Document:

EX-10.3

 Exhibit 10.3 

SECOND AMENDMENT TO CREDIT AGREEMENT 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (the “Amendment Agreement”), dated as of March 31, 2016 is among
GROUPON, INC., as Borrower (the “Borrower”), the Lenders party hereto, and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”). 

RECITALS: 

WHEREAS, the Borrower, the Administrative Agent, and the Lenders party thereto have entered into that certain Credit Agreement dated as
of August 1, 2014 (as previously amended, the “Agreement”); and 
 WHEREAS, the Borrower has requested certain
amendments be made to the Agreement and the Lenders party hereto are willing to amend the Agreement on the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows effective as of the date hereof unless otherwise indicated: 

SECTION 1. Definitions. Capitalized terms used in this Amendment Agreement but not otherwise defined herein, shall have the same
meanings given to them in the Agreement. 
 SECTION 2. Amendments. Subject to the effectiveness hereof pursuant to
Section 3, the Credit Agreement is hereby amended as follows: 
 Section 2.1 Section 1.01 of the Agreement is
hereby amended by inserting in the appropriate alphabetical order the following new definitions: 
 “Senior
Secured Indebtedness” means, at any date, the aggregate principal amount of all Indebtedness of the Borrower and its Restricted Subsidiaries other than unsecured Indebtedness. 

Section 2.2. The definition of “Indebtedness” in Section 1.01 of the Agreement is hereby amended by
adding the following sentence at the end thereof: 
 Notwithstanding anything in this Agreement to the contrary, for purposes of calculating
the financial covenants hereunder, the amount of the “Indebtedness” attributable to the $250,000,000 aggregate principal amount of Convertible Notes issued 2016 and due 2022 shall be deemed to be the actual principal amount outstanding
with respect thereto. 
 Section 2.3 Section 6.06 of the Agreement is amended and restated as follows: 

SECTION 6.06 Restricted Payments. The Borrower will not, 

 
and will not permit any of its Restricted Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except (a) the Borrower may declare and
pay dividends with respect to its Equity Interests payable solely in additional shares of its common stock, (b) Restricted Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (c) the Borrower may make
Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the Borrower and its Restricted Subsidiaries, (d) so long as no Default shall be continuing or result therefrom the
Borrower may make additional Restricted Payments in an aggregate amount not greater than $150,000,000 from the period from the Amendment Effective Date (as defined in the Second Amendment to Credit Agreement dated as of March 31, 2016 among the
Borrower, the Lenders party thereto and the Administrative Agent) through June 30, 2017; provided that the aggregate amount of Restricted Payments under this clause (d) shall not exceed (i) $100,000,000 in the aggregate
prior to December 31, 2016 and (ii) $50,000,000 per fiscal quarter and (e) beginning July 1, 2017, so long as no Default shall be continuing or result therefrom, the Borrower may make additional Restricted Payments either
(i) on an unlimited basis, if at the time of making such Restricted Payment the Funded Indebtedness to EBITDA Ratio, calculated on a pro forma basis, is less than to 2.0 to 1.0, (ii) in an aggregate amount not greater than $50,000,000 per
fiscal year, if at the time of making such Restricted Payment the Funded Indebtedness to EBITDA Ratio, calculated on a pro forma basis, is 2.0 to 1.0 or more, but less than 2.25 to 1.0 or (iii) in an aggregate amount not greater than
$20,000,000 per fiscal year, if at the time of making such Restricted Payment the Funded Indebtedness to EBITDA Ratio, calculated on a pro forma basis, is to 2.25 to 1.0 or more. 

Section 2.4. Section 6.11 of the Agreement is amended and restated as follows: 

6.11 Financial Covenants. 

(a) Fixed Charge Coverage Ratio. The Borrower will not permit the Fixed Charge Coverage Ratio, for any period of four
consecutive fiscal quarters ending on the last day of any fiscal quarter set forth below, to be less than the amount set forth opposite such date below: 
  

			
	 Fiscal Quarter Ending
	  	
Fixed Charge Coverage Ratio

	 March 31, 2016
	  	2.00 to 1.00
	 June 30, 2016
	  	1.05 to 1.00
	 September 30, 2016
	  	1.10 to 1.00
	 December 31, 2016
	  	1.25 to 1.00
	 March 31, 2017
	  	1.50 to 1.00
	 June 30, 2017 and thereafter
	  	2.00 to 1.00

  
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 (b) Funded Indebtedness to EBITDA Ratio. The Borrower will not permit the
Funded Indebtedness to EBITDA Ratio, for any period of four consecutive fiscal quarters ending on the last day of any fiscal quarter set forth below, to be greater than the amount set forth opposite such date below: 

