Document:

Exhibit 10.1

 

EXECUTION VERSION

 

CONSENT AND AMENDMENT NO. 4

 

TO THIRD AMENDED AND RESTATED CREDIT
AGREEMENT

  

This Consent and Amendment
No. 4 to Third Amended and Restated Credit Agreement (this “Amendment”), dated as of January 30, 2017, is made
by and among STONERIDGE, INC., an Ohio corporation (the “Parent”), STONERIDGE ELECTRONICS, INC., a Texas corporation
(“Electronics”), STONERIDGE CONTROL DEVICES, INC., a Massachusetts corporation (“Controls”,
and together with the Parent and Electronics, the “Domestic Borrowers”), STONERIDGE ELECTRONICS AB, reg. no.
556442-9388, a Swedish corporation (“Stoneridge Sweden”, and together with the Domestic Borrowers, the “Borrowers”),
STONERIDGE AFTERMARKET, INC., an Ohio corporation (“Aftermarket”), as Guarantor, the various Lenders (as hereinafter
defined) which are a party to this Amendment and PNC Bank, National Association,
a national banking association, as the administrative agent (in such capacity, the “Administrative Agent”) and
the collateral agent (in such capacity, the “Collateral Agent”, and together with the Administrative Agent,
the “Agents”).

 

WITNESSETH:

 

WHEREAS, the Borrowers
have been extended certain financial accommodations pursuant to that certain Third Amended and Restated Credit Agreement, dated
as of September 12, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Credit
Agreement”), among the Borrowers, the guarantors party thereto from time to time, the financial institutions party thereto
from time to time, as lenders (the “Lenders”) and the Administrative Agent;

 

WHEREAS, in connection
with the Credit Agreement, the Borrowers entered into that certain Pledge and Security Agreement, dated as of September 12, 2014,
among the grantors party thereto (including the Domestic Borrowers and Aftermarket) and the Collateral Agent (as amended, supplemented,
amended and restated or otherwise modified from time to time, the “Security Agreement”).

 

WHEREAS, the Borrowers
have informed the Administrative Agent that they intend to restructure certain of their Subsidiaries in the Netherlands whereby
(the following transaction being hereinafter referred to collectively as the “Dutch Reorganization”):

 

(i)       Parent
(as the limited partner and holder of 99% of the partnership interests) and Electronics (as the general partner and holder of 1%
of the partnership interests) will form a Dutch limited partnership (commanditaire vennootschap) under the laws of the Netherlands
to be named Stoneridge Netherlands C.V.;

 

(ii)        Parent
and Electronics will enter into a deed of disclosed pledge over partnership interests of Stoneridge Netherlands C.V. (the “New
Dutch Pledge Agreement”) to create, in favor of the Collateral Agent a first priority right of pledge under the laws
of the Netherlands over the partnership interests of Stoneridge Netherlands C.V., to the extent required by the Loan Documents;

 

     

     

    

 

(iii)       Electronics
(as the general partner of and on behalf of Stoneridge Netherlands C.V.) will form a Dutch private company with limited liability
(besloten vennootschap met beperkte aansprakelijkheid) under the laws of the Netherlands to be named Stoneridge B.V.;

 

(iv)       the
Collateral Agent’s security interest over the partnership interests of SRI Holdings C.V., a Dutch limited partnership (commanditaire
vennootschap) pursuant to the Deed of Disclosed Pledge Over Partnership Interests of SRI Holdings C.V., dated October 24, 2014,
among Controls and Parent, as pledgors, SRI Holdings C.V., and the Collateral Agent, as pledgee (the “Existing Dutch Pledge
Agreement” and the right of pledge in favor of the Collateral Agent granted thereunder being hereinafter referred to
as the “Existing Pledge (SRI CV)”), will be released, subject to conditions satisfactory to the Collateral Agent;
and

 

(v)       Parent’s
limited partnership interest in SRI Holdings C.V. will be contributed to Stoneridge Netherlands C.V.;

 

WHEREAS, the Borrowers
have informed the Administrative Agent that they have negotiated a transaction with Wide-Angle Management B.V., a private company
with limited liability (besloten vennootschap met beperkte aansprakelijkheid), under the laws of the Netherlands (“Seller”)
whereby (the following transaction being hereinafter referred to collectively as the “Orlaco Acquisition”):

 

(i)       Parent
and Stoneridge B.V. will enter into a Share Sale and Purchase Agreement (the “Acquisition Agreement” and, together
with the other documents, certificates, agreements or instruments in connection therewith, the “Acquisition Documents”)
with the Seller pursuant to which Stoneridge B.V. will purchase from Seller 100% of the entire issued and outstanding shares in
the capital of Exploitatiemaatschappij de Berghaaf B.V., a private company with limited liability (besloten vennootschap met
beperkte aansprakelijkheid) under the laws of the Netherlands (“Orlaco”);

 

(ii)       Parent
will borrow funds in the form of Revolving Credit Loans under the Credit Agreement and in connection with the Orlaco Acquisition
will contribute or lend (as the case may be) cash to Stoneridge Netherlands C.V. (such contribution or loan of funds from Parent
to Stoneridge Netherlands C.V. is hereinafter referred to as the “Orlaco Intercompany Contribution”); and

 

(iii)       Stoneridge
Netherlands C.V. will further contribute or lend (as the case may be) the funds from the Orlaco Intercompany Contribution to Stoneridge
B.V. for (a) payment to Seller of the Estimated Purchase Price, as defined in the Acquisition Agreement, (b) payment of other costs
and expenses in connection with the Orlaco Acquisition and the transactions contemplated by this Amendment and (c) initial working
capital needs of Orlaco;

 

WHEREAS, the parties
hereto desire to (i) amend certain provisions of the Loan Documents, (ii) consent to the Dutch Reorganization and (iii) consent
to the Orlaco Acquisition, in each case as more fully set forth below.

 

    2 

     

    

 

NOW THEREFORE,
in consideration of the mutual promises and agreements contained herein and other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, each of the parties hereto hereby agrees as follows:

 

Section 1DEFINED TERMS.

 

Each defined term used
herein and not otherwise defined herein shall have the meaning ascribed to such term in the Credit Agreement, as amended by this
Amendment.

 

Section 2AMENDMENTS TO THE LOAN
DOCUMENTS.

 

The Credit Agreement
and the Security Agreement are hereby amended as follows:

 

2.1       Amendment
to Section 1.1 (Certain Definitions) of the Credit Agreement. The definition of “Stoneridge Netherlands” in Section
1.1 of the Credit Agreement is hereby amended and restated in its entirety on the Amendment Effective Date (as hereinafter defined),
as follows:

 

“Stoneridge
Netherlands shall mean Stoneridge Netherlands C.V., a Dutch limited partnership (commanditaire vennootschap), and its
successors and assigns.”

 

2.2       Amendment
to Section 1.1 (Certain Definitions) of the Credit Agreement. Section 1.1 of the Credit Agreement is hereby amended by the
addition of the following new defined terms, in the appropriate alphabetical order:

 

“Fourth Amendment
Effective Date shall mean the “Amendment Effective Date” as defined in that certain Consent and Amendment No. 4
to Third Amended and Restated Credit Agreement, dated as of January 30, 2017, among the Loan Parties, the Administrative Agent
and the Lenders.”

 

“Orlaco Acquisition
Agreement” means that certain Share Sale and Purchase Agreement, dated January 31, 2017, among Stoneridge B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) under the laws of the Netherlands,
as Purchaser (as defined therein), Parent, as Purchaser’s Guarantor (as defined therein), Wide-Angle Management B.V., a private
company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), under the laws of the Netherlands,
as Seller (as defined therein) and Exploitatiemaatschappij de Berghaaf B.V., a private company with limited liability (besloten
vennootschap met beperkte aansprakelijkheid) under the laws of the Netherlands, as Company (as defined therein).

