Document:

Exhibit 10.1

 

Confidential materials omitted and filed separately with the Securities and Exchange

Commission. Asterisks (********) denote omissions.

 

TERM SHEET

FOR

MUTUAL COOPERATION

 

APPLIED DNA SCIENCES, INC. / BOREALIS AG

 

Between:

 

	
1.

	
BOREALIS AG, a joint stock company incorporated in Austria having its registered offices at Wagramer Strasse 17-19, 1220 Vienna, Austria (“BOREALIS”); and

 

	
2.

	
Applied DNA Sciences, Inc., a Delaware corporation having its registered offices at 50 Health Sciences Drive, Stony Brook, New York 11790 (“ADNAS”).

 

BOREALIS and ADNAS together referred to as “PARTIES” and each of them as the “PARTY”.

 

This term sheet (“TERM SHEET”) outlines the terms and conditions on which the PARTIES intend to cooperate regarding the supply of ADNAS’s DNA markers - and related additives for BOREALIS’ polyolefin products to enable traceability throughout the value chain.

 

This TERM SHEET is subject to additional agreement between the PARTIES and, except as stated otherwise, it is not intended to be legally binding.

 

	
1

	
General Outline

 

	
1.1

	
The cooperation shall comprise three phases:

 

Phase 0: Establishment of preliminary test and authentication methods with a minimum accuracy to determine ********.

 

Phase 1: Test method to be validated and specified. Joint development and scoping of a concept to prepare production at an industrial scale as further set out under section 1.3. The PARTIES shall enter into phase 2, if the conditions set out under section 1.4 are fulfilled.

 

Phase 2: Launching the product at industrial scale in ********.

 

	
1.2

	
During phase 0, ADNAS shall develop and establish a preliminary test method. The PARTIES will enter into phase 1 if the established test method ensures an accuracy to identify at least ********.

 

	
1.3

	
During phase 1, the PARTIES undertake and shall perform the following:

 

	
1.3.1

	
Preparation of a marketing concept

 

    	  

    	 

    
 

 

Confidential Treatment Requested

 

	
  ●     

	
BOREALIS to analyze customer needs and value proposition for low cost marked polyolefin products in high value applications;

 

	
●     

	
ADNAS to support up to two customer visits to promote concept and to explore interest on request of BOREALIS;

 

	
●     

	
ADNAS and BOREALIS to develop Signature DNA marketing concept ******** in polyolefin products; and

 

	
●     

	
Joint development of business concepts considering marking and authentication business contribution.

 

	
1.3.2  

	
Preparation of a production concept

 

	
●     

	
ADNAS to validate and specify test method established and developed in ********;

 

	
●     

	
ADNAS to deliver DNA markers ********;

	
  

	 

	
●     

	
ADNAS to provide assessment on legal compliance (health and safety related requirements) for the use of DNA markers with bulk polyolefin products in relevant markets such as Europe and USA;

 

	
●     

	
BOREALIS to run pre-tests at two customers and ADNAS to provide marker volumes for the pre-tests in appropriate form;

 

	
●     

	
BOREALIS to provide list of documents required to enable use of DNA markers at industrial scale for BOREALIS’ products;

 

	
●     

	
ADNAS to provide documentation and legal statements that allow the use of DNA markers master batch in Europe;

 

	
●     

	
Joint development of initial logistics concept to handle markers in Europe and US;

 

	
●     

	
BOREALIS to develop and produce two marked compounds for corresponding customer sampling;

 

	
●     

	
BOREALIS to provide or produce marked lab scale samples for high value applications with different concentration of markers;

 

	
●     

	
BOREALIS to run performance tests of application typical properties;

 

	
●     

	
********;

 

	
●     

	
********;

 

	
●     

	
ADNAS to provide authentication of lab and customer trials (********);

 

	
●     

	
Joint assessment and documentation of benefits of DNA marker authentication ********; and

 

    	  

    	 

    
 

 

Confidential Treatment Requested

 

	
●     

	
BOREALIS to follow all ADNAS protocols for quality, secure storage and chain of custody of its DNA marker products.

 

	
1.4  

	
In order to start with phase 2, the following conditions must be fulfilled:

 

	 	
●     

	
Marker formulation and documentation fulfills relevant industry standards for health and safety applicable ********;

 

	 	
●     

	
********;

 

	 	
●     

	
********;

 

	 	
●     

	
********;

 

	 	
●     

	
********;

 

	 	
●     

	
********;

 

	 	
●     

	
********;

 

	 	
●     

	
********; and

 

	
●     

	
********.

 

	
1.5

	
For the performance of the steps as listed under 1.3 and 1.4, the PARTIES will inform each other on a regular basis regarding the status of the individual tasks. In the course of phase 1, the PARTIES acknowledge and agree that no information on either PARTY’s customers, recipes, formulations and application specifications, polymer properties, processing conditions and ******** will be disclosed.

