Document:

c55077_ex10-67.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT 

       THIS FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made and entered as of January 21, 2008, by and among SED INTERNATIONAL HOLDINGS,
INC., a Georgia corporation (“Parent”), SED INTERNATIONAL, INC., a Georgia corporation (“SED”), SED MAGNA (MIAMI),
INC., a Delaware corporation (“Magna”; Parent, SED and Magna are collectively referred to herein as “Borrowers” and each individually as a “Borrower”), the parties to the Loan Agreement (as hereinafter defined) from
time to time as lenders (collectively, “Lenders” and each individually, a “Lender”) and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, in its capacity as agent for
Lenders (in such capacity, “Agent”).

Recitals: 

       Borrowers, Agent and Lenders are parties to that certain Loan and Security Agreement dated September 21, 2005, as amended by that certain letter amendment dated January 24, 2006, that certain Second
Amendment to Loan and Security Agreement dated May 17, 2006, that certain letter amendment dated May 17, 2006, that certain letter amendment dated December 21, 2006, that certain letter amendment dated February 1, 2007, that certain Third Amendment
to Loan and Security Agreement dated March 1, 2007, that certain letter amendment dated April 25, 2007, that certain letter amendment dated May 18, 2007, that certain Fourth Amendment dated August 23, 2007 and that certain letter amendment dated
October 15, 2007 (as so amended, and as at any other time amended, restated, modified or supplemented, the “Loan Agreement”), pursuant to which Lenders have made certain revolving credit loans and other financial accommodations to Borrowers.

       The parties desire to amend the Loan Agreement as hereinafter set forth. 

       NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby severally acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows: 

       1.       Definitions. All capitalized terms used in this Amendment, unless otherwise defined herein,
shall have the meaning ascribed to such terms in the Loan Agreement. 

       2.       Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows: 

       (a)      By deleting the definition of “Borrowing Base” contained in Section 1.19 of the Loan Agreement and by substituting the following in lieu thereof: 

       1.19       “Borrowing Base” shall mean, at any time, the amount equal to the sum of:

(1) (a) eighty-five percent (85%) of the Eligible Accounts, plus (b) the lesser of (i) the Foreign Accounts Loan Limit or (ii) eighty-five percent (85%) of the Eligible
Foreign Accounts, plus (2) the lesser of (a) the Inventory Loan Limit
or (b) the sum of: (i) the lesser of (A) sixty percent (60%) multiplied by the Value of the Eligible Inventory on hand 90 days or less or (B) eighty-five percent (85%) of the Net Recovery Percentage of such Eligible Inventory, plus (ii) the lesser of (A) twenty-five percent (25%)
multiplied by the Value of the Eligible Inventory on hand more than 90 days but not more than 180 days or (B) eighty-

five percent (85%) of the Net Recovery Percentage of such Eligible Inventory, plus (iii) the lesser of (A) the Westinghouse Inventory Loan Limit, (B) 70% of the Value of
Eligible Westinghouse Inventory, or (C) 115% of the Net Recovery Percentage of such Eligible Westinghouse Inventory (using the general television category on the Agent’s appraisal to determine the applicable Net Recovery Percentage fraction),
plus (iv) the Acer/QVC Inventory Formula Amount, minus (3) Reserves. 

       For purposes only of applying the Inventory Loan Limit, Agent may treat the then undrawn amounts of outstanding Letters of Credit for the purpose of purchasing Eligible Inventory as Revolving Loans to
the extent Agent is in effect basing the issuance of the Letter of Credit on the Value of the Eligible Inventory being purchased with such Letter of Credit. In determining the actual amounts of such Letter of Credit to be so treated for purposes of
the sublimit, the outstanding Revolving Loans and Reserves shall be attributed first to any components of the lending formulas set forth above that are not subject to such sublimit, before being attributed to the components of the lending formulas
subject to such sublimit. The amounts of Eligible Inventory of any Borrower shall, at Agent’s option, be determined based on the lesser of the amount of Inventory set forth in the general ledger of such Borrower or the perpetual inventory record
maintained by such Borrower. 

