Document:

Exhibit 10.1_No. 2 Amendment to SVB Second Amended and Restated Loan and Security Agreement

AMENDMENT NO. 2
TO 
SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
This Amendment No. 2 to Second Amended and Loan and Security Agreement (this “Amendment”) is entered into this 30th day of October, 2014 (the “Second Amendment Effective Date”) by and among Aviat Networks, Inc., a Delaware corporation (“Parent”), Aviat US., Inc. (“Opco,” together with Parent, the “US Borrowers”) and Aviat Networks (S) Pte. Ltd., a private company limited by shares formed under the laws of the Republic of Singapore (“Aviat Singapore” or “Singapore Borrower,” and together with the US Borrowers, the “Borrowers”), and Silicon Valley Bank (“Bank”).  Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).
Recitals
A.Borrowers and Bank have entered into that certain Second Amended and Restated Loan and Security Agreement dated as of March 28, 2014 (as amended, restated, modified and/or supplemented from time to time, the “Loan Agreement”), pursuant to which Bank agreed to extend and make available to Borrowers certain advances of money.
B.Bank has extended credit to Borrowers for the purposes permitted in the Loan Agreement.  
C.Borrowers have requested that Bank amend the Loan Agreement to revise a financial reporting covenant, and make certain other revisions to the Loan Agreement as more fully set forth herein.
D.Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
Agreement
NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:
		
	1.
	Amendment to Loan Agreement.

1.1Section 6.2 (Financial Statements, Reports, Certificates).  Subsection (c) of Section 6.2 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“(c)    as soon as available, and within five (5) days of filing with the SEC, but no later than ninety (90) days after the last day of Parent’s fiscal year, audited consolidated financial statements prepared under GAAP (or IFRS, if applicable), consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Bank in its reasonable discretion; provided, however, that Parent’s audited consolidated financial statements covering Parent’s fiscal year ended June 27, 2014 must be delivered on or before December 5, 2014;”
1.2Exhibit B to Loan Agreement (Form of Compliance Certificate).  Exhibit B to the Loan Agreement is hereby amended in its entirety by deleting it and replacing it with Exhibit B attached to this Amendment.  Exhibit B is the only attachment to this Amendment.

		
	2.
	Borrowers’ Representations And Warranties.  Each Borrower hereby represents and warrants that:

(a)immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of Default has occurred and is continuing;
(b)such Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
(c)the certificate of incorporation, bylaws and other organizational documents of such Borrower delivered to Bank in connection with the Loan Agreement remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
(d)the execution and delivery by such Borrower of this Amendment and the performance by such Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of such Borrower; and
(e)this Amendment has been duly executed and delivered by such Borrower and is the binding obligation of such Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
3.Limitation.  The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof.  Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect.
4.Effectiveness.  This Amendment shall become effective upon (i) delivery of this Amendment, duly executed by each Borrower and Bank, and (ii) payment of all fees and expenses, as described in Section 5 of this Amendment.
5.Fees and Expenses.  Borrowers agree to pay Bank Expenses (including the fees and expenses of Bank’s counsel, advisors and consultants) accrued and incurred in connection with the transactions contemplated by this Amendment and all other Bank Expenses (including the fees and expenses of Bank’s counsel, advisors and consultants) payable in accordance with the Loan Agreement.
6.Counterparts.  This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument.  All counterparts shall be deemed an original of this Amendment.
7.Integration.  This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by Bank with 

respect to Borrowers and the Collateral shall remain in full force and effect.  This Amendment is a Loan Document.
8.Choice of Law, Venue, Jury Trial Waiver, and Judicial Reference.  THIS AMENDMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, REFERENCE PROCEEDINGS AND ARBITRATION SET FORTH IN SECTION 11 OF THE LOAN AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS.
[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first written above.

BORROWERS:
AVIAT NETWORKS, INC.

By    /s/ Michael Pangia                    
Name: Michael Pangia
Title:   President and CEO

AVIAT U.S., INC.

By    /s/ Michael Pangia                    
Name: Michael Pangia
Title:   President and CEO

AVIAT NETWORKS (S) PTE. LTD.

