Document:

gvcventure_8k100609ex101.htm

Exhibit 10.1

HALO GROUP, INC.

2007 STOCK PLAN

 

1.   Purposes of the Plan.  The purposes of this Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide
additional incentive to Employees, Directors and Consultants and to promote the success of the Company’s business.  Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant.  Stock Purchase Rights may also be granted under the Plan.

 

2.   Definitions.  As used herein, the following definitions shall apply:

 

(a)   “Administrator” means the Board or any of its Committees as shall be administering the Plan in accordance with Section 4 hereof.

 

(b)   “Applicable Laws” means the requirements relating to the administration of stock option plans under U.S. state corporate laws, U.S. federal and
state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any other country or jurisdiction where Options or Stock Purchase Rights are granted under the Plan.

 

(c)   “Board” means the Company’s Board of Directors.

 

(d)   “Change in Control” means the occurrence of any of the following events:

 

(i)   Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly
or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities, except that any change in the beneficial ownership of the securities of the Company as a result of a transaction undertaken primarily for capital-raising purposes and that is approved by the Board, shall not be deemed to be a Change in Control; or

 

(ii)   The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or

 

(iii)   The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 

	
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Notwithstanding the foregoing definition, in the event an Option or Stock Purchase Right issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Change in Control” for purposes
of such Option or Stock Purchase Right shall be the definition provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.

 

(e)   “Code” means the Internal Revenue Code of 1986, as amended.

 

(f)   “Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board in accordance with Section
4 hereof.

 

(g)   “Common Stock” means the Company’s common stock, par value $.001.

 

(h)   “Company” means Halo Group, Inc., a Texas corporation.

 

(i)   “Consultant” means any person, other than an Employee, who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory
services to such entity.

 

(j)   “Director” means a member of the Board.

 

(k)   “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code.  Notwithstanding the foregoing, in the event
an Option or Stock Purchase Right issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Disability” for purposes of such Option or Stock Purchase Right shall be the definition of “disability” provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.

 

(l)   “Employee” means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company.  Neither
service as a Director or Consultant nor payment of a director’s fee or consulting fee by the Company shall be sufficient to constitute “employment” by the Company.

 

(m)   “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(n)   “Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

 

(i)   If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock
Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

	
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(ii)   If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices
for the Common Stock on the day of determination; or

 

(iii)   In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator using a reasonable valuation method in accordance
with the requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.

 

(o)   “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

 

(p)   “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option.

 

(q)   “Option” means a stock option granted pursuant to the Plan.

 

(r)   “Option Agreement” means a written or electronic agreement between the Company and an Optionee evidencing the terms and conditions of an individual
Option grant.  The Option Agreement is subject to the terms and conditions of the Plan.

 

(s)   “Option Exchange Program” means a program whereby outstanding Options are exchanged for Options with a lower exercise price.

 

(t)   “Optioned Stock” means the Common Stock subject to an Option or a Stock Purchase Right.

 

(u)   “Optionee” means the holder of an outstanding Option or Stock Purchase Right granted under the Plan.

 

(v)   “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

(w)   “Participant” means an Employee, Consultant or Director of the Company or a Subsidiary to whom an Option or Stock Purchase Right is granted under
this Plan.

 

(x)   “Plan” means this Halo Group, Inc. 2007 Stock Plan.

 

(y)   “Restricted Stock” means Shares issued pursuant to a Stock Purchase Right or Shares of restricted stock issued pursuant to an Option.

 

(z)   “Restricted Stock Purchase Agreement” means a written agreement between the Company and the Optionee evidencing the terms and restrictions applying
to Shares purchased under a Stock Purchase Right.  The Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan and the notice of grant.

 

(aa)   “Rule 701” shall mean Rule 701 of the Securities Act.

 

	
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(bb)   “Securities Act” means the Securities Act of 1933, as amended.

 

(cc)   “Service Provider” means an Employee, Director or Consultant.

 

(dd)   “Share” means a share of the Common Stock, as adjusted in accordance with Section 13 below.

 

(ee)   “Stock Purchase Right” means a right to purchase Common Stock pursuant to Section 11 below.

 

(ff)   “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

(gg)   “Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company, any Parent, or any Subsidiary.

 

3.   Stock Subject to the Plan.  Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be subject to Options or Stock
Purchase Rights and sold under the Plan is 1,500,000 Shares, of which the maximum number of Shares that may be delivered pursuant to Incentive Stock Options is 1,500,000.  The Shares may be authorized but unissued, or reacquired Common Stock.

 

If an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, the unpurchased Shares that were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated).  However, Shares that have actually been issued under the Plan, upon exercise
of either an Option or Stock Purchase Right, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if unvested Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the Plan.  Notwithstanding any provisions of the Plan to the contrary, only Shares forfeited back to the Company, Shares canceled on account of termination, expiration or lapse of
an Option, Shares surrendered in payment of the exercise price of an Option or Shares withheld for payment of applicable employment taxes and/or withholding obligations resulting from the exercise of an Option shall again be available for grant of Incentive Stock Options under the Plan, but shall not increase the maximum  number of shares described above as the maximum number of Shares that may be delivered pursuant to Incentive Stock Options.

 

4.   Administration of the Plan.

 

(a)   Administrator.  The Plan shall be administered by the Board or a Committee appointed by the Board, which Committee shall be constituted to comply with Applicable
Laws.

 

(b)   Powers of the Administrator.  Subject to the provisions of the Plan and, in the case of a Committee, the specific duties delegated by the Board to such Committee,
and subject to the approval of any relevant authorities, the Administrator shall have the authority in its discretion:

 

	
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(i)      to determine the Fair Market Value;

 

(ii)   to select the Service Providers to whom Options and Stock Purchase Rights may from time to time be granted hereunder;

 

(iii)   to determine the number of Shares to be covered by each such award granted hereunder;

 

(iv)   to approve forms of agreement for use under the Plan;

 

(v)   to determine the terms and conditions of any Option or Stock Purchase Right granted hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or Stock Purchase
Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or Stock Purchase Right or the Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

 

(vi)   to initiate an Option Exchange Program;

 

(vii)   to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws;

 

(viii)   to allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option or Stock Purchase Right that number of Shares having a Fair Market Value equal
to the minimum amount required to be withheld.  The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined.  All elections by Optionees to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable; and

 

(ix)      to construe and interpret the terms of the Plan and Options granted pursuant to the Plan.

 

(c)   Effect of Administrator’s Decision.  All decisions, determinations and interpretations of the Administrator shall be final and binding on all Optionees.

 

5.   Eligibility and Limitations.

 

(a)   Nonstatutory Stock Options and Stock Purchase Rights may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees.

 

(b)   Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of
the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the order in which they were granted.  The Fair Market Value of the Shares shall be determined as of the time the Option with respect
to such Shares is granted.

 

	
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(c)   If Shares acquired upon exercise of an Incentive Stock Option are disposed of by a Participant prior to the expiration of either two (2) years from the date of grant of such Option or one (1) year from the transfer of Shares to the
Participant pursuant to the exercise of such Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in writing of the date and terms of such disposition.  A disqualifying disposition by a Participant shall not affect the status of any other Option granted under the Plan as an Incentive Stock Option within the meaning of Section 422 of the Code.

 

6.   At-Will Employment.  Neither the Plan nor any Option or Stock Purchase Right shall confer upon any Optionee any right with respect to continuing the Optionee’s
relationship as a Service Provider with the Company, nor shall it interfere in any way with his or her right or the Company’s right to terminate such relationship at any time, with or without cause, and with or without notice.