 

	
2

	
Duration

 

This TERM SHEET comes into effect as of the date of its signing by the PARTIES and shall be effective for the period of 40 weeks unless extended or shortened by mutual written consent of both PARTIES. It is the intent of the PARTIES to complete phase 0 within ******** and phase 1 within ******** from completion of phase 0.

 

	
3

	
Developing fees and Exclusivity in phase 0 and phase 1

 

In consideration of the total sum of USD 350,000 (“CONSIDERATION”), ADNAS will undertake and perform the development services as set forth in this term sheet and shall grant worldwide exclusivity to BOREALIS for the production and sale of DNA marked polyolefin products ******** (“EXCLUSIVITY AGREEMENT”). ADNAS will terminate any discussion with any key competitors named and listed by BOREALIS. “Exclusive polyolefin products” shall not include polyolefin textiles, nor any product sold to the US Government. The CONSIDERATION includes the creation of three (3) unique SigNature DNA Marks (title of DNA marks will pass to BOREALIS upon creation of the marks. Marks will be securely stored by ADNAS for use in Phase 0 and Phase 1. ADNAS will notify BOREALIS when the marks have been created. Marks are necessary to complete dilution experiments in Phase 0.)

 

    	  

    	 

    
 

 

Confidential Treatment Requested

 

	
3.1

	
The CONSIDERATION shall be paid by BOREALIS in three instalments:

 

	
 ●     

	
******** due upon signing of this TERM SHEET and the EXCLUSIVITY AGREEMENT;

	
●     

	
******** due when the targets of phase 0 and conditions for phase 1 as set out in section 1.2 are fulfilled; and

	
●     

	
******** due when the targets of phase 1 and conditions for phase 2 as set out in section 1.4 are fulfilled.

 

All payments are to be made to a bank account specified by ADNAS within two weeks after becoming due.

 

	
4

	
Phase 2

 

	
4.1

	
Before entering into phase 2, the PARTIES shall enter into a co-operation negotiating the terms in good faith and regulating inter alia the following:

 

	
●     

	
duration of phase 2;

	
●     

	
contribution and services to be provided by both PARTIES;

	
●     

	
exclusivity;

	
●     

	
consideration;

	
●     

	
rights on jointly developed intellectual property.

 

	
4.2

	
Both companies leave open the option of alternative methods for financing the production scale-up, including but not limited to, ********.

 

	
5

	
Know-how and Intellectual Property Rights

 

	
5.1

	
The PARTIES agree that they (i) will not file any patents with regard to any information which is jointly or independently developed by any PARTY in connection with the activities of phase 0 and 1 without the prior written consent of the other PARTY and (ii) use such information for the purposes as specified in this TERM SHEET only.

 

	
5.2

	
Before starting phase 2, the PARTIES will agree on how to proceed with the intellectual property rights that may arise during their mutual cooperation.

 

	
6

	
Confidentiality

 

The existence and content of this TERM SHEET is strictly confidential and shall not be disclosed by any PARTY to a third party without prior written consent of the other PARTY. The confidentiality agreement signed between the PARTIES as of May 17th, 2013, shall remain unaffected except that it shall also cover the information exchanged under this TERM SHEET and the Purpose as defined therein shall include the purpose of this TERM SHEET. In particular, neither PARTY shall issue a press release or make any other public statement with reference to this TERM SHEET or uses the other PARTY’s name or trademarks for advertising or publicity purposes without the express consent of the other PARTY.

 

    	  

    	 

    
 

 

Confidential Treatment Requested

 

	
7  

	
Costs and Expenses

 

Each PARTY shall pay its own costs and expenses incurred by it in connection with this TERM SHEET or the negotiation of the cooperation.

 

	
8  

	
Legal Effect

 

This TERM SHEET expresses the agreement and understanding of the PARTIES with respect to the matters set forth herein.

 

	
9  

	
Applicable law and jurisdiction

 

This TERM SHEET shall be construed in accordance with the laws of England and Wales. No conflicts-of-law which might refer such construction and interpretation to the laws of another jurisdiction shall be considered. The competent court in London shall have exclusive jurisdiction to adjudicate any dispute arising in connection with this Term Sheet and each PARTY hereby consents to such jurisdiction.

 

IN WITNESS WHEREOF, the PARTIES hereto have caused this TERM SHEET to be executed and delivered by their respective authorized officers or representatives as of the date hereof.

	 	 	 	 	 	 	 	 	 
	
Applied DNA Sciences, Inc.

