Document:

Exhibit 10.2

 

GENERAL MOLY, INC.

1736 COLE BLVD., SUITE 115
 LAKEWOOD, COLORADO 80401

 

December 21, 2010

 

CONFIDENTIAL

 

CCM Special Holdings Fund, LP

c/o Coghill Capital Management, LLC

One North Wacker Drive, Suite 4350

Chicago, IL 60606

 

Agreement to Reprice and Exercise Warrants

 

Dear Ladies and Gentlemen:

 

This letter agreement sets forth the agreement between General Moly, Inc., a Delaware corporation (the “Company”), and CCM Special Holdings Fund, LP (the “Holder”) regarding (i) an amendment to the exercise price of warrant nos. 1-06B and 29-06B  (the “Original Warrants”) to purchase an aggregate of 1,301,972 shares (the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and (ii) the Holder’s agreement to exercise the warrants (as amended hereby, the “Amended Warrants”).

 

Accordingly, the Holder and the Company hereby agree as follows:

 

1.             Amendment to the Original Warrants.  On the terms and subject to the conditions of this letter agreement and in reliance upon the representations, warranties and agreements contained herein, the Company and the Holder hereby agree that the second sentence of the first paragraph of each of the Original Warrants is hereby amended to read as follows:

 

“The price for each share of Common Stock purchased hereunder (as adjusted as set forth herein, collectively the “Warrant Shares”) is $3.75 per share until expiration of this Warrant (as adjusted as set forth herein, the “Purchase Price”); provided, however, that if the Holder exercises and duly surrenders the Warrant in whole or in part on January 3, 2011, together with payment of the aggregate Purchase Price in immediately available funds, in accordance with Section 1(A) hereof, the Purchase Price shall be $3.66 per share; provided, further, that if the Holder exercises the Warrant in part the Purchase Price for each unexercised Warrant Share shall be $3.75 per share.”

 

 

2.             Exercise of the Amended Warrants.  (a)  On the terms and subject to the conditions of this letter agreement and in reliance upon the representations, warranties and agreements contained herein, on January 3, 2011, or on such other date as the Company may agree in writing (the “Closing Date”), the Holder shall present and surrender the Original Warrants and the purchase forms attached as Annex I to each of the Original Warrants (the “Purchase Forms”), together with immediately available funds equal to the aggregate purchase price for the number of Warrant Shares specified in the Purchase Forms (the “Aggregate Purchase Price”) by wire transfer in accordance with wire instructions to be delivered in writing to the Holder by the Company prior to the Closing Date.

 

(b)           Upon receipt of the Original Warrants, the Purchase Forms and the Aggregate Purchase Price, the Company shall on the Closing Date issue and deliver to the Holder a certificate representing the aggregate number of Warrant Shares specified in the Purchase Forms.  The Warrant Shares shall bear the legend required by Sections 6 and 7 of this letter agreement.  If the Original Warrants have not been exercised in full, the Company shall issue to the Holder a new countersigned warrant in substantially the same form as the Original Warrants for the Warrant Shares as to which the Original Warrants shall not have been exercised.

 

3.             Conditions to Closing.  The obligations of the Company and the Holder hereunder to consummate the transactions contemplated by this letter agreement are subject to the satisfaction of each of the following conditions:

 

(a)           Each of the representations and warranties of the Company and the Holder contained in Section 5 and Section 4, respectively, of this letter agreement shall be true and correct in all material respects on and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing Date.

 

(b)           Each of the Company and the Holder shall in all material respects have performed, satisfied and complied with all of its respective covenants, agreements and conditions contained in this letter agreement that are required to be performed, satisfied or complied with by it on or before the Closing Date.

 

4.             Representations and Warranties of the Holder. The Holder hereby represents and warrants to the Company as follows:

 

(a)           This letter agreement has been duly authorized, executed and delivered by the Holder and constitutes the legal and binding agreement of the Holder, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights generally or general principles of equity; the Holder has full power and authority to execute and deliver this letter agreement and to perform its obligations hereunder.

 

(b)           The Holder has good and valid title to the Original Warrants and owns and holds the entire right, title, and interest in and to the Original Warrants, free and clear of

 

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any liens, claims or encumbrances (other than those arising as a result of this letter agreement) and the Original Warrants are not subject to any contract, agreement, arrangement, commitment or understanding restricting or otherwise relating to the disposition of the Original Warrants.

