Document:

Exhibit 10.3

 

SECURITY AGREEMENT

 

This Security Agreement
(this “Agreement”) dated this __ of July 2013, is made and executed by and between Cardinal Energy Group, Inc., a Nevada
corporation (the “Company”), and HLA Interests, LLC, a Texas limited liability company (the “Secured Party”).

 

RECITALS

 

A. The Company is indebted to the Secured
Party in the aggregate principal amount of Four Hundred Thousand Dollars ($400,000) (the “Debt”) as evidenced by that
certain Secured Promissory Note of the Company to the Secured Party, dated as of the date hereof, and in the form of Exhibit
“A” attached hereto (the “Note”);

 

B. It is a condition of the Note that
Company execute and deliver this Security Agreement to the Secured Party, to secure, for the full benefit of the Secured Party
and any and all future holders from time to time of the Note, the full payment and performance of the Note and the other obligations
referred to herein.

 

NOW THEREFORE, for and
in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Certain Definitions.
As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used but not otherwise
defined in this Agreement that are defined in the UCC (such as “account”, “chattel paper”, “commercial
tort claim”, “deposit account”, “document”, “equipment”, “fixture”, “general
intangible”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “proceeds” and “supporting obligations”) shall have the respective
meanings given such terms in the UCC.

 

(a) “Collateral”
means the collateral in which the Secured Party is granted a security interest by this Agreement and which shall include the following:
its working interest in those certain Oil and Gas leases, wells, and other property and assets located in the Conway-Dawson Leases
as more specifically describe in Exhibit “B” hereto (the “Conway-Dawson Property”).

 

(b) “Obligations”
means all of the Company’s obligations under this Agreement, the Note and any other instruments, agreements or other documents
executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary,
direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or
not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations
or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from
the Secured Party as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted,
extended or modified from time to time. Without limiting the generality of the foregoing, the term “Obligations” shall
include, without limitation: (i) principal of, and interest on the Note and the loans extended pursuant thereto; (ii) any and all
other fees, indemnities, costs, obligations and liabilities of the Company from time to time under or in connection with this Agreement,
the Note, and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith;
and (iii) all amounts (including but not limited to post-petition interest) in respect of the foregoing that would be payable but
for the fact that the obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving the Company.

 

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(c)  “UCC”
means the Uniform Commercial Code of the State of Texas and or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that
defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed
in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions,
they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones
shall be controlling.

 

2. Grant of Security.
To secure the full payment of the Note and performance of the obligations contained in the Note, Company hereby grants to the Secured
Party, for the benefit of the Secured Party and any subsequent holder of the Note, a continuing security interest in and to the
Collateral. Company further agrees that the Secured Party shall have the rights stated in this Security Agreement with respect
to the Collateral as well as other rights which the Secured Party may have under the laws of the State of Texas.

 

3. Further Assurances.
The Company will, and the Secured Party may, from time to time execute (if required) and file or record, at the cost and expense
of Company, all financing statements, amendments or supplements thereto, continuation statements with respect thereto and all other
instruments, including the filing of this Agreement, which may be necessary or which the Secured Party may from time to time reasonably
deem appropriate and request (if the Secured Party chooses not to act on its own), in order to perfect, protect and maintain the
security interests hereby granted. Company will promptly deliver to the Secured Party a copy of each such instrument filed or recorded
by it and evidence of its filing or recording in the manner required. Company further agrees that a carbon, photographic, photostatic
or other reproduction of this Agreement or of a financing statement is sufficient as a financing statement.

 

4. Representations and
Warranties. Company hereby represents and warrants to the Secured Party that:

 

(a) Company holds good
and marketable title to the Collateral, free and clear of all liens and encumbrances except for the lien of this Security Agreement.
No financing statement covering any of the Collateral is on file in any public office other than those which reflect the security
interest created by this Security Agreement or to which the Secured Party has specifically consented. Company shall defend the
Secured Party’s rights in the Collateral against the claims and demands of all other persons;

 

(b) Company agrees
to take whatever actions are required by the Secured Party to perfect and continue the Secured Party’s security interest
in the Collateral;

 

(c) Company shall notify
the Secured Party in writing at the Secured Party’s address prior to any: (i) change in Company’s name; (ii) change
in Company’s assumed business name; or (iii) change in the jurisdiction of its organization. No change in Company’s
name or jurisdiction will take effect until after the Secured Party has received notice;

 

(d) The execution and
delivery of this Security Agreement shall not violate any law or agreement governing Company or to which Company is a party;

 

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(e) To the extent the
Collateral consists of General Intangibles, (i) the Collateral is enforceable in accordance with its terms, is genuine, and fully
complies with all applicable laws and regulations concerning form, content and manner of preparation and execution; and (ii) all
persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear
to be on the Collateral. There shall be no setoffs or counterclaims against any of the Collateral, and no agreement shall have
been made under which any deductions or discounts may be claimed concerning the Collateral except those disclosed to the Secured
Party in writing;

 

(f) Company shall not
sell, offer to sell, or otherwise transfer or dispose of the Collateral. Company shall not pledge, mortgage, encumber or otherwise
permit the Collateral to be subject to any lien, security interest, encumbrances, or charge, other than the security interest provide
for in this Security Agreement, without the prior written consent of the Secured Party. This includes security interests even if
junior in right to the security interest granted under this Security Agreement. Unless waived by the Secured Party, all proceeds
from any disposition of the Collateral for whatever reason shall be held in trust for the Secured Party and shall not be commingled
with any other funds, provided, however, that this requirement shall not constitute consent by the Secured Party to any sale or
other disposition. Upon receipt, Company shall immediately deliver any such proceeds to the Secured Party;

 

(g) Company agrees
to keep and maintain, and to cause others to keep and maintain, if applicable, the Collateral in good order, repair and condition
at all times while this Security Agreement remains in effect. Company further agrees to pay when due all claims for work done on,
or services rendered or material furnished in connection with the Collateral so that no lien or encumbrance may ever attach to
or be filed against the Collateral;

 

(h) The Secured Party,
or any person or persons designated by it, shall have the right, from time to time, to call at Company’s place or places
of business during reasonable business hours, and, without hindrance or delay, to inspect, audit, check and make extracts from
Company’s books, records, journals, orders, receipts and any correspondence and other data relating to the Collateral or
to Company’s business and shall have the right to make such verification concerning the Collateral as Secured Party may consider
reasonable under the circumstances, all at Company’s expense;

 

(i) Company shall pay,
when due, all taxes, assessments, and liens upon the Collateral, or its use or operation;

 

(j) Company shall comply
promptly with all laws, ordinances, rules and regulations of all governmental authorities, now or hereafter in effect, applicable
to the ownership, production, disposition, or use of the Collateral;

 

(k) Without the prior
written consent of the Secured Party, Company will not enter into any merger or consolidation, or sell, lease or otherwise dispose
of all or substantially all of its assets, or enter into any transaction outside the ordinary course of Company’s business
unless it provides for the full payment and satisfaction of the obligations under the Note; and

 

(l) In addition to
any other notices required pursuant to this Security Agreement, Company will promptly advise the Secured Party in reasonable detail:
(i) of the assertion or imposition of any lien against any or all of the Collateral; (ii) of any material adverse change in the
composition or aggregate value of the Collateral; (iii) concerning the commencement of or any material development in any investigation
of Company, or any administrative or judicial proceeding against Company, by any governmental authority if such investigation or
proceeding may result in the imposition of any lien against the Collateral or any part thereof (whether or not any such lien has
then been claimed or asserted); or (iv) concerning any other event likely to have a material adverse effect on the aggregate value
of the Collateral or on the perfection or priority of the Secured Party’s security interest therein.

