Document:

Amendment to the Employment letter - Charles J. Burdick

 Exhibit 10.1 

 

					
		  		  	

			
		  		  	June 4, 2012

 Mr. Charles J. Burdick 
 28 Princess Gate Court 
 London SW7 2QJ 
 United Kingdom 
 Dear Mr. Burdick: 

Reference is made to the letter agreement between you and Comverse Technology, Inc. (the “Company”) dated March 9, 2011 (as
amended, the “Employment Letter”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Employment Letter. 
 Pursuant to Section 6 of the Employment Letter, it was agreed that your compensation terms would be reviewed and adjusted if and when the scope of your role changes, including, among other circumstances,
upon the Company engaging a Chief Executive Officer for Comverse, Inc. (“CNS”). You and the Company wish to amend certain provisions of the Employment Letter as provided herein. Accordingly, we hereby covenant and agree as follows:

  

	 	1.	Section 1 of the Employment Letter shall be amended to read in its entirety as follows: 

“1. Annual Base Salary. Effective June 1, 2012, your annual base salary will be $350,000; provided, however,
that your annual base salary will be increased to $470,000 for the period of time your work location is in New York City (as applicable, your “Annual Base Salary”). Your Annual Base Salary is payable in accordance with the Company’s
payroll practices for similarly situated employees.” 
  

	 	2.	Section 2 of the Employment Letter shall be amended to read in its entirety as folLows: 

“2. Bonus Opportunity. You will have an on target bonus opportunity for the fiscal year ending January 31, 2013 (“Fiscal
2012”) of $273,333, to reflect your actual period of service as Chief Executive Officer of Comverse, Inc. during Fiscal 2012. The actual payment of which will depend on the achievement of metrics determined by the Board. In addition, subject to
your continued employment as Executive Chairman and Chief Executive Officer, you will be entitled to a one-time payment of $300,000 within thirty (30) days after the completion of the proposed distribution of shares of CNS on a pro rata basis to the
Company’s shareholders (“CNS Spin-Off”) to the extent that the CNS Spin-Off is completed no later than January 31, 2013. In the event that your employment is involuntarily terminated without cause or the Company, in its sole
discretion, abandons its intention to effect the CNS Spin-Off (in each case, the “Spin Termination Date”), you will be entitled to a pro-rata portion of the $300,000 payment determined by multiplying $300,000 by a fraction, the numerator
of which shall be the number of days between June 1, 2012 and the Spin Termination Date and the denominator of which shall be the number of days between June 1, 2012 and either (a) October 31, 2012 if the Spin Termination Date occurs prior to
October 31, 2012; and (b) January 31, 2013, if the Spin Termination Date occurs after October 31, 2012.” 

  
 

 
  

	 	3.	Section 5 shall be amended to read in its entirety as follows: 

 “5. Equity Compensation. During your period of service as Executive Chairman and Chief Executive Officer, you will be entitled to receive equity awards in the form of restricted stock units
(“RSUs”) under the Company’s stock incentive plans for a number of shares of the Company’s common stock equal to a value of (i) $267,392 for the fiscal quarter ending July 31, 2012 and (ii) $200,000 per fiscal quarter
thereafter, with the number of RSUs to be awarded to be based upon the closing price per share of the Company’s common stock on the last trading day of each fiscal quarter and with the RSUs to be issued quarterly in arrears and prorated for any
partial quarters of service. The RSUs to be granted pursuant to this letter agreement shall be granted pursuant to the Company’s form of Restricted Stock Award Agreement applicable to grants to directors and vest on the first anniversary of the
date of grant, subject to acceleration in certain circumstances, and the shares underlying such RSUs shall be delivered on the first anniversary of the date of grant.” 

 

	 	5.	Except as amended hereby, the Employment Letter remains in full force and effect in accordance with its terms, 

If the foregoing correctly sets forth our understanding and agreement, please sign a duplicate of this letter where indicated below and
return it to the undersigned. 
  

