Document:

EXHIBIT 10.1

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS AMENDMENT TO CREDIT AGREEMENT (this “Amendment”)
is entered into as of December 1, 2005, by and between RENTRAK
CORPORATION, an Oregon corporation (“Borrower”), and WELLS FARGO BANK, NATIONAL
ASSOCIATION (“Bank”).

 

RECITALS

 

WHEREAS,
Borrower is currently indebted to Bank pursuant to the terms and conditions of
that certain Credit Agreement between Borrower and Bank dated as of July 15,
2002, as amended from time to time (“Credit Agreement”).

 

WHEREAS, Bank and Borrower
have agreed to certain changes in the terms and conditions set forth in the
Credit Agreement and have agreed to amend the Credit Agreement to reflect said
changes.

 

NOW, THEREFORE, for valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree that the Credit Agreement shall be amended as follows:

 

1.  Section 1.1
(a) is hereby amended (a) by deleting “December 1, 2005” as the
last day on which Bank will make advances under the Line of Credit, and by
substituting for said date “December 1, 2006,” and (b) by deleting “Six
Million Dollars ($6,000,000)” as the maximum principal amount available under
the Line of Credit, and by substituting for said amount “Fifteen Million
Dollars ($15,000,000),” with such changes to be effective upon the execution
and delivery to Bank of a promissory note dated as of December 1, 2005
(which promissory note shall replace and be deemed the Revolving Line of Credit
Note defined in and made pursuant to the Credit Agreement) and all other
contracts, instruments and documents required by Bank to evidence such change.

 

2.  In consideration of the changes set forth
herein and as a condition to the effectiveness hereof, immediately upon signing
this Amendment Borrower shall pay to Bank a non-refundable fee of $18,750.00.

 

3.  Except as
specifically provided herein, all terms and conditions of the Credit Agreement
remain in full force and effect, without waiver or modification.  All terms defined in the Credit Agreement shall
have the same meaning when used in this Amendment.  This Amendment and the Credit Agreement shall
be read together, as one document.

 

4.  Borrower
hereby remakes all representations and warranties contained in the Credit
Agreement and reaffirms all covenants set forth therein.  Borrower further certifies that as of the
date of this Amendment there exists no Event of Default as defined in the
Credit Agreement, nor any condition, act or event which with the giving of
notice or the passage of time or both would constitute any such Event of
Default.

 

UNDER
OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY BANK CONCERNING
LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN
WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY BANK TO BE ENFORCEABLE.

 

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

 

	
   

  	
  WELLS FARGO BANK,

  
	
  RENTRAK
  CORPORATION

  	
  NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
  By:

  	
   /s/ Mark Thoenes

  	
   

  	
  By:

  	
  /s/ Victoria
  Vohs

  	
   

  
	
  Mark
  Thoenes, Chief Financial Officer

  	
  Victoria
  Vohs, Vice PresidentEXHIBIT 10.2

 

	
  WELLS FARGO

  	
   

  	
  REVOLVING LINE OF CREDIT
  NOTE

  
	
   

  	
   

  	
   

  
	
  $15,000,000.00

  	
   

  	
  Portland, Oregon

  
	
   

  	
   

  	
  December 1,
  2005

  

 

FOR
VALUE RECEIVED, the undersigned RENTRAK
CORPORATION (“Borrower”) promises to pay to the order of WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”) at its office at Portland RCBO, 1300 SW Fifth Avenue,
Portland, OR 97201, or at such
other place as the holder hereof may designate, in lawful money of the United
States of America and in immediately available funds, the principal sum of $15,000,000.00, or so much thereof as may
be advanced and be outstanding, with interest thereon, to be computed on each
advance from the date of its disbursement as set forth herein:

 

1.  DEFINITIONS:

 

As used herein, the following terms shall have the
meanings set forth after each, and any other term defined in the Note shall
have the meaning set forth at the place defined:

 

1.1           “Business Day” means any day except a
Saturday, Sunday or any other day on which commercial banks in Oregon are
authorized or required by law to close.