 

7.   Term of Plan.  Subject to stockholder approval in accordance with Section 19, the Plan shall become effective upon its adoption by the Board.  Unless
sooner terminated under Section 15, it shall continue in effect for a term of ten (10) years from the later of (i) the effective date of the Plan or (ii) the date of the most recent Board approval of an increase in the number of Shares reserved for issuance under the Plan.

 

8.   Term of Option.  The term of each Option shall be stated in the Option Agreement; provided, however, that the term shall be no more than ten (10) years from the
date of grant thereof.  In the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, is a Ten Percent Stockholder, the term of the Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.  Notwithstanding anything to the contrary contained herein, to the extent a Nonstatutory Stock Option issued under the Plan is subject to Section 409A of the Code, the terms and conditions set forth in
the Option Agreement for such Option shall comply with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.

 

9.   Option Exercise Price and Consideration.

 

(a)   Exercise Price.  The per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrator,
but shall be subject to the following:

 

(i)   In the case of an Incentive Stock Option

 

(1)   granted to an Employee who, at the time of grant of such Option, is a Ten Percent Stockholder, the exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.

 

	
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(2)   granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

 

(ii)   Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a merger or other corporate transaction.

 

(b)   Forms of Consideration.  The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined
by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant).  Such consideration may consist of, without limitation, (i) cash, (ii) check, (iii) subject to the approval of the Administrator, a full-recourse promissory note secured by the purchased Shares, the terms of which shall be determined by the Administrator in its sole discretion, (iv) other Shares, provided Shares that were acquired directly from the Company (x) have been owned by the Optionee
for more than six months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised, (v) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or (vi) any combination of the foregoing methods of payment.  In making its determination as to the type of consideration to accept, the Administrator shall consider if
acceptance of such consideration may be reasonably expected to benefit the Company.

 

10.   Exercise of Option.

 

(a)   Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder shall be exercisable according to the terms hereof at such times and under such
conditions as determined by the Administrator and set forth in the Option Agreement.  An Option may not be exercised for a fraction of a Share.

 

An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised.  Full payment may consist of any consideration
and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan.  Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder
shall exist with respect to the Shares, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13 of the Plan.

 

Exercise of an Option in any manner shall result in a decrease in the number of Shares thereafter available for sale under the Option, by the number of Shares as to which the Option is exercised.

 

	
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(b)   Termination of Relationship as a Service Provider.  If an Optionee ceases to be a Service Provider for any reason other than as a result of the Optionee’s
Disability or death, such Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement).  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s termination.  If, on the date of termination,
the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

 

(c)   Disability of Optionee.  If an Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her
Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement).  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination.  If, on the date of termination, the Optionee is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

 

(d)   Death of Optionee.  If an Optionee dies while a Service Provider, the Option may be exercised within such period of time as is specified in the Option Agreement
to the extent that the Option is vested on the date of death (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement), by the Optionee’s designated beneficiary, provided such beneficiary has been designated prior to Optionee’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Optionee, then such Option may be exercised by the personal representative of the Optionee’s estate or by the
person(s) to whom the Option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution.  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination.  If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan.  If
the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

 

(e)   Leaves of Absence.

 

(i)   Unless the Administrator provides otherwise or to the extent required by law, vesting of Options granted hereunder shall be suspended during any unpaid leave of absence.

 

(ii)   A Service Provider shall not cease to be an Employee in the case of (A) any leave of absence approved by the Company or (B) transfers between locations of the Company or between the Company, its
Parent, any Subsidiary, or any successor.

 

	
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(iii)   For purposes of Incentive Stock Options, if the period of leave exceeds three (3) months and the Employee’s right to reemployment is not guaranteed by statute or contract, then the Employee’s
employment with the Company is deemed to terminate on the first day immediately following such three-month period.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then three (3) months following the date such Employee’s employment with the Company is deemed to terminate in accordance with the immediately preceding sentence, any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated
for tax purposes as a Nonstatutory Stock Option.

 

11.   Stock Purchase Rights.

 

(a)   Rights to Purchase.  Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards
made outside of the Plan.  After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within which such person must accept such offer.  The offer shall be accepted by execution of a Restricted Stock Purchase Agreement in the form
determined by the Administrator.

 

(b)   Repurchase Option.  Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable
within ninety (90) days of the voluntary or involuntary termination of the purchaser’s service with the Company for any reason (including death or disability).  The purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company.  The repurchase option shall lapse at such rate as the Administrator may determine.

 

(c)   Other Provisions.  The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Administrator in its sole discretion.

 

(d)   Rights as a Stockholder.  Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to those of a stockholder and shall be a stockholder
when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 13 of the Plan.

 

12.   Transferability of Options and Stock Purchase Rights.  Unless determined otherwise by the Administrator, Options and Stock Purchase Rights may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by will or the laws of descent and distribution, and may be exercised during the lifetime of the Optionee, only by the Optionee.

 

	
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13.   Adjustments; Dissolution or Liquidation; Merger or Change in Control.

 

(a)   Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, may (in its sole discretion) adjust the number and class of Shares that may be delivered under the Plan
and/or the number, class, and price of Shares covered by each outstanding Option or Stock Purchase Right.

 

(b)   Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Optionee as soon as
practicable prior to the effective date of such proposed transaction.  To the extent it has not been previously exercised, an Option or Stock Purchase Right will terminate immediately prior to the consummation of such proposed action.

 

(c)   Merger or Change in Control.  Subject to the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder, in
the event of a merger of the Company with or into another corporation, or a Change in Control, each outstanding Option and Stock Purchase Right shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.  In the event that the successor corporation in a merger or Change in Control refuses to assume or substitute for the Option or Stock Purchase Right, then the Optionee shall fully vest in and have the right to exercise the
Option or Stock Purchase Right as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable, subject to the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  If an Option or Stock Purchase Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or Change in Control, the Administrator shall notify the Optionee in writing or electronically that
the Option or Stock Purchase Right shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Option or Stock Purchase Right shall terminate upon expiration of such period.  For the purposes of this paragraph, the Option or Stock Purchase Right shall be considered assumed if, following the merger or Change in Control, the option or right confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option or Stock Purchase Right immediately
prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the
successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or Stock Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase Right, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of common stock in the merger or Change in Control.

 

	
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14.   Time of Granting Options and Stock Purchase Rights.  The date of grant of an Option or Stock Purchase Right shall, for all purposes, be the date on which the
Administrator makes the determination granting such Option or Stock Purchase Right, or such later date as is determined by the Administrator.  Notice of the determination shall be given to each Service Provider to whom an Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant.

 

15.   Amendment and Termination of the Plan.

 

(a)   Amendment and Termination.  The Board may at any time amend, alter, suspend or terminate the Plan.

 

(b)   Stockholder Approval.  The Board shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws.

 

(c)   Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually
agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company.  Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination.

 

16.   Conditions Upon Issuance of Shares.

 

(a)   Legal Compliance.  Shares shall not be issued pursuant to the exercise of an Option or Stock Purchase Right unless the exercise of such Option or Stock Purchase
Right and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.

 

(b)   Investment Representations.  As a condition to the exercise of an Option or Stock Purchase Right, the Administrator may require the person exercising such Option
to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

 

17.   Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the
Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

18.   Reservation of Shares.  The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient
to satisfy the requirements of the Plan.

 

19.   Stockholder Approval.  The Plan shall be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted.  Such
stockholder approval shall be obtained in the degree and manner required under Applicable Laws.

 

	
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IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of the 1st day of March by its President and Secretary pursuant to prior action taken by the Board.

HALO GROUP INC.

By:       _______________________________________

    Name:    BRANDON C. THOMPSON

               Title:   President

Attest:

____________________________________

T. CRAIG FRIESLAND, Secretary

 

	
Halo Group, inc.