 

2.3        Amendment
to Section 8.2.3 (Guaranties) of the Credit Agreement. Section 8.2.3 of the Credit Agreement is hereby amended and restated
in its entirety on the Amendment Effective Date, as follows:

 

“8.2.3       
Guaranties. Each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, at any time, directly or
indirectly, become or be liable in respect of any Guaranty, or assume, guarantee, become surety for, endorse or otherwise agree,
become or remain directly or contingently liable upon or with respect to any obligation or liability of any other Person, except
for (i) Guaranties of Indebtedness of the Loan Parties permitted hereunder and subject to the limitations set forth in Section
8.2.4 [Loans and Investments] below, (ii) Restricted Investments in or Guaranties of Indebtedness of Foreign Subsidiaries permitted
hereunder and subject to the limitations set forth in Section 8.2.4 [Loans and Investments] below and (iii) Parent’s Guaranty
of the payment obligations of Stoneridge B.V. as set forth in the Orlaco Acquisition Agreement as in effect on the Fourth Amendment
Effective Date.”

 

    3 

     

    

 

2.4        Amendment
to Section 8.2.4 (Loans and Investments) of the Credit Agreement. Clause (v) of Section 8.2.4 the Credit Agreement is hereby
amended and restated in its entirety on the Amendment Effective Date, as follows:

 

“(v)loans, advances
and investments in, or Guaranties of Indebtedness of (a) a Domestic Loan Party by another Domestic Loan Party, (b) a Foreign Subsidiary
by another Foreign Subsidiary or (c) a Foreign Subsidiary by a Domestic Loan Party; provided that loans, advances, investments
and Guaranties (other than the Guaranty by Parent of the payment obligations of Stoneridge B.V. as set forth in the Orlaco Acquisition
Agreement as in effect on the Fourth Amendment Effective Date) by Domestic Loan Parties in Foreign Subsidiaries pursuant to this
clause (c) shall not exceed Thirty Million Dollars ($30,000,000) in the aggregate at any time outstanding;”

 

2.5        Amendment
to Schedules 6.1.1 and 6.1.2 of the Credit Agreement. Each of Schedule 6.1.1 and 6.1.2 of the Credit Agreement shall be amended
and restated in its entirety on the Amendment Effective Date as set forth on Annex I hereto.

 

2.6       Amendment
to Exhibit C of the Security Agreement. Exhibit C of the Security Agreement shall be amended and restated in its entirety
on the Amendment Effective Date as set forth on Annex II hereto.

 

Section 3 CONSENTS.

 

3.1       Consent
to Dutch Reorganization. Certain elements of the Dutch Reorganization are not permitted by various provisions of the Loan Documents,
including, without limitation Section 8.2.7 of the Credit Agreement and Section 4.5 of the Security Agreement, and the Borrowers
have requested the consent of the Agents and the Lenders such that the forgoing Dutch Reorganization may be consummated. Notwithstanding
any such provisions and subject to the conditions set forth in Section 5 below, as of the Amendment Effective Date the Agents
and the Lenders hereby consent to the Dutch Reorganization, so long as such Dutch Reorganization is consummated substantially as
described in the recitals to this Amendment.

 

    4 

     

    

 

The Agents and the
Lenders hereby agree that upon the satisfaction of the conditions set forth herein and the consummation of the Dutch Reorganization,
the Existing Dutch Pledge Agreement and the Existing Pledge (SRI CV) shall be released and discharged. Each of the Lenders party
hereto hereby approves the release of the Existing Dutch Pledge Agreement and the Existing Pledge (SRI CV) pursuant to the terms
of this Amendment and authorizes the Collateral Agent to execute and deliver any such documents necessary to effectuate such release.
The Borrowers acknowledge that the Collateral Agent’s execution of and/or delivery of any documents releasing the Existing
Pledge (SRI CV) as set forth herein is made without recourse, representation, warranty, or other assurance of any kind by the Collateral
Agent as to the Collateral Agent’s rights in any collateral security for amounts owing under the Loan Documents, the condition
or value of any collateral, or any other matter.

 

3.2       Consent
to Orlaco Acquisition. Certain elements of the Orlaco Acquisition are not permitted by various provisions of the Loan Documents,
including, without limitation Sections 8.2.3 and 8.2.4 of the Credit Agreement, and the Borrowers have requested the consent of
the Agents and the Lenders such that the forgoing Orlaco Acquisition may be consummated. Notwithstanding any such provisions and
subject to the conditions set forth in Section 5 below, as of the Amendment Effective Date the Agents and the Lenders hereby
consent to Orlaco Acquisition and the consummation of the transactions contemplated by the Acquisition Documents, so long as (i)
the Orlaco Acquisition is consummated substantially as described in the recitals to this Amendment, (ii) the Orlaco Acquisition
satisfies all requirements for a Permitted Acquisition under the Credit Agreement and (iii) the Borrowers shall have delivered
to the Administrative Agent (a) no later than three (3) Business Days prior to the consummation of the Orlaco Acquisition, the
substantially final form of each Acquisition Document (together with all exhibits and schedules with respect thereto) and (b) a
certificate of an Authorized Officer of Parent (1) certifying that the Orlaco Acquisition has been consummated (subject only to
receipt of the portion of the purchase price) in accordance with the terms of the Acquisition Documents and (2) certifying as true,
correct and complete, and attaching copies of each of the Acquisition Documents (which shall not have been amended or revised in
any way adverse to the interests of the Agents or Lenders from those drafts previously delivered) as executed and delivered (together
with all exhibits and schedules with respect thereto), which shall be in form and substance satisfactory to the Administrative
Agent. For the avoidance of doubt, the Agents and Lenders agree that the Orlaco Intercompany Contribution shall not be included
as a Restricted Investment or other investment in a Foreign Subsidiary by a Domestic Loan Party for purposes of computing the limitations
in clauses (iv) and (v) of Section 8.2.4 of the Credit Agreement.

 

Section 4REPRESENTATIONS AND WARRANTIES.

 

Each Loan Party hereby
represents and warrants to the Lenders and the Agents as follows:

 

4.1       The
Amendment. This Amendment has been duly and validly executed by an authorized executive officer of such Loan Party and constitutes
the legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with its terms. The
Credit Agreement, as amended by this Amendment, remains in full force and effect and remains the valid and binding obligation of
such Loan Party party thereto enforceable against such Loan Party in accordance with its terms, except as such enforceability may
be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor’s rights
generally and by general principles of equity.

 

    5 

     

    

 

4.2       No
Potential Default or Event of Default. No Potential Default or Event of Default exists under the Credit Agreement as of the
date hereof and no Potential Default or Event of Default will occur as a result of the effectiveness of this Amendment.

 

4.3       Restatement
of Representations and Warranties. The representations and warranties of such Loan Party contained in the Credit Agreement,
as amended by this Amendment, and the other Loan Documents are true and correct on and as of the Amendment Effective Date as though
made on the Amendment Effective Date, unless and to the extent that any such representation and warranty is stated to relate solely
to an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date.

 

Section 5CONDITIONS TO EFFECTIVENESS.

 

The date and time of
the effectiveness of this Amendment (the “Amendment Effective Date”) is subject to the satisfaction of the following
conditions precedent:

 

5.1       Execution.
The Administrative Agent shall have received counterparts to this Amendment duly executed and delivered by an authorized officer
of each other party hereto.

 

5.2       Updated
Schedules and Exhibits. The Agents shall have received from the Loan Parties the updated schedules and exhibits as set forth
in and required under Section 2 hereof.

 

5.3       Acknowledgment
and Consent. The Administrative Agent shall have received from Stoneridge Netherlands C.V. an acknowledgment and consent to
the Security Agreement duly executed and delivered by an authorized offer or appropriate signatory thereof.

 

5.4       Dutch
Reorganization Documents. The Borrowers shall have delivered to the Administrative Agent copies, certified by an Authorized
Officer of Parent as true, correct and complete, of the material documentation to consummate the Dutch Reorganization (except as
set forth in Section 6 below), which shall be in form and substance satisfactory to the Administrative Agent.

 

    6 

     

    

 

5.5        New
Dutch Pledge Agreement. The Administrative Agent shall have received from the Loan Parties the New Dutch Pledge Agreement signed
by an Authorized Officer or appropriate signatory and all other documents and deliveries (including, without limitation, such legal
opinions as the Administrative Agent may reasonably request from (a) counsel to the Agents and (b) counsel to Parent and Electronics,
each of which shall be in form and substance reasonably satisfactory to the Administrative Agent) required to be delivered pursuant
to or in connection with such New Dutch Pledge Agreement.

