
it owns or leases any Real Estate, a Mortgage thereon (to the extent
required by Section 7.9) in favor of the Agent, and to delivery such
additional documentation of the types described in clause (iii) above, all
as the Agent reasonably shall request.

     (c) Section 7.16(c) is hereby deleted in its entirety.

     SUBPART 2.10 Amendment to Section 7.23. Section 7.23 of the Credit Agreement is
hereby deleted in its entirety and replaced with the following:

     7.23 Revisions or Updates to Schedules.

     If any of the information or disclosures provided on any of Schedules 6.7,
6.8, 6.9, 6.14, 6.17, 6.19, 6.28 or 6.32, originally attached hereto become
outdated or
incorrect in any material respect, the Credit Parties (i) may, in their
discretion, at any time deliver to the Agent and the Lenders and (ii) shall, as part
of the compliance certificate required pursuant to Section 7.1(c), deliver
to the Agent and the Lenders such revision or updates to such Schedule(s) as may be
necessary or appropriate to update or correct such Schedule(s); provided,
that no such revisions or updates to any such Schedule(s) shall be deemed to have
amended, modified or superseded such Schedule(s) as originally attached hereto, or
to have cured any breach of warranty or misrepresentation resulting from the
inaccuracy or incompleteness of any such Schedule(s).

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     SUBPART 2.11 Amendment to Section 7.25. Section 7.25 of the Credit Agreement is
hereby deleted in its entirety.

     SUBPART 2.12 Amendment to Section 9.3. Section 9.3 of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

     9.3 Restrictions on Sale of Assets.

     Sell, lease, assign, transfer or otherwise dispose of any assets (including the
Capital Stock of any Subsidiary of the Company) other than:

     (a) sales of Inventory in the ordinary course of business;

     (b) sale-leaseback transactions permitted by Section 9.14;

     (c) sales or other dispositions in the ordinary course of business of
assets or properties that are obsolete or that are no longer used or useful
in the conduct of such Credit Party’s or Subsidiary’s business;

     (d) sales in the ordinary course of business of assets or properties
(other than Inventory) used in such Credit Party’s or Subsidiary’s business
that are worn out or in need of replacement and that are replaced with
assets of reasonably equivalent value or utility;

     (e) termination of Hedging Agreements in the ordinary course of
business;

     (f) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, the sale, lease or transfer of
property or assets among the Credit Parties;

     (g) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, the sale of all or substantially all
of the assets of any Subsidiary of the Company that is not a Credit Party;
or

     (h) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, the sale of all of the Capital Stock
of any Subsidiary of the Company that is not a Credit Party.

     SUBPART 2.13 Amendment to Section 9.4. Section 9.4 of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

     9.4 No Corporate Changes.

     (a) Merge or consolidate with any Person, except the following, without
duplication, shall be expressly permitted:

     (i) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, upon prior written notice to the
Administrative Agent, the merger or consolidation of a Subsidiary of the
Company with or into another Subsidiary of the Company; provided that if
either

11

 

Subsidiary is a Credit Party, the continuing or surviving Person
shall be a Credit Party;

     (ii) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, upon prior written notice to the
Administrative Agent, the merger or consolidation of a Subsidiary of the
Company with or into the Company; provided that the Company shall be the
continuing or surviving entity;

     (b) alter or modify any Credit Party’s or any of its Subsidiary’s Articles or
Certificate of Incorporation or other equivalent organizational document or form of
organization in any manner adverse to the interests of the Agent or the Lenders or
in any way which could reasonably be expected to have a Material Adverse Effect;

     (c) without providing thirty (30) days prior written notice to the Agent and
without filing (or confirming that the Agent has filed) such amendments to any
previously filed financing statements as the Agent may require, (i) change its state
of incorporation or formation, (ii) change its registered corporate name, (iii)
change the location of its chief executive office and principal place of business
(as well as its books and records) from the locations set forth on Schedule
6.7, or (iv) change the location of its Collateral from the locations set forth
for such Person on Schedule 6.7; or

     (d) enter into or engage in any business, operation or activity materially
different from that presently being conducted by the Credit Parties.

     SUBPART 2.14 Amendment to Section 9.5. Section 9.5 of the Credit Agreement is hereby
amended by deleting the “.” at the end thereof and adding the following:

     “and (d) unsecured guarantees of the Company and its Subsidiaries in respect of
accounts payable, operating leases and other obligations (not constituting
Indebtedness) entered into in the ordinary course of business.”

     SUBPART 2.15 Amendment to Section 9.6. Section 9.6 of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

     9.6 Restricted Payments.

     Make a Restricted Payment, other than: (a) the payment of dividends solely in
the same class of Capital Stock of such Person; (b) the payment of dividends or
other distributions to any Credit Party (directly or through their Subsidiaries);
(c) so long as no Default or Event of Default shall then exist or would exist after
giving effect thereto, the payment of pro rata dividends and distributions by any
Foreign Subsidiary; (d) so long as (i) no Default or Event of Default shall then
exist or would exist after giving effect thereto and (ii) the Borrowers provide
evidence to the Agent that they will be in pro forma compliance with the financial
covenants set forth in Article VIII after giving effect thereto, the payment of
consulting fees to Affiliates in an aggregate amount of up to $500,000 in any twelve
month period; and (e) the payment or making of Restricted Payments to any other
Person, so long as (i) no Default or Event of Default shall then exist or would
exist after giving effect thereto, (ii) Excess Availability for each day during the
thirty days preceding the date of such Restricted Payment and immediately after
giving effect to such Restricted Payment shall not be less than the greater of (x)
thirty-

12

 

five percent (35%) of the Revolving Credit Committed Amount then in effect
and (y) $50,000,000 and (iii) the Credit Parties shall have demonstrated to the
reasonable satisfaction of the Administrative Agent that, after giving effect to
such Restricted Payment on a Pro Forma Basis, the Fixed Charge Coverage Ratio shall
be not less than 1.1 to 1.0.