By    /s/ Kevin Holwell                    
Name: Kevin Holwell
Title:   Director

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first written above.

BANK:
SILICON VALLEY BANK

By    /s/ Matthew Wright                 
Name: Matthew Wright
Title:   Director

EXHIBIT B 

FORM OF COMPLIANCE CERTIFICATE

TO:    SILICON VALLEY BANK                        Date:  
FROM:  AVIAT NETWORKS, INC.

The undersigned authorized officer of Aviat Networks, Inc. (“Administrative Borrower”) certifies that under the terms and conditions of the Second Amended and Restated Loan and Security Agreement dated as of March 28, 2014 (as amended, modified, supplemented or restated from time to time, the “Loan Agreement”), by and among Administrative Borrower, Aviat U.S., Inc. (“Opco”), Aviat Networks (S) Pte. Ltd. (“Singapore Borrower” and together with the Administrative Borrower and Opco, each a “Borrower” and collectively, “Borrowers”) and Silicon Valley Bank (“Bank”): 
(1) Each Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below; (2) there are no Events of Default in existence; (3) all representations and warranties in the Loan Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; (4) each Borrower, and each of its Subsidiaries, has timely filed all material tax returns and reports that are required to be filed, and each Borrower has timely paid all material foreign, federal, state and local taxes, assessments, deposits and contributions owed by each Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Loan Agreement; (5) (a)there are no collective bargaining agreements covering the employees of any Borrower or any of their domestic Subsidiaries, (b) there is not pending, nor (to the knowledge of any Borrower) is there threatened, any strike, walkout, slowdown or work stoppage, or any unfair labor practice complaint or grievance or arbitration proceeding arising out of or under any collective bargaining agreement covering the employees of any Borrower or any of their Subsidiaries that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change, and (c) the hours worked and payments made to employees of Borrowers and their domestic Subsidiaries have not been in violation in any material respect of the Fair Labor Standards Act or any other applicable law dealing with such matters; and (6) Borrowers are in compliance with Sections 6.1(b) and 6.8 and of the Loan Agreement.  

Attached are the required documents supporting the certification.  The undersigned certifies that the attached financial statements are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements, for the absence of footnotes and subject to year-end adjustments.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Loan Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement.

	
			
	Please indicate compliance status by circling Yes/No under “Complies” column.

	 

	Reporting Covenant
	Required
	Complies

	Transaction Report (in connection with Advance)
	With each request for an Advance
	Yes   No

	Monthly Transaction Report
	Within 30 days of month end when Streamline Period is in effect for 6 months after the Effective Date and each month thereafter, within 20 days of month end when Streamline Period is in effect
	Yes   No

	Weekly Transaction Report
	No later than Friday each week when Streamline Period is not in effect
	Yes   No

	Cash holdings report
	Within 30 days of month end
	Yes   No

	Quarterly financial statements with Compliance Certificate
	Within 5 days of filing with the SEC,
but no later than 45 days after fiscal 
quarter end
	Yes   No

	Monthly financial statements with Compliance Certificate
	Within 30 days of month end
	Yes   No

	Monthly Borrowing Base Reports
	Within 30 days of month end when
Streamline Period is in effect
	Yes   No

	Weekly Borrowing Base Reports
	No later than Friday each week when Streamline Period is not in effect
	Yes   No

	Annual financial statement (CPA Audited) + Compliance 
Certificate
	Within 5 days of filings with the SEC but no later than 90 days after FYE (except for Parent’s audited consolidated annual financial statements covering Parent’s fiscal year ended June 27, 2014, which must be delivered on or before December 5, 2014)
	Yes   No

	10‐Q, 10‐K and 8-K
	Within 5 days after filing with SEC
	Yes   No

	Annual operating budgets for upcoming fiscal year and board approval of such annual operating budgets
	Within 45 days prior to the FYE but 
evidence of board approval to be delivered by September 15 of such fiscal year
	Yes   No

	Report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, $1,000,000 or more
	Promptly
	Yes   No

	
					