 

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5. Cross-Collaterization.
In addition to the Note, this Security Agreement shall secure all obligations, debts, and liabilities, plus interest thereon, of
Company to the Secured Party, any one or more of them, as well as all claims by the Secured Party against Company or any one or
more of them whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary
or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated
whether Company may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party
or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitation, and whether
the obligation to repay such amounts may be or hereafter may become otherwise unenforceable.

 

6. Company’s Right
to Possession. Until default under the Note, Company may have possession of the tangible assets and beneficial use of all the Collateral
and may use it in any lawful manner not inconsistent with this Security Agreement, provided that Company’s right to possession
and beneficial use shall not apply to any Collateral where possession of the Collateral by the Secured Party is required by law
to perfect the Secured Party’s security interest in such Collateral. The Secured Party shall not be required to take any
steps necessary to preserve any rights in the Collateral against prior parties, neither to protect nor to preserve nor to maintain
any security interest given to secure the indebtedness.

 

7. Rights, Powers and
Limitation of Liability.

 

(a) Appointment as
Company’s Attorney-in-Fact. Company hereby irrevocably appoints the Secured Party as Company’s agent and attorney-in-fact,
with full power in Company’s name or its own name and at Company’s expense, and whether the Secured Party acts directly
or through one or more of its representatives, to execute, endorse and deliver any and all agreements, assignments, pledges, instruments,
documents, and any other writings, and to take any and all other actions, which the Secured Party may in its sole discretion deem
necessary or desirable to effect the terms and purposes of this Security Agreement, including without limitation: (i) to take any
action which the Secured Party is authorized to take under Section 7(b) hereof in the event Company fails to perform or comply
with any of its duties, covenants or agreements hereunder; and (ii) to exercise, during the continuation of an Event of Default,
any and all rights and remedies specified in Section 8 hereof;

 

(b) Right to Perform
for Company. If Company fails at any time to perform or comply with any of its obligations, covenants or agreements hereunder,
the Secured Party may (but shall not be obligated to) take such action, in its own name or as the Company’s attorney-in-fact
as provided in Section 7(a) hereof, as the Secured Party shall deem necessary or desirable to effect such performance or compliance,
including without limitation: (i) the preservation and maintenance of the Collateral and the payment, discharge, contest and/or
settlement of any and all taxes and third-party claims and charges; (ii) the removal or avoidance of the imposition of liens against
any or all of the Collateral; and (iii) the timely collection of payments due and the enforcement of remedies available under or
with respect to the Collateral and related warranties and other agreements; and (iv) the execution and filing (to the extent permitted
under the UCC and other applicable law) of financing and continuation statements and amendments and other documents with appropriate
governmental authorities;

 

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(c) Limitation of Liability.
Company agrees that the Secured Party shall have no obligation to exercise any of its rights, powers and remedies hereunder and
no liability to Company or any other person for not doing so. Company further agrees that to the extent the Secured Party does
exercise any of such rights, powers or remedies (i) the Secured Party shall be accountable to Company and/or any other persons
only for amounts it actually receives as the result of such exercise (and not for amounts to which it is or may be entitled or
which it might have received had it elected to take additional action) and (ii) neither the Secured Party nor any of its representatives
shall have any liability to Company or any other person for any act or omission in connection with such exercise except for (A)
the Secured Party’s or any such representative’s failure to exercise reasonable care as required under the UCC or to
otherwise comply with UCC provisions or (B) the Secured Party’s or any such representative’s willful misconduct.

 

8. DEFAULT. Each of following
shall constitute an Event of Default under this Security Agreement:

 

(a) Payment Default.
Company fails to make any payment when due under the Note;

 

(b) Other Defaults.
Company fails to comply with or to perform any other material term, obligation, covenant or condition contained in this Security
Agreement or the Note;

 

(c) Default in Favor
of Third Parties. In the event that Company defaults under any loan, extension of credit, security agreement, purchase and sale
agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Company’s assets
or Company’s ability to repay the Note or perform its respective obligations under this Security Agreement;

 

(d) Defective Collateralization.
This Security Agreement ceases to be in full force and effect, including failure of any collateral document to create a valid and
perfected security interest or line, at any time and for any reason;

 

(e) False Statements.
Any warranty, representation, or statement made or furnished to the Secured Party by Company or on Company’s behalf under
this Agreement is false or misleading in any material respect, either now or at the time made or furnished or becomes false or
misleading at any time thereafter;

 

(f) Bankruptcy. The
appointment of a receiver for any part of Company’s assets, any assignment for the benefit of creditors, any type of creditor
workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Company; and/or

 

(g) Creditor or Forfeiture
Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or
any other method, by any creditor of Company or by any governmental agency against any collateral securing the indebtedness. This
includes a garnishment of any of Company’s accounts.

 

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9. Rights and Remedies
on Default. If an Event of Default occurs under this Security Agreement, at any time thereafter, the Secured Party shall have all
the rights of a secured party under the UCC. In addition and without limitation, the Secured Party may exercise any one or more
of the following rights and remedies:

 

(a) all obligations
under the Note and hereunder may (notwithstanding any provisions thereof), at the option of the Secured Party and without demand,
notice or legal process of any kind, be declared, and immediately shall become, due and payable;

 

(b) without notice,
demand or legal process of any kind, the Secured Party may take possession of any or all of the Collateral (in addition to Collateral
of which it already has possession), wherever it may be found, and for that purpose may pursue the same wherever it may be found,
and may, without a breach of the peace, enter into any of Company’s premises where any of the Collateral may be or be supposed
to be, and search for, take possession of, remove, keep and store any of the Collateral until the same shall be sold or otherwise
disposed of, and the Secured Party shall have the right to store the same in any of Company’s premises without cost to the
Secured Party, and Secured Party may exercise from time to time any rights and remedies available to it under applicable law, including
the UCC, in addition to, and not in lieu of, any rights and remedies expressly granted in this Security Agreement or in any other
instrument or agreement executed by Company;

 

(c) at the Secured
Party’s request, Company will, at Company’s expense, assemble the Collateral at one or more places, reasonably convenient
to both parties, where the Collateral may, at the Secured Party’s option, remain, at Company’s expense, pending sale
or other disposition thereof;

 

(d) the Secured Party
may, at any time in the Secured Party’s discretion, transfer any Collateral into its own name or that of the Secured Party’s
nominee, and the Secured Party may, pursuant to Section 7(a) of this Security Agreement, execute any such documents as may be necessary
to effectuate said change;

 

(e) the Secured Party
shall have the right, either itself or through a receiver, to: (i) collect the payments, rents, income, or revenues from the Collateral
and hold the same as security for the amounts due under the Note or apply it to payment of the indebtedness under the Note in such
order of preference as the Secured Party may determine; (ii) notify any account debtor that accounts have been assigned to the
Secured Party and that the Secured Party has a security interest therein; (iii) direct all such account debtors to make payments
to the Secured Party of all or any part of the sums owing Company by such account debtor; (iv) enforce collection of any of the
accounts by suit or otherwise; (v) surrender, release or exchange all or any part of said accounts; or (vi) compromise, settle,
extend or renew for any period (whether or not longer than the original period) any indebtedness thereunder or evidenced thereby;

 