 

			
	 Fiscal Quarter Ending
	  	 Funded Indebtedness to
EBITDA
Ratio

	 March 31, 2016
	  	2.50 to 1.00
	 June 30, 2016
	  	3.50 to 1.00
	 September 30, 2016
	  	3.25 to 1.00
	 December 31, 2016 and thereafter
	  	2.75 to 1.00

 (c) Unrestricted Cash. The Borrower and the Restricted Subsidiaries will maintain, as
of the last day of each fiscal quarter, Unrestricted Cash of not less than the greater of (i) $400,000,000 and (ii) 100% of the amount of the total Commitment; provided that no less than 50% of such required Unrestricted Cash shall be held
in accounts with Lenders or their Affiliates. 
 (d) Minimum Liquidity. The Borrower and the Restricted Subsidiaries
will maintain at the end of each fiscal quarter minimum Liquidity equal to at least 70% of Accrued Merchant and Supplier Payables for such fiscal quarter. 

(e) Senior Secured Indebtedness to EBITDA Ratio. The Borrower will not permit the ratio of (a) Senior Secured
Indebtedness to (b) EBITDA for any period of four consecutive fiscal quarters ending on the last day of any fiscal quarter to be greater than 2.00:1.00. 

SECTION 3. Conditions. This Amendment Agreement shall bind the parties hereto pursuant to its terms on the date the Administrative
Agent (or its counsel) shall have received from the Required Lenders, the Borrower and the other Loan Parties, a counterpart of this Amendment Agreement signed on behalf of such Person; provided that Section 2 of this Amendment
Agreement shall not be operative until the date (such date, if any, the “Amendment Effective Date”) on which each of the following conditions has been satisfied (provided that if such conditions are not satisfied on or prior
to May 16, 2016, this Amendment Agreement shall terminate and cease to have any effect): 
  

	 	(a)	Debt Issuance. The Borrower shall have issued $250,000,000 aggregate principal amount of Convertible Notes due 2022 with an interest rate no greater than 4.50% pursuant to an exemption from registration under the
Securities Act of 1933, as amended. 

  

	 	(b)	Representations; Default. Both before and after giving effect to this Amendment Agreement, the following statements by the Borrower shall be true and correct (and the Borrower, by its execution of this Amendment
Agreement, hereby represents and warrants to the Administrative Agent and the Lenders that such statements are true and correct as at such times): 

  
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	 	i.	The representations and warranties of the Loan Parties set forth in the Loan Documents shall be true and correct in all material respects with the same effect as though made on and as of the date hereof (it being
understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty
which is subject to any materiality qualifier shall be required to be true and correct in all respects); and 

  

	 	ii.	No Default or Event of Default shall have occurred and be continuing. 

  

	 	(c)	Fees and Expenses. The Administrative Agent shall have received from the Borrower an amendment fee for each Lender that, on or prior to noon (Chicago time) on March 31, 2016, delivers a signed counterpart of
this Amendment Agreement to the Administrative Agent, in an amount equal the product of 0.10% multiplied by such Lender’s pro rata share (based upon its Applicable Percentage) of the amount of the total Commitments. 

SECTION 4. Miscellaneous. 

Section 4.1. Ratifications. The terms and provisions set forth in this Amendment Agreement shall modify and supersede all
inconsistent terms and provisions set forth in the Agreement and except as expressly modified and superseded by this Amendment Agreement, the terms and provisions of the Agreement and the other Loan Documents are ratified and confirmed and shall
continue in full force and effect. The Borrower, the Administrative Agent and the Lenders agree that the Agreement as amended hereby and the other Loan Documents shall continue to be legal, valid, binding and enforceable in accordance with its terms
(subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law).
For all matters arising prior to the effective date of this Amendment Agreement, the Agreement (as unmodified by this Amendment Agreement) shall control. 

Section 4.2. Authorization; Validity. The execution, delivery and performance by the Borrower of this Amendment Agreement have
been duly authorized by all necessary corporate and, if required, stockholder action. This Amendment Agreement has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law. 
 Section 4.3 . Government Approval, Regulation, etc. The execution, delivery and performance
by the Borrower of this Amendment Agreement (a) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and
effect and except for filings necessary to perfect Liens created pursuant to the Collateral Documents, and (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of
its Restricted Subsidiaries or any order of any Governmental Authority. 