 

(c)           The Holder understands each of the following statements in this Section 3(c).  The Warrant Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being issued in reliance upon an exemption from the registration requirements of the Securities Act.

 

(d)           The Holder understands that the certificate representing the Warrant Shares will bear the legend required by Sections 6 and 7 of this letter agreement.

 

(e)           The Holder has such knowledge, sophistication and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Warrant Shares. The Holder acknowledges that it understands the risks inherent in an investment in the Warrant Shares and that it has the financial ability to bear the economic risk of, and to afford the entire loss of, its investment in the Warrant Shares.

 

5.             Representations, Warranties and Covenants of the Company. The Company hereby represents and warrants to the Holder as follows:

 

(a)           The Company has all requisite corporate power and authority to enter into this letter agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  This letter agreement has been duly authorized, executed and delivered by the Company and constitutes the legal and binding agreement of the Company, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights generally or general principles of equity.

 

(b)           The Warrant Shares have been duly and validly authorized and, when issued in accordance with the terms of this letter agreement, will be validly issued, fully paid and non-assessable and not subject to any preemptive rights or similar rights.

 

(c)           The Company covenants and agrees that, as promptly as practicable after the Closing Date, it will file a supplement to the prospectus relating to its effective Shelf Registration Statement on Form S-3 (File No. 333-170389) (the “Shelf Registration Statement”) with the Securities and Exchange Commission in order to permit the Holder to resell the Warrant Shares held by it under the Shelf Registration Statement; provided that the Company shall not be required to take any action to name the Holder as a selling stockholder in the Shelf Registration Statement or to enable the Holder to use the prospectus forming a part thereof for resales of Warrant Shares unless and until the Holder returns to the Company a completed and signed questionnaire with information required by the Company.

 

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6.             Transfer Restrictions.

 

(a)           Every Warrant Share (and all securities issued in exchange therefor or in substitution thereof) held by the Holder is required to bear the restricted security legend set forth in Section 7(a) of this letter agreement (the “Restricted Securities”) held by the Holder shall be subject to the restrictions on transfer set forth in this Section 6 (including those set forth in the restricted security legend set forth in Section 7(a)) unless such restrictions on transfer shall be waived by written consent of the Company following receipt of legal advice supporting the permissibility of the waiver of such transfer restrictions, and the holder of each such Restricted Security, by such holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer.  As used in this Section 6(a), the term “transfer” means any sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest therein.

 

(b)           Until such date as may be required by applicable laws, any certificate evidencing a Restricted Security shall bear a legend in substantially the form set forth in Section 7(a), as the restricted security legend, unless such Restricted Security has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and which continues to be effective at the time of such transfer) or sold pursuant to Rule 144 under the Securities Act or any similar provision then in force, or unless otherwise agreed by the Company in writing as set forth above.

 

(c)           Any Warrant Shares that were Restricted Securities and as to which such restrictions on transfer shall have expired in accordance with their terms or applicable law or as to conditions for removal of the restricted security legend set forth therein have been satisfied, the Company will use commercially reasonable efforts to provide that the Holder may, upon surrender of such Warrant Shares for exchange to the registrar for the Warrant Shares in accordance with the provisions of this Section 6, be exchanged for a new Warrant Share or Warrant Shares, which shall not bear the restrictive legend required by Section 6(a).

 

7.             Restrictive Legend.  Every Warrant Share (and all securities issued in exchange therefor or in substitution thereof) is required to bear a restricted security legend substantially in the following form (in addition to any legend required by applicable state securities or “blue sky” laws):

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF (I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION

 

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IS NOT REQUIRED. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

 

8.             Notices. All notices and other communications under this letter agreement shall be in writing and shall be deemed given when (i) delivered personally, with written confirmation of acceptance of delivery by the receiving party, (ii) one business day after being delivered to a nationally recognized overnight courier, with written confirmation of acceptance of delivery by the receiving party or (iii) when telecopied (with a confirmation of transmission received by the sender) to the parties at the following addresses (or at such other address as shall be specified by like notice):

 

if to the Company, to:

 

General Moly, Inc.
 1736 Cole Blvd., Suite 115
 Lakewood, Colorado 80401
 Attention:  Scott Roswell, Corporate Counsel
 Facsimile No.:  (303) 928-8598

 

with a copy (which shall not constitute notice) to:

 

Holme Roberts & Owen LLP

1700 Lincoln Street, Suite 4100

Denver, Colorado 80203

Attention: W. Dean Salter, Esq.

