Document:

Exhibit

Exhibit 10.10.5
FIRST AMENDMENT
TO
CREDIT AGREEMENT 

FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of July 18, 2016 (this “Amendment”), among INDEPENDENT BANK GROUP, INC., a Texas corporation (the “Borrower”), THE LENDERS PARTY HERETO, and U.S. BANK NATIONAL ASSOCIATION, as administrative agent (in such capacity, the “Administrative Agent”).
P R E L I M I N A R Y  S T A T E M E N T S:
WHEREAS, Borrower, the Administrative Agent and the lenders named therein are parties to that certain Credit Agreement, dated as of July 22, 2015 (as in effect on the date hereof immediately before giving effect to the amendments contemplated hereby, the “Existing Credit Agreement” and as amended by this Amendment, the “Credit Agreement”; capitalized terms used herein but not otherwise defined herein shall have the meanings given to them in the Credit Agreement); and
WHEREAS, the Borrower has requested that the Lenders agree to amend certain provisions of the Existing Credit Agreement as set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Borrower, the Administrative Agent and each Lender party to the Existing Credit Agreement hereby agree as follows:
SECTION 1    AMENDMENT
Effective as of the Amendment Effective Date (as defined in Section 2 hereof), the Existing Credit Agreement is hereby amended as follows:
(a)    Article I (Definitions) of the Existing Credit Agreement is hereby amended as follows:
(i)    A new defined term, “Amendment Effective Date”, is hereby added in alphabetical order:
““Amendment Effective Date” means July 18, 2016.”
(ii)    The definition of “Termination Date” is hereby amended by deleting the words “July 19, 2016” and replacing them with “July 17, 2017”.
(b)    Section 6.9(c) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following:

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“(c)    Total Risk-Based Capital Ratio of Consolidated Bank Subsidiaries.  With respect to the Consolidated Bank Subsidiaries, maintain a Total Risk-Based Capital Ratio as at the end of each Fiscal Quarter (i) ending prior to the Amendment Effective Date, equal to or greater than 10.75%, and (ii) ending after the Amendment Effective Date, equal to or greater than 10.50%.” 
(c)    Section 6.9(f) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following:
“(f)    Total Risk-Based Capital Ratio of Consolidated Bank Subsidiaries.  With respect to the Borrower and its consolidated Subsidiaries, on a consolidated basis, maintain a Total Risk-Based Capital Ratio as at the end of each Fiscal Quarter (i) ending prior to the Amendment Effective Date, equal to or greater than 11.00%, and (ii) ending after the Amendment Effective Date, equal to or greater than 10.75%.” 
(d)    Exhibit E (Compliance Certificate) of the Existing Credit Agreement is hereby amended as follows:
(i)    Section 6.9(c) of Annex B is hereby amended by deleting the term “Must be equal to or greater than 10.75%” and replacing it with: 
“At the end of each Fiscal Quarter (i) ending prior to the Amendment Effective Date, must be equal to or greater than 10.75%, and (ii) ending after the Amendment Effective Date, must be equal to or greater than 10.50%.”
(ii)    Section 6.9(f) of Annex B is hereby amended by deleting the term “Must be equal to or greater than 11.00%” and replacing it with: 
“At the end of each Fiscal Quarter (i) ending prior to the Amendment Effective Date, must be equal to or greater than 11.00%, and (ii) ending after the Amendment Effective Date, must be equal to or greater than 10.75%.”
SECTION 2    EFFECTIVENESS
This Amendment shall be effective as of the first date set forth above (the “Amendment Effective Date”) subject to the satisfaction of each of the following conditions, and in case of any documentation to be delivered to the Administrative Agent, such documentation shall be in form and substance reasonably satisfactory to the Administrative Agent:
(a)    Amendment.  The Administrative Agent (or its counsel) shall have received counterparts of this Amendment that, when taken together, bear the signatures of (i) the Borrower, (ii) the Administrative Agent, and (iii) each Lender.