	 	
BOREALIS AG

	 	 	 
	By:	 /s/ James A. Hayward	

 

	 	By: 	  /s/ Alfred Stern 	

 

	 	 	 	 	 	 	 
	

Name: James A. Hayward

	 	
Name:

	 	 	

 

	Title:	

 Chief Executive Officer, President

	 	

Title: Executive Vice President for Polyolefins

	
and Chairman

	 	 
	 	 	 
	
31 March 2014

	 	 

 

    	  

    	 

    
 

 

Confidential Treatment Requested

SCHEDULE 1

OF

TERM SHEET

FOR

MUTUAL COOPERATION

 

APPLIED DNA SCIENCES, INC. / BOREALIS AG

 

	
1

	
Preamble

 

In order to achieve the accuracy to identify at least ********, as set out in the TERM SHEET in article 1.2 for phase 0, the requirements for the ANALYTICAL METHOD are defined and described in the following articles of this schedule 1.

 

	
2  

	
Definitions

 

For the purpose of this schedule 1, the following terms and expressions shall have the following meaning:

 

	
2.1  

	
BOREALIS MATERIAL means 100% original material, which is marked with DNA at a concentration c (to be developed in co-operation under cost & “accuracy” requirements)

 

	
2.2  

	
RANGE means the content range of BOREALIS MATERIAL in any embodiment to be analyzed in percent, in which the ACCURACY needs to be achieved.

 

	
2.3  

	
AVERAGE CONTENT means a representative averaged analytical result (see background information below).

 

	
2.4  

	
ANALYTICAL METHOD means the analytical process, which yields the analytical result, and starts with sampling through all operations to yield the analytical result.

 

	
2.5  

	
PRECISION means the allowed absolute deviation of the ANALYTICAL METHOD, by which the real value could deviate from the AVERAGE CONTENT (analytical result) with a confidence level of ******** within the defined RANGE.

 

	
3  

	
Phase 0 target summary

 

	
3.1  

	
PRECISION of the ANALYTICAL METHOD of ********

 

	
3.2  

	
RANGE: ********

 

	
3.3  

	
COST: under the same cost assumptions required for phase 1 and as set forth in section 1.4 of the TERM SHEET.

 

	
3.4  

	
Max. DNA marker concentration: ********

 

	
4  

	
Phase 0 target interpretation

 

	
4.1  

	
Phase 0 secures the identification of ******** by non-BOREALIS material on the basis of a statistically secured ANALYTICAL METHOD.

 

	
4.2  

	
An analytical value within the RANGE of ******** would give the security that the real content would be within ******** of the analytical result delivered by the ANALYTICAL METHOD with a probability of ********, e.g.

	
-  

	
an analytical value of ******** would give the security that the real content would be within ********,

 

    	  

    	 

    
 

 

Confidential Treatment Requested

 

	
-  

	
an analytical value of ******** would give the security that the real content would be within ********.

 

	
4.3  

	
For the determination of the PRECISION of the ANALYTICAL METHOD this means the following as demonstrated in two examples (which needs to be reached within the co-operation):

	
-  

	
for a content of BOREALIS MATERIAL of ******** the ANALYTICAL METHOD needs to guarantee a standard deviation, which is equal or lower than ********.

	
-  

	
for a content of BOREALIS MATERIAL of ******** the ANALYTICAL METHOD needs to guarantee a standard deviation, which is equal or lower than ********.

 

	
4.4  

	
AVERAGE CONTENT

 

In practice, if someone would choose to dilute BOREALIS MATERIAL, most probably this would be done by filling BOREALIS MATERIAL ******** and non-BOREALIS material ******** to the feed tank of the application process. Depending on the mixing efficiency of the application process and ********, individual analytical results in the range from 0 – 100% can be obtained in the final “part” (as e.g. the cable or pipe). The AVERAGE CONTENT needs to deliver a representative value for the determination of the BOREALIS MATERIAL ********.

 

	
5 

	
Principal work schedule

- details to be mutually agreed upon between the PARTIES

 

	
5.1  

	
ADNAS to provide DNA marker ********, accompanied by specification of mixing recipe to reach concentration c of BOREALIS MATERIAL; optimum range for marker ******** in order to achieve homogeneity and constancy in c in BOREALIS MATERIAL to be mutually aligned between the PARTIES;

 

	
5.2  

	
BOREALIS to prepare BOREALIS MATERIAL and ******** within the RANGE for ********;

 

	
5.3  

	
BOREALIS to disclose the methodologies for dissolution of polyolefins to ADNAS. ADNAS to perform the analysis on the extracts and to establish the standard deviation achieved by their analysis for the ******** grades for ********;

 

	
5.4  

	
BOREALIS and ADNAS jointly to establish the standard deviation of the ANALYTICAL METHOD (including sampling and extraction) in dependence of ********;

 

	
5.5  

	
If applicable, to be done in two rounds to secure feedback via analytical results for further optimization.EX-10.1

 Exhibit 10.1 

SECOND AMENDMENT TO CREDIT AGREEMENT 

This Second Amendment to Credit Agreement (“Second Amendment”) is made as of July 17, 2014, by and among QuinStreet, Inc.
(“Borrower”), the financial institutions from time to time signatories thereto (collectively, the “Lenders”), and Comerica Bank, as administrative agent for the Lenders (in such capacity, the “Agent”). 