       (b)      By deleting subclause (n) from the definition of “Eligible Accounts” set forth in Section 1.39 of the Loan Agreement and by substituting the following in lieu thereof: 

       (n)      the aggregate amount of such Accounts owing by QVC Inc. do not constitute more than thirty-six percent (36%) of the aggregate amount of all otherwise Eligible Accounts (so long as Accounts owing
by QVC Inc. are subject to credit insurance payable to Agent issued by an insurer and on terms and in an amount acceptable to Agent), and the aggregate amount of such Accounts owing by any single account debtor other than QVC Inc. do not constitute
more than fifteen percent (15%) of the aggregate amount of all otherwise Eligible Accounts (but the portion of the Accounts not in excess of the applicable percentages may be deemed Eligible Accounts); 

       (c)      By deleting the last sentence in the definition of “Eligible Inventory” contained in Section 1.40 of the Loan Agreement and by substituting in lieu thereof the following: 

Any amount which is included as “Eligible Westinghouse Inventory” or “Eligible Acer/QVC Inventory” on any Borrowing Base certificate shall not also be included as Eligible Inventory on the same Borrowing Base
certificate, any amount which is included as “Eligible Acer/QVC Inventory” on any Borrowing Base certificate shall not also be included as Eligible Acer/QVC In-Transit Inventory on the same
Borrowing Base certificate, and any amount which is included as “Eligible Acer/QVC In-Transit Inventory” on any Borrowing Base certificate shall not also be included as Eligible Acer/QVC Inventory or Eligible Inventory on the same Borrowing Base
certificate.

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       (d)      By adding
    the following new definitions of “Acer/QVC Inventory Formula Amount”, “Eligible
    Acer/QVC Inventory” and “Eligible Acer/QVC In-Transit Inventory”, respectively,
    as a new Section 1.129 of  the Loan Agreement immediately following Section
1.128 thereof: 

 1.129 Additional Definitions (Fifth Amendment to Loan and Security Agreement): 

       “Acer/QVC Inventory Formula Amount” means an amount equal to the lesser of (1) the sum of (a) the lesser of $5,500,000 or 70% of
the Value of Eligible Acer/QVC Inventory, plus (b) the lesser of $2,500,000 or 70% of the Value of Eligible Acer/QVC In-Transit Inventory, or (2) 103% of the Net Recovery Percentage of Eligible Acer/QVC Inventory and Eligible Acer/QVC In-Transit
Inventory (using the general notebooks category on the Agent’s appraisal to determine the applicable Net Recovery Percentage fraction)]. 

       “Eligible Acer/QVC Inventory” means Inventory which satisfies all of the criteria for “Eligible Inventory” set forth in the definition
thereof and which (i) consists of Acer branded notebook or desktop personal computers aged less than 45 days, (ii) is subject to a purchase order
that has been delivered to Borrower by QVC Inc. and with respect to which an “air date” has been set by the QVC Inc. (and Borrower has delivered to Agent such documentation thereof as Agent may request), and (iii)
is in the possession of and under the control of Borrower at a facility owned, leased or controlled by Borrower. 

       “Eligible Acer/QVC In-Transit Inventory” means Inventory which satisfies all of the criteria for “Eligible Acer/QVC Inventory” set forth in the definition thereof except for subclause (iii) thereof,
but only if (i) such Inventory is located in the United States, is in transit from the vendor to QVC Inc. and was shipped not more than 15 days prior to any date of determination; (ii) under the terms of sale, title and risk of loss with respect to
such Inventory have passed from the vendor to Borrower; (iii) such Inventory is fully insured, in such amounts, with such insurance companies and subject to such deductibles as are reasonably satisfactory to Agent and in respect of which Agent has
been named as sole loss payee pursuant to a loss payee endorsement acceptable to Agent; (iv) Borrower has delivered to Agent such documentation relating to the shipment of such Inventory as Agent may request; and (v) Agent has established, in
accordance with this Agreement, such Reserves with respect to such Inventory and the shipment thereof as Agent deems necessary or appropriate. 