	Financial Covenant
	Required
	Actual
	Complies

	Adjusted Quick Ratio
	1.05:1.00
	____:1.00
	Yes   No

	Maintain on a Quarterly Basis:
	 
	 
	 

	Minimum EBITDA
	Fiscal Quarter End
	Minimum EBITDA
	 
	Yes   No

	March 28, 2014
	($17,000,000)

	June 27, 2014*
	($27,000,000)

	September 26, 2014*
	($12,000,000)

	December 26, 2014*
	($8,000,000)

	March 27, 2015*
	($3,000,000)

	June 26, 2015*
	$1.00

	September 25, 2015 and thereafter*
	TBD

*measured on a trailing two fiscal quarter basis

The following financial covenant analys[is][es] and information set forth in Schedule 1 attached hereto are true and accurate as of the date this Certificate is delivered to Bank as set forth in the first line of this Certificate.

The following are the exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions to note.”)

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

	
		
	ADMINISTRATIVE BORROWER:

AVIAT NETWORKS, INC.

By:  ______________________________
        Name:  ________________________
        Title:    ________________________

	BANK USE ONLY

Received by: _________________________
AUTHORIZED SIGNER
Date: _______________________________

Verified: ____________________________
AUTHORIZED SIGNER
Date: _______________________________

Compliance Status:        Yes     No

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

Dated:    ____________________

I.    Adjusted Quick Ratio (Section 6.9(a))

Required:    1.05:1.00

Actual:    

	
			
	A.1.
	Unrestricted cash and Cash Equivalents of Borrowers, net billed accounts receivable  and investments with Bank with maturities of fewer than 12 months determined according to GAAP
	$_______

	B.1.
	All obligation and liabilities of Borrowers to Bank
	$_______

	B.2.
	Aggregate amount of Borrowers’ Total Liabilities maturing within 1 year (without duplication)
	$_______

	B.3.
	 Current Liabilities (B.1. plus B.2.)
	$_______

	C.1.
	Deferred Revenue
	$_______

	D.1.
	Consolidated Funded Indebtedness (without duplication)
	$_______

	E.1.
	Current Liabilities (less Deferred Revenue) plus, without duplication, Consolidated Funded Indebtedness (B.3. minus C.1. plus D.1)
	$_______

	F.
	Adjusted Quick Ratio (ratio of A.1. to E.1)
	1.___:1.00

Is line F at least 1.05? 

_______      No, not in compliance                _______      Yes, in compliance

II.    EBITDA (Section 6.9(b))
Required:
	
		
	Fiscal Quarter End
	Minimum EBITDA

	March 28, 2014
	($17,000,000)

	June 27, 2014*
	($27,000,000)

	September 26, 2014*
	($12,000,000)

	December 26, 2014*
	($8,000,000)

	March 27, 2015*
	($3,000,000)

	June 26, 2015*
	$1.00

	September 25, 2015 and
thereafter*
	TBD

	*measured on a trailing two fiscal quarter basis

Actual:

	
			
	A.
	Consolidated Net Income
	$______________

	 
	To the extent deducted in the calculation of Net Income (Line A):
	 

	 
	(i)    Consolidated Interest Charges
	$______________

	 
	(ii)   Income tax expense
	$______________

	 
	(iii)  Depreciation and amortization expense
	$______________

	 
	(iv)  Restructuring charges incurred in connection with impairment of real estate (to the extent 
        agreed to by Bank in writing)
	$______________

	 
	(v)   Non-cash stock-based compensation expense
	$______________

	 
	(vi)  Non-cash charges for customer inventory due to downward revaluation
	$______________

	 
	(vii)  Non-cash charges related to discontinued operations occurring prior to the
Effective Date
	$______________

	 
	(viii) Other non-recurring non-cash expenses
	$______________

	B.
	Sum of (i) through (viii)
	$______________

	 
	To the extent included in calculating Consolidated Net Income (Line A):
	 