(f) the Secured Party
shall have the full power to sell, lease, transfer, or otherwise deal with the Collateral or proceeds thereof in the Secured Party’s
own name or that of Company. The Secured Party may sell the Collateral at public auction or private sale. Unless the Collateral
threatens to decline speedily in value or of a type customarily sold on a recognized market, the Secured Party shall give Company,
as required by law, reasonable notice of the time and place of any public sale or the time after which any private sale or any
other disposition of the Collateral is to be made. The requirements of reasonable notice shall be met if such notice is given at
least ten (10) days before the time of the sale or disposition. All expenses relating to the disposition of the Collateral, including
without limitation the expenses of retaking, holing, insuring, preparing for sale and selling the Collateral, shall become a part
of the indebtedness secured by this Security Agreement and shall be payable on demand, with interest at the Note rate from date
of expenditure until repaid. Any proceeds of any sale, lease or other disposition by the Secured Party of any of the Collateral
shall be applied as follows: (i) first, to the payment of the Secured Party’s reasonable expenses in connection with the
Collateral, including reasonable attorneys’ fees and legal expenses; (ii) second, to the payment of all other obligations
in such manner as the Secured Party may deem advisable; and (iii) third, the balance, if any, to or at the direction of Company.
Company shall remain liable for any deficiency; and/or

 

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(g) Except as may be
prohibited by applicable law, all of the Secured Party’s rights and remedies, whether evidenced by this Security Agreement
or other writing, shall be cumulative and may be exercise singularly or concurrently. Election by the Secured Party to pursue any
remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation
of Company under this Agreement, after Company’s failure to perform, shall not affect the Secured Party’s right to
declare a default and exercise its remedies.

 

10. Term.

 

(a) This Security Agreement
shall continue in full force and effect until each and all of the obligations under the Note and any arising hereunder have been
paid and discharged in full, whereupon (subject to Section 10(b) below) this Security Agreement shall automatically terminate.
Such termination shall not in any way affect or impair the rights and obligations of the parties hereto relating to any transactions
or events prior to such termination, and all indemnities by Company shall survive such termination.

 

(b) If after receipt
of any payment of, or the proceeds of any Collateral for, all or any part of the obligations, the Secured Party is compelled to
surrender or voluntarily surrenders such payment or proceeds to any person because such payment or application of proceeds is or
may be avoided, invalidated, recaptured, or set aside as a preference, fraudulent conveyance, impermissible setoff or for any other
reason, whether or not such surrender is the result of (i) any judgment, decree or order of any court or administrative body having
jurisdiction over the Secured Party, or (ii) any settlement or compromise by the Secured Party of any claim as to any of the foregoing
with any person (including the primary obligor with respect to any of the Obligations), then the Obligations or part thereof affected
shall be reinstated and continue and this Security Agreement shall be reinstated and continue in full force as to such Obligations
or part thereof as if such payment or proceeds had not been received, notwithstanding any previous cancellation of any instrument
evidencing any such Obligation or any previous instrument delivered to evidence the satisfaction thereof or the termination of
this Security Agreement.

 

11. Notices. All notices,
requests, demands and other communications provided for herein shall be in writing and shall be (a) hand delivered, (b) sent by
certified, registered or express U.S. mail, return receipt requested, or reputable next-day courier service or (c) given by telex,
telecopy, telegraph or similar means of electronic communication. All such communications shall be effective upon the receipt thereof,
and addressed to the intended recipient as set forth below:

 

If to Company, to:

 

Cardinal Energy Group, Inc.

6037 Franz Road, Suite 103

Dublin, Ohio 43017

 

If to Secured Party:

 

HLA Interests, LLC

769 Kneese Road,

Fredericksburg, Texas 78624

 

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12. Modifications. This
Security Agreement, together with any related documents constitutes the entire understanding and agreement of the parties as to
the matters set forth in this Security Agreement. No alteration of or amendment to this Security Agreement shall be effective unless
given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

 

13. Attorney’s Fees.
Company shall pay or reimburse the Secured Party on demand for all costs and expenses (including without limitation reasonable
attorneys’ fees and legal expenses) paid or incurred by the Secured Party in exercising or enforcing any of its rights, powers
and remedies under this Security Agreement and for all other costs and expenses which the Secured Party has or shall have paid
by reason of Company’s failure or refusal to do so as and when required hereunder. The amount of any such cost or expense
shall be repayable on demand and, until repayment, all such expenditures incurred or paid by the Secured Party for such purposes
will then bear interest at the rate charged under the Note from the date incurred or paid by the Secured Party to the date of repayment
by Company. All such expenses will become a part of the Debt.

 

14. No Waiver by the Secured
Party. The Secured Party shall not be deemed to have waived any rights under this Security Agreement unless such waiver is given
in writing and signed by the Secured Party. No delay or omission on the part of the Secured Party in exercising any right shall
operate as a waiver of such right or any other right. A waiver by the Secured Party of a provision of this Security Agreement shall
not prejudice or constitute a waiver of the Secured Party’s right otherwise to demand strict compliance with that provision
or any other provision of this Agreement. Neither prior waiver by the Secured Party nor any course of dealing between the Secured
Party and Company shall constitute a waiver of any of the Secured Party’s rights or of any of Company’s obligations
as to any future transactions. Whenever the consent of the Secured Party is required under this Security Agreement, the granting
of such consent by the Secured Party in any instance shall not constitute continuing consent to subsequent instances where such
consent is required, and in all cases such consent may be granted or withheld in the sole discretion of the Secured Party.

 

15. Severability. If a
court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable, as to any circumstances,
that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstances. If feasible,
the offending provision shall be considered modified so that it becomes legal, valid, and enforceable. If the offending provision
cannot be so modified, it shall be considered deleted from this Security Agreement. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Security Agreement shall not affect the legality, validity, or enforceability
of any other provision of this Security Agreement.

 

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16. Successors and Assigns.
Subject to any limitations stated in this Agreement on transfer of Company’s interest, this Security Agreement shall be binding
upon and inure to the benefit of the parties, their successors, and assigns, provided, however, that Company shall not assign or
otherwise transfer any of its rights, interests or obligations hereunder without the Secured Party’s prior written consent.
If ownership of the Collateral becomes vested in a person other than Company, the Secured Party, without notice to Company, may
deal with Company’s successors with reference to this Security Agreement and the indebtedness by way of forbearance or extension
without releasing Company from the obligations of this Security Agreement or liability under the Note. If there shall be more than
one Company, each Company shall be jointly and severally liable hereunder.

 

17. Survival of Representations
and Warranties. All representations and warranties of Company and all terms, provisions, conditions and agreements to be performed
by Company contained herein, and in any other agreement, document and instrument executed by Company concurrently herewith, shall
be true and satisfied at the time of the execution of this Security Agreement, and shall survive the closing hereof and the execution
and delivery of this Security Agreement.

 

18. Governing Law/Jurisdiction.
This Security Agreement shall be construed in all respect in accordance with, and governed by, the laws of the State of Texas.
Any action brought by either Company or the Secured Party against the other shall be brought only in the state courts or federal
courts sitting in Texas.

 

19. Caption Headings.
Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions
of this Agreement.

 

20. Counterparts. This
Security Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
will constitute one and the same instrument. This Security Agreement or any counterpart may be executed and delivered by facsimile
copies or delivered by electronic communications by portable document format (.pdf), each of which shall be deemed an original.

 

IN WITNESS WHEREOF, this Security Agreement has been duly executed as of the first date written above.