       (e)      By deleting from Section 6.4 of the Loan Agreement the phrase, “fourth, to pay principal due in respect of the Loans;”, and by
substituting in lieu thereof the following: 

fourth, to pay principal in respect of the Loans and to pay or prepay Obligations arising under or pursuant to any Hedging Agreements of a Borrower or Guarantor with Lender (up to the amount of any then effective Reserve
established in respect of such Obligations), on a pro rata basis; 

       (f)       By deleting the notice address of Agent and Issuing Bank from Section 13.3 of the Loan Agreement and by substituting the following in
lieu thereof: 

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If to Agent or  	   
	 	
Issuing Bank:  	
Wachovia Bank, National Association  
	 	   	
1133 Avenue of the Americas  
	 	   	
New York, NY 10036  
	 	   	
Attn: Wachovia Capital Finance -  
	 	   	
                  Portfolio Manager  
	 	   	
Facsimile: (212) 545-4283  

       3.       Amendments to Loan Agreement (Revolving Loan Limit Increase). Borrowers, Agent and Lenders
acknowledge and agree that, effective on the date hereof (as used herein, the “Increase Date”), Borrowers requested, and Agent and Lenders approved, a Revolving Loan Limit Increase in the amount of $10,000,000. In furtherance thereof:

       (a)      Borrowers, Agent and Lender agree that the Loan Agreement is amended, effective as of the Increase Date, by deleting the definitions of “Maximum Credit” and “Revolving Loan Limit” set forth in
Section 1 of the Loan Agreement and by substituting the following definitions in lieu thereof, respectively: 

       1.87     “Maximum Credit” shall mean the amount of $50,000,000. 

       1.111  “Revolving Loan Limit” shall mean an amount equal to $50,000,000 minus the then outstanding principal amount of the Revolving Loans
and Letters of Credit. 

       (b)      Borrowers, Agent and Lender agree that the Loan Agreement is amended, effective as of the Increase Date, by deleting the amount of the Commitment of Wachovia Bank, National Association, as Lender,
set forth next to its signature to the Loan Agreement (i.e., $40,000,000) and by substituting in lieu thereof the amount of $50,000,000. 

       (c)      Borrowers acknowledge and agree that Borrowers shall not be entitled to receive, and Agent and Lenders shall have no obligation to provide, any additional Revolving Loan Limit Increases.

       (d)      Borrowers represent and warrant to Agent and Lenders that, as of the Increase Date, each of the Revolving Loan Limit Increase Conditions was satisfied. 

       4.       Ratification and Reaffirmation.  Each Borrower hereby ratifies and reaffirms the
Obligations, each of the Financing Agreements and all of such Borrower’s covenants, duties, indebtedness and liabilities under the Financing Agreements. 

       5.       Acknowledgments and Stipulations. Each Borrower acknowledges and stipulates that the Loan
Agreement and the other Financing Agreements executed by such Borrower are legal, valid and binding obligations of such Borrower that are enforceable against such Borrower in accordance with the terms thereof; all of the Obligations are owing and
payable without defense, offset or counterclaim (and to the extent there exists any such defense, offset or counterclaim on the date hereof, the same is hereby waived by such Borrower); and the security interests and liens granted by Borrowers in
favor of Agent are duly perfected, first priority security interests and liens, subject only to liens and other encumbrances permitted under the Loan Agreement. 

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       6.       Representations
        and Warranties. Each
        Borrower represent and warrant to Agent and Lenders,  to induce Agent
        and Lenders to enter into this Amendment, that no Default or Event of
        Default exists on the date hereof; delivery and performance of this Amendment
        have been duly authorized by all requisite corporate action on the part
        of each  Borrower and this Amendment has been duly executed and delivered
        by each Borrower; and all of the representations and warranties made
        by each Borrower in the Loan Agreement are true and correct in all material
        respects on and as of the date hereof,  except to the extent such representations
        and warranties specifically relate to an earlier date, in which case
        such representations and warranties shall have been true, correct and
        complete in all material respects on and as of such earlier date.

       7.       Reference to Loan Agreement. Upon the effectiveness of this Amendment, each reference in
the Loan Agreement to “this Agreement,” “hereunder,” or words of like import shall mean and be a reference to the Loan Agreement, as amended by this Amendment. 