 

1.2  “Fixed Rate Term” means a period commencing
on a Business Day and continuing for 1, 2 or
3 months, as designated by Borrower, during which all or a portion
of the outstanding principal balance of this Note bears interest determined in relation
to LIBOR; provided, however, that no Fixed Rate Term may be selected for a
principal amount less than $100,000.00; and
provided further, that no Fixed Rate Term shall extend beyond the scheduled
maturity date hereof.  If any Fixed Rate
Term would end on a day which is not a Business Day, then such Fixed Rate Term
shall be extended to the next succeeding Business Day.

 

1.3  “LIBOR” means the rate per annum (rounded
upward, if necessary, to the nearest whole 1/8 of 1%) determined by dividing
Base LIBOR by a percentage equal to 100% less any LIBOR Reserve Percentage.

 

(a)                                  “Base
LIBOR” means the rate per annum for United States dollar deposits quoted by the
Bank as the Inter-Bank Market Offered Rate, with the understanding that such
rate is quoted by Bank for the purpose of calculating effective rates of
interest for loans making reference thereto, on the first day of a Fixed Rate
Term for delivery of funds on said date for a period of time approximately
equal to the number of days in such Fixed Rate Term and in an amount
approximately equal to the principal amount to which such Fixed Rate Term
applies.  Borrower understands and agrees
that Bank may base its quotation of the Inter-Bank Market Offered Rate upon
such offers or other market indicators of the Inter-Bank Market as Bank in its
discretion deems appropriate including, but not limited to, the rate offered
for U.S. dollar deposits on the London Inter-Bank Market

 

(b)                                 “LIBOR
Reserve Package” means the reserve percentage prescribed by the Board of Governors
of the Federal Reserve System (or any successor) for “Eurocurrency Liabilities”
(as defined in Regulation D of the Federal Reserve Board, as amended), adjusted
by Bank for expected changes in such reserve percentage during the applicable
Fixed Rate Term.

 

1.4  “Prime Rate” means at any time the rate of
interest most recently announced within Bank at its principal office as its
Prime Rate, with the understanding that the Prime Rate is one of Bank’s base
rates and serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto, and is evidenced by the
recording thereof after its announcement in such internal publication or
publications as Bank may designate.

 

1

 

2.  INTEREST:

 

2.1
Interest. The outstanding principal balance of this Note shall bear
interest (computed on the basis of a 360-day
year, actual days elapsed) either (a) at a fluctuating rate per annum 0.50000% below the Prime Rate in effect
from time to time, or (b) at a fixed rate per annum determined by Bank to
be 2.00000% above LIBOR in effect
on the first day of the applicable Fixed Rate Term.  When interest is determined in relation to
Prime Rate, each change in the rate of interest hereunder shall become
effective on the date each Prime Rate change is announced within Bank.  With respect to each LIBOR selection option
selected hereunder, Bank is hereby authorized to note the date, principal
amount, interest rate and Fixed Rate Term applicable thereto and any payments
made thereon on Bank’s books and records (either manually or by electronic
entry) and/or on any schedule attached to this Note, which notations shall
be prima facie evidence of the accuracy of the information noted.

 

2.2
Selection of Interest Rate Options. 
At any time any portion of this Note bears interest determined in
relation to LIBOR, it may be continued by Borrower at the end of the Fixed Rate
Term applicable thereto so that all or a portion thereof bears interest
determined in relation to the Prime Rate or to LIBOR for a new Fixed Rate Term
designated by Borrower.  At any time any
portion of this Note bears interest determined in relation to the Prime Rate,
Borrower may convert all or a portion thereof so that it bears interest
determined in relation to LIBOR for a Fixed Rate Term designated by
Borrower.  At such time as Borrower
requests an advance hereunder or wishes to select a LIBOR option for all or a
portion of the outstanding principal balance hereof, and at the end of each
Fixed Rate Term, Borrower shall give Bank notice specifying:  (a) the interest rate option selected by
Borrower; (b) the principal amount subject thereto; and (c) for each
LIBOR selection, the length of the applicable Fixed Rate Term.  Any such notice may be given by telephone (or
such other electronic method as Bank may permit) so long as, with respect to
each LIBOR selection, (i) if requested by Bank, Borrower provides to Bank
written confirmation thereof not later than 3 Business Days after such notice
is given, and (ii) such notice is given to Bank; prior to 10:00 a.m.
on the first day of the Fixed Rate Term, or at a later time during any Business
Day if Bank, at it’s sole option but without obligation to do so, accepts
Borrower’s notice and quotes a fixed rate to Borrower.  If Borrower does not immediately accept a
fixed rate when quoted by Bank, the quoted rate shall expire and any subsequent
LIBOR request from Borrower shall be subject to a redetermination by Bank of
the applicable fixed rate.  If no
specific designation of interest is made at the time any advance is requested
hereunder or at the end of any Fixed Rate Term, Borrower shall be deemed to
have made a Prime Rate interest selection for such advance or the principal
amount to which such Fixed Rate Term applied.