  
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 Section 4.4. Entire Agreement. This Amendment Agreement, together with the Loan
Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the
parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in
relation to the subject matter hereof or thereof. None of the terms or conditions of this Amendment Agreement may be changed, modified, waived or canceled orally or otherwise, except in writing. 

Section 4.5. Full Force and Effect of Loan Documents. Except as hereby specifically amended, modified or supplemented, the
Agreement and all other Loan Documents are hereby confirmed and ratified in all respects (including, without limitation, the Borrower’s obligations with respect to reimbursement of costs and expenses of the Administrative Agent pursuant to
Section 9.03 of the Credit Agreement) and shall be and remain in full force and effect according to their respective terms. 

Section 4.6. Counterparts. This Amendment Agreement may be executed in any number of counterparts, each of which shall be deemed
an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment Agreement by telecopy, facsimile or
other electronic transmission (including .PDF) shall be effective as delivery of a manually executed counterpart of this Amendment Agreement. 

Section 4.7. Governing Law. This Amendment Agreement shall be construed in accordance with and governed by the law of the State of
New York. 
 Section 4.8. Incorporation of Credit Agreement Provisions. The provisions of Section 9.07 (Severability) and
Section 9.10 (Waiver of Jury Trial) of the Credit Agreement are incorporated by reference as if fully set forth herein, mutatis mutandis. 

Section 4.9. References. All references in any of the Loan Documents to the “Agreement” or the “Credit
Agreement” shall mean the Agreement or Credit Agreement, as applicable, as amended by this Amendment Agreement. 
 Section 4.10.
Headings. The headings, captions, and arrangements used in this Amendment Agreement are for convenience only and shall not affect the interpretation of this Amendment Agreement. 

Section 4.11. Successors and Assigns. This Amendment Agreement is binding upon and shall inure to the benefit of the
Administrative Agent, the Lenders, the Borrower, and their respective successors and assigns as provided in the Agreement. 

  
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 Section 4.12. Loan Document. The execution, delivery and effectiveness of this
Amendment Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the
Loan Documents. This Amendment Agreement shall for all purposes constitute a Loan Document. 
 [Signature Pages Follow] 

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

			
	GROUPON, INC.
		
	By:	 	 /s/ Brian Kayman

		 	 Name: Brian Kayman
 Title: Interim Chief
Financial Officer

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent
		
	By:	 	 /s/ Daglas Panchal

		 	 Name: Daglas Panchal
 Title: Vice
President

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	MORGAN STANLEY BANK, N.A., as a Lender
		
	By:	 	 /s/ Jonathan Kerner

		 	 Name: Jonathan Kerner
 Title: Authorized
Signatory

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	SILICON VALLEY BANK, as a Lender
		
	By:	 	 /s/ Jack Gaziano

		 	 Name: Jack Gaziano
 Title: Managing
Director

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	BANK OF AMERICA, N.A., as a Lender
		
	By:	 	 /s/ Casey Klepsch

		 	 Name: Casey Klepsch
 Title: Assistant Vice
President

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	THE NORTHERN TRUST COMPANY, as a Lender
		
	By:	 	 /s/ M. Scott Randall

		 	 Name: M. Scott Randall
 Title: Second Vice
President

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	BANK OF THE WEST, as a Lender
		
	By:	 	 /s/ Diane Marshall

		 	 Name: Diane Marshall
 Title: Vice
President

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	OPUS BANK, as a Lender
		
	By:	 	 /s/ Geoff Anfuso

		 	 Name: Geoff Anfuso
 Title: Senior Managing
Director

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 
			
	WESTERN ALLIANCE BANK, as a Lender
		
	By:	 	 /s/ Matt Kappadakunnel

		 	 Name: Matt Kappadakunnel
 Title: Vice
President

 [Signature Page to Second Amendment Agreement to Credit Agreement] 

 GUARANTOR CONSENT 

Each of the undersigned Guarantors: (i) consents and agrees to this Second Amendment to Credit Agreement dated as of March 31, 2016,
including, without limitation, Section 4.1 thereof, and (ii) agrees that each of the Guarantee, the Security Agreement and the other Loan Documents to which is it a party are each in full force and effect and continue to be its legal,
valid and binding obligation enforceable against it in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity or at law. 
  