2007 Stock Plan
	
 Page 12WWW.EXFILE.COM, INC. -- 888-775-4789 -- CHATTEM, INC. -- EXHIBIT 10.1 TO FORM 10-Q

 

EXHIBIT 10.1

SEVENTH AMENDMENT TO CREDIT AGREEMENT

THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of September 30, 2009, is by and among CHATTEM, INC., a Tennessee corporation (the
“Borrower”), each of the Borrower’s Domestic Subsidiaries (individually a “Guarantor” and collectively with the Borrower, the “Credit Parties”), the Lenders party hereto and BANK OF AMERICA, N.A., as agent for the Lenders (in such capacity, the “Agent”).

W I T N E S S E T H

WHEREAS, the Credit Parties, the Lenders, and the Agent are parties to that certain Credit Agreement dated as of February 26, 2004 (as amended from time to time, the “Credit
Agreement”);

WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement; and

WHEREAS, the Lenders have agreed to amend the Credit Agreement on the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

PART I

DEFINITIONS

Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Credit Agreement.

PART II

AMENDMENTS TO CREDIT AGREEMENT

SUBPART 2.1 The following definitions are hereby added
to Section 1.1 of the Credit Agreement in the appropriate alphabetical order to read as follows:

“Extending Revolving Lenders” means those Lenders agreeing to extend their Revolving Commitments to January 2, 2013 pursuant to the Seventh Amendment, and any of their successors and permitted assigns of such Revolving Commitments in accordance with Section
11.3.  The Extending Revolving Lenders as of the Seventh Amendment Effective Date are identified on Schedule 1.1(a).  The term “Extending Revolving Lender” shall also include any Lender agreeing to become an Extending Revolving Lender pursuant to an Assignment and Assumption with a Non-Extending Revolving Lender as contemplated by Section 11.3(i).

“IDB” means the Industrial Development Board of the City of Chattanooga, Tennessee.

“Impacted Lender” means any Lender as to which (a) the Issuing Lender has a good faith belief that the Lender has defaulted in fulfilling its obligations under one or more other syndicated credit facilities or (b) an entity that controls the Lender has been deemed
insolvent or become subject to a bankruptcy or other similar proceeding.

“Net Loss” means, for any period, the net loss after taxes for such period of the Borrower and its Subsidiaries on a consolidated basis, as determined in accordance with GAAP.

 

 

 

“Non-Extending Revolving Lenders” means those Lenders whose Revolving Commitments terminate on November 15, 2010 and any of their successors and permitted assigns of such Revolving Commitments in accordance with Section
11.3.  The Non-Extending Lenders as of the Seventh Amendment Effective Date are identified on Schedule 1.1(a) hereto.

“PILOT Program Property” means that certain “ACT plant” of the Borrower located at 3350 Broad Street, Chattanooga, Tennessee 37408.

“PILOT Program Sale and Leaseback Transaction” means the sale and leaseback transaction entered into by the Borrower and the IDB with respect to the PILOT Program Property.

“Seventh Amendment” means that certain Seventh Amendment to Credit Agreement by and among the Borrower, the Guarantors, the Lenders party thereto and the Agent dated as of the Seventh Amendment Effective Date.

“Seventh Amendment Effective Date” means September 30, 2009.

SUBPART 2.2 The definition of “Applicable
Percentage” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Applicable Percentage” means for purposes of calculating (a) the applicable interest rate for any day for Revolving Loans having a Termination Date of January 2, 2013, the applicable rate for any day for the Letter of Credit Fees with respect to any Lender’s
Revolving Commitment that terminates on January 2, 2013 and the applicable rate for any day for the Unused Fee with respect to any Lender’s Revolving Commitment that terminates on January 2, 2013, the appropriate applicable percentages corresponding to the Leverage Ratio in effect as of the most recent Calculation Date as shown below:

	
Pricing

Level
	
Leverage

Ratio
	
Applicable

Percentage For

Eurodollar Loans

and Letter of

Credit Fee
	
Applicable

Percentage

For Base

Rate

Loans
	
 

 

Applicable

Percentage for

Unused Fees

	
I
	
<1.50 to 1.0
	
2.25%
	
1.25%
	
0.375%

	
II
	
>1.50 to 1.0 but < 2.50 to 1.0
	
2.50%
	
1.50%
	
0.500%

	
III
	
> 2.50 to 1.0

but < 3.50 to 1.0
	
2.50%
	
1.50%
	
0.500%

	
IV
	
> 3.50 to 1.0
	
2.75%
	
1.75%
	
0.500%

(b) the applicable interest rate for any day for Revolving Loans having a Termination Date of November 15, 2010, the applicable rate for any day for the Letter of Credit Fees with respect to any Lender’s Revolving Commitment that terminates on November 15, 2010 and the applicable rate for any day for the Unused Fee with respect to
any Lender’s Revolving Commitment that terminates on November 15, 2010, the appropriate applicable percentages corresponding to the Leverage Ratio in effect as of the most recent Calculation Date as shown below:

 

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Pricing

Level
	
Leverage

Ratio
	
Applicable Percentage For Eurodollar Loans and Letter of  Credit Fee
	
 

Applicable Percentage For Base Rate

Loans
	
 

 

 

Applicable Percentage for

Unused Fees

	
I
	
<1.50 to 1.0
	
0.875%
	
0.000%
	
0.200%

	
II
	
>1.50 to 1.0 but < 2.50 to 1.0
	
1.000%
	
0.000%
	
0.250%

	
III
	
> 2.50 to 1.0

but < 3.50 to 1.0
	
1.250%
	
0.000%
	
0.300%

	
IV
	
> 3.50 to 1.0
	
1.500%
	
0.000%
	
0.350%

(c) the applicable interest rate for any day for the Term Loan, a percentage per annum equal to (i) 1.75% for Eurodollar Loans and (ii) 0.75% for Base Rate Loans and (d) the applicable interest rate for any day for the Incremental Term Loan, the percentage(s) per annum set forth in the Incremental Term Loan Joinder Agreement.  The
Applicable Percentage for Revolving Loans, Letter of Credit Fees and the Unused Fee shall be determined and adjusted quarterly on the date (each a “Calculation Date”) five Business Days after the date by which the Borrower is required to provide the officer’s certificate in accordance with the provisions of Section 7.1(c); provided, however,
if the Borrower fails to provide the officer’s certificate required by Section 7.1(c) on or before the most recent Calculation Date or fails to deliver a copy of such officer’s certificate to the Agent as required by Section 7.1(c), the Applicable Percentage for Revolving Loans, Letter of Credit Fees and the Unused Fee from such Calculation Date shall be based on Pricing Level IV in the applicable pricing grid above until such time that an appropriate officer’s certificate is provided whereupon
the Applicable Percentage shall be determined by the then current Leverage Ratio.  Each Applicable Percentage for Revolving Loans, Letter of Credit Fees and the Unused Fee shall be effective from one Calculation Date until the next Calculation Date.  Any adjustment in the Applicable Percentage shall be applicable to all existing Revolving Loans and Letters of Credit as well as any new Revolving Loans or Letters of Credit made or
issued.  The Applicable Percentage in effect from the Seventh Amendment Effective Date through the first Business Day immediately following the date the officer’s certificate is delivered pursuant to Section 7.1(c)(i) for the fiscal quarter ending August 31, 2009 shall be determined based upon Pricing Level III in the applicable pricing grid set forth above.  Notwithstanding anything to the contrary contained in this definition,
the determination of the Applicable Percentage for any period shall be subject to the provisions of Section 3.6(c).

SUBPART 2.3 The definition of “Base
Rate” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced
from time to time by Bank of America as its “prime rate” and (c) the Eurodollar Base Rate plus 1.00%.  The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any
change in the “prime rate” announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change.