	 
	(i)    Income tax credits
	$______________

	 
	(ii)   Other non-cash items increasing Consolidated Net Income
	$______________

	C.
	Sum of Line (i) through (ii)
	$______________

	D.
	EBITDA (A. plus B. minus C.)
	$______________

Is Line D at least the amount required (see chart above)?          _____  No, not in compliance    _____  Yes, in complianceBridgeBank Financing Agreement-5th

FIFTH BUSINESS FINANCING MODIFICATION AGREEMENT

This Fifth Business Financing Modification Agreement (“Business Financing Modification Agreement”) is entered into as of September , 2014, by and between BRIDGE BANK, NATIONAL ASSOCIATION (“Lender”) INUVO, INC., a Nevada corporation (“Parent”), BABYTOBEE, LLC, a New York limited liability company (“Babytobee”), KOWABUNGA MARKETING, INC., a Michigan corporation (“Kowabunga”), VERTRO, INC., a Delaware corporation (“Vertro”), and ALOT, INC., a Delaware corporation (“A LOT” and together with Parent, Babytobee, Kowabunga and Vertro, each a “Borrower” and collectively, “Borrowers”).

1.DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrowers to Lender, Borrowers are indebted to Lender pursuant to, among other documents, a Business Financing Agreement, dated March 1, 2012, by and between Borrowers and Lender, as may be amended from time to time, including by that certain First Business Financing Modification Agreement dated as of June 29, 2012, that certain Second Business Financing Modification Agreement dated as of October 11, 2012, that certain Business Financing Modification Agreement dated March 8, 2013, that certain Third Business Financing Modification Agreement dated as of March 29, 2013, and that certain Fourth Business Financing Modification Agreement dated as of March 6, 2014 (collectively, the “Business Financing Agreement”). Capitalized terms used without definition herein shall have the  meanings assigned to them in the Business Financing Agreement.

Hereinafter, all indebtedness owing by Borrowers to Lender shall be referred to as the “Indebtedness” and the Business Financing Agreement and any and all other documents executed by Borrowers in favor of Lender shall be referred to as the “Existing Documents.”

2.ACKNOWLEDGMENT OF DEFAULT. Borrowers hereby acknowledge that as of the date hereof, Borrowers are in default under Section 4.15(c) of the Business Financing Agreement due to Borrowers’ failure to achieve the required revenue and adjusted EBITDA set forth therein during the July 2014 reporting period (the “Existing Default”).

3.WAIVER OF EXISTING DEFAULT. Lender hereby agrees to waive the Existing Default provided, and only so long as Borrowers comply in all respects with the Business Financing Agreement and with the Existing Documents, as amended hereby. Nothing contained herein shall constitute or effect a continuing waiver or a course of conduct waiving these or any other provisions of the Business Financing Agreement.

		
	4.
	DESCRIPTION OF CHANGE IN TERMS.

		
	A.
	Modifications to Business Financing Agreement:

i)Section  1.12  of  the  Business  Financing  Agreement  hereby  is amended and restated in its entirety to read as follows:

“(a) Term Loan. Subject to and upon the terms and conditions hereof, on the Fifth Modification Date, Lender agrees to make a Term Loan to Borrowers in an amount equal to $2,000,000 (the “Term Loan”)
which shall be used (i) to refinance all existing Term Loans (as defined herein prior to the Fifth Modification Date) owing from Borrowers to Lender as of the Fifth Modification Date and (ii) for general working capital.”

(b)Interest on the Term Loan. The outstanding principal amount of the Term Loan shall accrue interest at the Term Loan Rate and shall be payable in accordance with Section 1.12(c).

(c)Repayment. Borrowers shall repay the Term Loan in (i) 36 equal installments of  principal plus (ii)  monthly payments of interest beginning on October 10, 2014, and on the 10th calendar day of each month thereafter until the Term Loan Maturity Date at which time Borrowers will repay the remaining principal balance plus any interest then due on the Term Loan.

(d)Mandatory Prepayments. If the Term Loan is accelerated following the occurrence of an Event of Default, Borrowers shall immediately pay to Lender an amount equal to the sum of: (i) all outstanding principal of the  Term Loan plus accrued interest thereon through the date of payment, (ii) the Prepayment Fee (if applicable), plus
(iii) all other sums, that shall have become due and payable with respect to the Term Loan.