Facsimile No.: (303) 866-2000

 

if to the Holder, to:

 

CCM Special Holdings Fund, LP

c/o Coghill Capital Management, LLC

One North Wacker Drive, Suite 4350

Chicago, Illinois 60606

Attention:  Jim Schuler, Chief Financial Officer
 Facsimile No.:  (312) 324-2001

 

9.             Confidentiality. Each of the Company and the Holder represent that they have not disclosed any information regarding discussions relating to this letter agreement and have directed their representatives not to disclose any such information. Except as may be required by applicable law or regulatory requirement, neither the Company nor the Holder shall disclose the existence or terms of this letter agreement or any of the provisions contained herein without the prior written consent of the other until the earlier of (x) the Closing Date or (y) five calendar days after the date of this letter agreement; provided, however, that nothing contained herein shall prevent (i) any party from promptly making all filings with any governmental entity or supervisory body (including, without limitation, the Company’s ongoing reporting obligations under the Securities

 

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Exchange Act of 1934, as amended, including Item 3.02 of Form 8-K) or disclosures with the stock exchange, if any, on which such party’s capital stock is listed, as may, in its judgment, be required in connection with the execution and delivery of this letter agreement or the consummation of the transactions contemplated hereby or (ii) the Holder from disclosing the terms of this letter agreement to its respective investors and their representatives provided that each such person shall be advised of their obligation not to disclose any such information except as may be required by applicable law or regulatory requirement.  The Company agrees that it will, on or prior to December 23, 2010, either file with the Securities and Exchange Commission a Current Report on Form 8-K disclosing the material terms of this letter agreement and the transactions contemplated hereby or issue a press release disclosing the same.

 

10.           Governing Law. THIS LETTER AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

11.           Counterparts. This letter agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement.

 

12.           No Third Party Beneficiaries. This letter agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and no other person will have any right or obligation hereunder.

 

13.           Amendment; Waiver; Consent. This letter agreement and its terms may not be changed, amended, waived, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto.

 

14.           Costs and Expenses. The Holder and the Company shall each pay their own respective costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this letter agreement, including, but not limited to, attorneys’ fees.

 

15.           Severability.  If any one or more provisions contained in this letter agreement, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

16.           Further Assurances.  Each of the parties hereto shall from time to time execute and deliver all such further documents and do all such further acts and things as another party may reasonably require to effectively carry out or better evidence or perfect the full intent and meaning of this letter agreement.

 

[Remainder of Page Intentionally Blank]

 

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If the foregoing is in accordance with your understanding of our agreement, please sign where indicated below and deliver a copy of this letter agreement as provided for herein, whereupon this letter agreement shall represent a binding agreement between us.

 

	
 
  	
Very truly yours,
  
	
 
  	
 
  
	
 
  	
GENERAL MOLY, INC.
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Bruce D. Hansen
  
	
 
  	
 
  	
Name: Bruce D. Hansen
  
	
 
  	
 
  	
Title: CEO
  

 

Accepted and agreed to as of
 the date first above written:

 

CCM SPECIAL HOLDINGS FUND, LP

 

	
By:
  	
/s/ Clint D. Coghill
  	
 
  
	
 
  	
Name: Clint Coghill
  	
 
  
	
 
  	
Title: President and CIO, General Partner
  	
 
  

 

7Exhibit 10.1

 

EXECUTION VERSION

 

TWELFTH AMENDMENT TO CREDIT AGREEMENT

 

THIS TWELFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of October 25, 2010, is entered into by and between NATIONAL SEMICONDUCTOR CORPORATION, a Delaware corporation  (the “Company”), and BANK OF AMERICA, N.A. (the “Bank”).

