Document:

evbg-ex102_198.htm

 

Exhibit 10.2

LOAN AND SECURITY MODIFICATION AGREEMENT 

 

This Loan and Security Modification Agreement is entered into as of June 27, 2018 by and between EVERBRIDGE, INC. (“Parent”) and WESTERN ALLIANCE BANK (“Bank”).  Parent is also referred to herein as “Borrower”.

 

1.DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Parent to Bank, Parent is indebted to Bank pursuant to, among other documents, a Loan and Security Agreement by and between Parent and Bank, dated as of June 30, 2015 and as may be amended from time to time (the “Loan and Security Agreement”).  Capitalized terms used without definition herein shall have the meanings assigned to them in the Loan and Security Agreement.

 

2.REMOVAL OF CO-BORROWER. IDV SOLUTIONS, LLC (“IDV”) had been added as a “Borrower” to the Loan and Security Agreement pursuant to the Loan and Security Modification Agreement dated as of November 14, 2017 by and between Parent, IDV and Bank.  IDV was subsequently merged with and into Parent and no longer exists as a separate entity. Therefore, IDV is hereby removed as a Borrower under the Loan and Security Agreement.

 

3. EVENT OF DEFAULTS; WAIVER. Parent acknowledges that there are existing and uncured Events of Default arising from Parent’s failure to comply with (i) Section 6.11, Section 7.3 and Section 7.7 of the Loan and Security Agreement with respect to the acquisition of Unified Messaging Systems ABA by Holdings which is a foreign Subsidiary of Parent, and (ii) Section 6.12 of the Loan and Security Agreement with respect to the failure to provide notice of the foregoing Events of Default (collectively, the “Existing Defaults”). Subject to the conditions contained herein and performance by Borrower of all of the terms of the Loan and Security Agreement after the date hereof, Bank waives the Existing Defaults. Bank does not waive Borrower’s obligations under such sections after the date hereof, and Bank does not waive any other failure by Borrower to perform its Obligations under the Loan Documents.

 

4.MODIFICATION(S) TO LOAN AND SECURITY AGREEMENT.

	
 
	
(A)
	
The definition of “Revolving Maturity Date” in Section 1.1 is hereby amended and restated in its entirety as follows:
	
 

“‘Revolving Maturity Date’ means September 28, 2018.”

	
 
	
(B)
	
Sections 6.3(a) and 6.3(b) are amended and restated in their entirety to read as follows:
	
 

 

“(a) as soon as available, but in any event within five (5) days after the last day of each fiscal quarter in which periodic and other reports, proxy statements, and other materials are required to be filed by Borrower with the Securities and Exchange Commission pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended, (i) a Borrowing Base Certificate signed by a Responsible Officer in substantially the form of Exhibit C hereto, (ii) a recurring revenue report, and (iii) a Compliance Certificate signed by a Responsible Officer in substantially the form of Exhibit D hereto;

 

(b) as soon as available, but in any event within five (5) days after the last day of each fiscal quarter in which periodic and other reports, proxy statements, and other materials are required to be filed by Borrower with the Securities and Exchange Commission pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended, (i) a company prepared consolidated and consolidating balance sheet, income statement, and cash flow statement covering Borrower’s consolidated and consolidating operations during such period, prepared in accordance with GAAP, consistently applied, in a form acceptable to Bank and certified by a Responsible Officer, and (ii) aged listings of accounts receivable and accounts payable by invoice date;”

	
 
	
(C)
	
Exhibit D to the Loan and Security Agreement is replaced in its entirety with the Exhibit D attached hereto.
	
 

 

5.CONSISTENT CHANGES; PAYMENT OF BANK EXPENSES.  The Loan Documents are each hereby amended wherever necessary to reflect the changes described above. Borrower shall promptly pay all Bank Expenses incurred in connection herewith.