     SUBPART 2.16 Amendment to Section 9.8. Section 9.8 of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

     9.8 No Affiliate Transactions.

     Enter into any transaction with, including, without limitation, the purchase,
sale or exchange of property or the rendering of any service to any Subsidiary or
Affiliate of any Credit Party except:

     (a) in the ordinary course of, and pursuant to the reasonable
requirements of, such Credit Party’s business and upon fair and reasonable
terms no less favorable to such Credit Party than could be obtained in a
comparable arm’s-length transaction with an unaffiliated Person;

     (b) as permitted under Section 9.6; provided, that (i)
in the event that such transaction involves aggregate payments, or transfers
of property or services with a fair market value in excess of $2,000,000,
the terms of such transaction shall be approved by a majority of the members
of the Board of Directors or other managing body of the relevant Credit
Parties (including a majority of the disinterested members thereof), the
approval to be evidenced by a board (or other managing body) resolution
stating that the board of directors or other managing body has determined
that such transaction complies with the preceding provisions; and (ii) in
the event that such transaction involves aggregate payments, or transfers of
property or services with a fair market value in excess of $5,000,000, the
Company shall, prior to the consummation thereof, obtain a favorable opinion
as to the fairness of such transaction to the Company or other relevant
Credit Party (if any) from a financial point of view from an accounting
firm, appraisal firm, investment banking firm or consultant of nationally
recognized standing that is, in the judgment of the Company’s board
of directors, properly qualified and independent, and provide a copy thereof
to the Agent;

     (c) transactions among Credit Parties; and

     (d) transactions among Subsidiaries that are not Credit Parties.

     SUBPART 2.17 Amendment to Section 9.10. Section 9.10 of the Credit Agreement is
hereby amended by deleting clause (d) in its entirety and replacing it with the following:

     (d) deposit accounts maintained by Subsidiaries that are not Credit Parties.

     SUBPART 2.18 Amendment to Section 9.13. Clause (d) of Section 9.13 of the Credit
Agreement is hereby deleted in its entirety and replaced with the following:

13

 

     (d) other than (i) in connection with the refinancing of the Senior Note Debt
(2004) or the Senior Note Debt (2007) with the proceeds of Indebtedness meeting the
conditions set forth in clause (vi) of the definition of “Permitted Indebtedness” or
(ii) if (A) no Default or Event of Default shall then exist or would exist after
giving effect to any such payment, (B) Excess Availability for each day during the
thirty days preceding the date of such payment and immediately after giving effect
to such payment shall not be less than the greater of (x) thirty-five percent (35%)
of the Revolving Credit Committed Amount then in effect and (y) $50,000,000 and (C)
the Credit Parties shall have demonstrated to the reasonable satisfaction of the
Administrative Agent that, after giving effect to any such payment on a Pro Forma
Basis, the Fixed Charge Coverage Ratio shall be not less than 1.1 to 1.0, give any
notice of optional redemption or optional prepayment or offer to repurchase under
any such document or instrument, or, directly or indirectly, make any payment of
principal of or interest on or in redemption, retirement or repurchase of any Senior
Note Debt (2004) or any Senior Note Debt (2007), except for the scheduled payments
required by the terms of the documents and instruments evidencing Senior Note Debt
(2004) or the Senior Note Debt (2007); or

     SUBPART 2.19 Amendment to Section 9.16. Section 9.16 of the Credit Agreement is
hereby deleted in its entirety and replaced with the following:

     9.16 Limitations.

     Create, nor will it permit any of its Subsidiaries which are Credit Parties to,
directly or indirectly, create or otherwise cause, incur, assume, suffer or permit
to exist or become effective any consensual encumbrance or restriction of any kind
on the ability of any such Person to (a) pay dividends or make any other
distribution on any of such Person’s Capital Stock, (b) pay any Indebtedness owed to
the Credit Parties, (c) make loans or advances to any other Credit Party or (d)
transfer any of its property to any other Credit Party, except for
encumbrances or restrictions existing under or by reason of (i) customary
non-assignment provisions in any lease governing a leasehold interest, (ii) any
agreement or other instrument of a Person existing at the time it becomes a
Subsidiary of a Credit Party; provided that such encumbrance or restriction
is not applicable to any other Person, or any property of any other Person, other
than such Person becoming a Subsidiary of a Credit Party and was not entered into in
contemplation of such Person becoming a Subsidiary of a Credit Party, (iii) this
Credit
Agreement and the other Credit Documents, (iv) the Senior Note Debt Documents (2004)
and the documentation evidencing any refinancing thereof permitted by clause (vi) of
the definition of “Permitted Indebtedness”, (v) the Senior Note Debt Documents
(2007) and the documentation evidencing any refinancing thereof permitted by clause
(vi) of the definition of “Permitted Indebtedness” and (vi) encumbrances and
restrictions affecting any Foreign Subsidiary in Indebtedness permitted by clause
(vii) of the definition of “Permitted Indebtedness”.