 

Cardinal Energy Group, Inc.

  

	By: 	 	 
	Name: 	 	 
	Title: 	 	 

  

HLA Interests, LLC

  

	By: 	 	 
	Name: 	 	 
	Title: 	 	 

  

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Exhibit “A”

 

Secured Promissory Note

 

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Exhibit “B”

 

Conway-Dawson Property

 

    	11Exhibit 10.1 Amendment No. 2 to the Credit Agreement

Exhibit 10.1
INCREMENTAL FACILITY AMENDMENT dated as of July 2, 2013 (this “Amendment”), among ASPECT SOFTWARE PARENT, INC., a Delaware corporation (“Parent”), ASPECT SOFTWARE, INC., a Delaware corporation (the “Borrower”), ASPECT SOFTWARE GROUP HOLDINGS LTD., an exempted company organized under the laws of the Cayman Islands (“TopCo”), DAVOX INTERNATIONAL HOLDINGS, LLC, a Delaware limited liability company, the LENDERS party thereto, including the INCREMENTAL LENDERS (as defined below), and JPMORGAN CHASE BANK, N.A., as Administrative Agent under the Credit Agreement referred to below (the “Administrative Agent”), to the CREDIT AGREEMENT dated as of May 7, 2010 (as amended by that certain Amendment No. 1, dated as of November 14, 2012, and as further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Parent, the Borrower, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Issuing Bank, and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as Co-Syndication Agents and certain affiliates of Borrower which are no longer parties to the Credit Agreement.  Capitalized terms used herein shall have the meanings ascribed to them herein or if not defined herein shall have the meaning provided in the Credit Agreement.
WHEREAS, pursuant to the Credit Agreement, the Lenders have made Term Loans, Revolving Commitments and/or Revolving Loans, as applicable, to the Borrower on the terms and subject to the conditions set forth therein;
WHEREAS, Parent, the Borrower, the Lenders party hereto and the Incremental Lenders (as defined below) desire to amend the Credit Agreement to, among other things, (a) modify certain negative covenants and financial covenants in the Credit Agreement and (b) modify certain other terms and conditions of the Credit Agreement, in each case on the terms and subject to the conditions set forth herein.
WHEREAS, pursuant to Section 2.20 of the Credit Agreement, the Borrower has requested that the Incremental Lenders provide Incremental Term Loans under a new incremental delayed draw senior secured term loan facility (the “Delayed Draw Facility”) to the Borrower under the Credit Agreement in an aggregate principal amount equal to $85,000,000.  Subject to the terms and conditions herein, the Incremental Term Loans under the Delayed Draw Facility (the “Delayed Draw Incremental Term Loans”) would be available on a single occasion (the “Delayed Draw Funding Date”) occurring after the Delayed Draw Incremental Closing Date and on or prior to the Delayed Draw Termination Date (defined below);
WHEREAS, the Incremental Lenders are willing to provide the Delayed Draw Incremental Term Loans to the Borrower pursuant to the terms and subject to the conditions set forth herein; and
WHEREAS, J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated will act as joint lead arrangers and joint bookrunners in respect of the Delayed Draw Incremental Term Loans and Delayed Draw Facility specified herein;
NOW, THEREFORE, the parties hereto hereby agree as follows:
SECTION 1.  Defined Terms.  As used in this Amendment, the following additional terms have the meanings specified below:
“Amendment Transaction Costs” means all fees, costs and expenses incurred or payable by Parent, the Borrower or any Subsidiary in connection with the Amendment Transactions.
“Amendment Transactions” means (a) the execution and delivery of this Amendment by each Person party hereto, the satisfaction and/or waiver of the conditions to the effectiveness hereof and the consummation of the transactions contemplated hereby (including the borrowing of the Delayed Draw Incremental Term Loans), (b) the making of the Delayed Draw Incremental Term Commitments and Delayed Draw Incremental Term Loans to the Borrower, (c) one or more acquisitions by Borrower permitted under the Credit Agreement financed in whole or in part by the proceeds of the Delayed Draw Incremental Term Loans and (d) the payment of Amendment Transaction Costs.

“Delayed Draw Facility” has the meaning assigned to such term in the recitals hereof.
“Delayed Draw Funding Date” has the meaning assigned to such term in Section 3 hereof.
“Delayed Draw Incremental Closing Date” means July 2, 2013.
“Delayed Draw Incremental Term Commitment” means, with respect to each Incremental Lender, the commitment of such Incremental Lender to make a Delayed Draw Incremental Term Loan hereunder on or prior to the Delayed Draw Termination Date, expressed as an amount representing the maximum principal amount of the Delayed Draw Incremental Term Loans to be made by such Incremental Lender hereunder, as such commitment may be reduced or increased from time to time pursuant to assignments by or to such Incremental Lender pursuant to Section 9.04 of the Credit Agreement.  The initial amount of each Incremental Lender's Delayed Draw Incremental Term Commitment is set forth on Schedule 1 hereto or in the Assignment and Assumption pursuant to which such Incremental Lender shall have assumed its Delayed Draw Incremental Term Commitment.  The aggregate principal amount of the Delayed Draw Incremental Term Commitments of all Incremental Lenders as of the Delayed Draw Incremental Closing Date is $85,000,000.
“Delayed Draw Incremental Term Loan” has the meaning assigned to such term in the recitals hereof.
“Delayed Draw Commitment Fee” has the meaning assigned to such term in Section 3 hereof.
“Delayed Draw Termination Date” means September 30, 2013.
“Incremental Lenders” means the Persons listed on Schedule 1 hereto and their respective successors and assigns as permitted under the Credit Agreement.
SECTION 2.  Delayed Draw Incremental Term Commitments; Use of Proceeds.  (a)  Subject to the terms and conditions set forth herein and in the Credit Agreement (including Section 2.02 thereof), each Incremental Lender severally agrees to make to the Borrower a Delayed Draw Incremental Term Loan in a single loan on the Delayed Draw Funding Date in a principal amount not exceeding such Incremental Lender's Delayed Draw Incremental Term Commitment.  Unless previously terminated, the Delayed Draw Incremental Term Commitments of each Incremental Lender shall automatically be terminated at 5:00 p.m., New York City time, on the earlier of the Delayed Draw Funding Date and the Delayed Date Termination Date.  Notwithstanding anything to the contrary contained herein, the funded portion of each Delayed Draw Incremental Term Loan (i.e., the amount advanced in cash to the Borrower on the Delayed Draw Funding Date) shall be equal to 99.0% of the principal amount of such Delayed Draw Incremental Term Loan (it being agreed that the Borrower shall be obligated to repay 100.00% of the principal amount of each such Delayed Draw Incremental Term Loan, the Delayed Draw Incremental Term Loans shall amortize based on 100.00% of the principal amount of each Delayed Draw Incremental Term Loan and interest shall accrue on 100.00% of the principal amount of each such Delayed Draw Incremental Term Loan, in each case as provided herein and in the Credit Agreement as amended hereby).
(a)Notwithstanding anything herein or in the Credit Agreement to the contrary, upon the funding of the Delayed Draw Incremental Term Loans, (i) all accrued but unpaid interest on the Tranche B Term Loans shall be paid in full in accordance with the terms of the Credit Agreement, (ii) the Delayed Draw Incremental Term Loans shall be allocated ratably to the remaining portion of each Interest Period then applicable to the Tranche B Term Loans based on the allocation of the Tranche B Term Loans to such Interest Periods at such time, (iii) the Delayed Draw Incremental Term Loans and the Tranche B Term Loans shall thereafter be deemed to comprise the same Class of Term Loans (i.e., Tranche B Term Loans) and any reference in the Loan Documents to the Tranche B Term Loans or Term Loans (or similar terms) shall also refer to the Delayed Draw Incremental Term Loans and (iv) the Incremental Lenders with respect to the Delayed Draw Incremental Term Loans and the Term Lenders with respect to the Tranche B Term Loans shall thereafter be deemed to comprise the same Class of Lenders (i.e., Tranche B Term Lenders) and any reference in the Loan Documents to the Tranche B Term Lenders or Term Lenders (or similar terms) shall also refer to the Delayed Draw Incremental Term Lenders.
(b)Amounts borrowed under this Section 2 and repaid or prepaid may not be reborrowed.  Delayed Draw Incremental Term Loans may be comprised entirely of ABR Loans or Eurodollar Loans, as further provided in the Credit Agreement.  Amounts borrowed under this Section 2 shall reduce, on a dollar-for-dollar basis, the aggregate principal amount of Incremental Term Loans that are permitted to be borrowed pursuant to Section 2.20(a) of the Credit Agreement.
(c)The Delayed Draw Incremental Term Loans shall rank pari passu in right of payment in respect of the Collateral and with the Obligations and guaranteed on a pari passu basis, in each case in respect of the Revolving Commitments and the Tranche B Term Loans on an equal and ratable basis.