 

6.NO DEFENSES OF BORROWER/GENERAL RELEASE.  Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under Loan Documents.  Borrower and its affiliates (each, a “Releasing Party”) acknowledges that Bank would not enter into this Loan and Security Modification Agreement without Releasing Party’s assurance that it has no claims against Bank or any of Bank’s officers, directors, employees or agents.  Except for the obligations arising hereafter under this Loan and Security Modification Agreement, each Releasing Party releases Bank and each of Bank’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Bank of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the Loan and Security Agreement or the transactions contemplated thereby.  Releasing Party waives the provisions of California Civil Code section 1542, which states:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors in interest.   The provisions, waivers and releases of this section shall inure to the benefit of Bank and its agents, employees, officers, directors, assigns and successors in interest.  The provisions of this section shall survive payment in full of the Obligations, full performance of all the terms of this Loan and Security Modification Agreement and the other Loan Documents, and/or Bank’s actions to exercise any remedy available under the Loan Documents or otherwise.

 

7.REPRESENTATIONS AND WARRANTIES. Borrower understands and agrees that in modifying the existing Loan Documents, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Loan Documents. Borrower represents and warrants that the representations and warranties contained in the Loan and Security Agreement are true and correct in all material respects (or, if qualified as to “materiality” or “Material Adverse Effect”, in all respects) as of the date of this Loan and Security Modification Agreement (except to the extent any such representation and warranty expressly relates to an earlier date, in which case such representation and warranty is true and correct in all material respects as of such earlier date), and that after giving effect to this Loan and Security Modification Agreement, no Event of Default has occurred and is continuing.

 

8.CONTINUING VALIDITY. Except as expressly modified pursuant to this Loan and Security Modification Agreement, the terms of the Loan Documents remain unchanged and in full force and effect.  Bank's agreement to modifications to the existing Loan Documents pursuant to this Loan and Security Modification Agreement in no way shall obligate Bank to make any future modifications to the Loan Documents.  Nothing in this Loan and Security Modification Agreement shall constitute a satisfaction of the Obligations.  It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Loan Documents, unless the party is expressly released by Bank in writing.  No maker, endorser, or guarantor will be released by virtue of this Loan and Security Modification Agreement.  The terms of this paragraph apply not only to this Loan and Security Modification Agreement, but also to any subsequent loan and security modification agreements.

 

9.CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; REFERENCE PROVISION.  This Loan and Security Modification Agreement constitutes a “Loan Document” as defined and set forth in the Loan and Security Agreement, and is subject to Sections 11 and 12 of the Loan and Security Agreement, which are incorporated by reference herein.

 

10.CONDITIONS PRECEDENT.  As a condition to the effectiveness of this Loan and Security Modification

Agreement, Bank shall have received, in form and substance satisfactory to Bank, the following: 

	
 
	
(a)
	
affirmation of guaranty duly executed by Everbridge Securities Corporation;
	
 

	
 
	
(b)
	
affirmation of guaranty duly executed by Microtech USA, LLC; and 
	
 

	
 
	
(c)
	
such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.
	
 

 

[SIGNATURE PAGE FOLLOWS]

 

11.COUNTERSIGNATURE.  This Loan and Security Modification Agreement shall become effective only when executed by Bank and Borrower.

 

 

	
BORROWER:
	
 
	
BANK:

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
EVERBRIDGE, INC.
	
 
	
WESTERN ALLIANCE BANK

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Kenneth S. Goldman
	
 
	
By:
	
 
	
/s/ Robert Bryant

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Name:
	
 
	
Kenneth S. Goldman
	
 
	
Name:
	
 
	
Robert Bryant

	
Title:
	
 
	
SVP & Treasurer
	
 
	
Title:
	
 
	
AVP-Tech Banking

 

 

EXHIBIT D COMPLIANCE CERTIFICATE

 

	
 
	
TO:
	
WESTERN ALLIANCE BANK 
	
 

FROM: EVERBRIDGE, INC.

The undersigned authorized officer of EVERBRIDGE, INC. on behalf of itself and all other Borrowers. hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrowers and Bank (the “Agreement”), (i) each Borrower is in complete compliance for the period ending ____________ with all required covenants except as noted below and (ii) all representations and warranties of Borrowers stated in the Agreement are true and correct in all material respects as of the date hereof except as noted below; provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date.  Attached herewith are the required documents supporting the above certification. The officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes.