     SUBPART 2.20 Amendment to Section 11.1. Section 11.1 of the Credit Agreement is
hereby amended as follows:

     (a) Clause (e) is hereby deleted in its entirety and replaced with the following:

     (e) dissolution, liquidation, winding up or cessation of the business
of any Credit Party or any of its Subsidiaries not permitted by Section 7.3
or 9.4, or the failure of any Credit Party or any of its Subsidiaries to
meet its debts

14

 

generally as they mature, or the calling of a meeting of any
Credit Party’s or any of its Subsidiaries’ creditors for purposes of
compromising any Credit Party’s or any of its Subsidiaries’ debts, or the
failure by any Credit Party or any of its Subsidiaries generally, or the
admission by any Credit Party or any of its Subsidiaries of its inability,
to pay its debts as they become due (unless such debts are the subject of a
bona fide dispute);

     (b) Clause (h) is amended by deleting the number “$500,000” and replacing it
with the number $2,500,000.

     (c) Clause (i) is hereby deleted in its entirety and replaced with the
following:

     (i) (A) the occurrence of a default or event of default (in each case
which shall continue beyond the expiration of any applicable grace periods)
under, or the occurrence of any event that results in or would permit the
acceleration of the maturity of any note, agreement or instrument
(including, without limitation, as a result of any required mandatory
prepayment or “put” right thereunder) evidencing (i) any Senior Note Debt
(2004) or any related refinancing Indebtedness, (ii) any Senior Note Debt
(2007) or any related refinancing Indebtedness or (iii) any other
Indebtedness of any Credit Party or any of its Subsidiaries and the
aggregate principal amount of all such other Indebtedness with respect to
which a default or an event of default has occurred, or the maturity of
which is accelerated or permitted to be accelerated (including, without
limitation, as a result of any required mandatory prepayment or “put” right
thereunder), exceeds $2,500,000, or (B) the occurrence of a default or event
of default (in each case which shall continue beyond the expiration of any
applicable grace periods) under, or the occurrence of any event that results
in or would permit the early termination of, any Lender Hedging Agreement;

     (d) Clause (k) is amended by deleting the number “$1,000,000” and replacing it
with the number $2,500,000.

     (e) Clause (l) is amended by deleting the number “$500,000” and replacing it
with the number $2,500,000.

PART 3

CONDITIONS TO EFFECTIVENESS

     SUBPART 3.1 Third Amendment Date. This Amendment shall be and become effective as of
the date hereof (the “Third Amendment Date”) when all of the conditions set forth in this
Part 3 shall have been satisfied, and thereafter this Amendment shall be known, and may be
referred to, as the “Third Amendment”.

     SUBPART 3.2 Execution of Counterparts of Amendment. The Administrative Agent shall
have received counterparts (or other evidence of execution, including telephonic message,
satisfactory to the Administrative Agent) of this Amendment, which collectively shall have been
duly executed on behalf of each of the Borrowers and the Required Lenders.

     SUBPART 3.3 Payment of Fees and Expenses. The Company shall have paid all other fees
and expenses to the Administrative Agent and the Lenders to be paid by it on the date hereof,
including,

15

 

without limitation, reasonable legal fees of Moore & Van Allen, PLLC, as counsel to the
Administrative Agent.

     SUBPART 3.4 Other. The Administrative Agent shall have received such other
documents, agreements or information which it may reasonably request.

PART 4

MISCELLANEOUS

     SUBPART 4.1 Representations and Warranties. Each of the Borrowers hereby represents
and warrants that (i) the representations and warranties contained in Article VI of the Amended
Credit Agreement are true and correct on and as of the date hereof as though made on and as of the
date hereof (except for those representations and warranties which by their terms relate solely to
an earlier date) and after giving effect to this Amendment, (ii) no Default or Event of Default
exists under the Credit Agreement or the Amended Credit Agreement on and as of the date hereof and
after giving effect to this Amendment, (iii) it has the corporate power and authority to execute
and deliver this Amendment and each of the documents executed and delivered in connection herewith
and to perform its obligations hereunder and has taken all necessary corporate action to authorize
the execution, delivery and performance by it of this Amendment and each of the documents executed
and delivered in connection herewith and (iv) it has duly executed and delivered this Amendment and
each of the documents executed and delivered in connection herewith, and this Amendment and each of
the documents executed and delivered in connection herewith constitutes its legal, valid and
binding obligation enforceable in accordance with its terms except as the enforceability thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the rights of creditors generally or by general principles of equity.

     SUBPART 4.2 Cross-References. References in this Amendment to any Part or Subpart
are, unless otherwise specified, to such Part or Subpart of this Amendment.

     SUBPART 4.3 Instrument Pursuant to Credit Agreement. This Amendment is a Credit
Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated
therein) be construed, administered and applied in accordance with the terms and provisions of the
Amended Credit Agreement.

     SUBPART 4.4 References in Other Credit Documents. At such time as this Amendment
shall become effective pursuant to the terms of Subpart 3.1, all references in the Credit
Documents to the “Credit Agreement” shall be deemed to refer to the Amended Credit Agreement.