 

5.6        Secretary’s
Certificates. Each of Parent and Electronics shall deliver or cause to be delivered, in form, content and scope reasonably
satisfactory to the Administrative Agent, a certificate of the secretary or an assistant secretary of such Borrower (a) attaching
and certifying to a copy of the resolutions of the Board of Directors or equivalent governing body of such Borrower, as applicable,
approving the New Dutch Pledge Agreement and any documentation in connection with the Dutch Reorganization and Orlaco Acquisition
to which such Borrower is a party, and of all documents evidencing other necessary corporate action and governmental approvals,
if any, with respect to the execution, delivery and performance by such Borrower of such documents, (b) a partner resolution of
Stoneridge Netherlands C.V., approving the entering into of the New Dutch Pledge Agreement and (c) certifying the names and true
signatures of the Authorized Officers of such Borrower authorized to sign any documents to which such Borrower is a party that
may be executed and delivered in connection with such documents.

 

5.7       Payment
of Costs and Expenses. The Borrowers shall have paid all outstanding and reasonable costs, expenses and the disbursements of
the Administrative Agent and its advisors, service providers and legal counsels incurred in connection with the documentation of
this Amendment, to the extent invoiced, as well as any other fees payable on or before the Amendment Effective Date pursuant to
any fee letter or agreement with the Administrative Agent.

 

5.8       Other.
All corporate and other proceedings, and all documents, instruments, certificates and other legal matters in connection with the
transactions contemplated by this Amendment shall be reasonably satisfactory in form and substance to the Administrative Agent
and its counsel.

 

Section 6 COVENANT.

 

The Borrowers shall
have delivered to the Administrative Agent no later than 30 days after the Amendment Effective Date (or such later date as shall
be consented to by the Administrative Agent in its sole discretion), copies, certified by an Authorized Officer of Parent as true,
correct and complete, of the documentation to consummate the transaction described in clause (v) of the definition of Dutch Reorganization
above, which shall be in form and substance satisfactory to the Administrative Agent. The failure of the Borrowers to satisfy the
requirements in this Section 6 on or before the time period applicable thereto as set forth herein (or such later date as
shall be consented to by the Administrative Agent in its sole discretion) shall constitute an immediate “Event of Default”
under the Credit Agreement, without the need for demand or notice of any kind.

 

    7 

     

    

 

Section 7 MISCELLANEOUS.

 

7.1       Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York without giving
effect to the conflict of laws rules thereof.

 

7.2       Severability.
Any provision of this Amendment which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Amendment.

 

7.3       Counterparts.
This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of
which when so executed and delivered shall be deemed to be an original, and all of which taken together shall constitute but one
and the same instrument.

 

7.4       Headings.
Section headings used in this Amendment are for the convenience of reference only and are not a part of this Amendment for any
other purpose.

 

7.5       Negotiations.
Each Loan Party acknowledges and agrees that all of the provisions contained herein were negotiated and agreed to in good faith
after discussion with the Agents and the Lenders.

 

7.6       Nonwaiver.
The execution, delivery, performance and effectiveness of this Amendment shall not operate as, or be deemed or construed to be,
a waiver: (i) of any right, power or remedy of the Lenders or the Agents under the Credit Agreement or the other Loan Documents,
or (ii) of any term, provision, representation, warranty or covenant contained in the Credit Agreement or any other Loan Document.
Further, none of the provisions of this Amendment shall constitute, be deemed to be or construed as, a waiver of any Potential
Default or Event of Default under the Credit Agreement as amended by this Amendment.

 

7.7       Reaffirmation.
Each Loan Party hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under
the Credit Agreement and each of the other Loan Documents to which it is a party and (ii) ratifies and reaffirms its grant of security
interests and Liens under such documents and confirms and agrees that such security interests and Liens hereafter secure all of
the Obligations.

 

7.8        Release
of Claims. In consideration of the Lenders’ and the Agents’ agreements contained in this Amendment, each Loan Party
hereby irrevocably releases and forever discharge the Lenders and the Agents and their Affiliates, subsidiaries, successors, assigns,
directors, officers, employees, agents, consultants and attorneys (each, a “Released Person”) of and from any
and all claims, suits, actions, investigations, proceedings or demands, whether based in contract, tort, implied or express warranty,
strict liability, criminal or civil statute or common law of any kind or character, known or unknown, which such Loan Party ever
had or now has against the Agents, any Lender or any other Released Person which relates, directly or indirectly, to any acts or
omissions of the Agents, any Lender or any other Released Person relating to the Credit Agreement or any other Loan Document on
or prior to the date hereof.

 

    8 

     

    

 

7.9       Reference
to and Effect on the Credit Agreement. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to
“this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import shall
mean and be a reference to the Credit Agreement as amended by this Amendment and each reference to the Credit Agreement in any
other document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference
to the Credit Agreement, as amended by this Amendment.

 

[SIGNATURES FOLLOW]

 

    9 

     

    

 

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

 

	BORROWERS:	STONERIDGE, INC. 
	 	 	 
	 	By:	/s/ Robert R. Krakowiak
	 	Name: Robert R. Krakowiak
	 	Title: Chief Financial Officer and Treasurer
	 	 	 
	 	 	 
	 	STONERIDGE CONTROL DEVICES, INC.
	 	 	 
	 	By:	/s/ Robert R. Krakowiak
	 	Name: Robert R. Krakowiak
	 	Title: Vice President and Treasurer
	 	 	 
	 	 	 
	 	STONERIDGE ELECTRONICS, INC.
	 	 	 
	 	By:	/s/ Robert R. Krakowiak
	 	Name: Robert R. Krakowiak
	 	Title: Vice President and Treasurer
	 	 	 
	 	 	 
	 	STONERIDGE ELECTRONICS AB
	 	 	 
	 	By:	/s/ Peter Kruk
	 	Name: Peter Kruk
	 	Title: Managing Director
	 	 	 
	 	 	 
	 	 	 
	GUARANTOR:	STONERIDGE AFTERMARKET, INC. 
	 	 	 
	 	By:	/s/ Robert R. Krakowiak
	 	Name: Robert R. Krakowiak
	 	Title: Vice President and Treasurer

 

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	AGENTS:	PNC BANK, NATIONAL ASSOCIATION, as
	 	the Administrative Agent and the Collateral Agent
	 	 	 
	 	 	 
	 	By:	/s/ Joseph G. Moran              
	 	Name: Joseph G. Moran
	 	Title: Senior Vice President

 

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	LENDERS:
	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Joseph G. Moran                
	 	Name: Joseph G. Moran
	 	Title: Senior Vice President

 

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	JPMORGAN CHASE BANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	By:	/s/     James     A.
    Pitzer                      
	 	 	 
	 	Name: 	     James     A.
    Pitzer
	 	 	 
	 	Title:	Executive Director

  

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	COMPASS BANK, as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/
    Jeff Bork                 
	 	 	 
	 	Name: 	
    Jeff Bork
	 	 	 
	 	Title:	Sr. Vice President

 

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	CITIZENS BANK, NATIONAL ASSOCIATION, as a Lender
	 	 	 
	 	 	 
	 	By:	/s/     Stephen     A.
    Maenhout                   
	 	 	 
	 	Name: 	Stephen     A.
    Maenhout
	 	 	 
	 	Title:	Senior Vice President

 

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	THE HUNTINGTON NATIONAL BANK, as a Lender
	 	 	 
	 	 	 
	 	By:	/s/
    Dan Swanson                  
	 	 	 
	 	Name: 	
    Dan Swanson
	 	 	 
	 	Title:	Assistant Vice President

  

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender
	 	 	 
	 	 	 
	 	By:	/s/     Jeffrey     S.
    Johnson                      
	 	 	 
	 	Name: 	     Jeffrey     S.
    Johnson
	 	 	 
	 	Title:	Senior Vice President

  

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	BMO HARRIS BANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Betsy Phillips           
	 	 	 
	 	Name: 	 Betsy Phillips
	 	 	 
	 	Title:	Senior Vice President, Director

  

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	KEYBANK NATIONAL ASSOCIATION 
	 	(successor to FIRST NIAGARA BANK, N.A.), as
	 	a Lender
	 	 	 
	 	 	 
	 	By:	/s/
         Suzannah
    Valdivia                
	 	 	 
	 	Name: 	
    Suzannah
    Valdivia
	 	 	 
	 	Title:	Senior Vice President

  