 

RECITALS

 

A.            The Company and the Bank are parties to a Credit Agreement (Multicurrency), dated as of October 30, 2000, as amended by that certain First Amendment to Credit Agreement dated as of October 29, 2001, that certain Second Amendment to Credit Agreement dated as of October 28, 2002, that certain Third Amendment to Credit Agreement dated as of October 14, 2003, that certain Fourth Amendment to Credit Agreement dated as of March 19, 2004, that certain Fifth Amendment to Credit Agreement dated as of October 20, 2004, that certain Sixth Amendment to Credit Agreement dated as of October 24, 2005, that certain Seventh Amendment to Credit Agreement dated as of October 24, 2006, that certain Eighth Amendment to Credit Agreement dated as of June 26, 2007, that certain Ninth Amendment to Credit Agreement dated as of October 10, 2007, that certain Tenth Amendment to Credit Agreement dated as of October 2, 2008 and that certain Eleventh Amendment to Credit Agreement dated as of October 26, 2009 (as so amended, the “Credit Agreement”), pursuant to which the Bank has extended certain credit facilities to the Company and the Guaranteed Subsidiaries.

 

B.            The Company has requested that the Bank agree to certain amendments of the Credit Agreement and the Guaranty.

 

C.            The Bank is willing to amend the Credit Agreement and Guaranty, subject to the terms and conditions of this Amendment.

 

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

 

1.             Defined Terms.  Unless otherwise defined herein, capitalized terms used herein shall have the meanings, if any, assigned to them in the Credit Agreement.

 

2.             Amendments to Credit Agreement.

 

(a)           Section 1.01 of the Credit Agreement shall be amended at the following definitions by amending and restating each such definition to read in its entirety as follows:

 

“Applicable Margin” means (i) with respect to Base Rate Loans, 1.25% per annum, and (ii) with respect to Offshore Rate Loans, 2.25% per annum.

 

“Commitment” means Ten Million Dollars ($10,000,000), or the Equivalent Amount thereof, as such amount may be reduced from time to time pursuant to Section 2.08.

 

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“Revolving Termination Date” means October 26, 2011, or if such date is not a Business Day, the last Business Day prior to such date.

 

(b)           Section 1.01 of the Credit Agreement shall be further amended by adding the definitions below in appropriate alphabetical order:

 

“Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease.

 

“Capital Lease”  means, as applied to any Person, any lease of any property by that Person as lessee which, in accordance with GAAP, is required to be accounted for as a capital lease on the balance sheet of that Person

 

“Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income, without duplication: (i) consolidated interest charges for such period, (ii) the provision for federal, state, local and foreign income taxes payable by the Company and its Subsidiaries for such period, (iii) the amount of depreciation and amortization expense for such period, (iv) charges incurred during such period under Financial Accounting Standard 123R which do not represent a cash item in such period or any future period, and (v) other non-recurring expenses of the Company and its Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, and minus (b) the following to the extent included in calculating such Consolidated Net Income: (i) federal, state, local and foreign income tax credits of the Company and its Subsidiaries for such period and (ii) all non-cash items increasing Consolidated Net Income for such period; provided, however, that if there has occurred an acquisition during the relevant period, Consolidated EBITDA shall be calculated on a pro forma basis as if such acquisition occurred on the first day of the applicable period.

 

“Consolidated Funded Indebtedness” means, as of any date of determination, for the Company and its Subsidiaries on a consolidated basis, without duplication, the sum of (a) the outstanding principal amount of all obligations for borrowed money, whether current or long-term (including Obligations to the extent constituting such obligations) and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (b) all purchase money Indebtedness; (c) all direct obligations arising under letters of credit, whether drawn or undrawn (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments; (d) all obligations in respect of the deferred purchase price of

 

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property or services (other than trade accounts payable in the ordinary course of business); (e) Attributable Indebtedness; (f) without duplication, all Guaranty Obligations with respect to outstanding Indebtedness of the types specified in clauses (a) through (e) above of Persons other than the Company or any Subsidiary; and (g) all Indebtedness of the types referred to in clauses (a) through (f) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which the Company or a Subsidiary is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to the Company or such Subsidiary.

 

“Consolidated Total Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended.

 

“Synthetic Lease Obligation” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing arrangement whereby the arrangement is considered borrowed money indebtedness for tax purposes but is classified as an operating lease and does not otherwise appear on a balance sheet under GAAP.

 

“Twelfth Amendment Date” means October 25, 2010.

 

(c)           Section 5.01(g) of the Credit Agreement shall be amended by deleting the phrase “May 31, 2009” and inserting in its place “May 31, 2010”.

 

(d)           Section 5.01(n) of the Credit Agreement shall be amended (i) by deleting the phrase “May 31, 2009” each time it appears and inserting in its place “May 31, 2010” and (ii) by deleting the phrase “August 30, 2009” and inserting in its place “August 30, 2010”.