 

2.3
Taxes and Regulatory Costs. 
Borrower shall pay to Bank immediately upon demand, in addition to any
other amounts due or to become due hereunder, any and all (a) withholdings,
interest equalization taxes, stamp taxes or other taxes (except income and
franchise taxes) imposed by any domestic or foreign governmental authority and
related in any manner to LIBOR, and (b) future, supplemental, emergency or
other changes in the LIBOR Reserve Percentage, assessment rates imposed by the Federal
Deposit Insurance Corporation, or similar requirements or costs imposed by any
domestic or foreign governmental authority or resulting from compliance by Bank
with any request or directive (whether or not having the force of law) from any
central bank or other governmental authority and related in any manner to LIBOR
to the extent they are not included in the calculation of LIBOR.  In determining which of the foregoing are
attributable to any LIBOR option available to Borrower hereunder, any reasonable
allocation made by Bank among its operations shall be conclusive and binding
upon Borrower.

 

2.4
Payment of Interest.  Interest
accrued on this Note shall be payable on the 1st
day of each month commencing
January 1, 2006.

 

2.5
Default Interest.  From and after
the maturity date of the Note, or such earlier date as all principal owing
hereunder becomes due and payable by acceleration or otherwise, the outstanding
principal balance of this Note shall bear interest until paid in full at an
increased rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to 4% above the rate
of interest from time to time applicable to this Note.

 

2

 

3.  BORROWING
AND REPAYMENT:

 

3.1
Borrowing and Repayment.  Borrower may from time to time
during the term of this Note borrow, partially or wholly repay its outstanding
borrowings, and reborrow, subject to all of the limitations, terms and
conditions of this Note and of the Credit Agreement between Borrower and Bank
defined below; provided however, that the total outstanding borrowings under
this Note shall not at any time exceed the principal amount stated above.  The unpaid balance of this obligation at any
time shall be the total amounts advanced hereunder by the holder hereof less
the amount of principal payments made hereon by or for any Borrower, which
balance may be endorsed hereon from time to time by the holder.  The outstanding principal balance of this Note
shall be due and payable in full on December 1,
2006.

 

3.2
Advances.  Advances hereunder, to
the total amount of the principal sum available hereunder, may be made by the
holder at the oral or written request of (a) Mark  Thoenes, Paul
Rosenbaum, any one acting alone, who are authorized to request
advances and direct the disposition of any advances until written notice of the
revocation of such authority is received by the holder at the office designated
above, or (b) any person, with respect to advances deposited to the credit
of any deposit account of any Borrower, which advances, when so deposited,
shall be conclusively presumed to have been made to or for the benefit of each
Borrower regardless of the fact that persons other than those authorized to
request advances may have authority to draw against such account.  The holder shall have no obligation to
determine whether any person requesting an advance is or has been authorized by
any Borrower.

 

3.3
Application of Payments.  Each
payment made on this Note shall be credited first, to any interest then due and
second, to the outstanding principal balance hereof.  All payments credited to principal shall be
applied first, to the outstanding principal balance of the Note which bears
interest determined in relation to the Prime Rate, if any, and second, to the
outstanding principal balance of this Note which bears interest determined in
relation to LIBOR, with such payments applied to the oldest Fixed Rate Term
first.

 

4.  PREPAYMENT:

 

4.1
Prime Rate.  Borrower may prepay
principal on any portion of this Note which bears interest determined in
relation to the Prime Rate at any time, in any amount and without penalty.