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

	 	FIRST COMMONWEALTH BANK, as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Stephen J. Orban                    
	 	 	 
	 	Name: 	     Stephen J. Orban
	 	 	 
	 	Title:	Senior Vice President

 

    
[Signature Page to Consent and Amendment No. 4]

     

    

 

Annex I

 

Schedules 6.1.1 and 6.1.2 of the Credit
Agreement

 

     

     

    

 

Annex I

 

Amended and Restated Schedule 6.1.1

 

Organization / Qualification

 

	Loan Party	 	Organization	 	Qualification
	Stoneridge, Inc.	 	Ohio	 	Florida, Illinois, Indiana, Massachusetts, Michigan, Texas, Japan
	Stoneridge Electronics, Inc.	 	Texas	 	 
	Stoneridge Control Devices, Inc.	 	Massachusetts	 	Michigan
	Stoneridge Aftermarket, Inc.	 	Ohio	 	Michigan
	Stoneridge Electronics AB	 	Sweden	 	 
	SRI CS LLC	 	Michigan	 	 
	SRI Holdings CV	 	Netherlands	 	 
	Stoneridge European Holdings B.V.	 	Netherlands	 	 
	Stoneridge AB	 	Sweden	 	 
	Stoneridge Nordic AB	 	Sweden	 	 
	Stoneridge GmbH	 	Germany	 	 
	Stoneridge Electronics Limited	 	Scotland	 	France, Spain
	Stoneridge Electronics SrL	 	Italy	 	 
	Stoneridge Electronics AS	 	Estonia	 	 
	Stoneridge Pollak (Holdings) Limited	 	UK	 	 
	Stoneridge Aftermarket GmbH	 	Germany	 	 
	Stoneridge OOO	 	Russia	 	 
	Stoneridge do Brasil Participações Ltda.	 	Brazil	 	 
	PST Teleatendimento Ltda. (f/k/a PST Industrial Ltda.)	 	Brazil	 	 
	PST Eletrônica Ltda.	 	Brazil	 	Argentina
	Positron Rastreadores Argentina S.A. 	 	Argentina	 	 
	TED de Mexico SA de CV	 	Mexico	 	 
	TED de Mexico Servicios SA de CV	 	Mexico 	 	 
	Stoneridge Asia Holdings Ltd.	 	Mauritius	 	 
	Stoneridge Asia Pacific Electronics (Suzhou) Co. Ltd.	 	China	 	 
	Stoneridge Netherlands CV	 	Netherlands	 	 
	Stoneridge B.V.	 	Netherlands	 	 
	Exploitatiemaatschappij De Berghaaf B.V.	 	Netherlands	 	 
	Orlaco Products B.V.	 	Netherlands	 	 
	Orlaco Maritime CCTV B.V.	 	Netherlands	 	 
	Orlaco trucktronic Eyes B.V.	 	Netherlands	 	 
	Orlaco Vastogoed B.V.	 	Netherlands	 	 
	Orlaco Vision B.V.	 	Netherlands	 	 
	Orlaco GmbH	 	Germany	 	 
	Orlaco Inc.	 	Delaware	 	Georgia

 

     

     

    

 

Amended and Restated Schedule 6.1.2

Subsidiaries and Owners

 

	Subsidiary/Issuer 	 	
        Jurisdiction of

        Organization/

        Formation of

        Issuer 
	 	
        Authorized and

        Outstanding Equity

        Interests of Issuer 
	 	
        Holder of Outstanding

        Equity Interests

	Stoneridge, Inc.	 	Ohio	 	
        5M Preferred Shares, none issued or outstanding

        60M Common Shares, 27,842,883 shares outstanding
        at June 30, 2016 
	 	Public (NYSE: SRI)
	 	 	 	 	 	 	 
	Stoneridge Electronics, Inc.	 	Texas	 	
        100

        100
	 	Stoneridge, Inc.
	 	 	 	 	 	 	 
	Stoneridge Control Devices, Inc.	 	Massachusetts	 	
        100

        100 
	 	Stoneridge, Inc.
	 	 	 	 	 	 	 
	Stoneridge Aftermarket, Inc.	 	Ohio	 	
        100

        100 
	 	Stoneridge, Inc.
	 	 	 	 	 	 	 
	SRI CS LLC	 	Michigan	 	
        1,000

        1,000 
	 	Stoneridge, Inc.
	 	 	 	 	 	 	 
	SRI Holdings CV	 	Netherlands	 	Limited Partnership	 	Stoneridge Netherlands CV (99% limited partner) & Stoneridge Control Devices, Inc. (1% general partner)
	 	 	 	 	 	 	 
	Stoneridge European Holdings B.V.	 	Netherlands	 	
        100

        20
	 	SRI Holdings CV
	 	 	 	 	 	 	 
	Stoneridge AB	 	Sweden	 	
        5,745

        5,745
	 	Stoneridge European Holdings B.V.
	 	 	 	 	 	 	 
	Stoneridge Electronics AB	 	Sweden	 	
        5,745

        5,745 
	 	Stoneridge AB
	 	 	 	 	 	 	 
	Stoneridge Nordic AB	 	Sweden	 	
        1,000

        1,000 
	 	Stoneridge Electronics AB
	 	 	 	 	 	 	 
	Stoneridge GmbH	 	Germany	 	
        100,000

        100,000 
	 	Stoneridge Electronics AB
	 	 	 	 	 	 	 
	Stoneridge Electronics Limited	 	Scotland	 	
        250,000

        250,000 
	 	Stoneridge AB
	 	 	 	 	 	 	 
	Stoneridge Electronics SrL	 	Italy	 	
        10,000

        10,000 
	 	Stoneridge Electronics Limited
	 	 	 	 	 	 	 

 

     

     

    

 

	Stoneridge Electronics AS	 	Estonia	 	
        160

        40 
	 	Stoneridge European Holdings B.V.
	 	 	 	 	 	 	 
	Stoneridge Pollak (Holdings) Limited	 	UK	 	
        7,004,000

        7,004,000 
	 	Stoneridge European Holdings B.V.
	 	 	 	 	 	 	 
	Stoneridge Aftermarket GmbH	 	Germany	 	
        25,000

        25,000
	 	Stoneridge European Holdings B.V.
	 	 	 	 	 	 	 
	Stoneridge OOO	 	Russia	 	
        10,000

        10,000
	 	Stoneridge European Holdings B.V. [(99.01%) & Stoneridge Holdings CV (.99%)]
	 	 	 	 	 	 	 
	Stoneridge do Brasil Participações Ltda.	 	Brazil	 	8,200,844,065 Quotas 8,200,844,065 Quotas	 	Stoneridge, Inc.
	 	 	 	 	 	 	 
	PST Eletronica Ltda.	 	Brazil	 	9,428,904,801 Quotas 9,428,904,801 Quotas	 	Stoneridge, Inc. (3,541,077,580 Quotas) & Stoneridge do Brasil Participações Ltda. (3,436,311,972 Quotas). 74% in Total
	 	 	 	 	 	 	 
	PST Teleatendimento Ltda. (f/k/a PST Industrial Ltda.)	 	Brazil	 	
        1,000,000 Quotas

        1,000,000 Quotas
	 	PST Eletronica Ltda. (999,999 quotas) & Stoneridge do Brasil Participações Ltda. (1 quota)
	 	 	 	 	 	 	 
	Positron Rastreadores Argentina S.A.	 	Argentina	 	
        100,000

        100,000
	 	
        PST Eletronica Ltda. 98,000 legal &beneficial
        owner, 2,000 beneficially owned.

         

        Daniel Ricci owns 2,000 (bare legal title) which are
        beneficially owned by PST Eletronica Ltda.

         

	 	 	 	 	 	 	 
	TED de Mexico SA de CV	 	Mexico	 	
        Series A 1,000

        Series A 1,000

        Series B 1,398,968 Series B 1,398,968
	 	Stoneridge, Inc. (Series A 998 shares, Series B 1,398,968 shares) & Stoneridge Electronics, Inc. (Series A 2 shares)
	 	 	 	 	 	 	 
	TED de Mexico Servicios S.A. de C.V.	 	Mexico	 	30	 	
        Stoneridge, Inc. (29)

         

        Stoneridge Electronics, Inc. (1)

	 	 	 	 	 	 	 
	Stoneridge Asia Holdings Ltd.	 	Mauritius	 	
        Unlimited

        3,580,348
	 	Stoneridge, Inc.
	 	 	 	 	 	 	 