(d)The Borrower shall use the proceeds of the Delayed Draw Incremental Term Loans solely to finance one or more acquisitions permitted under the Credit Agreement (the “Contemplated Acquisition”) and to pay Amendment Transaction Costs.
SECTION 3.  Delayed Draw Commitment Fee.  The Borrower hereby agrees to pay to the Administrative Agent for the account of each Incremental Lender having a Delayed Draw Incremental Term Commitment a commitment fee (the “Delayed Draw Commitment Fee”), which shall accrue during the period from and including the Delayed Draw Incremental Closing Date to but excluding the earliest of (x) the date of borrowing of the Delayed Draw Incremental Term Loans (such date, the “Delayed Draw Funding Date”), (y) the Delayed Draw Termination Date and (z) the date on which the Delayed Draw Incremental Term Commitments are otherwise terminated or reduced to zero (the earliest of (x), (y) and (z), the “Commitment Fee Termination Date”), on the average daily unused amount of the Delayed Draw Incremental Term Commitment of such Incremental Lender at a rate per annum equal to the Applicable Rate in respect of the Tranche B Term Loans applicable to Eurodollar Loans multiplied by (a) 0% for the period from and including the Delayed Draw Incremental Closing Date up to and including the 30th day after the Delayed Draw Incremental Closing Date , (b) 50% for the period from and including the 31st day after the Delayed Draw Incremental Closing Date up to and including the 60th day after the Delayed Draw Incremental Closing Date and (c) 100% thereafter.  The Delayed Draw Commitment Fee shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The Delayed Draw Commitment Fee shall be earned and payable in full on the Delayed Draw Commitment Fee Termination Date.
SECTION 4.  Amendments to Section 1.01.  (a)  Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in the appropriate alphabetical order:
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute. 
“Delayed Draw Funding Date” has the meaning specified in Section 1 of the Delayed Draw Incremental Term Amendment.
“Delayed Draw Incremental Closing Date” has the meaning specified in Section 1 of the Delayed Draw Incremental Term Amendment.
“Delayed Draw Incremental Term Commitment” has the meaning specified in Section 1 of the Delayed Draw Incremental Term Amendment.
“Delayed Draw Incremental Term Amendment” means the Incremental Facility Amendment dated as of July 2, 2013, among Parent, the Borrower, the Lenders party thereto and the Administrative Agent.
“Excluded Swap Guarantor” means TopCo or any Loan Party all or a portion of whose Guarantee of, or grant of a security interest to secure, any Swap Obligation (or any Guarantee thereof) is or becomes unenforceable or is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof). 
“Excluded Swap Obligations” means, with respect to TopCo or any Loan Party, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of TopCo or such Loan Party of, or the grant by TopCo or such Loan Party of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes unenforceable or is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof). If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes unenforceable or is or becomes illegal.
“Repricing Transaction” means, with respect to the Tranche B Term Loans, as applicable, the prepayment or refinancing of all or a portion of such Term Loans concurrently with the incurrence by the Borrower of any long-term bank debt financing or any other financing similar to such Term Loans (other than such prepayments or repayments in connection with an acquisition not permitted under this Agreement, a sale of substantially all of the assets of Parent and its Subsidiaries, an IPO or a Change in Control), in each case having a lower all-in yield than the Applicable Rate in respect of such Term Loans which shall be determined taking into account any applicable interest rate margins, interest rate floors and up-front fees or original issue discount paid or payable generally to lenders providing such existing or replacement tranche, but excluding any arrangement, structuring or similar fees payable in connection therewith not paid or payable to all the lenders providing such tranche.  For purposes of this defined term, original 

issue discount and upfront fees shall be equated to interest margins in a manner consistent with generally accepted financial practice based on an assumed four-year life to maturity (or, if less, the remaining life to maturity). 
“Swap Obligations” means, with respect to TopCo or any Loan Party, an obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of § 1a(47) of the Commodity Exchange Act.
(a)The definition of the term “Commitment” in Section 1.01 of the Credit Agreement is hereby amended by inserting the text “, Delayed Draw Incremental Term Commitment” immediately after the text “Tranche B Term Commitment” in such definition.
(b)The definition of the term “Consolidated EBITDA” in Section 1.01 of the Credit Agreement is hereby amended by (i) inserting the text “(A) solely for purposes of calculating the Applicable Rate for Revolving Loans,” immediately before the text “from” in clause (viii) thereof and (ii) inserting the text “(B) otherwise, from the Delayed Draw Incremental Closing Date until the Tranche B Term Maturity Date” immediately before clause (ix).
(c)The definition of the term “Interest Period” in Section 1.01 of the Credit Agreement is hereby amended by deleting the text “nine or”.
(d)The definition of the term “Permitted Acquisition” in Section 1.01 of the Credit Agreement is hereby amended by (i) replacing the text in clause (d) “have been (or simultaneously with the consummation of such acquisition shall be) taken” with “will have been taken within 30 days after the consummation of such acquisition (or such longer period as the Administrative Agent may agree to in its sole discretion)” and (ii) adding the following at the end thereof:  “; provided, further, that to the extent any Subsidiary relatively contemporaneously consummates a Foreign Acquisition involving the affiliates of the target of an otherwise Permitted Acquisition, such Foreign Acquisition shall constitute part of such Permitted Acquisition”.
(e)The definition of the term “Pro Forma Basis” in Section 1.01 of the Credit Agreement is hereby amended by 
		
	(i)
	inserting the text “, all repayments, repurchases, redemptions, defeasances or other discharges of Indebtedness” immediately prior to the text “and all sales”; and

		
	(ii)
	replacing clause (b) of such definition in its entirety with the following:

		
	(iii)
	(b) have been realized or for which the steps necessary for realization have been taken or are reasonably expected to be taken within (x) solely with respect to any Permitted Acquisition consummated with the proceeds of Loans under the Delayed Draw Incremental Term Commitments, 12 calendar months after such Permitted Acquisition or (y) if otherwise, 180 days (or, in the case of cost savings related to general administrative restructuring, 12 calendar months) following the Transactions, such Permitted Acquisition (other than a Permitted Acquisition described in the immediately preceding clause (x)) or such sale, transfer or other disposition, and as certified by its Financial Officer, provided that, in the case of this clause (b), if cost savings are included in any pro forma calculations based on the reasonable expectation that steps necessary for realization of such cost savings will be taken within (x) solely with respect to any Permitted Acquisition consummated with the proceeds of Loans under the Delayed Draw Incremental Term Commitments, 12 calendar months of such Permitted Acquisition or (y) if otherwise, 180 days (or, in the case of cost savings related to general administrative restructuring, 12 calendar months) of the Transactions, a Permitted Acquisition (other than a Permitted Acquisition described in the immediately preceding clause (x)) or a sale, transfer or other disposition, then on and after the date that is (x) solely with respect to any Permitted Acquisition consummated with the proceeds of Loans under the Delayed Draw Incremental Term Commitments, 12 calendar months after the date of such Permitted Acquisition or (y) if otherwise, 180 days (or, in the case of cost savings related to general administrative restructuring, 12 calendar months) after the date of the Transactions, such Permitted Acquisition (other than a Permitted Acquisition described in the immediately preceding clause (x)) or sale, transfer or other disposition, such pro forma calculations shall not give effect to such cost savings to the extent that the steps necessary for realization were not actually taken during such 180-day (or 12-calendar-month, as applicable) period).

SECTION 5.  Amendments to Section 2.10(a).  On (and subject to the occurrence of) the Delayed Draw Funding Date, Section 2.10(a) of the Credit Agreement shall be amended by (a) increasing the amount under the column heading “Amount” in such Section from (i) $5,000,000 to $6,100,000 for each amortization date from (and including (or, if the Delayed Draw Funding Date occurs after September 30, 2013, excluding)) September 30, 2013, to (and including) December 31, 2014 and (ii) $1,250,000 to $1,525,000 for each amortization date from (and including) March 31, 2015, to (and including) March 31, 2016 and (b) replacing the text “$470,000,000” in the last row of the table in such Section with the text “Remaining principal amount of Tranche B Term Loans”.

SECTION 6.  Amendments to Section 2.11.  Section 2.11 of the Credit Agreement is hereby amended by inserting immediately after Section 2.11(f) thereof the following Section 2.11(g):
“(g)    In the event any Tranche B Term Loans are subject to a Repricing Transaction (i) that occurs prior to the earlier of (A) the date that is six months after the Delayed Draw Incremental Closing Date and (B) the date, if any, on which the Loans under the Delayed Draw Incremental Term Commitments are funded, then each Lender whose Tranche B Term Loans are prepaid or repaid in whole or in part, or which is required to assign any of its Tranche B Term Loans pursuant to Section 9.02(c), in connection with such Repricing Transaction, shall be paid an amount equal to 1.00% of the aggregate principal amount of such Lender's Tranche B Term Loans so prepaid, repaid, assigned or repriced, (ii) that occurs on or after the date, if any, on which the Loans under the Delayed Draw Incremental Term Commitments are funded but prior to the date that is one year after the Delayed Draw Incremental Closing Date, then each Lender whose Tranche B Term Loans are prepaid or repaid in whole or in part, or which is required to assign any of its Tranche B Term Loans pursuant to Section 9.02(c), in connection with such Repricing Transaction, shall be paid an amount equal to 2.00% of the aggregate principal amount of such Lender's Tranche B Term Loans so prepaid, repaid, assigned or repriced or (iii) that occurs on or after the date that is one year after the date, if any, on which the Loans under the Delayed Draw Incremental Term Commitments are funded but prior to the date that is two years after the Delayed Draw Incremental Closing Date, then each Lender whose Tranche B Term Loans are prepaid or repaid in whole or in part, or which is required to assign any of its Tranche B Term Loans pursuant to Section 9.02(c), in connection with such Repricing Transaction, shall be paid an amount equal to 1.00% of the aggregate principal amount of such Lender's Tranche B Term Loans so prepaid, repaid, assigned or repriced.”
SECTION 7.  Amendments to Section 5.12.  Section 5.12 of the Credit Agreement is hereby amended by adding the following at the end thereof: “provided, that to the extent any Subsidiary is formed in connection with or in contemplation of a Permitted Acquisition or any Subsidiary is acquired pursuant to a Permitted Acquisition, the Collateral and Guarantee Requirement shall not be required to be satisfied until the date specified in clause (d) of the definition of “Permitted Acquisition” applicable thereto.
SECTION 8.  Amendments to Section 5.13.  Section 5.13 of the Credit Agreement is hereby amended by adding the following new clause (c) in alphabetical order thereto: “(c) Notwithstanding anything herein to the contrary, no such further assurances specified herein shall be required to be taken in connection with any Permitted Acquisition until the Collateral and Guarantee Requirements are required to be satisfied with respect thereto as set forth in clause (d) of the definition of “Permitted Acquisition”.
SECTION 9.  Amendments to Section 6.04. 
(a)Section 6.04(b) of the Credit Agreement is hereby amended by inserting in such Section the text (i) “(exclusive of any acquisitions consummated prior to the Delayed Draw Incremental Closing Date)” immediately after the text “$200,000,000” and (ii) “(provided that (x) solely for purposes of an acquisition permitted under the Credit Agreement financed in whole or in part by the proceeds of the Delayed Draw Incremental Term Loans, this limit shall be increased by $10,000,000 and (y) for all purposes, such amount shall be exclusive of any acquisitions consummated prior to the Delayed Draw Incremental Closing Date)” after the text “$20,000,000”.
SECTION 10.  Amendments to Section 6.13. On (and subject to the occurrence of) the Delayed Draw Funding Date, Section 6.13 of the Credit Agreement shall be amended by replacing the table therein at such time in its entirety with the following table:
	
		
	Period
	Ratio

	Effective Date through September 30, 2012
	6.15 to 1.00

	October 1, 2012, through December 31, 2012
	7.10 to 1.00

	January 1, 2013, through March 31, 2013
	7.50 to 1.00

	April 1, 2013, through June 30, 2013
	7.75 to 1.00

	July 1, 2013, through September 30, 2013
	7.60 to 1.00

	October 1, 2013, through December 31, 2013
	7.50 to 1.00

	January 1, 2014, through March 31, 2014
	7.35 to 1.00

	April 1, 2014, through June 30, 2014
	7.00 to 1.00

	July 1, 2014, through September 30, 2014
	6.80 to 1.00

	October 1, 2014, through December 31, 2014
	6.50 to 1.00

	January 1, 2015, through June 30, 2015
	6.15 to 1.00

	July 1, 2015, through December 31, 2015
	5.90 to 1.00

	January 1, 2016, and thereafter
	5.55 to 1.00

SECTION 11.  Amendments to Section 6.14.  On (and subject to the occurrence of) the Delayed Draw Funding Date, Section 6.14 of the Credit Agreement shall be amended by replacing the table therein at such time in its entirety with the following table:
	