     SUBPART 4.5 Counterparts/Telecopy. This Amendment may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original and all of which
shall constitute together but one and the same agreement. Delivery of executed counterparts of the
Amendment by telecopy or other electronic means shall be effective as an original and shall
constitute a representation that an original shall be delivered.

     SUBPART 4.6 Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW.

16

 

     SUBPART 4.7 Successors and Assigns. This Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

     SUBPART 4.8 Continuing Agreements. Except as specifically modified hereby, all of the
terms and provisions of the Credit Agreement and the other Credit Documents (and Exhibits and
Schedules thereto) shall remain in full force and effect, without modification or limitation, and
this Amendment shall not affect, modify or diminish the obligations of the Credit Parties which
have accrued prior to the effectiveness of the provisions hereof. This Amendment shall not operate
as a consent to any other action or inaction by any Credit Party, or as a waiver or amendment of
any right, power, or remedy of any Lender or the Administrative Agent under the Credit Documents
nor constitute a consent to any such action or inaction, or a waiver or amendment of any provision
contained in any Credit Document except as specifically provided herein.

     SUBPART 4.9 Payment of Fees and Expenses. Each of the Borrowers agrees, jointly and
severally, to pay all out-of-pocket costs and expenses of the Administrative Agent in connection
with the preparation, execution and delivery of this Amendment, including, without limitation, the
reasonable fees and expenses of Moore & Van Allen, PLLC.

     SUBPART 4.10 Approval by Lenders. Each Lender, by delivering its signature page to
this Amendment, shall be deemed to have acknowledged receipt of, and consented to and approved, the
Amendment, the Amended Credit Agreement, each other Credit Document and each other document
required to be approved by any Agent, the Required Lenders or the Lenders, as applicable.

[remainder of page intentionally left blank]

17

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	BORROWERS:	 	COLEMAN CABLE, INC.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard N. Burger 
	 	 
	 

	 	Name:
	 	Richard N.
Burger 

	 	 
	 

	 	Title:
	 	EVP/CFO 

	 	 
	 

	 	 	 	 

	 	 

 

 

 

	 	 	 	 	 	 	 
	AGENT AND LENDERS	 	WACHOVIA BANK,	 	 
	 	 	NATIONAL ASSOCIATION,	 	 
	 	 	as Administrative Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Vicky Geist 
	 	 
	 

	 	Name:
	 	Vicky
Geist 

	 	 
	 

	 	Title:
	 	Director 

	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A. (successor to LaSalle 	 	 
	 	 	Business Credit, LLC),as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Elizabeth J. Mitchell 	 	 
	 

	 	Name:
	 	Elizabeth J. Mitchell 

	 	 
	 

	 	Title:
	 	VP 

	 	 
	 

	 	 	 	 

	 	 

 

 

 

	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BUSINESS CREDIT, INC.,	 	 
	 	 	as Syndication Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION,	 	 
	 	 	as Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 
	 	 	ASSOCIATED BANK,	 	 
	 	 	NATIONAL ASSOCIATION,	 	 
	 	 	as Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:exv10w1

Exhibit 10.1

January 15, 2010

Mr. Charles L. Ill

277 Stamford Avenue

Stamford, CT 06902

Dear Charlie:

This letter agreement confirms our discussions regarding our desire to employ you at Fair Isaac
Corporation (the “Company”) as the Company’s Executive Vice President, Sales and Marketing, and
sets out the terms and conditions on which you will join the Company, as follows:

	 	 	 
	Title:

	 	You will serve as the Company’s Executive Vice President, Sales and Marketing.
	 
	 	 
	Term:

	 	The term of this letter agreement shall be for a period commencing on February 1, 2010 and ending on January 31, 2013, unless
earlier terminated by either party as provided in this letter agreement (the “Term”). Upon expiration of the Term, if you then
remain employed by the Company, your employment will continue on an at-will basis, with the same position, salary, and incentive
bonus in effect immediately prior to expiration of the Term, until such time as your position, salary, and/or incentive bonus may be
modified or adjusted by the Company in its sole discretion.
	 
	 	 
	Responsibilities:

	 	During your employment hereunder with the Company as Executive Vice President, Sales
and Marketing, you will report to the Company’s Chief Executive Officer (“CEO”) and
will be responsible for the strategic leadership and management of the Company’s
sales and marketing operations and other functions to which you may be assigned from
time to time by the CEO of the Company. You agree to serve the Company faithfully
and to the best of your ability, and to devote your full working time, attention and
efforts to the business of the Company. You may participate in charitable
activities and personal investment activities to a reasonable extent, and you may
serve as a director of business and civic organizations as approved by the Company’s
Board of Directors (the “Board”), so long as such activities and directorships do
not interfere with the performance of your duties and responsibilities to the
Company.
	 
	 	 
	Contingencies:

	 	The terms of this letter agreement are contingent upon the approval of the Company’s
Compensation Committee of the Board. Your employment is also contingent upon the
results of a background check, which includes a criminal
records check, reference checks and verification of both education and

2

 

	 	 	 
	 

	 	employment history. If the results of your background check reveal
information that is inconsistent with our standards, this offer may be
rescinded.
	 
	 	 
	Representations:

	 	By accepting the terms of this letter agreement and
signing below, you represent and confirm that you
are under no contractual or legal commitments that
would prevent you from fulfilling your duties and
responsibilities to the Company as Executive Vice
President, Sales and Marketing.
	 