 

(e)           Section 5.01(o) of the Credit Agreement shall be amended (i) by deleting the phrase “August 30, 2009” and inserting in its place “August 30, 2010”.

 

(f)            Section 6.02(a) of the Credit Agreement shall be amended and restated as follows:

 

(a)           Consolidated Total Leverage Ratio.  The Company shall maintain as of the end of each fiscal quarter from and after the Twelfth Amendment Date on a consolidated basis a Consolidated Total Leverage Ratio not exceeding 3.00 to 1:00.

 

(g)           The Credit Agreement shall be further amended by deleting Exhibit B thereof and replacing it with the Exhibit B attached hereto as Annex I.

 

3.             Representations and Warranties.  The Company hereby represents and warrants to the Bank as follows:

 

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(a)           No Default or Event of Default has occurred and is continuing.

 

(b)           The execution, delivery and performance by the Company of this Amendment have been duly authorized by all necessary corporate and other action and do not and will not require any registration with, consent or approval of, notice to or action by, any Person (including any Governmental Authority) in order to be effective and enforceable.  The Credit Agreement as amended by this Amendment constitutes the legal, valid and binding obligations of the Company, enforceable against it in accordance with its respective terms, without defense, counterclaim or offset.

 

(c)           All representations and warranties of the Company contained in the Credit Agreement are true and correct.

 

(d)           The Company is entering into this Amendment on the basis of its own investigation and for its own reasons, without reliance upon the Bank or any other Person.

 

4.             Effective Date.  This Amendment will become effective on and as of the date (the “Effective Date”) that each of the following conditions precedent is satisfied:

 

(a)           The Bank has received from the Company a duly executed original (or, if elected by the Bank, an executed facsimile copy) of this Amendment.

 

(b)           The Bank has received from the Company a certificate of the Secretary or Assistant Secretary of the Company certifying the names and true signatures of the officers of the Company authorized to execute and deliver this Amendment and attaching:

 

(i)            (A) the articles or certificate of incorporation of the Company as in effect on the date hereof, certified by the Secretary or Assistant Secretary of the Company as being in full force and effect on the date hereof and (B) the bylaws of the Company as in effect on the date hereof, certified by the Secretary or Assistant Secretary of the Company as being in full force and effect on the date hereof; provided, however, that in lieu of attaching such certified articles or certificate of incorporation and bylaws, the Secretary or Assistant Secretary may instead certify that there has been no change in such organizational documents since October 26, 2009; and

 

(ii)           a copy of resolutions passed by the board of directors of the Company, certified by the Secretary or Assistant Secretary of the Company as being in full force and effect on the date hereof, authorizing the execution, delivery and performance of this Amendment;

 

(c)           The Bank has received from the Company a good standing certificate for the Company from the Secretary of State of its state of incorporation as of a recent date

 

(d)           The Company shall have delivered to the Bank a certificate signed by an appropriate officer of the Company in form and substance satisfactory to the Bank to the effect that: (i) all representations and warranties contained herein are true and correct as of the Effective Date and (ii) as of the Effective Date, no Default or Event of Default has occurred and is existing.

 

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(e)           The Bank has received from the Company such other approvals, opinions or documents as the Bank may reasonably request.

 

5.             Designation of Additional Guaranteed Subsidiaries; Amendment of Guaranty.

 

(a)           The Company hereby designates National Semiconductor Germany AG, a German corporation (the “New Borrower”), as a “Guaranteed Subsidiary” for all purposes of the Credit Agreement and the Guaranty.  The Bank hereby consents to such designation.  The Company, without limiting the terms of the Guaranty, hereby agrees and confirms that all obligations and liabilities of the New Borrower (or any other Borrower) in respect of any Letter of Credit shall constitute “Guaranteed Obligations” for all purposes of the Guaranty.

 

(b)           The Bank and the Company hereby agree that the Guaranty shall be amended by deleting Exhibit A thereof and replacing it with the Exhibit A attached hereto as Annex II.

 

6.             Reservation of Rights.  The Company acknowledges and agrees that the execution and delivery by the Bank of this Amendment shall not be deemed to create a course of dealing or otherwise obligate the Bank to execute similar amendments under the same or similar circumstances in the future.

