Document:

Exhibit 10.18  
   

  

  SECOND AMENDMENT 

    TO 

  LOAN AND SECURITY AGREEMENT

   

  This Second Amendment to Loan and Security Agreement is entered into as of June 2, 2017 (the “Amendment”), by and between HERITAGE BANK OF COMMERCE
    (“Bank”), DIGITAL GLOBE SERVICES INC. (“Digital”), TELSATONLINE, INC. (“TelSat”), DGS EDU, LLC (“DGS”) and 7 DEGREES LLC (“7 Degrees”).

   

  RECITALS

   

  Digital, TelSat, DGS and Bank are parties to that certain Loan and Security Agreement dated as of March 31, 2015 and, as amended from time to time,
    including pursuant to that certain First Amendment to Loan and Security Agreement dated as of March 31, 2016 (collectively, the “Agreement”). The parties desire to add 7 Degrees as a coborrower under the Agreement and to amend the Agreement in
    accordance with the terms of this Amendment. Capitalized terms used without definition herein shall have the meanings assigned to them in the Agreement.

   

  NOW, THEREFORE, the parties agree as follows:

   

  		1.	Addition of Co-Borrower.

   

  (a)          7 Degrees is hereby added to the Agreement as a “Borrower” thereunder and hereunder, and each reference to “Borrower” or “the
    Borrower” in the Agreement and any other Loan Document shall mean and refer to each of Digital, TelSat, DGS and 7 Degrees, individually and collectively. Digital, TelSat, DGS and 7 Degrees, collectively, shall also be referred to as the Borrowers.

   

  (b)          7 Degrees assumes, as a joint and several obligor thereunder, all of the Obligations, liabilities and indemnities of a
    Borrower under the Agreement and all other Loan Documents; and covenants and agrees to be bound by and adhere to all of the terms, covenants, waivers, releases, agreements and conditions of or respecting a Borrower with respect to the Agreement and the
    other Loan Documents and all of the representations and warranties contained in the Agreement and the other Loan Documents with respect to a Borrower. Without limiting the generality of the foregoing, 7 Degrees grants to Bank a security interest in the
    Collateral described on Exhibit A attached hereto to secure performance and payment of all Obligations under the Agreement, and authorizes Bank to file financing statements with all appropriate jurisdictions to perfect or protect Bank’s interest or
    rights under the Agreement and the other Loan Documents.

   

  (c)          Notwithstanding anything to the contrary set forth herein or in the Agreement, the Borrowing Base shall not include any
    Accounts owing to 7 Degrees until Bank approves its inclusion, which approval is subject to, among other things, (i) the completion of
    an audit of the Accounts and Collateral of 7 Degrees, the results of which shall be satisfactory to Bank, (ii) the establishment of a Bancontrol Account with respect to 7 Degrees’ account debtors in compliance with Section 2.3(d) of the Agreement and (iii) the completion and satisfaction of such other matters as Bank may reasonably request in connection therewith.

   

  		2.	Amendment to Agreement.

   

  (a)          The following definition is hereby added to Section 1.1 of the Agreement:

   

  “EBITDA” means Borrowers’ earnings before interest, taxes, depreciation, amortization, and non-cash stock based compensation expenses.

   

  (b)          Subsections (i) and (m) of the definition of “Eligible Accounts” set forth in Section 1.1 of the Agreement are amended and
    restated in their entirety to read as follows:

   

  (i)              Accounts with respect to an account debtor, including Subsidiaries and Affiliates, whose total obligations to Borrower
    exceed thirty percent (30%) of all Accounts (the “Concentration Limit”), to the extent such obligations exceed the aforementioned percentage, except as approved in writing by Bank and except that the Concentration Limit shall be sixty percent (60%) for
    Accounts with respect to which the account debtor is Comcast;

  

  
    
      
 

  

   

  (m)           (i) all Accounts owing to, or arising out of the business of, DGS; and (ii) Accounts not related to any other Borrower’s
    core business activities, except for Accounts with respect to which the account debtor is Comcast and Bank has received confirmation of upcoming payment from Comcast in form and substance satisfactory to Bank;

  

  

  (c)          Subsections (a) and (b) of Section 6.3 of the Agreement are amended and restated in their entirety to read as follows:

   

  (a)            as soon as available, but in any event within five (5) days after the 15th and the last day of each month, (i) aged
    listings of accounts receivable and payable, (ii) an Accrued Accounts report, (iii) a Borrowing Base Certificate signed by a Responsible Officer in substantially the form of Exhibit C hereto, and a Compliance Certificate signed by a Responsible Officer
    in substantially the form of Exhibit D hereto;

   

  (b)            as soon as available, but in any event, within thirty (30) days after the last day of each month, a Borrower prepared
    consolidated balance sheet, income statement, and cash flow statement covering Borrowers’ consolidated operations during such month, prepared in accordance with GAAP, consistently applied, in a form acceptable to Bank;

   

  (d)          The following is added to the end of Section 6.9(a) of the Agreement.

   

  Borrowers shall achieve an EBITDA of at least $750,000 for the trailing six month period ending on each of June 30, 2017, September 30,
    2017, December 31, 2017 and March 31, 2018.

