Document:

EXHIBIT 10.54

 

THIRD LOAN MODIFICATION
AGREEMENT

 

This Third Loan Modification
Agreement (the “Agreement”) is entered into as of April     ,
2005, by and among SILICON VALLEY BANK (“Bank” or “Lender”), whose address is
3003 Tasman Drive, Santa Clara, California 95054 and having a loan production
office at 8020 Towers Crescent Drive, Suite 475, Vienna, Virginia 22182
and MANUGISTICS GROUP, INC., a corporation organized under the laws of the
State of Delaware whose address is 9715 Key West Avenue, Rockville, Maryland
20850 (the “Company”), MANUGISTICS, INC., a corporation organized under the
laws of the State of Delaware whose address is 9715 Key West Avenue, Rockville,
Maryland 20850, and any Persons who are now or hereafter made parties to the
Loan Agreement (as hereinafter defined) (each a “Borrower” and collectively, “Borrowers”).

 

1.                                       DESCRIPTION OF EXISTING INDEBTEDNESS:  Among other indebtedness which may be owing
by Borrowers to Lender, Borrowers are indebted to Lender pursuant to, among
other documents, a Loan and Security Agreement dated April 12, 2002, (as
may be amended from time to time, the “Loan Agreement”).  The Loan Agreement provides for, among other
things, a Committed Equipment Line in the original principal amount of Five
Million Dollars ($5,000,000) (the “Equipment Facility”).  In addition, pursuant to that certain Loan
Agreement dated January 14, 2003 by and among the Borrowers and Bank, Bank
has agreed to make a revolving line of credit (the “Revolving Facility”) to
Borrowers in the maximum principal amount of Twenty Million Dollars
($20,000,000) which amount was reduced to Fifteen Million Dollars ($15,000,000)
pursuant to that certain Third Amendment to Loan Agreement, dated March 31,
2004.  Hereinafter, all indebtedness
owing by Borrowers to Lender under the Equipment Facility shall be referred to
as the “Indebtedness.”  Capitalized terms
used herein and not otherwise defined herein shall have the meaning attributed
to such terms in the Loan Agreement.

 

2.                                       DESCRIPTION OF COLLATERAL.  Repayment of the Indebtedness shall be
secured by the Collateral described in the Loan Agreement.  Hereinafter, the Loan Agreement, together
with all other documents securing repayment of the Indebtedness shall be
referred to as the “Existing Loan Documents”.

 

3.                                       MODIFICATIONS TO LOAN AGREEMENT.

 

(a)                                  Section 6.3  of the Loan Agreement is amended and restated
in its entirety as follows:

 

6.3                                 Financial
Covenants.  Borrowers will maintain as of
the last day of each fiscal quarter:

 

(a)                                  Quick Ratio. 
A ratio of (i) Quick Assets to (ii) Current Liabilities, plus
long term Indebtedness to Bank and outstanding letters of credit under the
Committed Revolving Line from Bank to Borrower, minus deferred revenue of at
least 2.00 to 1.00.

 

(b)                                 Tangible Net Worth.  A Tangible Net Worth of at least $90,000,000,
plus fifty percent (50%) consolidated net income (without regard to any loss)
from each fiscal quarter of the Borrowers.

 

(b)                                 The definition of “Total Liabilities” set
forth in Section 13.1 of the Loan Agreement is amended and restated in its
entirety as follows:

 

“Total Liabilities” is on
any day, obligations that should, under GAAP, be classified as liabilities of
the Company and its consolidated Subsidiaries, including all Indebtedness, and
the current portion of Subordinated Debt, if any, that Borrowers are allowed to
pay under Section 7.8 hereof, but only to the extent the Borrowers have
notified Bank in writing that they plan to make such a payment.

 

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

 

 

4.                                       CONSISTENT CHANGES.  The Existing Loan Documents are hereby
amended wherever necessary to reflect the changes described above.

 

5.                                       NO DEFENSES OF BORROWERS.  Borrowers agree that they have no defenses
against the obligations to pay any amounts under the Indebtedness.