			
	Sincerely,
	
	COMVERSE TECHNOLOGY, INC
		
	By:	 	 

	Shefali A. Shah
	SVP, General Counsel

  

	
	AGREED:
	
	

	Charles J. Burdick

 810 Seventh Avenue, 32nd Floor, New York, NY 10019     Telephone (212) 739 1000 Facsimile (212) 739 1001 

www.cmvt.comFourth Amendment to Amended and Restated Credit Agreement

 EXHIBIT 10.14 
 FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT; SECOND 

AMENDMENT TO AMENDED AND RESTATED CONTINUING SECURITY AGREEMENT: 

RIGHTS TO PAYMENT AND INVENTORY; AND FIRST AMENDMENT TO AMENDED AND 

RESTATED SECURITY AGREEMENT: EQUIPMENT AND FIXTURES 
 THIS FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT ; SECOND AMENDMENT TO AMENDED AND RESTATED CONTINUING SECURITY AGREEMENT: RIGHTS TO PAYMENT AND INVENTORY; AND FIRST AMENDMENT TO AMENDED AND
RESTATED SECURITY AGREEMENT: EQUIPMENT AND FIXTURES (this “Amendment”) is entered into as of May 31, 2012, by and between SIGMATRON INTERNATIONAL, INC., a Delaware corporation (“Borrower”), and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association (“Bank”). 
 RECITALS 

WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and conditions of that certain Amended and Restated Credit
Agreement between Borrower and Bank dated as of January 31, 2011 (as amended from time to time, the “Credit Agreement”); 
 WHEREAS, Borrower and Bank are party to that certain Amended and Restated Continuing Security Agreement: Rights to Payment and Inventory dated as of March 28, 2011 (as amended from time to time, the
“Security Agreement: Rights to Payment and Inventory”); 
 WHEREAS, Borrower and Bank are party to that certain
Amended and Restated Security Agreement: Equipment and Fixtures dated as of March 28, 2011 (as amended from time to time, the “Security Agreement: Equipment and Fixtures”); 

WHEREAS, Borrower and Bank are party to that Amended and Restated Revolving Line of Credit Note issued by Borrower to the order of Bank
dated as of January 31, 2011 (as modified from time to time, the “Line of Credit Note”), and that Amended and Restated Promissory Note issued by Borrower to the order of Bank dated as of January 31, 2011 (as modified from time to
time, the “Term Note”); and 
 WHEREAS, Bank and Borrower have agreed to certain changes in the terms and conditions
set forth in the Credit Agreement, the Security Agreement: Rights to Payment and Inventory, the Security Agreement: Equipment and Fixtures and the other agreements referenced herein and have agreed to amend the same to reflect said changes.

 NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows: 
 ARTICLE I 
 AMENDMENTS 
 Borrower and Bank hereby agree that the Credit
Agreement shall be amended as follows: 
 1. Section 4.9(a) is hereby amended by deleting “$45,050,400.00” and
inserting in its place “the amount of $50,330,531.00 less the charge to Tangible Net Worth incurred or to be incurred in connection with the acquisition transaction contemplated by the Spitfire Acquisition Agreement (as hereinafter defined),
which charge shall not exceed the amount of $6,500,000.00,”. 

 2. Section 5.2 is hereby amended by deleting “$3,500,000.00” and replacing it
with “$4,500,000.00”. 
 3. Section 5.4 is hereby amended by inserting the following sentence at the end thereof
as follows: 
 “Further notwithstanding the foregoing, Borrower may discharge and release the account receivable of Spitfire
Control, Inc., an Illinois corporation (“Spitfire”), in connection with the consummation of the transactions contemplated by that certain Purchase Agreement dated May 31, 2012 (the “Spitfire Acquisition Agreement”), of
Borrower, as buyer, and Spitfire, as seller, a true, complete and executed copy of which agreement, including all schedules and exhibits thereto, has been delivered to Bank.” 