 

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SUBPART 2.4 The definition of “Eligible
Assignee” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.3(b)(v), (vi) and (vii) (subject to such consents, if any, as may be required under Section 11.3(b)(iii)).

SUBPART 2.5 The definition of “Eurodollar Base
Rate” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Eurodollar Base Rate” means:

(a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated
by the Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time for any reason, then the “Eurodollar Rate” for such Interest Period shall be the rate per annum determined by the Agent to be the rate at which deposits in Dollars for delivery on the
first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period; and

(b) for any interest rate calculation with respect to a Base Rate Loan, the rate per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m. London time two Business Days prior to the date of determination (provided that if such day is not a Business Day, the next preceding Business Day) for Dollar deposits being delivered in the London
interbank market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made, continued or converted by Bank of America and with a term equal to one month would be offered by Bank of America’s London Branch to major banks in the London intrabank
eurodollar market at their request at approximately 11:00 a.m., London time on the date of determination.

SUBPART 2.6 The definition of “Interest
Payment Date” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Interest Payment Date” means (a) as to Base Rate Loans and Swingline Loans, the last Business Day of each fiscal quarter of the Borrower and on the applicable Termination Date, the Term Loan Maturity Date and the Incremental Term Loan Maturity Date (if any)
and (b) as to Eurodollar Loans, on the last day of each applicable Interest Period and on the applicable Termination Date, the Term Loan Maturity Date and the Incremental Term Loan Maturity Date (if any) and in addition if the Interest Period for a Eurodollar Loan is more than 3 months, then at 3 month intervals beginning on the date 3 months from the beginning of the Interest Period.

SUBPART 2.7 Subclause (b) in the definition of “Interest
Period” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

 

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(b) no Interest Period with respect to any Revolving Loan shall extend beyond the applicable Termination Date with respect to such Revolving Loan,

SUBPART 2.8 The definition of “Letter
of Credit Expiration Date” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Letter of Credit Expiration Date” means the day that is thirty days prior to the applicable Termination Date (or, if such day is not a Business Day, the next preceding Business Day).

SUBPART 2.9 The definition of “Permitted
Liens” in Section 1.1 of the Credit Agreement is hereby amended to add the following new clause (l) at the end thereof to read as follows:

and (l) Liens, if any, in favor of the Issuing Lender and/or the Swing Line Lender to cash collateralize or otherwise secure the obligations of a Defaulting Lender or an Impacted Lender to fund risk participations hereunder.

SUBPART 2.10 The definition of “Revolving
Commitment” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Revolving Commitment” means, with respect to each Lender, the commitment of such Lender in an aggregate principal amount at any time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule
1.1(a), or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement, (i) to make Revolving Loans in accordance with the provisions of Section 2.1(a), (ii) to purchase participation interests in Letters of Credit in accordance with the provisions of Section 2.2 and (iii) to purchase participation interests in Swingline Loans in accordance with the provisions of Section 2.3.

SUBPART 2.11 The definition of “Revolving
Committed Amount” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Revolving Committed Amount” means the Revolving Commitments of all of the Lenders.  The aggregate principal amount of the Revolving Commitments in effect on the Seventh Amendment Effective Date is ONE HUNDRED MILLION DOLLARS ($100,000,000); provided such
amount may be reduced pursuant to the terms hereof; provided further that such amount may be increased to up to ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000) pursuant to Section 2.1(g).

SUBPART 2.12 The definition of “Termination
Date” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Termination Date” means (a) with respect to the Revolving Commitment of each Non-Extending Revolving Lender, November 15, 2010 and (b) with respect to the Revolving Commitment of each Extending Revolver Lender, January 2, 2013.

SUBPART 2.13 The definition of “Treasury
Management Agreement” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Treasury Management Agreement” means any agreement governing the provision of treasury or cash management services, including deposit accounts, overdraft, credit or debit card, 

 

 

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funds transfer, automated clearinghouse, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services and other cash management services.

SUBPART 2.14 Section 2.1(a) of the Credit Agreement
is hereby amended to read as follows:

(a)           Revolving Commitment.   Subject to the terms and conditions set forth herein, each Lender severally agrees to make revolving loans (each a “Revolving
Loan” and collectively the “Revolving Loans”) to the Borrower, in Dollars, at any time and from time to time, during the period from and including the Closing Date to but not including the applicable Termination Date (or such earlier date if the applicable Revolving Commitments have been terminated as provided herein); provided, however,
that (i) the sum of the aggregate amount of Revolving Loans outstanding plus the aggregate amount of LOC Obligations outstanding plus the aggregate amount of Swingline Loans outstanding shall not exceed the aggregate Revolving Commitments then in effect, and (ii) with respect to each individual Lender, such Lender’s outstanding Revolving Loans shall not exceed such Lender’s Commitment Percentage of the aggregate Revolving Commitments then in effect.

SUBPART 2.15 Section 2.2(a)(ii) of the Credit Agreement
is hereby amended to read as follows:

(ii)           The Issuing Lender shall not issue any Letter of Credit if:

(A)            the expiry date of such requested Letter of Credit would occur more than twelve months after the date of issuance, unless Lenders holding more than fifty percent (50%) of the Revolving Commitments have approved such expiry date; or

(B)           the expiry date of such requested Letter of Credit would occur after the applicable Letter of Credit Expiration Date, unless all the applicable Lenders with a Revolving Commitment have approved such expiry date.

SUBPART 2.16 Section 2.2(a)(iii)(F) of the Credit Agreement
is hereby amended to read as follows:

(F)           a default of any Lender’s obligations to fund under Section 2.2(c) exists or any Lender is at such time a Defaulting Lender or an Impacted Lender hereunder, unless the Issuing Lender has entered into satisfactory arrangements with the Borrower or such Lender to
eliminate the Issuing Lender’s risk with respect to such Lender.

SUBPART 2.17 The following subsection (vii) is hereby
added at the end of Section 2.2(c) of the Credit Agreement to read as follows:

(vii)           It is understood and agreed that with respect to any Letters of Credit having an expiry date later than November 10, 2010, only the Extending Revolving Lenders shall have a participation interest in such Letters of Credit (each such participation interest to be based
on such Extending Revolver Lender’s Commitment Percentage of only those Revolving Commitments with a Termination Date of January 2, 2013).

SUBPART 2.18 The first sentence in Section 2.3(a) of
the Credit Agreement is hereby amended to read as follows:

 

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Subject to the terms and conditions set forth herein, the Swingline Lender may, in its discretion and in reliance upon the agreements of the other Lenders set forth in this Section 2.3, make swingline loans (each a “Swingline
Loan” and collectively the “Swingline Loans”) to the Borrower, in Dollars, at any time and from time to time, during the period from and including the Closing Date to but not including the applicable Termination Date (or such earlier date if the Revolving Committed Amount has been terminated as provided herein) in an aggregate amount not to exceed at any time outstanding the amount of the Swingline Committed Amount, notwithstanding
the fact that such Swingline Loans, when aggregated with the Commitment Percentages of the outstanding principal amount of Revolving Loans and LOC Obligations of the Swingline Lender in its capacity as a Lender of Revolving Loans, may exceed the amount of such Lender’s Revolving Commitment; provided, however, that (i) the sum of the aggregate amount of Revolving Loans outstanding
plus the aggregate amount of LOC Obligations outstanding plus the aggregate amount of Swingline Loans outstanding shall not exceed the Revolving Committed Amount, and (ii) the outstanding Swingline Loans shall not exceed the Swingline Committed Amount, and provided, further, that the Borrower shall not use the proceeds of any Swingline Loan to refinance any outstanding Swingline Loan.