	 	 
	Initial Base Salary:

	 	You will be paid a base salary at the rate of
$500,000 per year for services performed, in
accordance with the regular payroll practices of the
Company with annual review by the Compensation
Committee of the Board (the “Committee”). Your
performance and base salary will be reviewed by the
Committee annually during the first quarter of each
fiscal year and may be adjusted upward from time to
time at the discretion of the Committee, but will
not be reduced without your consent during the Term.
	 
	 	 
	Signing Bonus:

	 	On the first regular payroll date of the Company
following your first day of active employment with
the Company, you will be paid a signing bonus in the
amount of $83,333, less applicable taxes.
	 
	 	 
	Incentive Bonus:

	 	For each full fiscal year of the Company that you
are employed during the Term, you will be eligible
for an annual incentive award opportunity payable
from 0% to 100%, with a target award equal to 50%,
of your base salary at the rate in effect at the end
of such fiscal year, pursuant to the terms and
conditions established by the Committee from time to
time. Objectives will be established during the
first quarter of the fiscal year. Any annual
incentive bonus earned for a fiscal year will be
paid to you by December 31 following the end of such
fiscal year. For the Company’s fiscal year 2010,
you are guaranteed to receive an incentive award of
no less than $166,667, less applicable taxes,
provided you remain actively employed by the Company
as of the regular annual payout date for incentive
bonuses under the Company’s FY10 Management
Incentive Plan.
	 
	 	 
	Annual Equity:

	 	For each full fiscal year of the Company that you
are employed during the Term, you will be eligible
for an annual equity grant based on achievement of
objectives established by the Committee at the
Committee’s sole discretion. Objectives will be
established during the first quarter of the fiscal
year. In accordance with the policies and practices
of the Company, some or all of such annual equity
grant may be in the form of restricted stock units
that are economically equivalent to an option award.
Such equivalency will be determined by the Company
in its sole discretion.
	 
	 	 
	Initial Equity:

	 	The Company shall grant to you, effective as of your
hire effective date (the “Date of Grant”) a
non-statutory option to purchase 250,000 shares of
the common stock of the Company (the “Initial
Option”), subject to the terms of the Company’s 1992
Long-Term Incentive Plan, as amended (the “Plan”),
and a stock option agreement to be entered into by
you and the Company. The Initial Option shall carry
a seven-year term and an exercise price equal to the
Fair
Market Value (as defined in the Plan) of the Company’s common stock as of
the Date of Grant. In accordance with the policies and practices of the
Company,

3

 

	 	 	 
	 

	 	and prior to the Date of Grant, you may elect to receive Restricted
Stock Units (“RSU”) in lieu of up to one-half of the shares of the Initial
Option. If elected, you will receive one RSU for every three shares of the
Initial Option that you forego, and such RSUs will be subject to the Plan
and a RSU agreement to be entered into by you and the Company. All Initial
Options and RSUs granted will be subject to four-year ratable vesting.
	 
	 	 
	Benefits:

	 	While employed by the Company during the Term, you
will be eligible to participate in the employee
benefit plans and programs generally available to
other executive officers of the Company, and in such
other employee benefit plans and programs to the
extent that you meet the eligibility requirements
for each individual plan or program and subject to
the provisions, rules and regulations applicable to
each such plan or program as in effect from time to
time. The plans and programs of the Company may be
modified or terminated by the Company in its
discretion.
	 
	 	 
	Vacation:

	 	While employed by the Company during the Term, you
will receive vacation time off in accordance with
the policies and practices of the Company, except
that your annual accrual rate shall not be less than
four weeks paid vacation off per year. Vacation
time shall be taken at such times so as not to
unduly disrupt the operations of the Company.
	 
	 	 
	Travel:

	 	In performing your responsibilities as Executive
Vice President, Sales and Marketing, you will be
required to travel extensively, both within the
United States and internationally. For travel
required in the course of performing your duties and
responsibilities, you must book coach class (or
otherwise upgrade using your own miles) for all
domestic flights and otherwise comply with the
Company’s travel policies and practices; provided,
however, that you may book business class for any
international flight for business purposes.
	 
	 	 
	Office Location:

	 	Because of the extensive travel that will be
required in your position, your primary office will
be your home office. The Company will make
available to you on an as-needed basis general
non-exclusive office space at the Company’s
headquarters in Minneapolis, MN, for occasional use
by you and other traveling executives.
	 
	 	 
	Inventions Agreement:

	 	As a condition of your employment and of receiving
payments and benefits in accordance with this
Agreement, you will be required to sign the enclosed
Proprietary Information and Inventions Agreement
(the “PIIA”), the terms of which are incorporated
herein by reference.
	 
	 	 
	Change in Control:

	 	In order to provide inducement for you (1) to remain
in the service of the Company in the event of any
proposed or anticipated change in control of the
Company and (2) to remain in the service of the
Company in order to facilitate an orderly transition
in the event of a change in control of the Company,
you and the Company will enter into a Management
Agreement dated as of the same date as this letter
agreement (the “Management Agreement”).
	 
	 	 
	Termination:

	 	Either you or the Company may terminate the
employment relationship during the Term or after the
Term at any time and for any reason. Upon
termination of

4

 

	 	 	 
	 

	 	your employment by either party for
any reason, you will promptly resign any and all
positions you then hold as officer or director of
the Company or any of its affiliates.
	 