		
	Date
	Amount

	April 1, 2013, through June 30, 2013
	4.90 to 1.00

	July 1, 2013, through September 30, 2013
	4.85 to 1.00

	October 1, 2013, through December 31, 2013
	4.75 to 1.00

	January 1, 2014, through March 31, 2014
	4.65 to 1.00

	April 1, 2014, through June 30, 2014
	4.45 to 1.00

	July 1, 2014, through September 30, 2014
	4.25 to 1.00

	October 1, 2014, through December 31, 2014
	3.85 to 1.00

	January 1, 2015, through December 31, 2015
	3.55 to 1.00

	January 1, 2016, and thereafter
	3.35 to 1.00

SECTION 12.  Amendments to Section 6.15.  On (and subject to the occurrence of) the Delayed Draw Funding Date, Section 6.15 of the Credit Agreement shall be amended by replacing the text “$12,500,000” with the text “$15,000,000”.
SECTION 13.  Amendment of the Guarantee and Collateral Agreement.  Effective as of the Delayed Draw Incremental Closing Date, the Collateral Agreement is hereby amended as follows:
(a)The definition of the term “Obligations” in Section 1.02 of the Collateral Agreement is hereby amended by inserting the following text immediately after the period at the end of such definition: 
“Notwithstanding the foregoing, in the case of any Excluded Swap Guarantor, “Obligations” shall not include Excluded Swap Obligations of such Excluded Swap Guarantor.”
(b)Article II of the Collateral Agreement is hereby amended by inserting immediately after Section 2.06 thereof the following Section 2.07:
“SECTION 2.07  Cross-Guaranty.  Each Guarantor that is not an Excluded Swap Guarantor at the time the Guarantee or the grant of the security interest hereunder, in each case, by any Loan Party, becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Loan Party with respect to such Swap Obligation as may be needed by such Loan Party from time to time to honor all of its obligations under its Guarantee and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Guarantor's obligations and undertakings under this Article II voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings of each such Guarantor under this Section shall remain in full force and effect until the Loan Document Obligations have been Paid in Full. Each such Guarantor intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee of the obligations of, and a “support or other agreement” for the benefit of, each Loan Party for all purposes of § 1a(18)(A)(v)(II) of the Commodity Exchange Act.”
(c)Section 5.02 of the Collateral Agreement is hereby amended by inserting the following text immediately prior to the final paragraph of such provision.
“Notwithstanding the foregoing, no amounts received from any Excluded Swap Guarantor shall be applied to any Excluded Swap Obligations of such Excluded Swap Guarantor.”
SECTION 14.  Amendment of the TopCo Guarantee Agreement.  Effective as of the Delayed Draw Incremental Closing Date, the TopCo Guarantee Agreement is hereby amended as follows:
(a)The definition of the term “Obligations” in Section 1.02 of the Collateral Agreement is hereby amended by inserting the following text immediately after the period at the end of such definition: 
“Notwithstanding the foregoing, in the case of any Excluded Swap Guarantor, “Obligations” shall not include Excluded Swap Obligations of such Excluded Swap Guarantor.”
(b)Article II of the TopCo Guarantee Agreement is hereby amended by:

(i)inserting the following text immediately prior to the final paragraph of Section 2.05 of the TopCo Guarantee Agreement:
“Notwithstanding any provision of this Agreement to the contrary, no amounts received from any Excluded Swap Guarantor shall be applied to any Excluded Swap Obligations of such Excluded Swap Guarantor.”
(c)inserting immediately after Section 2.06 thereof the following Section 2.07:
“SECTION 2.07  Cross-Guaranty.  TopCo, to the extent that it is not an Excluded Swap Guarantor at the time the Guarantee hereunder becomes effective with respect to any Swap Obligation, hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Loan Party with respect to such Swap Obligation as may be needed by such Loan Party from time to time to honor all of its obligations under its Guarantee and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Guarantor's obligations and undertakings under this Article II voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings of the Guarantor under this Section shall remain in full force and effect until the Loan Document Obligations have been Paid in Full. The Guarantor intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee of the obligations of, and a “support or other agreement” for the benefit of, each Loan Party for all purposes of § 1a(18)(A)(v)(II) of the Commodity Exchange Act.”
SECTION 15.  Amendment to Exhibit A. Exhibit A to the Credit Agreement is hereby amended and restated to read in its entirety as set forth in Exhibit A hereto.
SECTION 16.  Waiver.  From the Delayed Draw Incremental Closing Date until the Delayed Draw Termination Date, the Lenders party hereto (including the Incremental Lenders) hereby waive the requirements in clauses (ii), (iii) and (iv)  of Section 2.20(a) of the Credit Agreement solely with respect to the Delayed Draw Facility; provided that such waivers shall automatically expire on the Delayed Draw Termination Date if the Delayed Draw Funding Date has not occurred, with the same effect as if such waivers had not become effective on the Delayed Draw Incremental Closing Date.
SECTION 17.  Conditions Precedent to the Effectiveness of the Amendment.  This Amendment shall become effective as of the first date on which each of the following conditions is satisfied (or waived by the Lenders party hereto (including the Incremental Lenders)):
(a) The Administrative Agent (or its counsel) shall have received from each party hereto (including the consent of Lenders constituting the Required Lenders) either (A) a counterpart of this Amendment signed on behalf of such party or (B) written evidence satisfactory to the Administrative Agent (which may include facsimile or electronic transmission (including Adobe pdf file) of a signed signature page of this Amendment ) that such party has signed a counterpart of this Amendment.
(b)The Administrative Agent shall have received an opinion (addressed to the Administrative Agent and the Lenders and dated the Delayed Draw Incremental Closing Date) from each of (i) Kirkland & Ellis LLP, New York counsel to the Loan Parties and (ii) local counsel in the Cayman Islands and, in the case of each such opinion required by this paragraph, in form and substance reasonably satisfactory to the Administrative Agent and consistent with prior opinions provided to the Administrative Agent by counsel to the Loan Parties, covering such other matters relating to TopCo, the Loan Parties, the Loan Documents or the Amendment Transactions as the Administrative Agent shall reasonably request.  Each of Parent and the Borrower hereby requests such counsel to deliver such opinions.
(c)The Administrative Agent shall have received such documents and certificates as the Administrative Agent may reasonably request relating to the organization, existence and good standing of TopCo and each Loan Party, the authorization of the Amendment Transactions and any other legal matters relating to TopCo, the Loan Parties, the Loan Documents or the Amendment Transactions (including information required by the Act), all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
(d)The representations and warranties of TopCo and each Loan Party set forth in the Loan Documents (including this Amendment) that are qualified by “materiality”, “Material Adverse Effect” or similar language shall be true and correct, and the representations and warranties that are not so qualified shall be true and correct in all material respects, in each case on and as of the Delayed Draw Incremental Closing Date (other than with respect to any representation and warranty that expressly relates to an earlier date, in which case such representation and warranty shall be true and correct, or true and correct in all material respects, as the case may be, as of such earlier date).
(e)At the time of and immediately after giving effect to the effectiveness of this Amendment, no Default shall have occurred and be continuing.
(f)TopCo shall have entered into a reaffirmation agreement (the “TopCo Reaffirmation Agreement”), in form and substance reasonably acceptable to the Administrative Agent.
(g)The Incremental Lenders shall have received all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act.