SUBPART 2.19 Section 3.4(a) of the Credit Agreement
is hereby amended to read as follows:

(a)           Unused Fees.  In consideration of the Revolving Commitments of the Lenders hereunder, the Borrower agrees to pay to the Agent for the account of each Lender with a Revolving Commitment a fee (the
“Unused Fee”) computed at a per annum rate on the Unused Revolving Committed Amount during the Unused Fee Calculation Period (hereinafter defined) equal to the Applicable Percentage for Unused Fees then in effect; provided, that (i) no Unused Fee shall accrue on the Revolving Commitment of a Defaulting Lender
so long as such Lender shall be a Defaulting Lender and (ii) any Unused Fee accrued with respect to the Revolving Commitment of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower so long as such Lender shall be a Defaulting Lender.  The Unused Fee shall commence to accrue on the Closing Date and shall be due and payable in arrears on the last business day of each March, June, September and December
(and any date that the Revolving Committed Amount is reduced as provided in Section 2.1(d) and the applicable Termination Date) for the immediately preceding quarter (or portion thereof) (each such quarter or portion thereof for which the Unused Fee is payable hereunder being herein referred to as an “Unused Fee Calculation Period”), beginning with the first of such dates to occur after the Closing Date.

SUBPART 2.20 Section 3.5(a) of the Credit Agreement
is each hereby amended to read as follows:

(a)           Revolving Loans.  (i) On November 15, 2010, the entire outstanding principal balance of all Revolving Loans having a Termination Date of November 15, 2010, together with accrued but unpaid interest
and all other sums owing with respect thereto, shall be due and payable in full, unless accelerated sooner pursuant to Section 9, and (ii) on January 2, 2013, the entire outstanding principal balance of all Revolving Loans having a Termination Date of January 2, 2013, together with accrued but unpaid interest and all other sums owing with respect thereto, shall be due and payable in full, unless accelerated sooner pursuant to Section 9.

SUBPART 2.21 The first sentence of Section 3.6(a) of
the Credit Agreement is hereby amended to read as follows:

 

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Except for Base Rate Loans, in which case interest shall be computed on the basis of a 365 or 366 day year as the case may be, all computations of interest and fees hereunder shall be made on the basis of the actual number of days elapsed over a year of 360 days.

SUBPART 2.22 Section 3.11 of the Credit Agreement is
hereby amended to read as follows:

3.11           Inability To Determine Interest Rate.

If prior to the first day of any Interest Period, the Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Interest Period with respect to a proposed Eurodollar
Rate Loan or in connection with a Base Rate Loan, the Agent shall promptly give telecopy or telephonic notice thereof to the Borrower and the Lenders.  If such notice is given (a) any Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as Base Rate Loans as to which the interest rate is not determined with reference to the Eurodollar Rate, (b) any Loans that were to have been converted on the first day of such Interest Period to or continued as Eurodollar Loans
shall be converted to or continued as Base Rate Loans as to which the interest rate is not determined with reference to the Eurodollar Rate and (c) any outstanding Eurodollar Loans shall be converted, on the first day of such Interest Period, to Base Rate Loans as to which the interest rate is not determined with reference to the Eurodollar Rate.  Until such notice has been withdrawn by the Agent, no further Eurodollar Loans or Base Rate Loans as to which the interest rate is determined with reference
to the Eurodollar Rate shall be made or continued as such, nor shall the Borrower have the right to convert Base Rate Loans to Eurodollar Loans.

SUBPART 2.23 Section 3.12 of the Credit Agreement is
hereby amended to read as follows:

3.12           Illegality.

Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law or in the interpretation or application thereof occurring after the Closing Date shall make it unlawful for any Lender to make or maintain Eurodollar Loans, or to determine or charge interest rates based upon the Eurodollar Rate, as
contemplated by this Credit Agreement, (a) such Lender shall promptly give written notice of such circumstances to the Borrower and the Agent (which notice shall be withdrawn whenever such circumstances no longer exist), (b) the commitment of such Lender hereunder to make Eurodollar Loans, continue Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans or, if such notice relates to the unlawfulness or asserted unlawfulness of charging interest based on the Eurodollar Rate, to make Base Rate
Loans as to which the interest rate is determined with reference to the Eurodollar Rate shall forthwith be canceled and, until such time as it shall no longer be unlawful for such Lender to make or maintain Eurodollar Loans or Base Rate Loans as to which the interest is determined with reference to the Eurodollar Rate, such Lender shall then have a commitment only to make a Base Rate Loan as to which the rate of interest is not determined with reference to the Eurodollar Rate when a Eurodollar Loan is requested
and (c) such Lender’s Loans then outstanding as Eurodollar Loans or Base Rate Loans as to which the interest rate is determined with reference to the Eurodollar Rate, if any, shall be converted automatically to Base Rate Loans as to which the rate of interest is not determined with reference to the Eurodollar Rate on the respective last days or the then current Interest Periods with respect to such Loans or within such earlier period as required by law.  If any such conversion of a Eurodollar
Loan or a Base Rate Loan as to which the interest rate is determined with reference to the Eurodollar Rate occurs on a day which is not the last day of the then current Interest Period with respect thereto, 

 

 

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the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section 3.15.  Notwithstanding the foregoing and despite the illegality for such a Lender to make, maintain or fund Eurodollar Rate Loans or Base Rate Loans as to which the interest rate is determined with reference to the Eurodollar
Base Rate, that Lender shall remain committed to make Base Rate Loans and shall be entitled to recover interest at the Base Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.

SUBPART 2.24 The language preceding the first proviso
in Section 3.16 of the Credit Agreement is hereby amended to read as follows:

If (a) any Lender delivers a notice to the Borrower pursuant to Sections 3.10, 3.13 or 3.14, (b) a Lender (a “Non-Consenting Lender”) does not consent to a proposed change, waiver, discharge or termination with respect to any Credit Document that has been approved
by the Required Lenders as provided in Section 11.6 or (c) any Lender is a Defaulting Lender, then the Borrower shall have the right, if no Default or Event of Default then exists, to either (i) replace such Lender (the “Replaced Lender”) with one or more additional banks or financial institutions (collectively, the “Replacement Lender”),

SUBPART 2.25 The following subsection (o) is hereby
added at the end of Section 7.1 of the Credit Agreement to read as follows:

(o)           PILOT Program.  Promptly upon the consummation of any PILOT Program Sale and Leaseback Transaction, the Borrower shall provide copies of the documentation governing such PILOT Program Sale and
Leaseback Transaction to the Agent.

SUBPART 2.26 Subclause (d) in Section 8.5 of the Credit
Agreement is hereby amended to read as follows:

(d) sales of product lines (or the right to produce a consumer product or products) provided that (i) the dispositions permitted under this subparagraph (d) during any fiscal year shall be limited to product lines (or the right to produce a consumer product or products) having aggregate sales for the four fiscal quarter period ending immediately
preceding the sale that result in EBITDA for such four fiscal quarter period in an aggregate amount not exceeding ten percent (10%) of EBITDA for such four fiscal quarter period and (ii) the Credit Parties shall have delivered to the Agent a Pro Forma Compliance Certificate demonstrating that after giving effect to any such disposition on a Pro Forma Basis, the Credit Parties and their Subsidiaries would have been in compliance with all the financial covenants set forth in Section 7.12,

SUBPART 2.27 Section 8.7 of the Credit Agreement is
hereby amended to read as follows:

8.7           Restricted Payments.

No Credit Party will, nor will it permit any of its Subsidiaries to, directly or indirectly,  (a) declare or pay any dividends (whether cash or otherwise) or make any other distribution upon any shares of its Capital Stock of any class (other than dividends or distributions payable in Capital Stock) or (b) purchase, redeem or
otherwise acquire or retire or make any provisions for redemption, acquisition or retirement of any shares of its Capital Stock of any class or any warrants or options to purchase any such shares (other than the purchase, redemption, acquisition or retirement of any shares of Capital Stock or any warrants or options to purchase any such shares with shares of Capital Stock) (any such declaration, payment, distribution, purchase, 