RECITALS 
 A. Borrower
entered into that certain Second Amended and Restated Revolving Credit and Term Loan Agreement dated as of November 4, 2011 (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) with Agent and the
Lenders, under which Lenders extended (or committed to extend) credit to Borrower, as set forth therein. 
 B. Borrower has requested that
the Lenders make certain amendments to the Credit Agreement, and Agent and Lenders are willing to do so, but only on the terms and conditions set forth in this Second Amendment. 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration the receipt and sufficiency of which
are hereby acknowledged, Borrower, Agent and Lenders agree as follows: 
  

	1.	The following definitions are hereby added to Section 1.1 of the Credit Agreement: 

“Liquidity” shall mean as of any date of determination the sum of all cash and other Eligible Assets owned by Borrower which is
maintained in accounts that are subject to a first priority perfected lien in favor of Agent and are free and clear of all other Liens, minus all Debt of the Borrower as of such date. 

“Eligible Assets” shall mean, (i) U.S. Government and agencies obligations having a maturity of not more than three
(3) years after any date of determination; (ii) municipal bonds having an investment grade rating of “A” or better with Moody’s or Standard and Poor’s (“‘A’ Investment Grade Rating”);
(iii) corporate bonds with an ‘A’ Investment Grade Rating; (iv) convertible bonds of not more than three (3) years after any date of determination with an ‘A’ Investment Grade Rating; (v) FDIC insured
certificates of deposit up to the limit of $250,000 per eligible institution having a maturity of not more than three (3) years after any date of determination, and (vi) shares of any money market mutual fund that, (a) complies with
the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, and (b) is rated AAA by Standard and Poor’s or Aaa by Moody’s. 
  

	2.	The following definitions in Section 1.1 of the Credit Agreement are hereby amended and restated as follows: 

“Capital Expenditures” shall mean, for any period, with respect to any Person (without duplication), the aggregate of all
expenditures incurred by such Person and its Subsidiaries during such period for the acquisition or leasing (pursuant to a Capitalized Lease) of fixed or capital assets or additions to equipment, plant

 
and property that should be capitalized under GAAP on a consolidated balance sheet of such Person and its Subsidiaries, including, without limitation, capitalized development expenses but
excluding expenditures made in connection with the Reinvestment of Insurance Proceeds, Condemnation Proceeds or the Net Cash Proceeds of Asset Sales. 

“Fixed Charge Coverage Ratio” shall mean as of any date of determination, a ratio the numerator of which is EBITDA for the four
fiscal quarters ending on such date of determination, minus cash taxes paid during such period, minus unfinanced Capital Expenditures made during such period, minus the aggregate amount of all Distributions made during such period, and the
denominator of which is the sum of each of the following fixed charges for the preceding four fiscal quarters ending on such date of determination: Net Cash Interest Expense, plus trailing four fiscal quarters principal payments of Debt which are
actually made by Borrower (including without limitation, payments with respect to Seller Notes), all as determined on a consolidated basis by Borrower and its consolidated Subsidiaries in accordance with GAAP. 

“Revolving Credit Aggregate Commitment” shall mean Fifty Million Dollars ($50,000,000), subject to increases pursuant to
Section 2.13 hereof by an amount not to exceed the Revolving Credit Optional Increase, subject to reduction or termination under Section 2.11 or 9.2 hereof. 
  

	3.	The definition of “Permitted Acquisition” is amended by deleting the word “and at the end of clause (e); deleting the period at the end of clause (f) and replacing it with “; and”; and
adding the following as new clause (g): 

 “(g) the Fixed Charge Coverage Ratio for the two most recently then ended
fiscal quarters is greater 1.15 to 1.00.” 
  

	4.	New Section 2.3(g) is hereby added to the Credit Agreement as follows: 

 “(g) After
giving effect to such Advance, the Borrower shall be in compliance, on a pro forma basis, with the financial covenant required to be maintained under Section 7.9(c) as of the last day of the month most recently ended.” 

 

	5.	Section 5.2 of the Credit Agreement is hereby amended and restated as follows: 

“5.2 Continuing Conditions. The obligations of each Lender to make Advances (including the initial Advance) under this Agreement
and the obligation of the Issuing Lender to issue any Letters of Credit shall be subject to the continuing conditions that: 
 (A) No
Default or Event of Default shall exist as of the date of the Advance or the request for the Letter of Credit, as the case may be; 

(B) Each of the representations and warranties contained in this Agreement and in each of the other Loan Documents shall be true and correct
in all material respects as of the date of the Advance or Letter of Credit (as the case may be) as if made on and as of such date (other than any representation or warranty that expressly speaks only as of a different date); and 

  
 2 

 (C) With respect to Revolving Credit Advances, Borrower shall be in compliance with
Section 7.9(c) on a pro forma basis after giving effect to any such Revolving Credit Advance.” 
  