4. Section 5.5 is hereby amended by inserting the following sentence at the end thereof as follows: 

“Further notwithstanding the foregoing, as a consequence of the consummation of the transactions contemplated under the Spitfire
Acquisition Agreement, Borrower may acquire the equity and certain inter-company indebtedness of and otherwise make loans to or investments in Digital Appliance Controls de Mexico, S.A. de C.V., a Mexico corporation (“DAC”), Spitfire
Controls (Cayman) Co. Ltd., an exempted company incorporated with limited liability in the Cayman Islands (“Cayman”), and its wholly owned subsidiary, Spitfire Controls Vietnam Co., Ltd., a Vietnam corporation, and thereafter, revise the
terms of such acquired indebtedness or convert to equity a portion or all of such acquired indebtedness, or both.” 
 5.
The last paragraph of the Security Agreement: Rights to Payment and Inventory is hereby amended by deleting “78840.” and replacing it with “78840; 451 Maple Avenue, Carpentersville, Illinois 60110; 9560 Joe Rodriguez Drive, El Paso,
Texas 79927.” 
 6. The last paragraph of the Security Agreement: Equipment and Fixtures is hereby amended by deleting
“78840.” and replacing it with “78840; 451 Maple Avenue, Carpentersville, Illinois 60110; 9560 Joe Rodriguez Drive, El Paso, Texas 79927.” 
 7. Schedule 1 to the Security Agreement: Equipment and Fixtures is hereby amended by adding the following to the end thereof: 
 “COMMON ADDRESS FOR REAL PROPERTY: 
 451 Maple Avenue, Carpentersville, Illinois 60110

 LEGAL DESCRIPTION OF REAL PROPERTY: 

THAT PART OF TRACT 8 IN THE FIRST ADDITION OF UNIT 9 OF GOLF VIEW HIGHLANDS, BEING A SUBDIVISION OF PART OF THE SOUTHWEST QUARTER OF SECTION 14, PART
OF THE SOUTHWEST QUARTER OF SECTION 15, PART OF THE . NORTHEAST QUARTER OF SECTION 22, AND PART OF THE NORTHWEST QUARTER 

 
OF SECTION 23, ALL IN TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPLE MERIDIAN, IN KANE COUNTY, ILLINOIS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTH CORNER OF
TRACT 8 AFORESAID; THENCE SOUTHWESTERLY ALONG THE SOUTHERLY RIGHT-OF-WAY LINE OF MAPLE AVENUE, 250.0 FEET; THENCE SOUTHEASTERLY AT RIGHT ANGLES TO LAST DESCRIBED LINE ISO. 0 FEET; THENCE NORTHEASTERLY AT RIGHT ANGLES TO LAST DESCRIBED LINE 148.0
FEET MORE OR LESS TO THE WESTERLY RIGHT-OF-WAY LINE 183.1 FEET MORE OR LESS TO THE POINT OF BEGINNING, IN THE VILLAGE OF CARPENTERSVILLE, KANE COUNTY, ILLINOIS. 
 PERMANENT REAL ESTATE INDEX NUMBER: 
 03 14 351 001 

COMMON ADDRESS FOR REAL PROPERTY: 
 9560 Joe
Rodriguez Dr., El Paso, Texas 79927 
 LEGAL DESCRIPTION OF REAL PROPERTY: 
 BLK 2 ZARAGOZA CORPORATE CENTER REPLAT B LOT 3 
 PERMANENT REAL ESTATE INDEX NUMBER: 

621454” 
 ARTICLE II

 COVENANTS AND AGREEMENTS 
 1. Borrower hereby agrees that more than 99% of the equity of DAC shall be acquired by Borrower and not more than 1% of the equity of DAC shall be acquired by Gary R. Fairhead, as nominal holder for the
benefit of Borrower, within 30 days after the date of Closing (as such term is defined in the Spitfire Acquisition Agreement). 