 

 

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redemption or other acquisition, a “Restricted Payment”); provided, however, (i) the Subsidiaries of the Borrower may pay dividends to the Borrower and (ii) the Borrower may purchase, redeem, acquire or retire shares of its Capital Stock of any class or any warrants or options to purchase any such shares of its Capital Stock
occurring subsequent to the Seventh Amendment Effective Date in an aggregate amount (on a cumulative basis) not to exceed an amount equal to (A) $55 million plus (B) an amount equal to 50% of Net Income (excluding any net gain or loss resulting from an Asset Disposition as determined in accordance with GAAP) for any fiscal quarter ending subsequent to the Seventh Amendment Effective Date (or less an amount equal to 100% of Net Loss (excluding any net gain or loss resulting from an Asset Disposition as determined
in accordance with GAAP) for any fiscal quarter ending subsequent to the Seventh Amendment Effective Date); provided, that (x) before and after giving effect to any such repurchase or retirement, no Default or Event of Default exists and (y) after giving effect to any such repurchase or retirement, the Borrower shall have at least twenty percent (20%) of availability under the Revolving Committed Amount.  For the avoidance of doubt, the parties hereto agree that (a) nothing contained in this Section
8.7 shall prohibit the Borrower from using $32,042,500 of the proceeds from the issuance of the Convertible Notes to fund a convertible note hedge transaction with an affiliate of Merrill Lynch & Co. on the date of the issuance of the Convertible Notes, which transaction is designed to offset the Borrower’s exposure to potential dilution of its common stock upon the conversion of the Convertible Notes and (b) the use of such proceeds as described above shall not be considered a Restricted Payment.

SUBPART 2.28 Section 8.11 of the Credit Agreement is
hereby amended to read as follows:

8.11           Subordinated Debt.

Notwithstanding Section 8.10, no Credit Party will (a) make or offer to make any principal payments with respect to the Subordinated Debt, (b) redeem or offer to redeem any of the Subordinated Debt or (c) deposit any funds intended to discharge or defease any or all of the Subordinated Debt; provided, however,
the Borrower may redeem or prepay the Subordinated Debt; provided, that (i) no Default or Event of Default exists before or after giving effect to any such redemption or prepayment and (ii) after giving effect to any such redemption or prepayment, the Borrower shall have at least twenty percent (20%) of availability under the Revolving Committed Amount.  The Subordinated
Debt or the Subordinated Indenture may not be amended or modified in any material manner without the prior written consent of the Required Lenders, it being specifically understood and agreed that no amendment to Article Four or Article Twelve of the Subordinated Indenture shall be made without the prior written consent of the Required Lenders.

SUBPART 2.29 Section 8.13 of the Credit Agreement is
hereby amended to read as follows:

8.13           Sale Leasebacks.

Other than the PILOT Program Sale and Leaseback Transaction, no Credit Party will, nor will it permit any of its Subsidiaries to, directly or indirectly become or remain liable as lessee or as guarantor or other surety with respect to any lease, of any property (whether real or personal or mixed), whether now owned or hereafter acquired,
(a) which such Credit Party or Subsidiary has sold or transferred or is to sell or transfer to any other Person other than a Credit Party or (b) which such Credit Party or Subsidiary intends to use for substantially the same purpose as any other property which has been sold or is to be sold or transferred by such Credit Party or Subsidiary to any Person in connection with such lease.

SUBPART 2.30 Section 8.14 of the Credit Agreement is
hereby amended to read as follows:

 

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8.14           Negative Pledges.

None of the Credit Parties will, nor will it permit any of its Subsidiaries to, enter into, assume or become subject to any agreement prohibiting or otherwise restricting the creation or assumption of any Lien upon its properties or assets, whether now owned or hereafter acquired, or requiring the grant of any security for such obligation
if security is given for some other obligation, except for (a) as set forth in Section 4.12 of the Subordinated Indenture and (b) lien restrictions of IDB with respect to the PILOT Program Property provided that any such lien restrictions of IDB provide for an exception for a first priority lien in favor of the Agent for the benefit of the holders of the Credit Party Obligations in the PILOT Program Property.

SUBPART 2.31 Section 8.15 of the Credit Agreement is
hereby amended to read as follows:

8.15           Capital Expenditures.

The Credit Parties and their Subsidiaries will not make Capital Expenditures, in any fiscal year, that would exceed $10,000,000 in the aggregate plus up to $5,000,000 of the unused amount available for Capital Expenditures under this Section 8.15 for the immediately preceding
fiscal year (excluding any carry forward available from any prior fiscal year other than the immediately preceding fiscal year); provided, however, in addition to the maximum annual Capital Expenditures permitted by the preceding clause, the Credit Parties shall also be permitted to make one time Capital Expenditures not to exceed $18,000,000 in the aggregate related to the Borrower’s
construction of a new facility at its Broad Street location in Chattanooga, Tennessee to be used for the manufacture of ACT mouthwash.

SUBPART 2.32 A new subsection (vii) is hereby added
immediately following subsection (vi) in Section 11.3(b) of the Credit Agreement to read as follows:

(vii)           No Assignment to Defaulting Lenders or Impacted Lenders.  No such assignment shall be made to any Defaulting Lender or any Impacted Lender.

SUBPART 2.33 A new subsection (i) is hereby added at
the end of Section 11.3 of the Credit Agreement to read as follows:

(i)           Assignment by a Non-Extending Revolving Lender.  If a Non-Extending Revolving Lender assigns all or a portion of such Non-Extending Revolving Lender’s Revolving Commitment and Revolving
Loans (including such Non-Extending Revolving Lender’s participations in LOC Obligations and/or Swingline Loans) to an Eligible Assignee pursuant to the terms of this Section 11.3, such Eligible Assignee may agree in the applicable Assignment and Assumption to become an Extending Revolving Lender with respect to such assigned Revolving Commitments, Revolving Loans and participations in such LOC Obligations and/or Swingline Loans and agree in the applicable Assignment and Assumption to extend the Termination
Date with respect to such assigned Revolving Commitments, Revolving Loans and participations in LOC Obligations and/or Swingline Loans to January 2, 2013.  In the event such Eligible Assignee agrees to become an Extending Revolver Lender with respect to any assigned interest from a Non-Extending Revolving Lender, such assigned Revolving Commitments, Revolving Loans and participations in LOC Obligations and/or Swingline Loans of such Extending Revolving Lender shall, commencing on the effective date
of such Assignment and Assumption, automatically begin to receive the more favorable pricing with respect to Revolving Loans, Letter of Credit Fees and Unused Fees contained in subclause (b) of the definition of 

 

 

- 11 -

 

“Applicable Percentage” consistent with the Revolving Loans, Letter of Credit Fees and Unused Fees of the other Extending Revolving Lenders.  For the avoidance of doubt, the parties hereto agree that the extension of the Termination Date and increase in pricing described above in this clause (i) with respect to
any such assigned interest shall occur automatically on the effective date of the applicable Assignment and Assumption without the need for any amendment to this Agreement.

SUBPART 2.34 The
Revolving Commitments of each Lender set forth on Schedule 1.1(a) of the Credit Agreement are hereby amended to read as provided on Schedule 1.1(a) attached hereto.  Schedule 1.1(a) attached hereto also identifies the Extending Revolving Lenders and the Non-Extending Revolving Lenders as of the Seventh Amendment Effective Date.