	6.	Section 7.1 of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause (a); deleting the period (“.”) at the end of clause (b) and replacing it with a
semi-colon and the word “and” (“; and”); and adding the following as new clause (c): 

“(c) as soon as available, but in any event within thirty (30) days after the last day of each month, excluding
the last month of each Fiscal Quarter, Borrower prepared unaudited Consolidated and if reasonably requested by the Agent, Consolidating balance sheets of the Borrower and its Consolidated Subsidiaries as at the end of such month and the related
unaudited statements of income, stockholders equity and cash flows of the Borrower and its Consolidated Subsidiaries for the portion of the Fiscal Year through the end of such month, setting forth in each case in comparative form the figures for the
corresponding periods in the previous Fiscal Year, and certified by a Responsible Officer of the Borrower as being fairly stated in all material respects;” 
  

	7.	Section 7.2(a) of the Credit Agreement is hereby amended and restated as follows: 

“(a) Concurrently with the delivery of the financial statements described in Sections 7.1(a) for each fiscal year end, 7.1(b) for each
fiscal quarter end, and 7.1(c) for each month end, a Covenant Compliance Report (or, in the case of the Borrower prepared financial statements for the last fiscal quarter of each fiscal year, a draft Covenant Compliance Certificate), and duly
executed by a Responsible Officer of Borrower;” 
  

	8.	Section 7.2(e) of the Credit Agreement is hereby amended and restated as follows: 

“(e) Within forty five (45) days after and as of the end of each fiscal quarter, including the last fiscal quarter of each Fiscal
Year, a report signed by a Responsible Officer, in form reasonably acceptable to Agent, listing any applications or registrations that Borrower or any Guarantor has made or filed in respect of any Patents, Trademarks or Copyrights and the status of
any outstanding applications or registrations, as well as any material change in the Intellectual Property Collateral (as defined in the Collateral Documents), including but not limited to any Patent, Trademark or Copyright not specified in the
exhibits to the Security Agreement;” 
  

	9.	Section 7.2 of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause (f); deleting the period (“.”) at the end of clause (g) and replacing it with a
semi-colon (“;”); and adding the following as new clauses (h) and (i): 

 “(h) Within thirty
(30) days after the last day of each month, including the last month of each Fiscal Year, and, during the continuance of a Default or Event of Default, more frequently as reasonably requested by the Agent or the Majority Lenders, the monthly
aging of the accounts receivable and accounts payable of the Credit Parties, certified by a Responsible Officer of the applicable Credit Party; and 

  
 3 

 (i) Within thirty (30) days after and as of the end of each month, including the last
month of each Fiscal Year, and, during the continuance of a Default or Event of Default, more frequently as requested by the Agent or the Majority Revolving Credit Lenders, a report showing the cash balance maintained in each account held with a
financial institution.” 
  

	10.	Section 7.6(b) of the Credit Agreement is hereby amended and restated as follows: 

“(b) from time to time, during normal business hours, upon the request of the Agent, to conduct full or partial collateral audits of
the Accounts and Inventory of the Credit Parties and appraisals of all or a portion of the fixed assets (including real property) of the Credit Parties, such audits and appraisals to be completed by an appraiser as may be selected by Agent and
consented to by Borrower (such consent not to be unreasonably withheld), with all reasonable costs and expenses of such audits to be reimbursed by the Credit Parties (provided that unless an Event of Default has occurred and is continuing, the
Credit Parties shall not be obligated to reimburse the Agent for more than two (2) such audits or appraisals per calendar year);” 
  

	11.	Section 7.9 of the Credit Agreement is hereby amended and restated as follows: 

“(a) Maintain as of the end of each fiscal quarter, a Fixed Charge Coverage Ratio of not less than the following amounts during the
periods specified below: 
  

					
	 September 30, 2015 through June 30, 2016
	  	 	1.00 to 1.00	 
	 July 1, 2016, and thereafter
	  	 	1.15 to 1.00	  

 For avoidance of doubt, the Fixed Charge Coverage Ratio will not be tested until the fiscal quarter ending
September 30, 2015. 
 (b)Maintain as of the end of each fiscal quarter EBITDA of not less than the following amounts during the
periods specified below: 
  

					
	 April 1, 2014 through June 30, 2015
	  	 	$1	  
	 July 1, 2015 through September 30, 2015
	  	 	$3,400,000	  
	 October 1, 2015 through December 31, 2015
	  	 	$3,200,000	  

 For avoidance of doubt, minimum EBITDA will not be tested after the fiscal quarter ending December 31,
2015. 
 (c) Maintain as of the end of each month Liquidity of not less than $20,000,000.” 