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(b)Representations and Warranties; No Default.  (i) At the time of and immediately after giving effect to the consummation of the transactions contemplated hereby on the Amendment Effective Date, all of the representations, warranties and acknowledgments of the Borrower contained in the Existing Credit Agreement and the Related Documents shall be true and accurate in all Material respects as if made on and as of the Amendment Effective Date (except for representations, warranties and acknowledgments which speak as of a particular date) and (ii) at the time of and immediately after giving effect to the consummation of the transactions contemplated hereby on the Amendment Effective Date, no Default shall have occurred and be continuing.
(c)Fees and Expenses.  The Borrower shall have paid all invoiced fees payable in connection with this Amendment and paid or otherwise reimbursed the Administrative Agent for all of its reasonable and documented out-of-pocket fees and expenses, including, without limitation, reasonable fees and expenses of counsel, incurred in connection with the transactions contemplated hereby.
(d)Other.  The Administrative Agent shall have received such other assurances as the Administrative Agent may reasonably request in connection with the transactions contemplated by this Amendment.
SECTION 3    MISCELLANEOUS
(a)This Amendment is a Loan Document.  All references in the Existing Credit Agreement, in any of the other Loan Documents and in any other document or instrument incidental hereto or thereto shall, on and after the Amendment Effective Date, be deemed to mean and refer to the Existing Credit Agreement, as amended pursuant to this Amendment.
(b)To induce the Lenders and the Administrative Agent to enter into this Amendment, the Borrower hereby represents and warrants to the Lenders and the Administrative Agent that as of the Amendment Effective Date, upon giving effect to this Amendment:
(i)    Representations and Warranties.  The representations and warranties contained in the Credit Agreement and in the other Loan Documents apply (and are hereby incorporated herein by reference as if fully set forth herein) with respect to this Amendment and are true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which are true and correct in all respects) on and as of the Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which were true and correct in all respects) on and as of such earlier date.
(ii)    No Event of Default or a Default.  No event has occurred and is continuing or would result from the consummation of this Amendment that would constitute a Default or an Event of Default.

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(c)The Borrower, by its signature below, hereby agrees that, notwithstanding the effectiveness of this Amendment, the Credit Agreement and the Related Documents continue to be in full force and effect (except, in the case of the Credit Agreement, to the extent expressly amended hereby).
(d)This Amendment and the rights and obligations of the parties hereunder shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York without regard to conflict of laws principles thereof that would result in the application of any other law.
(e)This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns pursuant to the terms of Article XIII of the Credit Agreement.
(f)This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile electronic transmission or by email transmission of a pdf (or similar) file format document shall be as effective as delivery of a manually executed counterpart of this Amendment.
[SIGNATURE PAGES FOLLOW]

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

INDEPENDENT BANK GROUP, INC.
By:            /s/ Torry Berntsen 
Name:  Torry Berntsen
Title:    President 
 
 

U.S. BANK NATIONAL ASSOCIATION, 
as a Lender and as Administrative Agent
By:  _______/s/ Greg Hargis___ 
Name:  Greg Hargis
Title:    Vice President
FROST BANK, as a Lender
By: __/s/ Justin Steinbach  
Name: Justin Steinbach
Title:mchx-ex1014_623.htm

Exhibit 10.14

MARCHEX, INC. AMENDED & RESTATED 

ANNUAL INCENTIVE PLAN 

Marchex, Inc., a Delaware corporation (the “Company”), established the Marchex, Inc. Annual Incentive Plan, effective as of January 1, 2007 and as amended effective January 1, 2011 (the “Incentive Plan”). The purpose of the Incentive Plan is to motivate and reward performance resulting in the achievement of corporate objectives, to increase the competitiveness of pay without increasing fixed costs and to align the compensation of the management team to key financial drivers. 

ARTICLE I. 

DEFINITIONS 

Section 1.1—Base Compensation. “Base Compensation,” with respect to a fiscal year, shall mean the Participant’s rate of annual base salary as in effect as of the last day of such fiscal year and shall exclude moving expenses, bonus pay and other payments which are not considered part of annual base salary. 

Section 1.2—Board. “Board” shall mean the Board of Directors of the Company. 

Section 1.3—Code. “Code” shall mean the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein shall be deemed to include a reference to the regulations promulgated under such section. 

Section 1.4—Committee. “Committee” shall mean the Compensation Committee of the Board. 

Section 1.5—Disability. “Disability” shall mean a permanent and total disability, within the meaning of Section 22(e)(3) of the Code. 

Section 1.6—Participant. “Participant” shall mean, with respect to any fiscal year during the term of the Incentive Plan, a key employee of the Company selected by the Committee to participate in the Incentive Plan in accordance with Section 2.3 hereof. 

ARTICLE II. 