					
	GUARANTORS:
	
	     GROUPON GOODS, INC.,

    as a Grantor

			
		 	By:	 	 /s/ Brian Kayman

		 	 Name: Brian Kayman
 Title: Vice
President

	
	     GROUPON CANADA CORP, INC.,

    as a Grantor

			
		 	By:	 	 /s/ Brian Kayman

		 		 	 Name: Brian Kayman
 Title: Vice
President

	
	     GROUPON GETAWAYS, INC.,

    as a Grantor

			
		 	By:	 	 /s/ Brian Kayman

		 	 Name: Brian Kayman

Title: Vice President

 [Guarantor Consent]Unassociated Document

 

Exhibit 10.45

 

PROMISSORY NOTE

 

	$350,000	 as of September 8, 2015

 

FOR VALUE RECEIVED, Air Industries Group (the “Maker”), promises to pay to the order of Michael Taglich (the “Holder”) at 790 New York Avenue, Suite 209, Huntington, New York 11743 the principal sum of $350,000 on September 7, 2016 (the “Maturity Date”) together with interest thereon as provided herein.

The Maker further agrees to pay interest on the Maturity Date (and thereafter upon demand) on the unpaid principal sum of this Note at the rate of 4.00% per annum.  Interest shall be calculated from September 8, 2015, on the basis of a 365/366 day year and the actual number of days elapsed.  In no event shall the Holder hereof, or any permitted successor or assign, be entitled to receive, collect or retain any amount of interest paid hereon in excess of that permitted by applicable law. The Maker shall have the right, at any time and from time to time, upon three business days notice to the Holder, to prepay this Note in whole or in part together with accrued interest on the amount prepaid, but without premium or penalty. All payments to Holder shall be made in United States dollars.

Any sum required to be withheld from the payment of interest due hereunder pursuant to United States law shall be promptly paid by Maker for and on behalf of Holder to the appropriate tax authority and Maker shall furnish Holder with official tax receipts or other appropriate evidence sufficient to enable Holder to support a claim for income tax credit in respect of any sum so withheld.

If any of the following events (“Events of Default”) shall occur and be continuing: (a) the failure of the Maker to pay when due any amount due under this Note; (b) the filing of any petition by or against the Maker, or commencement of any proceedings for the relief or readjustment of any indebtedness of the Maker under any law relating to bankruptcy, insolvency or reorganization or relief of debtors and the continuance of such event for 60 consecutive days unless dismissed, bonded to the satisfaction of the court of competent jurisdiction or discharged; (c) the appointment of a receiver or conservator of any property of the Maker; or (d) the sale by Maker of all or any substantial portion of its assets; then, or at any time after the happening and during the continuance of any Event of Default, the Holder may declare this Note and all amounts payable hereunder to be immediately due and payable, whereupon this Note, and all amounts due hereunder shall become and be immediately due and payable, all without presentment, protest, demand or notice of any kind, all of which are expressly waived by the Maker; provided, however, that in the event of an entry of an order for relief with respect to the Maker or any endorser or guarantor of this Note under the Federal Bankruptcy Code, this Note, and all such amounts shall automatically become and be due and payable, all without presentment, protest, demand or notice of any kind, all of which are expressly waived by the Maker.

 

The Maker agrees to pay on demand all reasonable costs and expenses in connection with the preparation, execution, delivery, administration, modification, amendment and enforcement (whether through legal proceedings, negotiations or otherwise) of this Note and any other document to be delivered hereunder (such costs and expenses shall include without limitation, the reasonable fees and expenses of legal counsel.)  The obligations of the Maker under this Paragraph shall survive the payment in full of this Note.

 

  

  

  

 

The Maker hereby waives presentment for payment, demand, notice of dishonor and protest of this Note. This Note shall be governed by, and construed in accordance with, the laws of the State of New York.  None of the terms or provisions of this Note may be waived, altered, modified or amended except as the Holder may consent thereto in writing.

 

Without limiting the right of the Holder to bring any action or proceeding against the Maker or against property of the Maker arising out of or relating to this Note (an AAction@) in the courts of other jurisdictions, the Maker hereby irrevocably submits to the jurisdiction of any New York State or Federal Court sitting in New York County, New York, respectively, and the Maker hereby irrevocably agrees that any Action may be heard and determined in any such State or Federal court.

 

Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be sent by certified mail, return receipt requested, by Express Mail, or by a recognized overnight delivery courier service: (i) to the Maker at 360 Motor Parkway, Suite, Hauppauge, New York 11788, (ii) to the Holder at its address first above written; and (iii) in either case, at such other address as the party shall have furnished in writing in accordance with the provisions of this Note.  Any notice or other communication given by the means permitted hereunder shall be deemed given and effective at the time of deposit thereof in the mails or with a recognized overnight courier.

 

	 	 
Air Industries Group

 

By: /s/ Daniel R. Godin           

 Daniel R. Godin

By: /s/ Michael Taglich           

 Michael Taglich

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