SUBPART 2.35 A new Section 8 is hereby added immediately
following Section 7 in Exhibit 11.3 of the Credit Agreement to read as follows:

	
  
	
8.
	
Election to become an Extending Revolving Lender:  By checking the box at the end of this Section 8, the Assignee hereby elects to become an Extending Revolving Lender under the Credit Agreement and acknowledges and agrees that as an Extending Revolving Lender, the Assigned Interest shall have a Termination Date of January 2, 2013.  o

PART III

CONDITIONS TO EFFECTIVENESS

This Amendment shall be and become effective upon satisfaction of the following conditions precedent:

(a)           receipt by the Agent of counterparts of this Amendment duly executed by the Borrower, the Guarantors, the Required Lenders, each Lender with a Revolving Commitment and the Agent;

(b)           receipt by the Agent of a certificate of a Responsible Officer of the Borrower, (i) certifying that the organization documents of each Credit Party delivered on the Closing Date have not been amended, supplemented or otherwise modified since the Closing Date (except
to the extent the Agent has been notified thereof in such certificate) and remain in full force and effect (as so amended, supplemented or otherwise modified, as applicable) as of the Seventh Amendment Effective Date and (ii) attaching resolutions of each Credit Party and certifying that such resolutions have not been amended, supplemented or otherwise modified and remain in full force and effect as of the Seventh  Amendment Effective Date; and

(c)           receipt by the Agent and the Lenders of all fees due and owing to them as of the date hereof, together with reimbursement for all reasonable, documented out-of-pocket expensed owing to the Agent.

PART IV

MISCELLANEOUS

SUBPART 4.1 Representations
and Warranties.  Each Credit Party hereby represents and warrants to the Agent and the Lenders that (a) no Default or Event of Default exists on and as of the date 

 

 

- 12 -

 

hereof, (b) each Credit Party has the requisite corporate power and authority to execute, deliver and perform this Amendment and (c) the representations and warranties set forth in Section 6 of the Credit Agreement are true and correct in all material respects as of the date
hereof (except for those which expressly relate to an earlier date).  Each Credit Party acknowledges and confirms that the Borrower’s obligations to repay the outstanding principal amount of the Loans are unconditional and not subject to any offsets, defenses or counterclaims.

SUBPART 4.2  Acknowledgment.  Each
Guarantor hereby acknowledges and consents to all of the terms and conditions of this Amendment and agrees that this Amendment does not operate to reduce or discharge the Guarantors’ obligations under the Credit Agreement or the other Credit Documents.

SUBPART 4.3 Cross-References.  References
in this Amendment to any Part or Subpart are, unless otherwise specified, to such Part or Subpart of this Amendment.

SUBPART 4.4 Credit
Document.  This Amendment shall constitute a Credit Document under the terms of the Credit Agreement.

SUBPART 4.5 References
in Other Credit Documents.  All references to the Credit Agreement in each of the Credit Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

SUBPART 4.6 Counterparts/Telecopy.  This
Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.  Delivery of executed counterparts of this Amendment by telecopy shall be effective as an original and shall constitute a representation that an original shall be delivered.

SUBPART 4.7 Governing
Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

SUBPART 4.8 Successors
and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

[remainder of page intentionally left blank]

 

 

 

- 13 -

 

IN WITNESS WHEREOF the Borrower, the Guarantors and the Lenders have caused this Amendment to be duly executed on the date first above written.

 

	BORROWER: 	 
	 	
CHATTEM, INC.,

a Tennessee corporation

By:  /s/ Robert E. Bosworth

Name:  Robert E. Bosworth

Title:  President and Chief Operating Officer

	 	 
	GUARANTORS: 	 
	 	
SIGNAL INVESTMENT & MANAGEMENT CO.,

a Delaware corporation

By:  /s/ Robert E. Bosworth

Name:  Robert E. Bosworth

Title:  President

 

SUNDEX, LLC,

a Tennessee limited liability company

By:  /s/ Robert E. Bosworth

Name:  Robert E. Bosworth

Title:  President

 

CHATTEM (CANADA) HOLDINGS, INC.,

a Delaware corporation

By:  /s/ Robert E. Bosworth

Name:  Robert E. Bosworth

Title:  President

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
BANK OF AMERICA, N.A.,

in its capacity as Agent

 

By:  /s/ Anne M. Zeschke

Name:  Anne M. Zeschke

Title:  Vice President

	 	 
	 	
BANK OF AMERICA, N.A.,

in its capacity as a Lender

By:  /s/ John M. Hall

Name:  John M. Hall

Title:  Senior Vice President

 

 

SUNTRUST BANK

By:  /s/ E. Donald Besch, Jr.

Name:  E. Donald Besch, Jr.

Title:  Managing Director

BRANCH BANKING AND TRUST COMPANY

By:  /s/ R. Andrew Beam

Name:  R. Andrew Beam

Title:  Senior Vice President

NATIONAL CITY BANK

By:  /s/ Deroy Scott

Name:  Deroy Scott

Title:  Vice President

WACHOVIA BANK, NATIONAL ASSOCIATION

By:  /s/ Bryan Hulker

Name:  Bryan Hulker

Title:  Vice President

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

	  	
AIB DEBT MANAGEMENT, LIMITED

	  	  
	  	  
	  	
By:  /s/ Joseph Augustini

Name:  Joseph Augustini

	  	
Title:  Senior Vice President

	  	  
	  	
By:  /s/ Shane O’Driscoll

Name:  Shane O’Driscoll

	  	
Title:  Assistant Vice President

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
APOSTLE LOOMIS SAYLES CREDIT OPPORTUNITIES FUND, As Lender

By:Loomis, Sayles & Company, L.P.

Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,

Its General Partner

By:  /s/ Mary McCarthy

Name:  Mary McCarthy

Title:  Vice President

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
APOSTLE LOOMIS SAYLES SENIOR LOAN FUND,

As Lender

By:Loomis, Sayles & Company, L.P.

Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,

Its General Partner

By:  /s/ Mary McCarthy

Name:  Mary McCarthy

Title:  Vice President

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
BLUEMOUNTAIN CLO III LTD.

By:BlueMountain Capital Management, LLC

Its Collateral Manager

By:  /s/ Michael Abatemarco

Name:  Michael Abatemarco

Title:  Associate

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
KDPAM for Boeing Co. Employees Retirement Fund

By:  /s/ Kathy A. News

Name:  Kathy A. News

Title:   Sr. Portfolio Manager

KDP Asset Management

 

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
SILVERMINE CAPITAL MANAGEMENT, LLC

CANNINGTON FUNDING LTD.

Silvermine Capital Management LLC

As Investment Manager

By:  /s/ Gregory C. Smith

Name:  Gregory C. Smith

Title:  Vice President

 

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
CAVALRY CLO I, LTD

By:  Regiment Capital Management, LLC

as its Investment Advisor

By:  Regiment Capital Advisors, LP

its Manager and pursuant to delegated authority

By:  Regiment Capital Advisors, LLC

its General Partner

By:  /s/ William Heffron

Name:  William Heffron

Title:  Authorized Signatory

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
CENT CDO 12 LIMITED

By:  RiverSource Investments, LLC

as Collateral Manager

By:  /s/ Robin C. Stancil

Name:  Robin C. Stancil

Title:  Director of Operations

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
CENT CDO 14 LIMITED

By:  RiverSource Investments, LLC

as Collateral Manager

By:  /s/ Robin C. Stancil

Name:  Robin C. Stancil

Title:  Director of Operations

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
CENT CDO III, LIMITED

By:  RiverSource Investments, LLC

as Collateral Manager

By:  /s/ Robin C. Stancil

Name:  Robin C. Stancil

Title:  Director of Operations

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
CONFLUENT 3 LIMITED

By:  Morgan Stanley Investment Management Inc.

as Investment Manager

By:  /s/ Robert Drobny

Name:  Robert Drobny

Title:  Executive Director

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	  	
CREDOS FLOATING RATE FUND, L.P.