 

6.                                       CONTINUING VALIDITY.  Each Borrower understands and agrees that in
modifying the existing Indebtedness, Lender is relying upon Borrowers’
representations, warranties, and agreements, as set forth in the Existing Loan
Documents.  Except as expressly modified
pursuant to this Agreement, the terms of the Existing Loan Documents remain
unchanged and in full force and effect. 
Lender’s agreement to modifications to the existing Indebtedness
pursuant to this Agreement in no way shall obligate Lender to make any future
modifications to the Indebtedness. 
Nothing in this Agreement shall constitute a satisfaction of the
Indebtedness.  It is the intention of
Lender and Borrowers to retain as liable parties all makers and endorsers of
Existing Loan Documents, unless the party is expressly released by Lender in
writing.  No maker, endorser, or
guarantor will be released by virtue of this Agreement.  The terms of this paragraph apply not only to
this Agreement, but also to all subsequent loan modification agreements.

 

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

 

This Agreement is executed
as of the date first written above.

 

BORROWERS:

 

MANUGISTICS GROUP, INC.

 

 

By:

Name:

Title:

 

MANUGISTICS, INC.

 

 

By:

Name:

Title:

 

 

LENDER:

 

SILICON VALLEY BANK

 

 

By:

Name:

Title:EXHIBIT 10.59

 

FIFTH AMENDMENT TO LOAN AGREEMENT

 

This Fifth Amendment to Loan Agreement (this “Agreement”)
is entered into as of April     , 2005, effective as
of March 29, 2005 by and among SILICON VALLEY BANK (“Bank” or “Lender”),
whose address is 3003 Tasman Drive, Santa Clara, California 95054 and having a
loan production office at 8020 Towers Crescent Drive, Suite 475, Vienna,
Virginia 22182 and MANUGISTICS GROUP, INC., a corporation organized under the
laws of the State of Delaware whose address is 9715 Key West Avenue, Rockville,
Maryland 20850 (the “Company”), MANUGISTICS, INC., a corporation organized
under the laws of the State of Delaware whose address is 9715 Key West Avenue,
Rockville, Maryland 20850, and any Persons who are now or hereafter made
parties to the Loan Agreement (as hereinafter defined) (each a “Borrower” and
collectively, “Borrowers”).

 

1.                                       DESCRIPTION OF EXISTING INDEBTEDNESS:  Among other indebtedness which may be owing
by Borrowers to Lender, Borrowers are indebted to Lender pursuant to, among
other documents, a Loan Agreement dated January 14, 2003, (as may be
amended from time to time, the “Loan Agreement”).  The Loan Agreement provides for, among other
things, a Committed Revolving Line in the original principal amount of Twenty
Million Dollars ($20,000,000) (the “Revolving Facility”) which amount was
reduced to Fifteen Million Dollars ($15,000,000) pursuant to that certain Third
Amendment to Loan Agreement, dated March 31, 2004.  In addition, pursuant to that certain Loan
and Security Agreement dated April 12, 2002 by and among the Company,
Manugistics, Inc. and Bank, Bank agreed to make an equipment line of
credit (the “Equipment Facility”) to the Company, and Manugistics, Inc. in
the maximum principal amount of Five Million Dollars ($5,000,000).  Hereinafter, all indebtedness owing by
Borrowers to Lender under the Revolving Facility shall be referred to as the “Indebtedness.”  Capitalized terms used herein and not
otherwise defined herein shall have the meaning attributed to such terms in the
Loan Agreement.

 

2.                                       DESCRIPTION OF COLLATERAL.  Repayment of the Indebtedness shall be
secured by the Collateral upon the occurrence of a Financial Covenant Default
as described in Section 4 of the Loan Agreement.  Hereinafter, the Loan Agreement, together
with all other documents securing repayment of the Indebtedness shall be
referred to as the “Existing Loan Documents”.

 

3.                                       MODIFICATIONS TO LOAN AGREEMENT.

 

(A)                              The following Section is added
immediately after Section 2.2 of the Loan Agreement, as Section 2.2A
of the Loan Agreement:

 

2.2A                       Supplemental Equipment Advances.

 

(a)                                  Through December 31, 2005 (the “Supplemental
Equipment Availability End Date”), Bank will make advances (“Supplemental
Equipment Advance” and, collectively, “Supplemental Equipment Advances”) not
exceeding the Supplemental Committed Equipment Line.  The Supplemental Equipment Advances may only
be used to finance or refinance computer equipment, office furniture and other
capital expenditures

 

(b)                                 Interest accrues from the date of each
Supplemental Equipment Advance at the rate in Section 2.3(a) and is
payable monthly in accordance with Section 2.3(b).  All Supplemental Equipment Advances shall be
evidenced by the Supplemental Equipment Term Note and shall be repaid in accordance
with the terms of this Agreement. 
Supplemental Equipment Advances when repaid may not be reborrowed.