   

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

   

  (f)             Exhibit D to the Agreement is replaced in its entirety with Exhibit D attached hereto

   

  3.           Each Borrower represents and warrants that the representations and warranties contained in
    the Agreement are true and correct as of the date of this Amendment and that no Event of Default has occurred and is continuing.

   

  4.           Unless otherwise defined, all initially capitalized terms in this Amendment shall be as
    defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution,
    delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Each Borrower ratifies and reaffirms the continuing
    effectiveness of all agreements entered into in connection with the Agreement.

   

  5.           This Amendment may be executed in two or more counterparts, each of which shall be deemed an
    original, but all of which together shall constitute one instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “pdf” format data file, such signature shall create a valid and binding obligation of
    the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “pdf” signature page were an original hereof. Notwithstanding the foregoing, Borrowers shall deliver all original signed
    documents no later than ten (10) Business Days following the date of execution.

  

  
    
      
 

  

   

  6.           As a condition to the effectiveness of this Amendment. Bank shall have received, in form and
    substance satisfactory to Bank, the following:

   

  (a)            this Amendment, duly executed by each Borrower;

   

  (b)            corporate resolutions and incumbency certificate duly executed by 7 Degrees; 

   

  (c)            intellectual property security agreement duly executed by 7 Degrees;

   

  (d)            payment of an amendment fee equal to $5,000, plus ail Bank Expenses incurred through the date hereof; and

   

  (e)            such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

   

  [SIGNATURE PAGE FOLLOWS]

  

  
    
      
 

  

   

  IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

   

  

  	 	DIGITAL GLOBE SERVICES INC.
	 	 	 	 	 
	 	By:	/s/ George Andrew Lear III
	 	 	 
	 	Name:	George Andrew Lear III
	 	 	 
	 	Title:		Chief Financial Officer
	 	 	 	 	 
	 	TELSATONLINE, INC.
	 	 
	 	By:	/s/ George Andrew Lear III
	 	 	 
	 	Name:	George Andrew Lear III
	 	 	 
	 	Title:		Chief Financial Officer
	 	 	 	 	 
	 	DGS, LLC
	 	 
	 	By:	/s/ George Andrew Lear III
	 	 	 
	 	Name:	George Andrew Lear III
	 	 	 
	 	Title:		Chief Financial Officer
	 	 	 	 	 
	 	7 DEGREES, LLC
	 	 
	 	By:	/s/ George Andrew Lear III
	 	 	 
	 	Name:	George Andrew Lear III
	 	 	 
	 	Title:		Chief Financial Officer
	 	 	 	 	 
	 	HERITAGE BANK OF COMMERCE
	 	 
	 	By:	/s/  KARLA SCHRADER
	 	 	 
	 	Name:	 KARLA SCHRADER
	 	 	 
	 	Title:	 	 VPExhibit 10.19

   

  THIRD AMENDMENT

    TO

  LOAN AND SECURITY AGREEMENT

   

  This Third Amendment to Loan and Security Agreement is entered into as of November 27, 2017 and to be effective as of June 12, 2017 (the “Amendment”), by and between
    HERITAGE BANK OF COMMERCE (“Bank”), DIGITAL GLOBE SERVICES INC. (“Digital”), TELSATONLINE, INC. (“TelSat”), DGS EDU, LLC (“DGS”) and 7 DEGREES LLC (“7 Degrees”).

   

  RECITALS

   

  Digital, TelSat, DGS, and 7 Degrees (individually and collectively referred to herein as “Borrower”) and Bank are parties to that certain Loan and Security Agreement
    dated as of March 31, 2015 and, as amended from time to time, including pursuant to that certain First Amendment to Loan and Security Agreement dated as of March 31, 2016, and that certain Second Amendment to Loan and Security Agreement dated as of
    June 2, 2017 (collectively, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment. Capitalized terms used without definition herein shall have the meanings assigned to them in the Agreement.

   

  NOW, THEREFORE, the parties agree as follows:

   

  1.            Notwithstanding the prohibition in Section 7.2 of the Agreement, and subject to the term and conditions set forth herein, Bank hereby
    consents to the corporate reorganization that results in DGS Limited, a Bermuda entity, being the sole stockholder of Digital and of Telsat, and IBEX Holdings Limited, a Bermuda entity being the sole shareholder of DGS Limited.

   

  2.            The following definition in Section 1.1 of the Agreement is amended and restated in its entirety to read as follows:

   

  “Revolving Maturity Date” means March 31, 2019, provided however, if there is an Event of Default that is continuing or there is any event that, with the
    passage of time or notice or both would, unless cured or waived, become an Event of Default, on March 31, 2018, then the Revolving Maturity Date shall automatically be March 31, 2018.