Please indicate compliance status by circling Yes/No under “Complies” column.

 

	
Reporting Covenant
	
 
	
Required
	
 
	
Complies

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Recurring Revenue Report
	
 
	
Within 5 days of SEC Reporting
	
 
	
Yes
	
 
	
No

	
Borrowing Base Certificate
	
 
	
Within 5 days of SEC Reporting
	
 
	
Yes
	
 
	
No

	
Compliance Certificate
	
 
	
Within 5 days of SEC Reporting
	
 
	
Yes
	
 
	
No

	
Quarterly consolidated financial statements
	
 
	
Within 5 days of SEC Reporting
	
 
	
Yes
	
 
	
No

	
Quarterly consolidating financial statements
	
 
	
Within 5 days of SEC Reporting
	
 
	
Yes
	
 
	
No

	
A/R & A/P Agings
	
 
	
Within 5 days of SEC Reporting
	
 
	
Yes
	
 
	
No

	
Annual financial statements (CPA Audited)
	
 
	
FYE within 180 days
	
 
	
Yes
	
 
	
No

	
Annual operating budget, sales projections and operating plans approved by board of directors
	
 
	
Annually no later than 30 days following the beginning of each fiscal year or board approval, whichever is earlier
	
 
	
Yes
	
 
	
No

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
A/R Audit
	
 
	
Initial and Annual
	
 
	
Yes
	
 
	
No

	
IP Report
	
 
	
Annual
	
 
	
Yes
	
 
	
No

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Deposit balances with Bank
	
 
	
$_______________
	
 
	
 
	
 
	
 

	
Deposit balance outside Bank
	
 
	
$_______________
	
 
	
 
	
 
	
 

 

	
Financial Covenant
	
 
	
Required
	
 
	
Actual
	
 
	
Complies

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Minimum MRR Renewal Rate
	
 
	
90%
	
 
	
______%
	
 
	
Yes
	
 
	
No

	
(measured quarterly, on a rolling 4 quarters basis)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

Comments Regarding Exceptions: See Attached.

 

 

Sincerely,

 

	
 

	
SIGNATURE

	
 

	
 

	
TITLE

	
 

	
 

 

	
DATEExhibit

Exhibit 10.1 (b)

    

FIRST AMENDMENT 
TO
CREDIT AGREEMENT
______________________________________________________________________

This First Amendment to Credit Agreement (this "First Amendment") is dated effective as of the 27th day of June, 2018 (the "Effective Date"), among SUPERIOR PIPELINE COMPANY, L.L.C., a Delaware limited liability company (the "Borrower"), BOKF, NA dba Bank of Oklahoma, as Administrative Agent for the Lenders (in such capacity, the "Administrative Agent"), and as a Lender, and the other Lenders signatory hereto. Capitalized terms used but not otherwise defined herein shall have the meaning assigned to such terms in the Credit Agreement (defined below).

R E C I T A L S:

A.The Borrower, the Administrative Agent and the Lenders signatory thereto are parties to that certain Credit Agreement dated as of May 10, 2018 (the "Credit Agreement"). 

B.The parties hereto desire to amend the Credit Agreement upon the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby amend the Credit Agreement in accordance with the requirements of Section 11.1 thereof as follows:

1.Initial Financial Statements. The definition of "Initial Financial Statements" appearing in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

"Initial Financial Statements" means (a) Borrower’s audited Consolidated annual financial statements as of December 31, 2018, and (b) Borrower’s unaudited quarterly Consolidated financial statements as of June 30, 2018. 
2.Material Real Property. The definition of "Material Real Property" appearing in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

"Material Real Property" shall mean, on any date of determination, any Real Property owned in fee (whether acquired in a single transaction or in a series of related transactions and including, for the avoidance of doubt, rights of way, easements, servitudes and similar interests in Real Property) having a fair market value as reasonably estimated by the Borrower (including the fair market value of (a) any improvements owned by any Restricted Person and located thereon and (b) with respect to gathering systems and pipelines, any rights of way, easements, servitudes, fixtures, equipment, improvements, permits, records and other Real Property appertaining thereto) on such date of determination exceeding U.S.$10.0 million; provided that all Real Property (including, for the avoidance of 

doubt, rights of way, easements, servitudes and similar interests in Real Property) upon which any pipeline or gathering system is situated or projected to be situated shall be deemed to be Material Real Property if such pipeline or gathering system, as applicable, has a fair market value exceeding U.S.$10.0 million.