 

(c)                                  To obtain a Supplemental Equipment Advance,
Borrower must notify Bank (the notice is irrevocable) by facsimile no later
than 3:00 p.m. Eastern time one (1) Business Day before the day on
which the Supplemental Equipment Advance is to be made.  The notice in the form of Exhibit B
(Payment/Advance Form) must be signed by a Responsible Officer or designee and
include a copy of the invoice for the assets being financed.

 

 

(B)                                Interest Rate, Payments.  Section 2.3
of the Loan Agreement is hereby amended and restated in its entirety as
follows:

 

2.3                                 Interest Rate, Payments.

 

(a)                                  Advances on the Committed Revolving Line
accrue interest on the outstanding principal balance in accordance with the
Revolving Promissory Note.  Supplemental
Equipment Advances accrue interest at the fixed rate of seven and three
quarters percent (7.75%) per annum.  Any
amounts outstanding during the continuance of an Event of Default, shall accrue
interest at four percent (4.0%) above the rate effective immediately before the
Event of Default.  The interest rate with
respect to any Credit Extensions which accrue interest at a floating rate based
on the Prime Rate, increases or decreases when the Prime Rate changes.  Interest is computed on a 360 day year for
the actual number of days elapsed.

 

(b)                                 Payments. 
Interest due on the Committed Revolving Line is payable on the fifth
(5th) day of each month.  Supplemental
Equipment Advances shall be repaid in equal payments of principal and interest
which would fully amortize each Supplemental Equipment Advance in thirty six
(36) installments, beginning on the first (1st) day of each month following the
date of the Supplemental Equipment Advance and ending on the Supplemental
Equipment Maturity Date, when all outstanding Supplemental Equipment Advances,
all accrued and unpaid interest shall be due and payable in full.

 

(c)                                  Permitted Prepayment of Loans.  Borrower may voluntarily prepay all or any
portion of any Supplemental Equipment Advance upon not less than five (5) Business
Days notice to Bank, provided any such prepayment is accompanied by a
prepayment fee equal to (i) one and one half percent (1.5%) of the amount
prepaid if the prepayment occurs within the first twelve (12) months from the
date of the  Supplemental Equipment
Advance; (ii) one percent (1.0%) of the amount prepaid if the prepayment
occurs after the first twelve (12) months, and prior to the twenty fourth
(24th) month from the date of the Supplemental Equipment Advance; and (iii) one
half of one percent (.50%) of the amount prepaid at all times after the first
twenty four (24) months from the date of the Supplemental Equipment Advance,
provided, however, that the payment of principal due on the Supplemental
Equipment Maturity Date if paid when due, shall not constitute a prepayment
subject to the payment of any fee.  In
addition to the above prepayment fee, at the time of any such prepayment,
Borrower must pay, on the date of the prepayment (A) all unpaid accrued
interest to the date of the prepayment and all other sums, if any, that shall
have become due and payable hereunder with respect to this Agreement.

 

(d)                                 Bank may debit any of Borrower’s deposit
accounts including Account Number                      for
principal and interest payments owing or any amounts Borrower owes Bank.  Bank will promptly notify Borrower when it
debits Borrower’s accounts.  These debits
are not a set-off.  Payments received
after 12:00 noon Eastern time are considered received at the opening of
business on the next Business Day.  When
a payment is due on a day that is not a Business Day, the payment is due the
next Business Day and additional fees or interest accrue.

 

(C)                                Section 6.3 of the Loan Agreement is
amended and restated in its entirety as follows:

 

6.3                                 Financial Covenants.  Borrowers will maintain as of the last day of
each fiscal quarter:

 

(a)                                  Quick Ratio. 
A ratio of (i) Quick Assets to (ii) Current Liabilities, plus
long term Indebtedness to Bank and outstanding letters of credit under the
Committed Revolving Line minus deferred revenue of at least 2.00 to 1.00.

 

(b)                                 Tangible Net Worth.  A Tangible Net Worth of at least $90,000,000,
plus fifty percent (50%) consolidated net income (without regard to any loss)
from each fiscal quarter of the Borrowers.