BONUS AWARDS 

Section 2.1—Bonus Pool. Each fiscal year the Committee shall determine the maximum aggregate amount of the bonus pool to be awarded hereunder for such fiscal year. 

Section 2.2—Performance Targets. A Participant shall be eligible to earn a bonus award under the Incentive Plan based on the achievement of performance targets by the Company, as determined by the Committee for each fiscal year of the Company. The performance targets for a fiscal year shall be determined on or before March 31st of such year and shall be based on the following objective business criteria and measured against such performance targets, as the Committee determines: (a) revenues; (b) pre-tax income; (c) adjusted operating income before amortization; (d) operating income before amortization; (e) operating income; (f) net earnings; (g) net income; (h) cash flow or funds from operations; (i) adjusted earnings per share; (j) earnings per share; (k) appreciation in the fair market value of the Company’s stock; (l) cost reductions or savings; (m) implementation of critical processes or projects; or (n) adjusted EBITDA or earnings before any of the following items: interest, taxes, depreciation or amortization. 

Section 2.3—Bonus Awards. Each individual who (a) is a key employee and (b) who is selected by the Committee to participate in the Incentive Plan with respect to such fiscal year, shall be eligible for a bonus award with respect to such fiscal year under this Incentive Plan. Each bonus award shall be in the sole discretion of the Committee based on its assessment of (i) the Company’s achievement of the performance targets established by the Committee for the applicable fiscal year, and (ii) the Participant’s performance during such fiscal year. 

ARTICLE III. 

PAYMENT OF BONUS AWARD 

Section 3.1—Form of Payment. Each Participant’s bonus award shall be paid in cash. 

 

 

 

Section 3.2—Timing of Payment. Unless a Participant has properly elected to defer all or part of a bonus award under a deferred compensation plan sponsored by the Company, each bonus award made by the Committee shall be paid within seventy (70) days after the end of the fiscal year to which such bonus award relates. 

ARTICLE IV. 

TERMINATIONS 

A Participant who, whether voluntarily or involuntarily, is terminated, demoted, transferred or otherwise ceases to be a key employee at any time during a fiscal year shall not be eligible to receive a partial fiscal year bonus award; provided, however, that if a Participant has executed an individually negotiated employment contract or agreement with the Company providing otherwise, such Participant’s entitlement to a bonus award for such fiscal year shall be governed by the terms of the individually negotiated employment contract or agreement. 

Notwithstanding the terms of the previous paragraph, in the event of a Participant’s death or disability, or in the event of a change in ownership or control, the Committee may, in its sole discretion, provide partial fiscal year bonus awards to affected Participants. 

ARTICLE V. 

ADMINISTRATION 

It shall be the duty of the Committee to conduct the general administration of the Incentive Plan in accordance with its provisions. The Committee shall have the power to interpret the Incentive Plan, and to adopt such rules for the administration, interpretation and application of the Incentive Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee or the Board in good faith shall be final and binding upon all parties. 

ARTICLE VI. 

OTHER PROVISIONS 

Section 6.1—Amendment, Suspension or Termination of the Incentive Plan. This Incentive Plan does not constitute a promise to pay and may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board. 

Section 6.2—Miscellaneous. 

(a) The Company shall deduct all federal, state and local taxes required by law or Company policy from any bonus paid to a Participant hereunder. 

(b) In no event shall the Company be obligated to pay to any Participant a bonus award for a fiscal year by reason of the Company’s payment of a bonus to such Participant in any other fiscal year. 

(c) The rights of Participants under the Incentive Plan shall be unfunded and unsecured. Amounts payable under the Incentive Plan are not and will not be transferred into a trust or otherwise set aside. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any bonus under the Incentive Plan. 

(d) Nothing contained herein shall be construed as a contract of employment or deemed to give any Participant the right to be retained in the employ of the Company, or to interfere with the rights of the Company to discharge any individual at any time, with or without cause, for any reason or no reason, and with or without notice except as may be otherwise agreed in writing. 

(e) No rights of any Participant to payments of any amounts under the Incentive Plan shall be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of other than by will or by laws of descent and distribution, and any such purported sale, exchange, transfer, assignment, pledge, hypothecation or disposition shall be void. 

(f) Any provision of the Incentive Plan that is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of the Incentive Plan. 

 

 

 

(g) The Incentive Plan and the rights and obligations of the parties to the Incentive Plan shall be governed by, and construed and interpreted in accordance with, the law of the State of Washington (without regard to principles of conflicts of law). 

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