 

7.             Miscellaneous.

 

(a)           Except as herein expressly amended, all terms, covenants and provisions of the Credit Agreement are and shall remain in full force and effect and all references therein to such Credit Agreement shall henceforth refer to the Credit Agreement as amended by this Amendment.  This Amendment shall be deemed incorporated into, and a part of, the Credit Agreement.

 

(b)           This Amendment shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns. No third party beneficiaries are intended in connection with this Amendment.

 

(c)           This Amendment shall be governed by and construed in accordance with the law of the State of California.

 

(d)           This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.  Each of the parties hereto understands and agrees that this document (and any other document required herein) may be delivered by any party thereto either in the form of an executed original or an executed original sent by facsimile transmission to be followed promptly by mailing of a hard copy original, and that receipt by the Bank of a facsimile transmitted document purportedly bearing the signature of the Company shall bind the Company with the same force and effect as the delivery of a hard copy original.  Any failure by the Bank to receive the hard copy executed original of such document shall not diminish the binding effect of receipt of the facsimile transmitted executed original of such document of the party whose hard copy page was not received by the Bank, and the Bank is hereby authorized to make sufficient photocopies thereof to assemble complete counterparty documents.

 

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(e)           This Amendment, together with the Credit Agreement, contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed herein and therein.  This Amendment supersedes all prior drafts and communications with respect thereto. This Amendment may not be amended except in accordance with the provisions of Section 8.03 of the Credit Agreement.

 

(f)            If any term or provision of this Amendment shall be deemed prohibited by or invalid under any applicable law, such provision shall be invalidated without affecting the remaining provisions of this Amendment or the Credit Agreement, respectively.

 

(g)           The Company covenants to pay to or reimburse the Bank, upon demand, for all costs and expenses (including allocated costs of in-house counsel) incurred in connection with the development, preparation, negotiation, execution and delivery of this Amendment, including without limitation appraisal, audit, search and filing fees incurred in connection therewith.

 

[Remainder of this page is intentionally left blank.  Signature page to follow.]

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the date first above written.

 

 

	
 
  	
NATIONAL SEMICONDUCTOR CORPORATION
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Robert E. Debarr
  
	
 
  	
 
  	
Name:
  	
Robert E. Debarr
  
	
 
  	
 
  	
Title:
  	
Treasurer
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Lewis Chew
  
	
 
  	
 
  	
Name:
  	
Lewis Chew
  
	
 
  	
 
  	
Title:
  	
CFO
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
BANK OF AMERICA, N.A.
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
/s/ Christina Felsing
  
	
 
  	
 
  	
Name:
  	
Christina Felsing
  
	
 
  	
 
  	
Title:
  	
Vice President
  

 

SIGNATURE PAGE TO

TWELFTH AMENDMENT TO CREDIT AGREEMENT

 

 

ANNEX I

 

EXHIBIT B

to the Credit Agreement

 

FORM OF COMPLIANCE CERTIFICATE

 

Bank of America, N.A.

600 Montgomery Street

San Francisco, CA 94111

Attn:       Christina Felsing

Vice President

 

Re:          National Semiconductor Corporation

 

Ladies and Gentlemen:

 

This Compliance Certificate is made and delivered pursuant to the Credit Agreement (Multicurrency) dated as of October 30, 2000 (as amended, modified, renewed or extended from time to time, the “Credit Agreement”) between National Semiconductor Corporation (the “Company”) and Bank of America, N.A. (the “Bank”), and reference is made thereto for full particulars of the matters described therein.  All capitalized terms used in this Compliance Certificate and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.  This Compliance Certificate relates to the accounting period ending                 ,             .

 

I hereby certify as of the date hereof that I am the [treasurer] of the Company, and that, as such, I am authorized to execute and deliver this Certificate to the Bank on the behalf of the Company and its consolidated Subsidiaries, and that:

 

[Use the following paragraph if this Certificate is delivered in connection with the quarterly  financial statements required by Section 6.01(a)(i) of the Credit Agreement.]

 

1.             Attached hereto are true and correct copies of the consolidated balance sheet of the Company and its Subsidiaries as of the end of the fiscal quarter ended                      and the related consolidated statements of income, shareholders’ equity and cash flows of the Company and its Subsidiaries for such quarter and the portion of the fiscal year through the end of such quarter, which are complete and accurate in all material respects and fairly present the financial condition of the Company and the Subsidiaries as at such date and the results of operations of the Company and its Subsidiaries for the period ended on such date and have been prepared in accordance with GAAP consistently applied, subject to changes resulting from normal year-end audit adjustments and except for the absence of notes.