(h)The Administrative Agent shall have received all fees and other amounts due and payable by any Loan Party on or prior to the Delayed Draw Incremental Closing Date, including (i) to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses (including fees, charges and disbursements of counsel) required to be reimbursed or paid by any Loan Party under any Loan Document and (ii) an amendment fee, payable to the Adminstrative Agent for the account of each Lender consenting to this Amendment, in an amount equal to 0.25% of the aggregate amount of the Revolving Commitments held by such Lender and the outstanding principal amount of Tranche B Term Loans held by such Lender, in each case immediately prior to giving effect to this Amendment.
SECTION 18.  Delayed Draw Incremental Term Loans.  The obligations of the Incremental Lenders to make the Delayed Draw Incremental Term Loans hereunder on the Delayed Draw Funding Date shall be subject to the satisfaction (or waiver by each Lender then having a Delayed Draw Incremental Term Commitment) of each of the following conditions:
(a)The Delayed Draw Incremental Closing Date shall have occurred.
(b)The Administrative Agent shall have received from the Borrower, at or prior to the time required by Section 2.03 of the Credit Agreement, a Borrowing Request with respect to the Delayed Draw Incremental Term Loans.
(c)The representations and warranties of TopCo and each Loan Party set forth in the Loan Documents (including this Amendment) that are qualified by “materiality”, “Material Adverse Effect” or similar language shall be true and correct, and the representations and warranties that are not so qualified shall be true and correct in all material respects, in each case on and as of the Delayed Draw Funding Date (other than with respect to any representation and warranty that expressly relates to an earlier date, in which case such representation and warranty shall be true and correct, or true and correct in all material respects, as the case may be, as of such earlier date).
(d)At the time of and immediately after giving effect to the making of the Delayed Draw Incremental Term Loans and the application of the proceeds therefrom, no Default shall have occurred and be continuing.
(e)The First-Lien Leverage Ratio for the most-recently ended fiscal quarter of Parent for which financial statements are required to have been delivered pursuant to Section 5.01(a) or Section 5.01(b) of the Credit Agreement, as applicable, determined on a Pro Forma Basis after giving effect to the Amendment Transactions (including the funding of the Delayed Draw Incremental Term Loans, the application of the proceeds therefrom and the assumption of any acquired debt in connection with a Contemplated Acquisition), shall be less than 4.00 to 1.00.
(f)Parent shall have delivered to the Administrative Agent a certificate of its Financial Officer to the effect set forth in clause (e), together with all calculations relevant thereto, including reasonably detailed calculations demonstrating compliance with clause (e) above.
SECTION 19.  Representations and Warranties.  Each of TopCo, Parent, the Borrower and the other Loan Parties hereto hereby represents and warrants to the Administrative Agent and to each of the Lenders (including the Incremental Lenders) that:
(a)Each of TopCo and the Loan Parties has all corporate or other organizational power and authority to execute, deliver and perform its obligations under this Amendment and the TopCo Reaffirmation Agreement, as applicable, and to effect the Amendment Transactions.
(b)The Amendment Transactions to be entered into by it have been duly authorized by all necessary corporate or other organizational action.  This Amendment has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding obligation of TopCo, Parent, the Borrower and each other Loan Party, enforceable against each of them 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.
(c)The representations and warranties of TopCo and each Loan Party set forth in the Loan Documents (including this Amendment) that are qualified by “materiality”, “Material Adverse Effect” or similar language are true and correct, and the representations and warranties that are not so qualified are true and correct in all material respects, in each case on and as of the date hereof (other than with respect to any representation and warranty that expressly relates to an earlier date, in which case such representation and warranty shall be true and correct, or true and correct in all material respects, as the case may be, as of such earlier date).
(d)No Default exists or would result from the Amendment or the Amendment Transactions.
SECTION 20.  Incremental Lenders.  Each Person that is an assignee with respect to a Delayed Draw Incremental Term Commitment pursuant to Section 9.04 of the Credit Agreement shall automatically become a party to this Amendment and shall be an “Incremental Lender” for all purposes hereof with respect to Delayed Draw Incremental Term Commitments.
SECTION 21.  Reaffirmation.  Each of the Loan Parties (which, for purposes of this Section 21, shall exclude TopCo) hereby acknowledges that it expects to receive substantial direct and indirect benefits as a result of this Amendment and the transactions contemplated hereby.  Each Loan Party hereby consents to this Amendment and the transactions contemplated hereby, and hereby (a) reaffirms and confirms its guarantees, pledges, grants and other commitments and obligations, as applicable, under the Loan Documents to which it is party, (b) affirms and confirms its obligations to indemnify and other commitments and obligations under the Loan Documents to which it is a party, and (c) agrees that, 

notwithstanding the effectiveness of this Amendment and the transactions contemplated hereby, (i) the Loan Documents to which it is a party, as amended supplemented and otherwise modified hereby, shall continue to be in full force and effect and (ii) all guarantees, pledges, grants and other obligations thereunder shall continue to be in full force and effect and shall accrue to the benefit of the Secured Parties.  
SECTION 22.  Credit Agreement.  Except as expressly set forth herein, this Amendment (a) shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, Parent, the Borrower or any other Loan Party under the Credit Agreement or any other Loan Document, and (b) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle Parent, the Borrower or any other Loan Party to any future consent to, or waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.  After the date this Amendment becomes effective, any reference in the Loan Documents to the Credit Agreement, the Collateral Agreement or the TopCo Guarantee Agreement shall mean the Credit Agreement, the Collateral Agreement or the TopCo Guarantee Agreement, as the case may be, in each case as modified hereby.  This Amendment shall constitute an “Incremental Facility Amendment” and “Loan Document”, the Delayed Draw Incremental Closing Date shall constitute an “Incremental Facility Closing Date”, each Delayed Draw Incremental Term Loan shall constitute an “Incremental Term Loan” and each Incremental Lender shall constitute a “Lender”, in each case for all purposes of the Credit Agreement and the other Loan Documents.
SECTION 23.  Applicable Law; Waiver of Jury Trial.  (a)THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
(a)EACH PARTY HERETO HEREBY AGREES AS SET FORTH IN SECTION 9.10 OF THE CREDIT AGREEMENT AS IF SUCH SECTION WERE SET FORTH IN FULL HEREIN.
SECTION 24.  Counterparts; Amendment.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission or other electronic imaging shall be effective as delivery of a manually executed counterpart of this Amendment.  This Amendment may not be amended nor may any provision hereof be waived except pursuant to a writing signed by Parent, the Borrower, the Administrative Agent and each Incremental Lender.
SECTION 25.  Expenses.  The Borrower agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment.
SECTION 26.  Headings.  The Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.
SECTION 27.  Construction.  The rules of construction specified in Section 1.02 of the Credit Agreement also apply to this Amendment.

[Signature Pages Follow]

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

	
		
	ASPECT SOFTWARE PARENT, INC.,

	By

	 
	/s/ Robert J. Krakauer

	 
	Name:   Robert J. Krakauer

	 
	Title:   President

	
		
	ASPECT SOFTWARE, INC.,

	By

	 
	/s/ Robert J. Krakauer

	 
	Name:   Robert J. Krakauer

	 
	Title:   Chief Financial Officer

	
		
	JPMORGAN CHASE BANK, N.A., as Administrative Agent,

	By 

	 
	/s/ Goh Siew Tan

	 
	Name: Goh Siew Tan

	 
	Title: Vice President

	 
	 

	 
	 

	 

	
		
	SIGNATURE PAGE TO INCREMENTAL FACILITY AMENDMENT DATED AS OF JULY 2, 2013, TO THE CREDIT AGREEMENT DATED AS OF MAY 7, 2010 AS AMENDED NOVEMBER 14, 2012, AMONG ASPECT SOFTWARE PARENT, INC., ASPECT SOFTWARE, INC., AS BORROWER, THE LENDERS PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT AND ISSUING BANK, AND JPMORGAN CHASE BANK, N.A. AND BANK OF AMERICA, N.A., AS CO-SYNDICATION AGENTS

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