(e)Permitted Prepayment of Term Loan. Borrowers shall have the option to prepay all, but not less than all, of the Term Loan, provided Borrowers (i) provide written notice to Lender of their election to prepay the Term Loan at least ten (10) Business Days prior to such prepayment, and (ii) pay to Lender on the date of such prepayment, an amount equal to the sum of (A) all outstanding principal of the Term Loan plus accrued interest thereon through the prepayment date, (B) the Prepayment Fee, if applicable, plus (C) all other sums, that shall have become due  and payable with respect to the Term Loan.”

ii)Section  2.2(a) of the Business  Financing Agreement  hereby is amended and restated in its entirety and replaced with the following:

“(a) Termination Fee. In the event this Agreement is terminated prior to the first anniversary of the Fifth Modification Date, Borrowers shall pay the Termination Fee to Lender; provided however the Termination Fee shall be waived if Borrowers transfer to a  different Bridge Bank facility or division, unless the transfer is a result of an Event of Default.”

iii)Section 2.2(b) of the Business Financing Agreement hereby is amended and restated in its entirety and replaced with the following:

“(b) Facility Fee. Borrowers shall  pay  the  Facility  Fee  to Lender on the Fifth Modification Date and annually thereafter.”

iv)Section 2.2(c)  of  the Business Financing Agreement hereby is amended and restated in its entirety and replaced with the following:

“(c) Term Loan Facility Fee. Borrowers shall pay the Term Loan Facility Fee to Lender promptly upon the Fifth Modification Date.”

v)Section 2.2(d) of the Business Financing Agreement hereby is amended and restated in its entirety and replaced with the following:

“(d) Prepayment Fee. In the event the Term Loan is prepaid prior to the first anniversary of the Fifth Modification Date, Borrowers shall pay the Prepayment Fee to Lender; provided however that the Prepayment Fee shall be waived if Borrowers transfer to a different Bridge Bank facility or division, unless the transfer is a result of an Event of Default.”

vi)Section 2.2(e)  of  the Business Financing Agreement hereby is amended and restated in its entirety and replaced with the following:

“(e) Due Diligence Fee. Borrowers shall pay the Due Diligence Fee to Lender on the Fifth Modification Date and annually thereafter.”

vii)Section 4.15 of the Business Financing Agreement is hereby deleted in its entirety and replaced by the following:

“4.15 Maintain Borrowers’ consolidated financial condition as follows using generally accepted accounting  principles consistently applied and used consistently with prior practices (except to the extent modified by the definitions herein):

(a)Asset Coverage Ratio, measured monthly of (i) not less than 1.15 to 1.00 for the August 2014 through December 2014 measuring periods, and (ii) not less than 1:25 to 1.00 for each monthly measuring period thereafter.

(b)Debt Service Coverage Ratio, measured monthly on a trailing 3 month basis, of (i) not less than 1.50 to 1.00 for the August 2014 measuring period, and (ii) not less than 1.75 to 1.00 for each monthly measuring period thereafter.”

viii)The following defined terms set forth in Section 12.1 of the Business Financing Agreement are hereby added or amended and restated in their entirety, as applicable, as follows:

“Debt Service Coverage Ratio” means, for any measuring period, the ratio of (i) Operating Profit minus Borrowers’ capitalized labor expenses to (ii) the sum of the current portion of Borrower’s long term indebtedness plus all interest payments on all indebtedness during such period.

“Due Diligence Fee” means a payment of an annual fee equal to $300 due on the Fifth Modification Date and $600 upon each anniversary thereof so long as any Advance is outstanding or available hereunder.

“Facility Fee” means a payment of an annual fee equal to (i) $12,500 due on the Fifth Modification Date (i) 0.25 percentage points of the Credit Limit, due on each anniversary thereof so long as any Advance is outstanding or available hereunder.

“Fifth Modification Date” means September    , 2014.