Additionally, Schedule 3.23 originally attached to the Credit Agreement is hereby replaced in its entirety with Schedule 3.23 attached to this Amendment.  

3.Condition to Effectiveness. The effectiveness of this First Amendment is subject to satisfaction of each of the following condition precedent:

A.Execution of Amendment.  The Administrative Agent shall have received a counterpart of this First Amendment duly executed by the Borrower and the Required Lenders.

The Administrative Agent will notify the Borrower and the Lenders when this Amendment has become effective.

4.Representations and Warranties.  The Borrower restates, confirms and ratifies the warranties, covenants and representations set forth in the Credit Agreement as of the date of this First Amendment (except to the extent a representation or warranty is stated in the Credit Agreement to relate solely to an earlier date, in which case such representations and warranties will have been true and correct on and as of such earlier date), and further represents to the Administrative Agent and the Lenders that, as of the date hereof, no Event of Default exists under the Credit Agreement (including this First Amendment).  The Borrower further represents and warrants to the Administrative Agent and the Lenders that:

A.Authority.  The Borrower has all power and authority and has been duly authorized to execute, deliver and perform their obligations under the Credit Agreement (as amended by this First Amendment).

B.Binding Obligations; Enforceability.  This First Amendment and the Credit Agreement (as amended by this First Amendment) are valid and legally binding obligations of the Borrower, enforceable in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights generally.

C.No Conflicts.  The execution, delivery and performance of this First Amendment by the Borrower do not and will not (a) conflict with, result in a breach of any provision of (i) any Governmental Requirement, (ii) the Organizational Documents of any Restricted Person or (iii) any material agreement, mortgage, indenture, instrument, document, contract, judgment, license, order, permit or other obligation applicable to or binding upon any Restricted Person, (b) result in or require the creation or imposition of any Lien upon any assets, properties or revenues of any Restricted Person, except as expressly contemplated or permitted in the Loan Documents, or (c) except (i) as expressly contemplated in the Loan Documents and (ii) such as have been obtained or made and are in full force and effect, require any permit, consent, approval,

FIRST AMENEDMENT TO CREDIT AGREEMENT
Page 2

authorization or order of, notice to or filing with, or other act by or in respect of, any Governmental Authority or any other Person.

		
	5.
	Miscellaneous

A.Effect of First Amendment. The terms of this First Amendment shall be incorporated into and form a part of the Credit Agreement. Except as amended by this First Amendment, the Credit Agreement shall continue in full force and effect in accordance with its original stated terms, all of which are hereby reaffirmed in every respect as of the date hereof. In the event of any irreconcilable inconsistency between the terms of this First Amendment and the terms of the Credit Agreement, the terms of this First Amendment shall control and govern, and the agreements shall be interpreted so as to carry out and give full effect to the intent of this First Amendment. All references to the "Credit Agreement" appearing in any of the Loan Documents shall hereafter be deemed references to the Credit Agreement as amended, modified and supplemented by this First Amendment.

B.Ratification and Affirmation. The Borrower hereby acknowledges the terms of this First Amendment and ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect.

C.Loan Documents.  This First Amendment is a Loan Document, and all provisions in the Credit Agreement pertaining to Loan Documents apply hereto and thereto.

D.Governing Law.  This First Amendment shall be governed by and construed in accordance with the laws of the State of Oklahoma and any applicable laws of the United States of America in all respects, including construction, validity and performance.

E.Release.  In consideration of the amendments contained herein, the Borrower hereby waives and releases the Administrative Agent and the Lenders from any and all claims and defenses, known or unknown, in each case, arising on or prior to the date hereof with respect to the Credit Agreement and the other Loan Documents and the transactions contemplated thereby.