 

	12.	Section 8.5(d) of the Credit Agreement is hereby amended and restated as follows: 

“(d) Borrower may make Distributions to its shareholders and make Purchases from time to time, provided that (i) at the time paid
and after giving effect to such Distribution or Purchase, no Default or Event of Default shall exist, (ii) the 

  
 4 

 
Fixed Charge Coverage Ratio for the two most recently then ended fiscal quarters is greater 1.15 to 1.00, (iii) both before and after giving effect to such Distribution or Purchase, the
Credit Parties will have not less than $75,000,000 in unrestricted and unencumbered cash and cash equivalents, and (iv) the aggregate amount of all such Distributions and Purchases shall not exceed $50,000,000 during the term of this
Agreement;” 
  

	13.	Section 8.6 of the Credit Agreement is hereby amended and restated as follows: 

“8.6 Limitation on Capital Expenditures. Commencing with the Fiscal Year ending June 30, 2015, make or commit to make (by
way of the acquisition of securities of a Person or otherwise) any expenditure in respect of the purchase or other acquisition of fixed or capital assets except for Capital Expenditures, the amount of which shall not exceed $8,000,000 in any Fiscal
Year.” 
  

	14.	Section 11.8(b) of the Credit Agreement is hereby amended and restated as follows: 

“(b) From July 17, 2014 until the required date of delivery (or, if earlier, delivery) of the financial statements under
Section 7.1(a) or 7.1(b) hereof, as applicable, and the Covenant Compliance Report under Section 7.2(a) hereof, for the fiscal quarter ending December 31, 2015, the Applicable Margins and Applicable Fee Percentages shall be those set
forth under the Level IV column of the pricing matrix attached to this Agreement as Schedule 1.1. Thereafter, Applicable Margins and Applicable Fee Percentages shall be based upon the quarterly financial statements and Covenant Compliance Reports,
subject to recalculation as provided in Section 11.8(a) above.” 
  

	15.	Existing Schedule 1.1 to the Credit Agreement is hereby deleted and replaced with new Schedule 1.1 attached hereto as Attachment 1. 

  

	16.	Existing Schedule 1.2 to the Credit Agreement is hereby deleted and replaced with new Schedule 1.2 attached hereto as Attachment 2. 

  

	17.	Existing Exhibit J to the Credit Agreement is hereby deleted and replaced with new Exhibit J attached hereto as Attachment 3. 

  

	18.	Upon satisfaction of the following conditions, each of the parties hereto agrees that the Second Amendment shall become effective (according to the terms hereof) as of June 30, 2014 (“Second Amendment
Effective Date”): 

  

	 	(a)	Agent shall have received fully executed versions of this Second Amendment, in each case duly executed and delivered by Borrower, Agent and the Majority Lenders, in form reasonably satisfactory to Agent and Majority
Lenders. 

  

	 	(b)	Agent shall have received fully executed versions of replacement Revolving Credit Notes for each Revolving Credit Lender, in each case duly executed and delivered by Borrower. 

 

	 	(c)	 Borrower shall have paid (i) to the Agent a nonrefundable amendment fee in an amount equal to twenty (20) basis points of the Revolving
Credit Aggregate Commitment (as such term is amended by this Second Amendment) and aggregate outstanding principal amount of the Term Loan Advances, in each case after giving effect to this Second Amendment, and such fee to be distributed as
determined by the Agent to the Lenders 

  
 5 

	 	
that have executed this Second Amendment, and (ii) to the Agent all fees, costs and expenses, if any, owed to Agent and Lenders and accrued to the Second Amendment Effective Date, in each
case, as and to the extent required to be paid in accordance with the Loan Documents. 

  

	19.	Borrower hereby represents and warrants that, after giving effect to the Second Amendment and consents contained herein, (a) the execution and delivery of this Second Amendment are within its corporate powers, have
been duly authorized, are not in contravention of law or the terms of its organizational documents, and except as have been previously obtained do not require the consent or approval, material to the amendments contemplated in this Second Amendment,
of any governmental body, agency or authority, and this Second Amendment and the Credit Agreement (as amended herein) will constitute the valid and binding obligations of such Borrower enforceable in accordance with its terms, except as enforcement
thereof may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether enforcement is sought in a proceeding
in equity or at law), (b) the continuing representations and warranties set forth in Article 6 of the Credit Agreement are true and correct in all material respects on and as of the date hereof (other than any representation or warranty that
expressly speaks only as of a certain date), and (c) as of this Second Amendment Effective Date, no Default or Event of Default shall have occurred and be continuing. 

 

	20.	Borrower and Lenders each hereby ratify and confirm their respective obligations under the Credit Agreement, as amended by this Second Amendment, and agree that the Credit Agreement hereby remains in full force and
effect after giving effect to this Second Amendment and that, upon such effectiveness, all references in such Loan Documents to the “Credit Agreement” shall be references to the Credit Agreement, as amended by this Second Amendment.

  

	21.	Except as specifically set forth above, this Second Amendment shall not be deemed to amend or alter in any respect the terms and conditions of the Credit Agreement, any of the Notes issued thereunder, or to constitute a
waiver by Lenders or Agent of any right or remedy under or a consent to any transaction not meeting the terms and conditions of the Credit Agreement, any of the Notes issued thereunder or any of the other Loan Documents. 