	  	  
	  	
By:  Shenkman Capital Management, Inc.,

	  	
its General Partner

	  	  
	  	  
	  	
By:  /s/ Richard H. Weinstein

Name:  Richard H. Weinstein

	  	
Title:  Executive Vice President

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
FRANKLIN CLO IV, LIMITED

By:  /s/ David Ardini

Name:  David Ardini

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
FRANKLIN FLOATING RATE DAILY ACCESS FUND

By:  /s/ Richard Hsu

Name:  Richard Hsu

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
FRANKLIN FLOATING RATE MASTER SERIES

By:  /s/ Richard Hsu

Name:  Richard Hsu

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
FRANKLIN TEMPLETON SERIES II FUNDS FLOATING RATE II FUND

By:  /s/ Richard Hsu

Name:  Richard Hsu

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
GALLATIN CLO III 2007-1, LTD,

As Assignee

By:  Ursa Mine Credit Advisors, LLC

as its Collateral Manager

By:  /s/ Niall Rosenzweig

Name:  Niall Rosenzweig

Title:  Principal

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
LATITUDE CLO II, LTD

By:  /s/ Kirk Wallace

Name:  Kirk Wallace

Title:  Senior Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
LCM III, LTD.

By:  Lyon Capital Management LLC,

as Collateral Manager

By:  /s/ Sophie A. Venon

Name:  Sophie A. Venon

Title:  Portfolio Manager

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
LCM V LTD.

By:  Lyon Capital Management LLC,

as Collateral Manager

By:  /s/ Sophie A. Venon

Name:  Sophie A. Venon

Title:  Portfolio Manager

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
LCM VI, LTD.

By:  Lyon Capital Management LLC,

as Collateral Manager

By:  /s/ Sophie A. Venon

Name:  Sophie A. Venon

Title:  Portfolio Manager

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
SILVERMINE CAPITAL MANAGEMENT, LLC

LOAN FUNDING XIII for itself or as agent

for Corporate Funding XIII, as a Lender

By:  /s/ Gregory C. Smith

Name:  Gregory C. Smith

Title:  Vice President

Silvermine Capital Management, LLC

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
LOOMIS SAYLES CAYMAN LEVERAGED SENIOR LOAN FUND LTD., As Lender

By: Loomis, Sayles & Company, L.P.

Its Investment Adviser

By:  Loomis, Sayles & Company, Incorporated,

Its General Partner

By:  /s/ Mary McCarthy

Name:  Mary McCarthy

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
LOOMIS SAYLES CLO I, LTD.,

As Lender

By:Loomis, Sayles & Company, L.P.

Its Collateral Manager

By:  Loomis, Sayles & Company, Incorporated,

Its General Partner

By:  /s/ Mary McCarthy

Name:  Mary McCarthy

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
LOOMIS SAYLES LEVERAGED SENIOR LOAN FUND, LTD., As Lender

By:Loomis, Sayles & Company, L.P.

Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,

Its General Partner

By:  /s/ Mary McCarthy

Name:  Mary McCarthy

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
THE LOOMIS SAYLES SENIOR LOAN FUND, LLC,

As Lender

By:Loomis, Sayles & Company, L.P.

Its Managing Member

By:  Loomis, Sayles & Company, Incorporated,

Its General Partner

By:  /s/ Mary McCarthy

Name:  Mary McCarthy

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
MOUNTAIN VIEW CLO II, LTD.

By:Seix Investment Advisors LLC,

as Collateral Manager

By:  /s/ George Goudelias

Name:  George Goudelias

Title:  Managing Director

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
NATIXIS LOOMIS SAYLES SENIOR LOAN FUND,

As Lender

By:Loomis, Sayles & Company, L.P.

Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,

Its General Partner

By:  /s/ Mary McCarthy

Name:  Mary McCarthy

Title:  Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
QUALCOMM GLOBAL TRADING, INC.

By:Morgan Stanley Investment Management Inc.

as Investment Manager

By:  /s/ Robert Drobny

Name:  Robert Drobny

Title:  Executive Director

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
OLD WESTBURY GLOBAL OPPORTUNITIES FUND

By:Shenkman Capital Management, Inc.,

as Investment Manager

By:  /s/ Richard H. Weinstein

Name:  Richard H. Weinstein

Title:  Executive Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
ONE WALL STREET CLO I, LTD

By:  /s/ Josephine H. Shin

Name:  Josephine H. Shin

Title:  Senior Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
ONE WALL STREET CLO II, LTD

By:  /s/ Josephine H. Shin

Name:  Josephine H. Shin

Title:  Senior Vice President

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
RIVERSOURCE BOND SERIES, INC. – RIVERSOURCE FLOATING RATE FUND

By:  /s/ Robin C. Stancil

Name:  Robin C. Stancil

Title:  Assistant Vice President

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
SEQUILS-CENTURION V, LTD.

By:  RiverSource Investments, LLC

as Collateral Manager

By:  /s/ Robin C. Stancil

Name:  Robin C. Stancil

Title:  Director of Operations

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
SILVER CREST CBNA LOAN FUNDING LLC

By:  /s/ Andrew Valko

Name:  Andrew Valko

Title:  Attorney-in-Fact

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
STANFIELD VEYRON CLO, LTD.

By:  Stanfield Capital Partners as its Collateral Manager

By:  /s/ David Frey

Name:  David Frey

Title:  Partner

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
KDPAM for State Retirement & Pension System of Maryland

By:  /s/ Kathy A. News

Name:  Kathy A. News

Title:  Sr. Portfolio Manager

KDP Asset Management

 

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
VENTURE VII CDO LIMITED

By its investment advisor,

MJX Asset Management LLC

By:  /s/ John J. Wagner

Name:  John J. Wagner

Title:  Managing Director

 

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
VENTURE VIII CDO LIMITED

By its investment advisor,

MJX Asset Management LLC

By:  /s/ John J. Wagner

Name:  John J. Wagner

Title:  Managing Director

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
KDPAM for Veronica Atkins Marital Trust

By:  /s/ Kathy A. News

Name:  Kathy A. News

Title:  Sr. Portfolio Manager

KDP Asset Management

 

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

 

	 	
XL RE EUROPE LIMITED

By:  Stanfield Capital Partners as its Collateral Manager

By:  /s/ David Frey

Name:  David Frey

Title:  Partner

 

 

 

 

 

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

  

  

  

Schedule 1.1(a)

	
Lender
	
Revolving Commitments through the Termination Date

of

November 15, 2010
	
Revolving Commitment Percentage through the Termination Date of

November 15, 2010
	
Revolving Commitments through the Termination Date of

January 2, 2013
	
Revolving Commitment Percentage through the Termination Date of

January 2, 2013

	
Bank of America, N.A.
	
$45,000,000
	
45.000000000%
	
$45,000,000
	
45.000000000%

	
National City Bank
	
$20,000,000
	
20.000000000%
	
$20,000,000
	
20.000000000%

	
Branch Banking and Trust Company
	
$15,000,000
	
15.000000000%
	
$15,000,000
	
15.000000000%

	
SunTrust Bank
	
$10,000,000
	
10.000000000%
	
$10,000,000
	
10.000000000%

	
Wachovia Bank,

National Association
	
$10,000,000
	
10.000000000%
	
$10,000,000
	
10.000000000%

	
Total
	
$100,000,000
	
100.000000000%
	
$100,000,000
	
100.000000000%

CHATTEM, INC.

SEVENTH AMENDMENT TO CREDIT AGREEMENT

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