 

or

 

[Use the following paragraph if this Certificate is delivered in connection with the annual  financial statements required by Section 6.01(a)(ii) of the Credit Agreement.]

 

B-1

 

1.             Attached hereto are true and correct copies of the consolidated balance sheet of the Company and its Subsidiaries as of the end of the fiscal year ended                        and the related consolidated statements of income, shareholders’ equity and cash flows of the Company and its Subsidiaries for such fiscal year, prepared in accordance with GAAP consistently applied, all in reasonable detail and setting forth in comparative form the figures for the previous fiscal year, accompanied by the report of                     , which report is not qualified.

 

2.             I have reviewed the terms of the Credit Agreement and I have made, or caused to be made under my supervision, a detailed review of the transactions and conditions of the Company and its Subsidiaries during the accounting period covered by the attached financial statements.

 

3.             The information set forth on Schedule 1 hereto (and any additional schedules hereto setting forth further supporting detail) is true, accurate and complete as of the end of such accounting period.

 

4.             The Company and its Subsidiaries, during such period, have observed, performed or satisfied all of the covenants and other agreements, and satisfied every condition in the Credit Agreement to be observed, performed or satisfied by the Company and its Subsidiaries.

 

5.             The representations and warranties of the Company contained in Article V of the Credit Agreement are true and correct as though made on and as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they shall be true and correct as of such date).

 

I hereby further certify that (i) as of the date hereof no Default or Event of Default has occurred and is continuing, and (ii) on and as of the date hereof, there has occurred no Material Adverse Effect since May 31, 2010, except as may be set forth in a separate attachment hereto describing in detail the nature of each condition or event constituting an exception to the foregoing statements, the period during which it has existed and the action which the Company is taking or proposes to take with respect to each such condition or event.

 

IN WITNESS WHEREOF, the undersigned officer has signed this Compliance Certificate this              day of        ,         .

 

	
 
  	
 
  
	
 
  	
[Treasurer]
  

 

B-2

 

SCHEDULE 1

 

TO COMPLIANCE CERTIFICATE

 

Dated                       ,        

 

For the Fiscal Quarter ended                         ,         

 

	
 
  	
 
  	
 
  	
Actual
  	
 
  	
Required
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
1.
  	
Section 6.02(b) Minimum Quick Ratio.
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
A.
  	
Consolidated Quick Assets
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
B.
  	
Consolidated Current Liabilities
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Quick Ratio (ratio of 1.A to 1.B)
  	
 
  	
      to 1.0
  	
 
  	
For fiscal quarters ending prior to November 27, 2005, not less than 1.00 to 1.00
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
For fiscal quarters ending on or after the November 27, 2005, not less than 1.25 to 1.00
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
2.
  	
Section 6.02(a) Consolidated Total Leverage Ratio.
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
A.
  	
Consolidated Funded Indebtedness at statement date
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
B.
  	
Consolidated EBITDA for four consecutive fiscal quarters ending on above date (“Subject Period”)
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Consolidated Net Income for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Plus consolidated interest charges for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Plus provision for income taxes for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Plus depreciation expenses for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  

 

S-1

 

	
 
  	
Plus amortization expenses for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Plus Financial Accounting Standard 123R charges incurred for Subject Period not representing cash items in Subject Period or future period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Plus non-cash reductions of Consolidated Net Income for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Plus income tax credits for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Plus non-cash additions to Consolidated Net Income for Subject Period:
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Total Consolidated EBITDA
  	
 
  	
$
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
Consolidated Total Leverage Ratio (ratio of 2.A to 2.B)
  	
 
  	
      to 1.0
  	
 
  	
Not exceeding 3.0 to 1.0
  

 

S-2

 

ANNEX II

 

EXHIBIT A

 

BORROWER LISTING

 

	
Name
  	
 
  	
State or Other
 Jurisdiction of Incorporation
  
	
Algorex Inc.
  	
 
  	
California
  
	
DigitalQuake, Inc.
  	
 
  	
California
  
	
innoCOMM Wireless
  	
 
  	
California
  
	
Mediamatics, Inc.
  	
 
  	
California
  
	
National Semiconductor International, Inc.
  	
 
  	
Delaware
  
	
National Semiconductor Netsales, Inc.
  	