2. Borrower hereby agrees that, no later than August 31, 2012, Bank shall receive, at Borrower’s cost, an appraisal by Emerald
Technology Valuations, LLC (“ETV”) of the Net Orderly Liquidation Value – Existing Channels of selected raw materials and finished goods of Borrower, in form, substance and reflecting values satisfactory to Bank in its reasonable
discretion. Borrower hereby further agrees that it shall provide access to ETV to the premises of Borrower and the selected locations where such raw materials and finished goods are stored for such reasonable period of time as ETV shall require to
complete its inspection. 
 3. Borrower hereby agrees to deliver to Bank a landlord waiver agreement with respect to each
collateral location being added to the Loan Documents pursuant to this Amendment, in form and substance satisfactory to Bank, no later than 30 days after the date hereof. 

 4. Borrower hereby agrees to deliver to Bank a duly authorized and executed equitable
mortgage over 65% of all of the issued shares in Cayman, in form and substance satisfactory to Bank and executed by Borrower, along with the original share certificate evidencing such equity interest, an undated share transfer form for such share
for such certificate duly executed in blank by the registered owner thereof, and such other documents and deliverables as Bank and Borrower shall agree, all no later than 30 days after the Closing. 

5. Notwithstanding any provision of the Credit Agreement, the Line of Credit Note or the Term Note to the contrary, Bank hereby consents
to the issuance by Borrower of (a) no more than fifty thousand (50,000) shares of its common stock in the aggregate as partial consideration in exchange for the assets being acquired by Borrower as contemplated in the Spitfire Acquisition
Agreement and in accordance with the terms thereof, and (b) no more than twenty-five thousand (25,000) shares of its common stock in the aggregate as partial consideration to Peter Sognefest in connection with his employment by Borrower
after the Closing. Bank hereby acknowledges that Borrower will not receive any cash proceeds from the issuance of Borrower’s stock as described in this paragraph and waives any default arising under the Credit Agreement, the Line of Credit Note
or the Term Note as a result of the issuance of Borrower’s stock as described in this paragraph. 
 ARTICLE III

 CONDITIONS TO EFFECTIVENESS 
 Borrower and Bank hereby agree that this Amendment shall not become effective until each of the following conditions has been satisfied to the reasonable satisfaction of Bank: 

1. Borrower shall have paid all expenses and amounts required to be paid pursuant to paragraph 5 of Article IV hereof. 

2. Borrower shall have delivered to Bank a complete, executed copy of the Spitfire Acquisition Agreement, including all schedules and
exhibits thereto, and copies of any and all other material documents executed and delivered in connection therewith as Bank shall reasonably request. 
 ARTICLE IV 
 GENERAL CLAUSES 

1. 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. Borrower and Bank hereby agree that this Amendment constitutes a Loan Document and that the term “Loan Document”, as
defined in the Credit Agreement, shall be read and understood, wherever it appears in the Credit Agreement and in any other Loan Document, to include this Amendment. This Amendment and the Credit Agreement shall be read together, as one document.

 2. Borrower hereby remakes all representations and warranties contained in the Credit Agreement and the other Loan Documents
and reaffirms all covenants set forth therein in each case as of the date hereof and as if the same had been set forth in full herein. 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. 

 3. This Amendment may be executed in any number of counterparts and by different parties
hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. 

4. This Amendment shall be governed by and construed in accordance with the laws of the State of Illinois, but giving effect to federal
laws applicable to national banks. 
 5. In accordance with Section 7.3 of the Credit Agreement, Borrower shall pay to Bank
all reasonable out-of-pocket payments, advances, charges, costs and expenses, including reasonable attorneys’ fees (to include reasonable outside counsel fees), expended or incurred by Bank in connection with the preparation of this Amendment
and all other documents prepared in connection herewith. 
 [Signature page follows.] 

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

									
	SIGMATRON INTERNATIONAL, INC.	 		 	WELLS FARGO BANK, NATIONAL ASSOCIATION
					
	By:	 	/s/ Linda K. Frauendorfer	 		 	By:	 	/s/ Matthew P. Soper
	Name: Linda K. Frauendorfer	 		 	Name: Matthew P. Soper
	Title: Chief Financial Officer	 		 	Title: Vice President

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