 

     

     

    

 

	Stoneridge Asia Pacific Electronics (Suzhou) Co. Ltd.	 	China	 	Permitted investment is US$13.5M, of which the minimum capital is 40% (US$5.4M), has been fully paid	 	Stoneridge Asia Holdings Ltd.
	 	 	 	 	 	 	 
	Stoneridge Netherlands CV	 	Netherlands	 	Limited Partnership	 	Stoneridge, Inc. (99% limited partner) & Stoneridge Electronics, Inc. (1% general partner)
	 	 	 	 	 	 	 
	Stoneridge B.V.	 	Netherlands	 	
        100 (Authorization of additional shares requires amendment
        to articles)

         

        100
	 	Stoneridge Netherlands CV
	 	 	 	 	 	 	 
	Exploitatiemaatschappij De Berghaaf B.V.	 	Netherlands	 	
        30,000 preferred

        1,800 preferred

         

        60,000

        1,874
	 	Stoneridge B.V.
	 	 	 	 	 	 	 
	Orlaco Products B.V.	 	Netherlands	 	
        90,000

        18,151
	 	Exploitatiemaatschappij De Berghaaf B.V.
	 	 	 	 	 	 	 
	Orlaco Maritime CCTV B.V.	 	Netherlands	 	
        90,000

        18,151
	 	Exploitatiemaatschappij De Berghaaf B.V.
	 	 	 	 	 	 	 
	Orlaco trucktronic Eyes B.V.	 	Netherlands	 	
        90,000

        18,000
	 	Exploitatiemaatschappij De Berghaaf B.V.
	 	 	 	 	 	 	 

 

     

     

    

 

	Orlaco Vastogoed B.V.	 	Netherlands	 	
        90,000

        18,151
	 	Exploitatiemaatschappij De Berghaaf B.V.
	 	 	 	 	 	 	 
	Orlaco Vision B.V.	 	Netherlands	 	
        90,000

        18,151
	 	Exploitatiemaatschappij De Berghaaf B.V.
	 	 	 	 	 	 	 
	Orlaco GmbH	 	Germany	 	
        25,000 (Authorization of additional shares requires amendment
        to articles)

         

        25,000
	 	Orlaco Products B.V.
	 	 	 	 	 	 	 
	Orlaco Inc.	 	Delaware	 	
        1,000

        100
	 	Orlaco Products B.V.

  

     

     

    

 

Annex II

 

Exhibit C of the Security Agreement

 

     

     

    

  

Annex II

 

Amended and Restated Exhibit C

 

LIST OF PLEDGED COLLATERAL, SECURITIES AND
OTHER INVESTMENT PROPERTY

 

(i)       PLEDGED STOCK

 

	Grantor	 	Issuer	 	Legal Form	 	Jurisdiction	 	Grantor Held	 	# Outstanding	 	
        % Pledged of
	 	Par
	Stoneridge, Inc.	 	
        Stoneridge

        Electronics, Inc.
	 	Corporation	 	Texas	 	100	 	100	 	100%	 	No par common
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	Stoneridge Control Devices, Inc.	 	Corporation	 	Massachusetts	 	100	 	100	 	100%	 	No par common
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	Stoneridge do Brasil Participações Ltda.	 	Corporation	 	Brazil	 	8,200,844,064	 	8,200,844,065	 	99.99%	 	BRL $.01 Quotas
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	PST Eletronica Ltda.	 	Corporation	 	Brazil	 	3,541,077,580	 	9,428,904,801	 	28.555556%	 	BRL $.01 Quotas
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	TED de Mexico SA de CV	 	Corporation	 	Mexico	 	998	 	1,000	 	65%	 	Peso 1 par Series A Ordinary
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	TED de Mexico SA de CV	 	Corporation	 	Mexico	 	1,398,968	 	1,398,968	 	65%	 	Peso 1 par Series B Ordinary
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	TED de Mexico Servicios S.A. de C.V.	 	Corporation	 	Mexico	 	29	 	30	 	65%	 	
        Peso 100 par

        Ordinary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	Stoneridge Asia Holdings Ltd.	 	Corporation	 	Mauritius	 	3,580,348	 	3,580,348	 	65%	 	No par Ordinary
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge, Inc.	 	Stoneridge Netherlands CV	 	Limited Partnership	 	Netherlands	 	99% limited partner	 	 	 	65%	 	N/A
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stoneridge Electronics, Inc.	 	Stoneridge Netherlands CV	 	Limited Partnership	 	Netherlands	 	1% general partner	 	 	 	65%	 	N/A

 

     

     

    

  

(ii) PLEDGED NOTES

 

	Name of Issuer	 	Name of Holder	 	Description	 	Value
	Stoneridge European Holdings B.V.	 	Stoneridge, Inc.	 	Intercompany Loan	 	US$ 3.6M
	 	 	 	 	 	 	 
	Stoneridge Pollak Holdings Limited	 	Stoneridge, Inc.	 	Intercompany Loan	 	US$ 4.9M
	 	 	 	 	 	 	 
	PST Eletronica Limitada	 	Stoneridge, Inc.	 	Intercompany Loan	 	US$2.0M
	 	 	 	 	 	 	 
	Stoneridge Asia Pacific Electronics (Suzhou) Co. Ltd.	 	Stoneridge, Inc.	 	Intercompany Loan	 	US$ 5.9M

 

BONDS: - NONE

 

GOVERNMENT SECURITIES: - NONErlje-ex101_6.htm

Exhibit 10.1

FIRST Amendment to CREDIT and guaranty Agreement

 

This First Amendment to Credit and Guaranty Agreement (this “Amendment”) is entered into as of January 30, 2017 (the “First Amendment Effective Date”) by and among RLJ ENTERTAINMENT, INC., a Nevada corporation (“Parent Borrower”), certain subsidiaries of Parent Borrower party hereto (“Guarantors”), and Digital Entertainment Holdings LLC (“DEH”), as Administrative Agent and Lender.

 

RECITALS  

WHEREAS, Parent Borrower, the Guarantors and DEH, in its capacities as Lender, Administrative Agent and Collateral Agent, entered into that certain Credit and Guaranty Agreement, dated as of October 14, 2016 (the “Credit Agreement”);

WHEREAS, the Credit Parties have requested that the Administrative Agent and Lender make certain amendments to the Credit Agreement as set forth in this Amendment, so as to, among other things, provide an incremental Tranche A Term Loan Commitment; and 

WHEREAS, the Administrative Agent and Lender are willing to execute and deliver this Amendment on the terms and conditions hereafter set forth and provide the incremental Tranche A Term Loan Commitment in the amount of $8,000,000 on the First Amendment Effective Date. 

NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto hereby agree as follows:

1.Definitions.Unless otherwise defined in this Amendment, any and all initially capitalized terms set forth in this Amendment shall have the meaning ascribed thereto in the Credit Agreement.

2.Amendments to Credit Agreement.Subject to satisfaction of the conditions precedent set forth in Section 4 below, the Credit Agreement is hereby amended as follows:

(a)Section 1.1 of the Credit Agreement is hereby amended by inserting the following defined term in appropriate alphabetical order:

““First Amendment” means the First Amendment to the Agreement, dated as of January 30, 2017.”

““First Amendment Effective Date” means January 30, 2017.”

““Incremental Tranche A Term Loan” means the incremental loan made by a Lender to Parent Borrower pursuant to Section 2.1(a)(ii), which, for the avoidance of doubt, shall be a Tranche A Term Loan as of the First Amendment Effective Date.”

““Incremental Tranche A Term Loan Commitment” means the incremental amount of the Tranche A Term Loan Commitment that Lender agrees to make available to Parent Borrower on the First Amendment Effective Date, which, for 

1

 

 

 

the avoidance of doubt is equal to $8,000,000.  Other than for purposes of Section 2.1(a), the Incremental Tranche A Term Loan Commitment shall otherwise constitute a Tranche A Term Loan Commitment as of the First Amendment Effective Date.”