 

	22.	Unless otherwise defined to the contrary herein, all capitalized terms used in this Second Amendment shall have the meaning set forth in the Credit Agreement. 

 

	23.	This Second Amendment may be executed in counterpart in accordance with Section 13.9 of the Credit Agreement. 

  

	24.	This Second Amendment shall be construed in accordance with and governed by the laws of the State of California. 

  
 6 

 IN WITNESS WHEREOF, the Borrower, the Majority Lenders and Agent have each caused this Second
Amendment to be executed by their respective duly authorized officers or agents, as applicable, all as of the date first set forth above. 
  

			
	COMERICA BANK, as Agent
		
	By:	 	 /S/ Kim Crosslin

	Name:	 	Kim Crosslin
	Title:	 	Senior Vice President

 
			
	COMERICA BANK, as Issuing Lender, as Swing Line Lender and as a Lender
		
	By:	 	 /S/ Kim Crosslin

	Name:	 	Kim Crosslin
	Title:	 	Senior Vice President

 
			
	CREDIT SUISSE AG, Cayman Islands Branch, as a Lender
		
	By:	 	 /S/ Vipul Dhadda

	Name:	 	Vipul Dhadda
	Its:	 	Authorized Signatory
		
	By:	 	 /S/ Sally Reyes

	Name:	 	Sally Reyes
	Its:	 	Authorized Signatory

 
			
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:	 	 /S/ John G. Kowalczuk

	Name:	 	John G. Kowalczuk
	Its:	 	Executive Director

 
			
	MUFG UNION BANK, N.A., as a Lender
		
	By:	 	 /S/ Ryan Bradley

	Name:	 	Ryan Bradley
	Its:	 	Managing Director

 
			
	BANK OF THE WEST, as a Lender
		
	By:	 	 /S/ Helen Huang

	Name:	 	Helen Huang
	Its:	 	Vice President

  

 
			
	SILICON VALLEY BANK, as a Lender
		
	By:	 	 /S/ Lane Bruno

	Name:	 	Lane Bruno
	Its:	 	Vice President

  

 
			
	QUINSTREET, INC.
		
	By:	 	 /S/ Greg Wong

	Name:	 	Greg Wong
	Its:	 	Chief Financial Officer

  

 ATTACHMENT 1 

Schedule 1.1 
 Applicable
Margin Grid 
 Revolving Credit and Term Loan Facility 

(basis points per annum) 
  

																	
	 Basis for Pricing
	  	Level I	 	  	Level II*	 	  	Level III	 	  	Level IV	 
	 Funded Debt to EBITDA Ratio**
	  	 	<0.75 to 1.0	  	  	 
  
  
	30.75 to 1.0
 and

<1.5 to 1.0
	  
   

  
	  	 
  
  
	31.5 to 1.0
 and

<2.25 to 1.0
	  
   

  
	  	3	2.25 to 1.0	  
	 Revolving Credit Eurodollar Margin
	  	 	162.5	  	  	 	187.5	  	  	 	212.5	  	  	 	237.5	  
	 Revolving Credit Base Rate Margin
	  	 	62.5	  	  	 	87.5	  	  	 	112.5	  	  	 	137.5	  
	 Revolving Credit Facility Fee
	  	 	37.50	  	  	 	37.50	  	  	 	37.50	  	  	 	37.50	  
	 Letter of Credit Fees (exclusive of facing fees)
	  	 	162.5	  	  	 	187.5	  	  	 	212.5	  	  	 	237.5	  
	 Term Loan Eurodollar Margin
	  	 	200.0	  	  	 	225.0	  	  	 	250.0	  	  	 	275.0	  
	 Term Loan Base Rate Margin
	  	 	100.00	  	  	 	125.0	  	  	 	150.0	  	  	 	175.0	  

  

	*	Level IV pricing shall be in effect until the delivery of the financial statements for the quarter ending December 31, 2015, after which time the pricing shall adjust in accordance with Section 11.8(a) of the
Credit Agreement. 