	 	 
	Severance:

	 	In case of involuntary termination of your
employment by the Company without Cause prior to the
expiration of the Term or in the case of voluntary
resignation of your employment for Good Reason prior
to the expiration of the Term (each a “Qualifying
Termination”), the Company will pay you as severance
pay an amount equal to one (1) times the sum of
(a) your annual base salary at the rate in effect on
your last day of employment plus (b) the total
incentive bonus payment paid to you for the fiscal
year preceding the Qualifying Termination (if the
Qualifying Termination occurs prior to your receipt
of your incentive bonus under the Company’s FY10
Management Incentive Plan, the total incentive bonus
payment under this paragraph shall be $166,667). In
addition, upon a Qualifying Termination the Company
will, for a period of twelve (12) months following
the effective date of termination of your
employment, allow you to continue to participate in
any insured group health and group life insurance
plan or program of the Company (but not any
self-insured medical expense reimbursement plan
within the meaning of Section 105(h) of the Internal
Revenue Code) at the Company’s expense, to the
extent you were a participant in such plans as of
your last day of employment; however, if your
participation in any such plan is barred, the
Company will arrange to provide you with
substantially similar insured coverage at its
expense. Benefits provided by the Company may be
reduced if you become eligible for comparable
benefits from another employer or third party.
	 
	 	 
	 

	 	Payment by the Company of any severance pay or
premium reimbursements under this paragraph will be
conditioned upon you (1) signing and not revoking a
full release of all claims against the Company, its
affiliates, officers, directors, employees, agents
and assigns, substantially in the form attached to
this letter agreement as Exhibit A, (2) complying
with your obligations under the PIIA or any other
agreement between you and the Company then in
effect, (3) cooperating with the Company in the
transition of your duties, and (4) agreeing not to
disparage or defame the Company, its affiliates,
officers, directors, employees, agents, assigns,
products or services. Any severance payable will be
paid to you in a lump sum on the first day of the
seventh month following your “separation from
service” as determined under Section 409A of the
Internal Revenue Code, but not earlier than
expiration of any rescission periods.
	 
	 	 
	 

	 	For purposes of this letter agreement, “Cause” and “Good Reason” have the
following definitions:
	 
	 	 
	 

	 	“Cause” means a determination in good faith by the Company of the existence
of one or more of the following: (i) commission by you of any act
constituting a felony; (ii) any intentional and/or willful act of fraud or
material dishonesty by you related to, connected with or otherwise affecting
your employment with the Company, or otherwise likely to cause material harm
to the Company or its
reputation; (iii) the willful and/or continued failure, neglect, or refusal
by you to perform in all material respects your duties with the Company as
an employee, officer or director, or to fulfill your fiduciary
responsibilities to the Company,

5

 

	 	 	 
	 

	 	which failure, neglect or refusal has not
been cured within fifteen (15) days after written notice thereof to you from
the Company; or (iv) a material breach by you of the Company’s material
policies or codes of conduct or of your material obligations under the PIIA
or other written agreement signed by you and the Company.
	 
	 	 
	 

	 	“Good Reason” means any one or more of the following conditions occur
without your written consent: (i) a material reduction in your authority,
duties, or responsibilities as Executive Vice President, Sales and
Marketing, including a material reduction in your budget authority or a
requirement that you report to a corporate officer or employee instead of
reporting directly to the CEO of the Company, provided that a reduction in
the size or scope of the Company’s current or anticipated business shall not
constitute a material reduction in your authority, duties or
responsibilities under this subsection; or (ii) material breach by the
Company of any terms or conditions of this letter agreement or of any
material obligations of the Company under any other written agreement signed
by you and the Company, which breach has not been caused by you and which
has not been cured by the Company within fifteen (15) days after written
notice thereof to the Company from you.
	 
	 	 
	 

	 	In the event of termination of your employment by the Company for Cause,
resignation by you other than for Good Reason, or termination due to your
death or any disability for which you are qualified for benefits under the
Company’s group long-term disability program, the Company’s only obligation
hereunder shall be to pay such compensation and provide such benefits as are
earned by you through the date of termination of employment.
	 
	 	 
	 

	 	You shall not be eligible for any severance pay under this letter agreement
if the termination of your employment occurs within 90 days before, or at
any time upon or after, the occurrence of a First Event and prior to the end
of the Transition Period, as “First Event” and “Transition Period” are
defined in the Management Agreement, except that you will be eligible for
severance pay under this letter agreement if the termination of your
employment is otherwise a Qualifying Termination and occurs within 90 days
before the First Event, and you fail to satisfy the condition set forth in
Section 2(f) of the Management Agreement.
	 
	 	 
	Indemnification

Agreement:

	 	The Company will indemnify you in connection with your
duties and responsibilities for the Company, as set out in
the Indemnification Agreement dated as of the same date as
this letter agreement (the “Indemnification
Agreement”).
	 
	 	 
	Taxes:

	 	The Company may withhold from any compensation payable to
you in connection with your employment such federal, state
and local income and
employment taxes as the Company shall determine are required to be withheld
pursuant to any applicable law or regulation.
	 