 
  	
Delaware
  
	
National Semiconductor (Maine), Inc.
  	
 
  	
Delaware
  
	
National Semiconductor Malaysia LLC
  	
 
  	
Delaware
  
	
ASIC II Limited
  	
 
  	
Hawaii
  
	
National Semiconductor B.V. Corporation
  	
 
  	
Delaware
  
	
National Semiconductor Estonia Ou
  	
 
  	
Estonia
  
	
National Semiconductor Finland Oy
  	
 
  	
Finland
  
	
National Semiconductor France S.A.R.L.
  	
 
  	
France
  
	
National Semiconductor GmbH
  	
 
  	
Germany
  
	
National Semiconductor Germany AG
  	
 
  	
Germany
  
	
National Semiconductor (I.C.) Ltd.
  	
 
  	
Israel
  
	
National Semiconductor S.r.l.
  	
 
  	
Italy
  
	
National Semiconductor Aktiebolog
  	
 
  	
Sweden
  
	
National Semiconductor Sweden Aktiebolog
  	
 
  	
Sweden
  
	
National Semiconductor (U.K.) Ltd.
  	
 
  	
Great Britain
  
	
National Semiconductor (U.K.) Holdings Ltd.
  	
 
  	
Great Britain
  
	
National Semiconductor(U.K.) Pension Trust Company Ltd.
  	
 
  	
Great Britain
  
	
National Semiconductor Benelux B.V.
  	
 
  	
Netherlands
  
	
National Semiconductor B.V.
  	
 
  	
Netherlands
  
	
National Semiconductor International B.V.
  	
 
  	
Netherlands
  
	
Natsem India Designs Pvt. Ltd.
  	
 
  	
India
  
	
National Semiconductor Australia Pty. Ltd.
  	
 
  	
Australia
  
	
National Semiconductor Hong Kong Limited
  	
 
  	
Hong Kong
  
	
National Semiconductor (Far East) Limited
  	
 
  	
Hong Kong
  
	
National Semiconductor Hong Kong Sales Limited
  	
 
  	
Hong Kong
  
	
National Semiconductor Services Limited
  	
 
  	
Hong Kong
  
	
National Semiconductor Manufacturing Hong Kong Limited
  	
 
  	
Hong Kong
  
	
National Semiconductor International Hong Kong Limited
  	
 
  	
Hong Kong
  
	
National Semiconductor Manufacturing China Trust
  	
 
  	
Hong Kong
  
	
National Semiconductor Japan Ltd.
  	
 
  	
Japan
  
	
National Semiconductor Korea Limited
  	
 
  	
Korea
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
[Initials]
  

 

A-1

 

	
Name
  	
 
  	
State or Other
 Jurisdiction of Incorporation
  
	
National Semiconductor Labuan Ltd.
  	
 
  	
Malaysia
  
	
National Semiconductor SDN. BHD.
  	
 
  	
Malaysia
  
	
National Semiconductor Technology SDN. BHD.
  	
 
  	
Malaysia
  
	
National Semiconductor Services Malaysia SDN BHD
  	
 
  	
Malaysia
  
	
Thrift Gate Marketing SDN BHD
  	
 
  	
Malaysia
  
	
National Semiconductor Pte. Ltd.
  	
 
  	
Singapore
  
	
National Semiconductor Asia Pacific Pte. Ltd.
  	
 
  	
Singapore
  
	
National Semiconductor Manufacturer Singapore Pte. Ltd.
  	
 
  	
Singapore
  
	
National Semiconductor Shanghai Limited
  	
 
  	
Peoples’ Republic of China
  
	
National Semiconductor Management Shanghai Ltd.
  	
 
  	
Peoples’ Republic of China
  
	
National Semiconductor (Suzhou) Ltd.
  	
 
  	
Peoples’ Republic of China
  
	
National Semiconductor Canada, Inc.
  	
 
  	
Canada
  
	
National Semiconductores do Brasil Ltda.
  	
 
  	
Brazil
  
	
National Semiconductores da America do Sul Ltd.
  	
 
  	
Brazil
  
	
Electronica NSC de Mexico, S.A. de C.V.
  	
 
  	
Mexico
  
	
National Semiconductor Investments, Ltd.
  	
 
  	
British Virgin Islands
  
	
National Semiconductor Investments II, Ltd.
  	
 
  	
British Virgin Islands
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
[Initials]
  

 

A-2

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