	**	Definitions as set forth in the Credit Agreement. 

 ATTACHMENT 2 

Schedule 1.2 

Percentages and Allocations 

Revolving Credit and Term Loan Facilities 
  

																									
	 LENDERS
	  	REVOLVING
CREDIT
ALLOCATIONS	 	  	REVOLVING
CREDIT
PERCENTAGE	 	 	TERM LOAN
ALLOCATIONS	 	  	TERM LOAN
PERCENTAGE	 	 	TOTAL
ALLOCATION	 	  	WEIGHTED
PERCENTAGE	 
	 Comerica Bank
	  	$	11,850,000	  	  	 	23.700000000	% 	 	$	19,452,500	  	  	 	25.100000000	% 	 	$	31,302,500	  	  	 	24.372727273	% 
	 Bank of America
	  	$	11,062,500	  	  	 	22.125000000	% 	 	$	18,018,750	  	  	 	23.250000000	% 	 	$	29,081,250	  	  	 	22.665584416	% 
	 MUFG Union Bank, N.A.
	  	$	8,187,500	  	  	 	16.375000000	% 	 	$	13,368,750	  	  	 	17.250000000	% 	 	$	21,556,250	  	  	 	16.795454545	% 
	 U.S. Bank
	  	$	5,737,500	  	  	 	11.475000000	% 	 	$	9,338,750	  	  	 	12.050000000	% 	 	$	15,076,250	  	  	 	11.751298701	% 
	 Silicon Valley Bank
	  	$	4,925,000	  	  	 	9.850000000	% 	 	$	7,982,500	  	  	 	10.300000000	% 	 	$	12,907,500	  	  	 	10.066233766	% 
	 Bank of the West
	  	$	4,100,000	  	  	 	8.200000000	% 	 	$	6,665,000	  	  	 	8.600000000	% 	 	$	10,765,000	  	  	 	8.392207792	% 
	 Credit Suisse
	  	$	2,500,000	  	  	 	5.000000000	% 	 	$	0	  	  	 	0.000000000	% 	 	$	2,500,000	  	  	 	2.597402597	% 
	 JPMorgan Chase Bank, N.A.
	  	$	1,637,500	  	  	 	3.275000000	% 	 	$	2,673,750	  	  	 	3.450000000	% 	 	$	4,311,250	  	  	 	3.359090909	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 TOTALS
	  	$	50,000,000	  	  	 	100.000000000	% 	 	$	77,500,000	  	  	 	100.000000000	% 	 	$	127,500,000	  	  	 	100.000000000	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 

 EXHIBIT J 

FORM OF COVENANT COMPLIANCE REPORT 
 TO: Comerica
Bank, as Agent 
 RE: Second Amended and Restated Revolving Credit and Term Loan Agreement is made as of the 4th day of November, 2011 (as amended, restated
or otherwise modified from time to time, the “Credit Agreement”) by and among the financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions collectively the
“Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such capacity, the “Agent”) and QuinStreet, Inc. (“Borrower”). This Covenant Compliance Report (“Report”) is furnished pursuant to
Section 7.2(a) of the Credit Agreement and sets forth various information as of                    , 20     (the
“Computation Date”). 
  

	1.	Fixed Charge Coverage Ratio (Section 7.9(a))1. On the Computation Date, the Fixed Charge Coverage Ratio, which is required to be not less than
         to 1.0 was          to 1.0 as computed in the supporting documents attached hereto as Schedule 1. 

 

	2.	EBITDA (Section 7.9(b))2, On the Computation Date, EBITDA, which is required to be not less than
                     was                      as
computed in the supporting documents attached hereto as Schedule 2. 

  

	3.	Liquidity (Section 7.9(c)). On the Computation Date, Liquidity, which is required to be not less than $20,000,000 was
                     as computed in the supporting documents attached hereto as Schedule 3. 

The Borrower’s Representative hereby certifies that: 

A. To the best of my knowledge, the monthly aging of the accounts receivable and accounts payable of the Credit Parties for the most recent
month end are attached to this Report and are true and correct in all material respects.3 

B. To the best of my knowledge, all of the information set forth in this Report (and in any Schedule attached hereto) is true and correct in
all material respects. 
 C. To the best of my knowledge, the representation and warranties of the Credit Parties contained in the Credit
Agreement and in the Loan Documents are true and correct in all material respects with the same effect as though such representations and warranties had been made on and at the date hereof, except to the extent that such representations and
warranties expressly relate to an earlier specific date, in which case such representations and warranties were true and correct in all material respects as of the date when made. 

D. I have reviewed the Credit Agreement and this Report is based on an examination sufficient to assure that this Report is accurate. 

 

	1 	This paragraph 1 shall only be required for the Report delivered at the end of each fiscal quarter and shall not be required until the fiscal quarter ending September 30, 2015. 

	2 	This paragraph 2 shall only be required for the Report delivered at the end of each fiscal quarter and shall not be required after the fiscal quarter ending December 31, 2015. 

	3 	This paragraph A shall only be required for the Report delivered as of the end of each month. 

 E. To the best of my knowledge, except as stated in Schedule 4 hereto (which shall describe any
existing Default or Event of Default and the notice and period of existence thereof and any action taken with respect thereto or contemplated to be taken by Borrower or any other Credit Party), no Default or Event of Default has occurred and is
continuing on the date of this Report. 
 Capitalized terms used in this Report and in the Schedules hereto, unless specifically defined to
the contrary, have the meanings given to them in the Credit Agreement. 

 IN WITNESS WHEREOF, Borrower has caused this Report to be executed and delivered by a Responsible
Officer of the Borrower this              day of                     ,
        . 
  

			
	QUINSTREET, INC.
		
	By:	 	  

	Its:

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