	 	 
	Assignment:

	 	This letter agreement shall not be assignable, in whole or in part, by
either party without the written consent of the other party, except that
the Company may,

6

 

	 	 	 
	 

	 	without your consent, assign its rights and obligations
under this letter agreement to any corporation or other business entity (i)
with which the Company may merge or consolidate, or (ii) to which the
Company may sell or transfer all or substantially all of its assets or
capital stock; provided, however, that no such assignment shall relieve the
Company of its obligations hereunder in the event that the assignee shall
fail to perform the same.
	 
	 	 
	Interpretation:

	 	This letter agreement is intended to satisfy, or otherwise be exempt from,
the requirements of Sections 409A(a)(2), (3), and (4) of the Internal
Revenue Code of 1986, as amended (the “Code”), including current and future
guidance and regulations interpreting such provisions, and it should be
interpreted accordingly.
	 
	 	 
	Applicable Law:

	 	This letter agreement shall be interpreted and construed in accordance with
the laws of the State of Minnesota.
	 
	 	 
	Entire Agreement:

	 	This letter agreement, the PIIA, the Indemnification Agreement, and the
Management Agreement constitute the entire agreement between the parties,
and supersede all prior discussions, agreements and negotiations between
you and the Company. No amendment or modification of this letter agreement
will be effective unless made in writing and signed by you and an
authorized officer of the Company.

If you have any questions about the terms of this letter agreement, please contact me or Richard Deal.

Sincerely,

	 	 	 
	/s/ Mark N. Greene
 

Mark N. Greene

	 	 
	Chief Executive Officer
	 	 

I accept and agree to the terms and conditions of employment with Fair Isaac Corporation as set
forth above.

	 	 	 	 	 
	/s/ Charles L. Ill
 

Charles L. Ill

	 	January 15, 2010
 

Dated
	 	 

7

 

EXHIBIT A

RELEASE BY CHARLES L. ILL

Definitions. I intend all words used in this Release to have their plain meanings in
ordinary English. Specific terms that I use in this Release have the following meanings:

	 	A.	 	I, me, and my include both me (Charles L. Ill) and
anyone who has or obtains any legal rights or claims through me.
	 
	 	B.	 	FICO means Fair Isaac Corporation, any company related to Fair Isaac
Corporation in the present or past (including without limitation, its predecessors,
parents, subsidiaries, affiliates, joint venture partners, and divisions), and any
successors of Fair Isaac Corporation.
	 
	 	C.	 	Company means FICO; the present and past officers, directors,
committees, shareholders, and employees of FICO; any company providing insurance to
FICO in the present or past; the present and past employee benefit plans sponsored or
maintained by FICO (other than multiemployer plans) and the present and past
fiduciaries of such plans; the attorneys for FIC; and anyone who acted on behalf of
FICO or on instructions from FICO.
	 
	 	D.	 	Agreement means the *[letter agreement / Management Agreement / or
other relevant agreement]* between me and FICO dated *[date]*, including all of the
documents attached to such agreement.
	 
	 	E.	 	My Claims mean all of my rights that I now have to any relief of any
kind from the Company, whether I now know about such rights or not, including without
limitation:

	 	1.	 	all claims arising out of or relating to my employment with
FICO or the termination of that employment;
	 
	 	2.	 	all claims arising out of or relating to the statements,
actions, or omissions of the Company;
	 
	 	3.	 	all claims for any alleged unlawful discrimination, harassment,
retaliation or reprisal, or other alleged unlawful practices arising under the
laws of the United States or any other country or of any state, province,
municipality, or other unit of government, including without limitation, claims
under Title VII of the Civil Rights Act of 1964, the Age Discrimination in
Employment Act, the Americans with Disabilities Act, the Family and Medical
Leave Act, 42 U.S.C. § 1981, the Employee Retirement Income Security Act, the
Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the
Sarbanes-Oxley Act, the Lilly Ledbetter Fair Pay Act of 2009, the Minnesota
Human Rights Act, the Genetic Information Nondiscrimination Act, the Fair
Credit Reporting Act, the California Fair Employment and Housing Act, the
Minneapolis Civil Rights Ordinance, and workers’ compensation non-interference
or non-retaliation statutes (such as Minn. Stat. § 176.82);

1

 

	 	4.	 	all claims for alleged wrongful discharge; breach of contract;
breach of implied contract; failure to keep any promise; breach of a covenant
of good faith and fair dealing; breach of fiduciary duty; estoppel; my
activities, if any, as a “whistleblower”; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; retaliation or
reprisal; constructive discharge; assault; battery; false imprisonment;
invasion of privacy; interference with contractual or business relationships;
any other wrongful employment practices; and violation of any other principle
of common law;
	 
	 	5.	 	all claims for compensation of any kind, including without
limitation, bonuses, commissions, stock-based compensation or stock options,
vacation pay and paid time off, perquisites, and expense reimbursements;
	 
	 	6.	 	all rights I have under California Civil Code section 1542,
which states that: “A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor;”
	 
	 	7.	 	all claims for back pay, front pay, reinstatement, other
equitable relief, compensatory damages, damages for alleged personal injury,
liquidated damages, and punitive damages; and
	 
	 	8.	 	all claims for attorneys’ fees, costs, and interest.