 

(D)                               The definitions of “Credit Extension”, “Loan
Documents”, “Revolving Maturity Date” and “Total Liabilities” set forth in Section 13.1
of the Loan Agreement are amended and restated in their entirety as follows:

 

 

“Credit
Extension” is each Advance, Letter of Credit, Supplemental Equipment Advance or
any other extension of credit by Bank for any Borrower’s benefit.

 

“Loan
Documents” are, collectively, this Agreement, the Revolving Promissory Note,
the Security Agreement, the Negative Pledge Agreement, the Supplemental
Equipment Note,  any note, or notes or
guaranties executed by any Borrower and any other present or future agreement
between any Borrower and/or for the benefit of Bank in connection with this
Agreement, all as amended, extended or restated.  In addition, at all times after an Event of
Default, the term “Loan Documents” shall also include the Account Control
Agreement and at all times after the Lien Effective Date, the term “Loan
Documents” shall include the Security Agreement.

 

“Revolving
Maturity Date” is March 29, 2007.

 

“Total
Liabilities” is on any day, obligations that should, under GAAP, be classified
as liabilities of the Company and its consolidated Subsidiaries, including all
Indebtedness, and the current portion of Subordinated Debt, if any, that
Borrowers are allowed to pay under Section 7.8 hereof, but only to the
extent the Borrowers have notified Bank in writing that they plan to make such
a payment.

 

(E)                                 The following definitions are added to Section 13.1
of the Loan Agreement:

 

“Supplemental
Committed Equipment Line” is a Credit Extension of up to Five Million Dollars
($5,000,000).

 

“Supplemental
Equipment Advance” is defined in Section 2.2A.

 

“Supplemental
Equipment Availability End Date” is defined in Section 2.2A.

 

“Supplemental
Equipment Maturity Date” means August 31, 2007.

 

“Supplemental
Equipment Term Note” means that certain Equipment Term Note dated April __,
2005 in the principal amount of Five Million Dollars ($5,000,000) from Borrower
in favor of Bank, together with all renewals, amendments, modifications and
substitutions therefor.

 

4.                                       COMPLIANCE CERTIFICATE.  From and after the effective date hereof, Exhibit C
attached hereto shall be the Compliance Certificate for purposes of the
Existing Loan Documents.

 

5.                                       PAYMENT OF LOAN FEE.  Borrower shall pay to Lender an annual fee in
the amount of Seventy Five Thousand Dollars ($75,000) on the date hereof and on
the first anniversary date hereof in connection with the extension of the
Committed Revolving Line and in the amount of Twelve Thousand Five Hundred
Dollars ($12,500) on the date hereof in connection with the Supplemental
Equipment Facility (collectively, the “Loan Fee”) plus all out-of-pocket expenses,
including, without limitation, all fees and expenses of Lender’s counsel.

 

6.                                       CONSISTENT CHANGES.  The Existing Loan Documents are hereby
amended wherever necessary to reflect the changes described above.

 

7.                                       NO DEFENSES OF BORROWERS.  Borrowers agree that they have no defenses
against the obligations to pay any amounts under the Indebtedness.

 

8.                                       CONTINUING VALIDITY.  Each Borrower understands and agrees that in
modifying the existing Indebtedness, Lender is relying upon Borrowers’
representations, warranties, and agreements, as set forth in the Existing Loan
Documents.  Except as expressly modified
pursuant to this Agreement, the terms of the Existing Loan Documents remain
unchanged and in full force and effect. 
Lender’s agreement to modifications to the existing Indebtedness
pursuant to this Agreement in no way shall obligate Lender to make any future
modifications to the Indebtedness. 
Nothing in this Agreement shall constitute a satisfaction of the Indebtedness.  It is the intention of Lender and Borrowers
to retain as liable parties all makers and endorsers of Existing Loan
Documents, unless the party is expressly released by Lender in writing.  No maker, endorser, or guarantor will be
released by virtue of this

 

 

Agreement.  The terms of this paragraph apply not only to
this Agreement, but also to all subsequent loan modification agreements.

 

This
Agreement is executed as of the date first written above.

 

BORROWERS:

 

MANUGISTICS
GROUP, INC.

 

 

By:

Name:

Title:

MANUGISTICS,
INC.

 

By:

Name:

Title:

LENDER:

SILICON
VALLEY BANK

 

By:

Name:

Title:

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