F.Counterparts; Facsimile.  This First Amendment may be separately executed in counterparts and by the different parties hereto in separate counterparts, each of which when so executed shall be deemed to constitute one and the same First Amendment.  This First Amendment may be validly executed by facsimile or other electronic transmission. 

G.Costs and Expenses.  To the extent reimbursable by the Borrower pursuant to Section 9.1 of the Credit Agreement, the Borrower agrees to reimburse the Administrative Agent and the Lenders upon execution of this First Amendment for all reasonable out-of-pocket expenses (including reasonable attorney's fees and expenses) incurred in connection with the preparation, negotiation, execution and delivery of this First Amendment.
[Signature Page Follows]

FIRST AMENDMENT TO CREDIT AGREEMENT
Page 3

IN WITNESS WHEREOF, the Borrower, the Administrative Agent and the Required Lenders have caused this First Amendment to be duly executed and delivered effective as of the day and year first above written.

SUPERIOR PIPELINE COMPANY, L.L.C., 
as Borrower
By:    /s/ Mark E. Schell                
Name:  Mark E. Schell
Title:  Senior Vice President

Address:
8200 South Unit Drive
Tulsa, Oklahoma 74132
Attention:  Mark E. Schell

Telephone:  (918) 477-4507
Fax:  (918) 496-6302

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

 BOKF, NA dba BANK OF OKLAHOMA,
as Administrative Agent, LC Issuer and a Lender
By:   /s/ Matt Chase            
Name:  Matt Chase
Title:  Senior Vice President

Address:    One Williams Center, 8th Floor
Tulsa, OK 74192

Telephone:  (918) 588-6641
Fax:  (918) 588-6880

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

BANK OF AMERICA, NA,
as a Lender
By: /s/ Pace Doherty            
Name:    Pace Doherty
Title:    Vice President

Address:    700 Louisiana, 13th Floor
Houston, TX 77002

Telephone:  713-247-6960
Fax:  713-247-7286

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

BRANCH BANKING AND TRUST COMPANY,
as a Lender
By:     /s/ Lincoln LaCour        
Name:    Lincoln LaCour
Title:    Vice President

Address:    333 Clay Street, Suite 4495
Houston, TX 77002

Telephone:  713-797-2140
Fax:  888-707-4162

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

BMO HARRIS BANK N.A.,
as a Lender
By: /s/ Kevin Utsey            
Name:    Kevin Utsey
Title:    Managing Director

Address:    700 Louisiana, Suite 2100
Houston, TX 77002

Telephone:  713-546-9720
Fax:  713-223-4007

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

CANADIAN IMPERIAL BANK OF COMMERCE,
NEW YORK BRANCH, as a Lender

By:     /s/ Trudy Nelson            
Name:     Trudy Nelson
Title:     Authorized Signatory

By:     /s/ Donovan C. Broussard        
Name:     Donovan C. Broussard
Title:     Authorized Signatory

Address:    1001 Fannin Street, Suite 4450
Houston, TX 77002

Telephone:  713-210-4103
Fax:  713-210-4129

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

COMERICA BANK,
as a Lender

By:     /s/ Jeffrey M. LaBauve        
Name:    Jeffrey M. LaBauve
Title:    Vice President

Address:    1717 Main Street, 4th Floor
Dallas, TX 75021

Telephone:  214-462-4341
Fax:  214-462-4240

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

COMPASS BANK,
as a Lender

By:     /s/ Mark H. Wolf            
Name:    Mark H. Wolf
Title:    Senior Vice President

Address:    2200 Post Oak Blvd.
Houston, TX 77056

Telephone:  713-993-8552
Fax:  

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

THE TORONTO-DOMINION BANK,
NEW YORK BRANCH, as a Lender

By:     /s/ Annie Dorval            
Name:    Annie Dorval
Title:    Authorized Signatory

Address:    CM NY FGN
31 West 52nd Street, 19th Fl.
New York, NY 10019

Telephone:  416-982-7745
Fax:  

SIGNATURE PAGE
TO FIRST AMENDMENT TO CREDIT AGREEMENT

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