   

  3.            Section 6.3(c) of the Agreement is amended and restated to read as follows:

   

  (c)          as soon as available, but in any event within one hundred eighty (180) days after the end of Borrowers’ fiscal year, audited financial
    statements of DGS Limited, a Bermuda company (“Parent”), prepared in accordance with IFRS (with a reconciliation to GAAP), consistently applied, together with an unqualified opinion on such financial statements of an independent certified public
    accounting firm reasonably acceptable to Bank, along with the consolidating financial statements of each Borrower and all other Subsidiaries of Parent; provided however that at all times that Borrower or Parent are subject to the reporting requirements
    of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended, or any other comparable reporting requirements applicable to a Person following an initial public offering of such Person’s securities, such annual financial statements
    shall be delivered to Bank within one hundred twenty (120) days after the end of Borrowers’ fiscal year.

   

  4.            The following is added to the end of Section 6.9(a) of the Agreement:

   

  If, by March 31, 2018, Borrowers and Bank do not mutually agree upon with respect to financial covenant levels with respect to this Section 6.9(a) of the
    Agreement for the fiscal year ending June 30, 2019, then the financial covenant shall be as follows: Borrowers shall achieve an EBITDA of at least $750,000 for the trailing six month period ending on each of June 30, 2018, September 30, 2018, December
    31, 2018, and March 31, 2019.

   

  
    
      
 

  

  
   

  5.            Section 7.6 of the Agreement is amended and restated in its entirety to read as follows:

   

  7.6          Distributions. Pay any dividends, make intellectual property royalty payments or make any other distribution or payment on account of or in
    redemption, retirement or purchase of any capital stock, or permit any of its Subsidiaries to do so, except that each Borrower may repurchase the stock of former employees pursuant to stock repurchase agreements as long as an Event of Default does not
    exist prior to such repurchase or would not exist after giving effect to such repurchase, and the aggregate amount of such repurchase does not exceed $100,000 in any fiscal year.

   

  6.           The following is added to the end of Section 7.7 of the Agreement:

   

  Notwithstanding the foregoing, Borrower may make loans to Parent (in lieu of making any royalty payments or dividends or other distributions that may have
    been previously permitted under this Agreement, which are no longer permitted under this Agreement) as long as: (i) no Event of Default has occurred that is continuing or would exist immediately after giving effect thereto, (ii) Bank has provided its
    prior written consent to such loan, on a case by case basis, which consent shall not be unreasonably withheld, conditioned, or delayed, with the mutual understanding that such consent will be given if Borrower is considered by the Bank to be in good
    standing under the Agreement, and (iii) no modifications to the terms of such loans are entered into without Bank’s prior written consent.

   

  7.            Pursuant to Section 7.7 of the Agreement, as amended herein, Bank hereby consents to a $400,000 loan to Parent from Borrower at an
    interest rate of at least 2% per annum and a maturity date of no later than five years from the onset of such loan.

   

  8.            Section 7.9 of the Agreement is amended and restated in its entirety to read as follows:

   

  7.9          Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except
    in compliance with the terms of such Subordinated Debt, or amend any provision contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent.

   

  9.           Exhibit D to the Agreement is replaced in its entirety with Exhibit D attached hereto.

   

  10.         Each Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the
    date of this Amendment, and that no Event of Default has occurred and is continuing.

   

  11.         Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as
    amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment
    shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Each Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in
    connection with the Agreement.

   

  12.         This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
    constitute one instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf
    such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original hereof. Notwithstanding the foregoing, Borrowers shall deliver all original signed documents no later than ten (10) Business Days
    following the date of execution.

   

  
    2

    
      
 

  

  
   

  13.          As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the
    following:

   

  (a)             the original signed Amendment and all other Loan Documents being executed in connection herewith, duly executed by Borrower and
    Parent;

   

  (b)             assumption and affirmation of stock pledge agreement duly executed by Parent;

   

  (c)             payment of all Bank Expenses incurred through the date hereof; and

   

  (d)             such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

   

  [SIGNATURE PAGE FOLLOWS]

  
    3

    
      
 

  

  IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

  	 	 	 	 	 	 	 	 
	  

        	DIGITAL GLOBE SERVICES INC.
	 	 
	 	By:	/s/ George Andrew Lear III	 
	 	 
	 	Name:	George Andrew Lear III	 
	 	 
	 	Title:	CFO  	 

  	 	 	 	 	 	 	 	 
	 	TELSATONLINE, INC.
	 	 
	 	By:	/s/ George Andrew Lear III	 
	 	 
	 	Name:	George Andrew Lear III	 
	 	 
	 	Title:	CFO 	 

  	 	 	 	 	 	 	 	 
	 	DGS EDU, LLC.
	 	 
	 	By:	/s/ George Andrew Lear III	 
	 	 
	 	Name:	George Andrew Lear III	 
	 	 
	 	Title:	CFO	 

  	 	 	 	 	 	 	 	 
	 	7 DEGREES, LLC
	 	 
	 	By:	/s/ George Andrew Lear III	 
	 	 
	 	Name:	George Andrew Lear III 	 
	 	 
	 	Title:	CFO  	 

  	 	 	 	 	 	 	 	 
	 	HERITAGE BANK OF COMMERCE
	 	 
	 	By:	/s/ Karla Schrader	 
	 	 
	 	Name:	Karla Schrader

        	
	 	 
	 	Title:	VP

        	 

   

  

  4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}]]