(b)Section 1.1 of the Credit Agreement is hereby amended by deleting the following terms where they appear in their entirety and replacing such terms with the following terms in appropriate alphabetical order: 

““Consolidated Adjusted EBITDA” means, for any period, an amount determined for the Credit Parties on a consolidated basis equal to (i) the sum, without duplication, of the amounts for such period of (a) Consolidated Net Income (excluding for such purposes the net income for such period of any Person that is not a wholly-owned Subsidiary or that is accounted for by the equity method of accounting), plus (b) Consolidated Interest Expense, plus (c) provisions for taxes based on income, plus (d) total depreciation expense, plus (e) total amortization expense (excluding content amortization net of step up amortization in connection with fair value purchase accounting), plus (f) other non-Cash items reducing Consolidated Net Income (excluding any such non-Cash item to the extent that it represents an accrual or reserve for potential Cash items in any future period or amortization of a prepaid Cash item that was paid in a prior period), (but, in each case of the foregoing clauses (a) through (f), excluding with respect to periods prior to a UK Production Entity Inclusion Date, any of the foregoing with respect to such UK Production Entity Group), plus (g) with respect to any Person that is not a wholly-owned Subsidiary or that is accounted for by the equity method of accounting the greater of (x) the amount of dividends or distributions or other payments that are actually paid in cash by such Person to a Credit Party in respect of such period and (y) an amount equal to the proportion of those items described in clause (x) above relating to such person corresponding to a Credit Party’s proportionate share of such Person’s Consolidated Net Income for such period, to the extent not included in calculating Consolidated Net Income, plus (h) other items consented to by the Agent in writing in its sole discretion (for the avoidance of doubt, with respect to the calculation of Consolidated Adjusted EBITDA for the Fiscal Year ending December 31, 2016, the Agent hereby approves the following items as such have been disclosed to Agent prior to the Closing Date in the financial model submitted to Agent by Borrower on July 21, 2016: (i) quality of earnings adjustments, including the effect of discontinued operations and foreign exchange and (ii) extraordinary, unusual or non-recurring expenses, losses and charges); minus (ii) the sum, without duplication of the amounts for such period of (x) other non-Cash items increasing Consolidated Net Income for such period (excluding any such non-Cash item to the extent it represents the reversal of an accrual or reserve for potential Cash item in any prior period), plus (y) other income.”

““Consolidated Fixed Charges” means, for any period, the sum, without duplication, of the amounts determined for Credit Parties on a consolidated basis 

2

 

 

 

 

equal to (i) Consolidated Cash Interest Expense, (ii) scheduled payments of principal on Consolidated Total Debt, and (iii) provisions for current taxes based on income of Credit Parties and payable in cash with respect to such period; provided, that for the Fiscal Year ending December 31, 2019, the calculation of Consolidated Fixed Charges will exclude the interest and principal owed under the Tranche A Term Loan as of the Closing Date and 50% of the principal and interest owed under the Incremental Tranche A Term Loan.”

““Tranche A Term Loan Maturity Date” means June 30, 2019.”

(c)Section 2.1 of the Credit Agreement is hereby amended and restated as follows:

“Term Loans

.

	
 
	
(a)
	
Term Loan Commitments.  Subject to the terms and conditions hereof, each Lender severally agrees to make, (i) on the Closing Date, Term Loans to Parent Borrower in an amount equal to such Lender’s Term Loan Commitment and (ii) on the First Amendment Effective Date, an Incremental Tranche A Term Loan to Parent Borrower in an amount equal to such Lender’s Incremental Tranche A Term Loan Commitment.  Parent Borrower may make only one borrowing under each of the Term Loan Commitment and Incremental Tranche A Term Loan Commitment, which shall be on the Closing Date and the First Amendment Effective Date, respectively.  Any amount borrowed under this Section 2.1(a) and subsequently repaid or prepaid may not be reborrowed.  Subject to Sections 2.8, 2.9 and 2.10, all outstanding amounts owed hereunder with respect to (i) the Tranche B Term Loans shall be paid in full no later than the Tranche B Term Loan Maturity Date and (ii) the Tranche A Term Loans shall be paid in full no later than the Tranche A Term Loan Maturity Date.  Lender’s Term Loan Commitment shall terminate immediately and without further action on the Closing Date after giving effect to the funding of such Lender’s Term Loan Commitment on such date.  Lender’s Incremental Tranche A Term Loan Commitment shall terminate immediately and without further action on the First Amendment Effective Date after giving effect to the funding of such Lender’s Incremental Tranche A Term Loan Commitment.

	
 
	
(b)
	
Borrowing Mechanics for Term Loans.

	
 
	
(i)
	
Parent Borrower shall deliver to Administrative Agent a fully executed Funding Notice no later than three (3) Business Days prior to the Closing Date with respect to the Term Loans made on the Closing Date (or such shorter period as may be acceptable to Administrative Agent). Promptly upon receipt by Administrative Agent of such Funding Notice, Administrative Agent shall notify each Lender of the proposed borrowing.  In connection with the First Amendment and with respect to the Incremental Tranche A Term Loans, the Funding Notice shall be delivered 

3

 

 

 

 

	
 
		
to Administrative Agent at such time as Administrative Agent reasonably requests, and in any event, no earlier than three (3) Business Days prior to the First Amendment Effective Date.

	
 
	
(ii)
	
Each Lender shall make its Term Loan available to Administrative Agent not later than 10:30 am (New York City time) on the Closing Date, or the First Amendment Effective Date, as applicable, by wire transfer of same day funds in Dollars, at Administrative Agent’s Principal Office.  

	
 
	
(iii)
	
 Upon satisfaction or waiver of the conditions precedent specified herein or in the First Amendment, as applicable, Administrative Agent shall make the proceeds of the Term Loans available to Parent Borrower on the Closing Date or the First Amendment Effective Date, as applicable, by causing an amount of same day funds in Dollars equal to the proceeds of all such Term Loans received by Administrative Agent from Lenders to be credited to any account of Parent Borrower as may be designated in writing to Administrative Agent by Parent Borrower.”

(d)Section 5.1(l) of the Credit Agreement is hereby amended by deleting the phrase “FTI Consulting” and replacing such phrase with the words “Scott Valuation LLC.”   

(e)Section 6.7(b) of the Credit Agreement is hereby deleted in its entirety and replaced with the following: 

“Senior Leverage Ratio. Parent Borrower shall not permit the Senior Leverage Ratio as of the last day of any Fiscal Year set forth below, beginning with the Fiscal Year ending December 31, 2016 to exceed the correlative ratio indicated:

		
	
Fiscal
Year Ending
	
Senior Leverage
Ratio

	
December 31, 2016 
	
6.00:1.00

	
December 31, 2017 
	
5.50:1.00

	
December 31, 2018
	
3.50:1.00

	
December 31, 2019 and all Fiscal Years thereafter
	
2.50:1.00

 

(f)Appendix A to the Credit Agreement is hereby deleted and replaced in its entirety by Appendix A set forth on Exhibit A hereto.

(g)Annex A to Exhibit C (Compliance Certificate) of the Credit Agreement is hereby deleted and replaced in its entirety by the Annex A set forth on Exhibit B hereto.

3.Representations and Warranties.  Each Credit Party hereby represents and warrants to Administrative Agent and Lender that as of the date hereof, both before and after 

4

 

 

 

 

giving effect to this Amendment and the matters contemplated thereby (it being understood, for the sake of clarity, any breach of these representations and warranties shall be an Event of Default under the Credit Agreement): 

	
 
	
(a)
	
The execution, delivery and performance of this Amendment has been duly authorized by all requisite action on the part of Parent Borrower and each of the Guarantors and constitutes the legal, valid and binding obligations of each of Parent Borrower and the Guarantors, enforceable in accordance with its terms;

	
 
	
(b)
	
No approval or consent of, or filing with, any governmental agency or authority is required to make valid and legally binding the execution, delivery or performance by Parent Borrower or the Guarantors of this Amendment or any other documents executed in connection with this amendment, as amended hereby;

	
 
	
(c)
	
No Default or Event of Default has occurred and is continuing or would arise as a result of the transactions contemplated by this Amendment;

	
 
	
(d)
	
The representations and warranties set forth in the Credit Agreement, as amended hereby, and in the other Credit Documents, as amended to date, are true and correct in all material respects on and as of the date hereof, with the same effect as though made on the date hereof (except to the extent such representations and warranties expressly refer to an earlier date, in which case they were true and correct in all material respects as of such earlier date);

	
 
	
(e)
	
Immediately prior to and immediately after the consummation of the transactions contemplated under this Amendment on the date hereof, each Credit Party is and will be Solvent; and

	
 
	
(f)
	
The proceeds for the Incremental Tranche A Term Loan shall be applied by Parent Borrower promptly following the Amendment Effective Date to repay the Subordinated Indebtedness under the Existing Seller Notes. No portion of the proceeds of the Incremental Tranche A Term Loan shall be used in any manner that causes or might cause such Term Loans or the application of such proceeds to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System or any regulation thereof.