	 	 	 	However, My Claims do not include any claims that the law does not allow to
be waived; any claims that may arise after the date on which I sign this Release;
any rights I may have to indemnification from FICO as a current or former officer,
director or employee of FICO; any claims for payment of severance benefits under the
Agreement; any rights I have to severance pay or benefits under the Agreement; or
any claims I may have for earned and accrued benefits under any employee benefit
plan sponsored by the Company in which I am a participant as of the date of
termination of my employment with FICO.

Consideration. I am entering into this Release in consideration of FICO’s obligations to
provide me certain severance benefits as specified in the Agreement. I will receive consideration
from FICO as set forth in the Agreement if I sign and do not rescind this Release as provided
below. I understand and acknowledge that I would not be entitled to the consideration under the
Agreement if I did not sign this Release. The consideration is in addition to anything of value
that I would be entitled to receive from FICO if I did not sign this Release or if I rescinded this
Release. I acknowledge and represent that I have received all payments and benefits that I am
entitled to receive (as of the date of this Release) by virtue of any employment by the Company.

Agreement to Release My Claims. In exchange for the consideration described in the
Agreement, I give up and release all of My Claims. I will not make any demands or claims against
the Company for compensation or damages relating to My Claims. The consideration that I am
receiving is a fair compromise for the release of My Claims.

Cooperation. Upon the reasonable request of the Company, I agree that I will (i) timely
execute and deliver such acknowledgements, instruments, certificates, and other ministerial
documents (including without limitation, certification as to specific actions performed by me in my
capacity as an officer of the
Company) as may be necessary or appropriate to formalize and complete the applicable corporate
records;

2

 

(ii) reasonably consult with the Company regarding business matters that I was involved
with while employed by the Company; and (iii) be reasonably available, with or without subpoena, to
be interviewed, review documents or things, give depositions, testify, or engage in other
reasonable activities in connection with any litigation or investigation, with respect to matters
that I may have knowledge of by virtue of my employment by or service to the Company. In
performing my obligations under this paragraph to testify or otherwise provide information, I will
honestly, truthfully, forthrightly, and completely provide the information requested, volunteer
pertinent information and turn over to the Company all relevant documents which are or may come
into my possession.

My Continuing Obligations. I understand and acknowledge that I must comply with all of my
post-employment obligations under the Agreement and under the Proprietary Information and
Inventions Agreement dated *[date]*. I will not defame or disparage the reputation, character,
image, products, or services of FICO, or the reputation or character of FICO’s directors, officers,
employees and agents, and I will refrain from making public comment about the Company except upon
the express written consent of an officer of FICO.

Additional Agreements and Understandings. Even though FICO will provide consideration for
me to settle and release My Claims, the Company does not admit that it is responsible or legally
obligated to me. In fact, the Company denies that it is responsible or legally obligated to me for
My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it
treated me unfairly.

Advice to Consult with an Attorney. I understand and acknowledge that I am hereby being
advised by the Company to consult with an attorney prior to signing this Release and I have done
so. My decision whether to sign this Release is my own voluntary decision made with full knowledge
that the Company has advised me to consult with an attorney.

Period to Consider the Release. I understand that I have 21 days from the date I received
this Release (or 21 days after the last day of my employment with FICO, if later) to consider
whether I wish to sign this Release. If I sign this Release before the end of the 21-day period,
it will be my voluntary decision to do so because I have decided that I do not need any additional
time to decide whether to sign this Release. I understand and agree that if I sign this Release
prior to my last day of employment with FICO it will not be valid and FICO will not be obligated to
provide the consideration described in the Release.

My Right to Rescind this Release. I understand that I may rescind this Release at any time
within 15 days after I sign it, not counting the day upon which I sign it. This Release will not
become effective or enforceable unless and until the 15-day rescission period has expired without
my rescinding it. I understand that if I rescind this Release FICO will not be obligated to
provide the consideration described in the Release.

Procedure for Accepting or Rescinding the Release. To accept the terms of this Release, I
must deliver the Release, after I have signed and dated it, to FICO by hand or by mail within the
21-day period that I have to consider this Release. To rescind my acceptance, I must deliver a
written, signed statement that I rescind my acceptance to FICO by hand or by mail within the 15-day
rescission period. All deliveries must be made to FICO at the following address:

Senior Vice President of Human Resources

Fair Isaac Corporation

901 Marquette Avenue

Suite 3200

Minneapolis, MN 55402

3

 

If I choose to deliver my acceptance or the rescission by mail, it must be postmarked within the
period stated above and properly addressed to FICO at the address stated above.

Interpretation of the Release. This Release should be interpreted as broadly as possible
to achieve my intention to resolve all of My Claims against the Company. If this Release is held
by a court to be inadequate to release a particular claim encompassed within My Claims, this
Release will remain in full force and effect with respect to all the rest of My Claims. I agree
that the provisions of this Release may not be amended, waived, changed or modified except by an
instrument in writing signed by an authorized representative of FICO and by me.

My Representations. I am legally able and entitled to receive the consideration being
provided to me in settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with FICO. No child support
orders, garnishment orders, or other orders requiring that money owed to me by FICO be paid to any
other person are now in effect.

I have read this Release carefully. I understand all of its terms. In signing this Release, I
have not relied on any statements or explanations made by the Company except as specifically set
forth in the Agreement. I am voluntarily releasing My Claims against the Company. I intend this
Release and the Agreement to be legally binding.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	

 

	 	 	 	

 

Charles L. Ill
	 	 

4

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