 

4.2
LIBOR.  Borrower may prepay
principal on any portion of this Note which bears interest determined in
relation to LIBOR at any time and in the minimum amount of $100,000.00; provided however, that if the
outstanding principal balance of such portion of this Note is less than said
amount, the minimum prepayment amount shall be the entire outstanding principal
balance thereof.  In consideration of
Bank providing this prepayment option to Borrower, or if any such portion of
this Note shall become due and payable at any time prior to the last day of the
Fixed Rate Term applicable thereto by acceleration or otherwise, Borrower shall
pay to Bank immediately upon demand a fee which is the sum of the discounted
monthly differences for each month from the month of prepayment through the
month in which such Fixed Rate Term matures, calculated as follows for each
such month:

 

(a)          Determine the amount of interest which would have accrued each month on the
amount prepaid at the interest rate applicable to such amount had it remained
outstanding until the last day of the Fixed Rate Term applicable thereto.

 

(b)         Subtract from the amount determined in (a) above the amount of interest
which would have accrued for the same month on the amount prepaid for the
remaining term of such Fixed Rate Term at LIBOR in effect on the date of
prepayment for new loans made for such term and in a principal amount equal to
the amount prepaid.

 

(c)          If the result obtained in (b) for any month is greater than zero,
discount that difference by LIBOR used in (b) above.

 

Each
Borrower acknowledges that prepayment of such amount may result in Bank
incurring additional costs, expensed and/or liabilities, and that it is
difficult to ascertain the full extend of such costs, expenses and/or
liabilities.  Each Borrower, therefore,
agrees to pay the above-described prepayment fee and 

 

3

 

agrees
that said amount represents a reasonable estimate of the prepayment costs,
expenses and/or liabilities of Bank.  If
Borrower fails to pay any prepayment fee when due, the amount of such
prepayment fee shall thereafter bear interest until paid at a rate per annum 2.000% above the Prime Rate in effect from
time to time (computed on the basis of a 360-day
year, actual days elapsed).  Each change
in the rate of interest on any such past due prepayment fee shall become
effective on the date each Prime Rate change is announced within Bank.

 

5.  EVENT OF
DEFAULT:

 

This Note is made pursuant to and is subject to the
terms and conditions of that certain Credit Agreement between Borrower and Bank
dated as of July 15, 2002, as
amended from time to time (the “Credit Agreement”).  Any default in the payment or performance of
any obligation under this Note, or any defined event of default under the
Credit Agreement, shall constitute an “Event of Default” under this Note.

 

6. MISCELLANEOUS:

 

6.1
Remedies.  Upon the occurrence of
any Event of Default, the holder of this Note, at the holder’s option, may
declare all sums of principal and interest outstanding hereunder to be
immediately due and payable without presentment, demand, notice of
nonperformance, notice of protest, protest or notice of dishonor, all of which
are expressly waived by each Borrower, and the obligation, if any, of the
holder to extend any further credit hereunder shall immediately cease and
terminate.  Each Borrower shall pay to
the holder immediately upon demand the full amount of all payments, advances,
charges, costs and expenses, including reasonable attorneys’ fees (to include
outside counsel fees and all allocated costs of the holder’s in-house counsel),
expended or incurred by the holder in connection with the enforcement of the
holder’s rights and/or collection of any amounts which become due to the holder
under this Note, and the prosecution or defense of any action in any way
related to this Note, including without limitation, any action for declaratory
relief, whether incurred at the trial or appellate level, in an arbitration
proceeding or otherwise, and including any of the foregoing incurred in
connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Bank or any other
person) relating to any Borrower or any other person or entity.

 

6.2
Obligations Joint and Several. 
Should more than one person or entity sign this Note as a Borrower, the
obligations of each such Borrower shall be joint and several.

 

6.3
Governing Law.  This Note shall be
governed by and construed in accordance with the laws of the State of Oregon.

 

UNDER
OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY BANK CONCERNING
LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES OR SECURED SOLELY BE THE BORROWER’S RESIDENCE MUST BE IN
WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY BANK TO BE ENFORCEABLE.

 

IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date first
written above.

 

	
  RENTRAK CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
     /s/Mark Thoenes

  	
   

  	
   

  
	
   

  	
    Mark Thoenes, Chief Financial Officer

  	
   

  
	
   

  	
   

  
				

 

4

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