4.Conditions Precedent to Effectiveness.  The effectiveness of Section 2 of this Amendment is subject to the prior or concurrent consummation of each of the following conditions (or waiver), as determined by the Administrative Agent and Lender in their sole discretion:

(a)The Administrative Agent shall have received a copy of this Amendment duly executed by the Credit Parties;

5

 

 

 

 

(b)The Administrative Agent shall have received resolutions of the Board of Directors of Parent Borrower approving and authorizing the execution, delivery and performance of this Amendment, certified as of the First Amendment Effective Date by Parent Borrower’s secretary or an assistant secretary or other Authorized Officer as being in full force and effect without modification or amendment; 

(c)The Administrative Agent and Lender shall have received from Parent Borrower, a Tranche A Term Loan Note to evidence the Lender’s Incremental Tranche A Term Loan Commitment;

(d)The Administrative Agent shall have received from Parent Borrower the costs and expenses due and payable pursuant to Section 5 hereof;

(e)No Default or Event of Default shall have occurred and be continuing; and 

(f)The representations and warranties of Parent Borrower and each of the Guarantors contained in Section 3 of this Amendment are true and correct.

5.Costs and Expenses.  Pursuant to Section 10.2 of the Credit Agreement, Parent Borrower shall pay on the First Amendment Effective Date, the reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation of this Amendment.

6.Reaffirmation and Confirmation.  The Credit Parties hereby acknowledge that notwithstanding the terms of this Amendment or otherwise, the terms of this Amendment shall not constitute a course of dealing among the parties hereto. Each of Parent Borrower and the Guarantors hereby (i) acknowledges and agrees that the Incremental Tranche A Term Loan are Term Loans and that all of its obligations under the Credit Agreement and the other Credit Documents to which it is a party are reaffirmed and remain in full force and effect on a continuous basis, (ii) reaffirms (A) each Lien granted by it to the Collateral Agent for the benefit of the Secured Parties and (B) the guaranties made by it pursuant to the Credit Agreement, (iii) acknowledges and agrees that the grants of security interests by Parent Borrower and each of the Guarantors contained in the Pledge and Security Agreement and any other Collateral Document shall remain, in full force and effect after giving effect to the Amendment, and (iv) agrees that the Obligations include, among other things and without limitation, the prompt and complete payment and performance by Parent Borrower when due and payable (whether at the stated maturity, by acceleration or otherwise) of principal and interest on, and premium (if any) on, the Incremental Tranche A Term Loan in accordance with the Credit Agreement. 

7.Effect on Credit Documents.  Except as expressly set forth in this Amendment, nothing in this Amendment shall constitute a modification or alteration of the terms, conditions or covenants of the Credit Agreement or any other Credit Document, or a waiver of any terms or provisions thereof, and the Credit Agreement and the other Credit Documents shall remain unchanged (except as amended hereby) and shall continue in full force and effect. Parent Borrower and each of the Guarantors acknowledges and agrees that, on and after the First Amendment Effective Date, this Amendment shall constitute a Credit Document for all purposes of the Credit Agreement. On and after the First Amendment Effective Date, each reference in the 

6

 

 

 

 

Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Credit Documents to “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment and shall be read together and construed as a single instrument. Nothing herein shall be deemed to entitle Parent Borrower nor the Guarantors to a further consent to, or a further waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, as amended, or any other Credit Document in similar or different circumstances.

8.Counterparts.  This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment. Receipt by telecopy, facsimile or email transmission of any executed signature page to this Amendment shall constitute effective delivery of such signature page.

9.Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

10.Severability.  The illegality or unenforceability of any provision of this Amendment or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Amendment or any instrument or agreement required hereunder.

11.Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

12.Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. No Credit Party’s rights or obligations hereunder nor any interest therein may be assigned or delegated by any Credit Party without the prior written consent of all Lenders and any assignment in contravention of the foregoing shall be absolutely void.

13.Construction.  The Administrative Agent and Parent Borrower acknowledge that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review the Amendment with its legal counsel and that the Amendment shall be construed as if jointly drafted by the Administrative Agent and Parent Borrower.

[Remainder of page left intentionally blank]

 

7

 

 

 

 

IN WITNESS WHEREOF, this Amendment has been executed and delivered by the undersigned as of the date set forth above.  

RLJ ENTERTAINMENT, INC., as Parent Borrower

By: /s/ MIGUEL PENELLA
Name:  Miguel Penella
Title:  Chief Executive Officer

Signature Page to First Amendment to Credit and Guaranty Agreement

 

 

 

GUARANTORS:

RLJ ACQUISITION, INC., as Guarantor Subsidiary

By: /s/ NAZIR ROSTOM
Name:  Nazir Rostom
Title:  Secretary and Treasurer

IMAGE ENTERTAINMENT, INC., as Guarantor Subsidiary

By: /s/ NAZIR ROSTOM
Name:  Nazir Rostom
Title:  Secretary and Treasurer

IMAGE/MADACY HOME ENTERTAINMENT LLC, as Guarantor Subsidiary

By: /s/ MIGUEL PENELLA
Name:  Miguel Penella
Title:  Manager

ACORN MEDIA GROUP, INC., as Guarantor Subsidiary

By: /s/ NAZIR ROSTOM
Name:  Nazir Rostom
Title:  Secretary and Treasurer

RLJ ENTERTAINMENT HOLDINGS LTD, as Guarantor Subsidiary

By: /s/ MIGUEL PENELLA
Name:  Miguel Penella
Title:  Director

 

 

Signature Page to First Amendment to Credit and Guaranty Agreement

 

 

 

RLJ ENTERTAINMENT LTD, as Guarantor Subsidiary

By: /s/ MIGUEL PENELLA
Name:  Miguel Penella
Title:  Director

RLJE INTERNATIONAL LTD., as Guarantor Subsidiary

By: /s/ MIGUEL PENELLA
Name:  Miguel Penella
Title:  Director

ACORN MEDIA ENTERPRISES LIMITED, as Guarantor Subsidiary

By: /s/ MIGUEL PENELLA
Name:  Miguel Penella
Title:  Director

RLJ ENTERTAINMENT AUSTRALIA PTY LTD, as Guarantor Subsidiary

By: /s/ MIGUEL PENELLA
Name:  Miguel Penella
Title:  Director

Signature Page to First Amendment to Credit and Guaranty Agreement

 

 

 

DIGITAL ENTERTAINMENT HOLDINGS LLC, as Administrative Agent 

 

 

By:  /s/ SEAN S. SULLIVAN

Name:  Sean S. Sullivan

Title:  Executive Vice President and Chief Financial Officer

 

 

 

DIGITAL ENTERTAINMENT HOLDINGS LLC, as Lender

 

 

By:  /s/ SEAN S. SULLIVAN

Name:  Sean S. Sullivan 

Title:  Executive Vice President and Chief Financial Officer

 

 

 

 

 

Signature Page to First Amendment to Credit and Guaranty Agreement

 

 

 

 

Exhibit A

Appendix A to Credit Agreement

See attached. 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX A
TO CREDIT AND GUARANTY AGREEMENT

Tranche A Term Loan Commitments

			
	
Lender
	

Tranche A Term Loan Commitments
	
Pro
Rata Share1

	
Digital Entertainment Holdings LLC
	
$5,000,000
	
100%

	
TOTAL
	
$5,000,000
	
100%

 

Incremental Tranche A Term Loan Commitments

			
	
Lender
	

Incremental Tranche A Term Loan Commitments
	
Pro
Rata Share1

	
Digital Entertainment Holdings LLC
	
$8,000,000
	
100%

	
TOTAL
	
$8,000,000
	
100%

 

	
	 

	
1 Rounded to the nearest hundredth of a percent. 
	

 

 

 

 

Exhibit B

Annex A to Compliance Certificate

See attached. 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNEX A TO

COMPLIANCE CERTIFICATE

FOR THE FISCAL [QUARTER][YEAR] ENDING [mm/dd/yy].