“Finance Charge Percentage” means a rate per year equal to (a) the Prime Rate plus 0.50 of one percentage point for all Advances based on Eligible Receivables and (ii) the Prime Rate plus 1.00 percentage point for all Advances issued using the non-formula availability, plus, in each case, an additional 5.00 percentage points during any period that an Event of Default has occurred and is continuing.

“Maturity Date” means September , 2016 or  such  earlier  date  as Lender shall have declared the Obligations immediately due and payable pursuant to Section 7.2.

“Prepayment Fee” means a fee equal to 1% of the outstanding principal amount of the Term Loan at the time of prepayment through the first anniversary of the Fifth Modification Date.

“Term Loan Facility Fee” means a payment of a fee equal to $5,946 due upon the Fifth Modification Date.

“Term Loan Maturity Date” means September 10, 2017.

“Term Loan Rate” means a per annum rate equal to (i) at all times when Borrowers’ Debt Service Coverage Ratio for the prior month was greater than
2.00 to 1.00, the Prime Rate plus 1.00% or (ii) at all times when Borrowers’ Debt Service Coverage Ratio for the prior month was less or equal to 2.00 to 1.00, the Prime Rate plus 2.00%, plus an additional 5.00% during any period that an Event of Default has occurred and is continuing. Changes to the Term Loan Rate shall be effective of the first Business Day of each month based on the Borrowers’ Debt Service Coverage Ratio for the immediately preceding month, as determined by Lender in its sole discretion.

v) The following terms and their respective definitions set forth in Section 12.1 of the Business Financing Agreement hereby are deleted in their entirety:

“EBITDA”, “Term Loan Draw Period”, “Term Loan Draw Period A”, “Term Loan Draw Period B”, “Term Loan Draw Period C”, “Term Loan Draw Period D”.

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

6.NO DEFENSES OF BORROWERS/GENERAL RELEASE. Each  Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under the Indebtedness. Each Borrower (each, a “Releasing Party”) acknowledges that Lender would not enter into this Business Financing Modification Agreement without Releasing Party’s assurance that it has no claims against Lender or any of Lender’s officers, directors, employees or agents. Except for the obligations arising hereafter under this Business Financing Modification Agreement, each Releasing Party releases Lender, and each of Lender’s and entity’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Lender of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the Agreement or the transactions contemplated thereby. Releasing Party waives the provisions of California Civil Code section 1542, which states:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

The provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors in interest. The provisions, waivers and releases of this section shall inure to the benefit of Lender and its agents, employees, officers, directors, assigns and successors in interest. The provisions of this section shall survive payment in full of the Obligations, full performance of all the terms of this Business Financing Modification Agreement and the Business Financing Agreement, and/or Lender’s actions to exercise any remedy available under the Business Financing Agreement or otherwise.

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

9.CONDITIONS. The effectiveness of this Business Financing Modification Agreement is conditioned upon (i) payment by Borrowers of the Facility Fee, Term Loan Facility Fee and Due Diligence Fee, (ii) payment by Borrowers of all legal fees and expenses in connection with this Business Financing Modification Agreement, and (iii) delivery by each Borrower of updated Corporate Resolutions to Borrow.

10.NOTICE OF FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND  AGREES THAT: (A) THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES, (B) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (C) THIS WRITTEN AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

11.COUNTERSIGNATURE. This Business Financing  Modification  Agreement shall become effective only when executed by Lender and each Borrower.

[Balance of Page Intentionally Left Blank]

IN WITNESS WHEREOF, Borrowers and Lender have executed this Business Financing Modification Agreement on the day and year above written.

BORROWERS:    LENDER:

INUVO, INC.    BRIDGE BANK, NATIONAL ASSOCIATION

By:        By:        Name:        Name
Title:        Title:       

BABYTOBEE, LLC

By:        Name:        Title:       

KOWABUNGA MARKETING, INC.

By:        Name:        Title:       

VERTRO, INC.

By:        Name:        Title:       

ALOT, INC.

By:        Name:        Title:       

[Signature Page to Fifth Business Financing Modification Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]