1.Consolidated Adjusted EBITDA: (i)–(ii) =$[___,___,___]

	
 
	
(i)
	
the sum, without duplication, of the amounts for such period of
	
 

	
 
	
(a)
	
Consolidated Net Income (excluding the net income for such period of any Person that is not a wholly-owned Subsidiary or that is accounted for by the equity method of accounting):$[___,___,___]
	
 

	
 
	
(b)
	
Consolidated Interest Expense:$[___,___,___]
	
 

	
 
	
(c)
	
provisions for taxes based on income:$[___,___,___]
	
 

	
 
	
(d)
	
total depreciation expense:$[___,___,___]
	
 

	
 
	
(e)
	
total amortization expense (excluding content amortization net of step up amortization in connection with fair value purchase accounting):$[___,___,___]
	
 

	
 
	
(f)
	
other non-Cash items reducing Consolidated Net Income (excluding any such non-Cash item to the extent that it represents an accrual or reserve for potential Cash items in any future period or amortization of a prepaid Cash item that was paid in a prior period):$[___,___,___]
	
 

	
 
	
(g)
	
with respect to any Person that is not a wholly-owned Subsidiary or that is accounted for by the equity method of accounting the greater of (x) the amount of dividends or distributions or other payments that are actually paid in cash by such Person to a Credit Party in respect of such period and (y) an amount equal to the proportion of those items described in clause (x) above relating to such person corresponding to a Credit Party’s proportionate share of such Person’s Consolidated Net Income for such period, to the extent not included in calculating Consolidated Net Income:$[___,___,___]
	
 

 

 

	
 
	
(h)
	
other items consented to by the Agent in writing in its sole discretion2:$[___,___,___]
	
 

The amount of the sum determined by this sub-clause (i) shall be exclusive of, with respect to periods prior to a UK Production Entity Inclusion Date, any amounts in subclauses (i)(a) through (i)(f) with respect to the relevant UK Production Entity Group.

	
 
	
 (ii)
	
the sum, without duplication, of the amounts for such period of
	
 

	
 
	
(a)
	
other non-Cash items increasing Consolidated Net Income (excluding any such non-Cash item to the extent it represents the reversal of an accrual or reserve for potential Cash item in any prior period):$[___,___,___]
	
 

	
 
	
(b)
	
other income:$[___,___,___]
	
 

2.Consolidated Fixed Charges: (i) + (ii) + (iii) =$[___,___,___]

	
 
	
(i)
	
Consolidated Cash Interest Expense:$[___,___,___]

	
 
	
(ii)
	
scheduled payments of principal on Consolidated Total Debt:$[___,___,___]

	
 
	
(iii)
	
Provisions for current taxes based on income of Credit Parties and payable in cash:3$[___,___,___]
	
 

3.Consolidated Interest Expense: (i)-(ii) =$[___,___,___]

	
 
	
(i)
	
total interest expense (including that portion attributable to Capital Leases in accordance with GAAP and capitalized interest) of the Credit Parties on a consolidated basis with respect to all outstanding Consolidated Total Debt (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptances, to the extent paid or required to be paid in cash for the relevant period):$[___,___,___]
	
 

	
 
	
 (ii)
	
any amounts not payable in Cash:$[___,___,___]

4.Consolidated Net Income: (i)-(ii) =$[___,___,___]

	
	 

	
1 
	
 With respect to the calculation of Consolidated Adjusted EBITDA for the Fiscal Year ending December 31, 2016, the Agent has approved the following items as such have been disclosed to Agent prior to the Closing Date in the financial model submitted to Agent by Borrower on July 21, 2016: (i) quality of earnings adjustments, including the effect of discontinued operations and foreign exchange and (ii) extraordinary, unusual or non-recurring expenses, losses and charges.

	
2 
	
 For the Fiscal Year ending December 31, 2019, the calculation of Consolidated Fixed Charges will exclude the interest and principal owed under the Tranche A Term Loan as of the Closing Date and 50% of the principal and interest owed under the Incremental Tranche A Term Loan.

 

 

 

	
 
	
(i)
	
the net income (or loss) of Credit Parties on a consolidated basis for such period taken as a single accounting period determined in conformity with GAAP:$[___,___,___]
	
 

	
 
	
(ii) the sum of:
	

	
 

	
 
	

	
(a)the income (or loss) of any Person (other than a Subsidiary of Parent Borrower) in which any other Person (other than Parent Borrower or any of its Subsidiaries) has a joint interest (except to the extent distributed in cash to a Credit Party):$[___,___,___]
	
 

	
 
	
(b)
	
the income (or loss) of any Person accrued prior to the date it becomes a Credit Party or is merged into or consolidated with any Credit Party or that Person’s assets are acquired by a Credit Party:$[___,___,___]
	
 

	
 
	
(c)
	
the income of any Subsidiary of Parent Borrower to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary:$[___,___,___]
	
 

	
 
	
(d)
	
any after tax gains or losses attributable to Asset Sales or returned surplus assets of any Pension Plan (subject to the approval of the Administrative Agent):$[___,___,___]
	
 

	
 
	
(e)
	
to the extent not included in clauses (ii)(a) through (d) above, any net extraordinary gains or net extraordinary losses (subject to the approval of the Administrative Agent and the Requisite Lenders):$[___,___,___]
	
 

5.Consolidated Senior Secured Debt:$[___,___,___]

6.Consolidated Total Debt:$[___,___,___]

7.Fixed Charge Coverage Ratio: (i)/(ii) =$[___,___,___]

	
 
	
(i)
	
Consolidated Adjusted EBITDA for the [four consecutive Fiscal Quarter period][Fiscal Year] then ended:$[___,___,___]
	
 

	
 
	
(ii)
	
Consolidated Fixed Charges for such [four consecutive Fiscal Quarter period][Fiscal Year] then ended:$[___,___,___]
	
 

 

 

 

Actual:_.__:1.00 

[Required:_.__:1.00]4

8.Senior Leverage Ratio: (i)/(ii) =$[___,___,___]

	
 
	
(i)
	
Consolidated Senior Secured Debt as of such date:$[___,___,___]
	
 

	
 
	
(ii)
	
Consolidated Adjusted EBITDA for the [four consecutive Fiscal Quarter period][Fiscal Year] then ended:$[___,___,___]
	
 

Actual:_.__:1.00 

[Required:_.__:1.00]5

 

9.Total Leverage Ratio: (i)/(ii) =$[___,___,___]

	
 
	
(i)
	
Consolidated Total Debt as of such date:$[___,___,___]
	
 

	
 
	
(ii)
	
Consolidated Adjusted EBITDA for the [four consecutive Fiscal Quarter period] [Fiscal Year] then ended:$[___,___,___]
	
 

Actual:_.__:1.00      

[Required:     _.__:1.00]6

 

 

 

	
	 

	
3 
	
 To be included when financial statements are delivered pursuant to Section 5.1(b).  The Fixed Charge Coverage Ratio cannot be less than 1.00:1.00 for the Fiscal Years ending December 31, 2016 and December 31, 2017.  For the Fiscal Year ending December 31, 2018 and thereafter, the Fixed Charge Coverage Ratio cannot be less than 2.00:1.00. 

	
4 
	
 To be included when financial statements are delivered pursuant to Section 5.1(b). The Senior Leverage Ratio cannot exceed the following ratios: for Fiscal Year December 31, 2016, 6.00:1.00; for Fiscal Year December 31, 2017, 5.50:1.00; for Fiscal Year December 31, 2018, 3.50:1.00; for Fiscal Year December 31, 2019 and thereafter, 2.50:1.00.

	
5 
	
 To be included when financial statements are delivered pursuant to Section 5.1(b).  The Total Leverage Ratio cannot exceed the following ratios: for Fiscal Year December 31, 2016, 6.75:1.00; for Fiscal Year December 31, 2017, 6.00:1.00; for Fiscal Year December 31, 2018, 5.00:1.00; for Fiscal Year December 31, 2019 and thereafter, 4.00:1.00.

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