       8.       Breach of Amendment. This Amendment shall be part of the Loan Agreement and a breach of any
representation, warranty or covenant herein shall constitute an Event of Default. 

       9.       Condition Precedent. The effectiveness of the amendments contained in Sections
2 and 3 hereof is subject to the delivery to Agent of (a) an original counterpart of this Amendment executed by each Borrower, (b) an updated Certificate
Regarding Distribution Agreements executed by each Borrower and (c) such other documents, instruments and agreements as the Agent may require, in each case in form and substance satisfactory to Agent. 

       10.     Amendment Fee; Expenses of Agent.  In consideration of Agent’s and Lenders’ willingness to enter into this Amendment as set
forth herein, Borrowers jointly and severally agree to pay to Lenders an amendment fee in the amount of $25,000 in immediately available funds on the date hereof. Additionally, Borrowers jointly and severally agree to pay, on demand, all costs and expenses incurred by Agent in connection with the preparation, negotiation and execution of this Amendment and any other Financing Agreements executed pursuant hereto and any and
all amendments, modifications, and supplements thereto, including, without limitation, the costs and fees of Agent’s legal counsel and any taxes or expenses associated with or incurred in connection with any instrument or agreement referred to
herein or contemplated hereby. 

       11.     Effectiveness; Governing Law.
This Amendment shall be effective upon acceptance by Agent and Lenders (notice of which acceptance is hereby waived), whereupon the same shall be governed by and construed in accordance with the internal laws of the
State of Georgia. 

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

       13.     No Novation, etc.. Except as otherwise expressly provided in this Amendment, nothing herein shall be deemed to amend or
modify any provision of the Loan Agreement or any of the other Financing Agreements, each of which shall remain in full force and effect. This Amendment is not intended to be, nor shall it be construed to create, a novation or accord and
satisfaction, and the Loan Agreement as herein modified shall continue in full force and effect. 

       14.     Counterparts; Telecopied Signatures. This Amendment may be executed in any number of
counterparts and by different parties to this Amendment on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and 

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the same agreement. Any signature delivered by a party by
facsimile transmission shall be deemed to be an original signature hereto. 

       15.     Further Assurances. Each Borrower agrees to take such further actions as Agent shall
reasonably request from time to time in connection herewith to evidence or give effect to the amendments set forth herein or any of the transactions contemplated hereby. 

       16.     Section Titles. Section titles and references used in this Amendment shall be without
substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto. 

       17.     Release of Claims. To induce Agent and Lenders to enter into this Amendment, each Borrower hereby releases, acquits and
forever discharges Agent and each Lender, and all officers, directors, agents, employees, successors and assigns of Agent and each Lender, from any and all liabilities, claims, demands, actions or causes of action of any kind or nature (if there be
any), whether absolute or contingent, disputed or undisputed, at law or in equity, which are known to Borrowers, that each Borrower now has or ever had against Agent and any Lender arising under or in connection with any of the Financing Agreements
or otherwise. Each Borrower represents and warrants to Agent and Lenders that such Borrower has not transferred or assigned to any Person any claim that such Borrower ever had or claimed to have against Agent or any Lender. 

       18.     Waiver of Jury Trial. To the fullest extent permitted by applicable law, the parties hereto each hereby waives the right
to trial by jury in any action, suit, counterclaim or proceeding arising out of or related to this Amendment. 

[Remainder of page intentionally left blank;

signatures begin on following page.] 

 

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       IN WITNESS WHEREOF,
    the Borrowers have caused this Amendment to be duly executed under seal and
    delivered in Atlanta, Georgia by their respective duly authorized officers
    on the date first written  above. 

 

 SED INTERNATIONAL HOLDINGS, INC. 

 By: _________________________________

  Title: ________________________________
 

 By: _________________________________

  Title: ________________________________
 

          [CORPORATE SEAL] 

 SED INTERNATIONAL, INC. 

 By: _________________________________

  Title: ________________________________
 

 By: _________________________________

  Title: ________________________________
 

          [CORPORATE SEAL] 

SED MAGNA (MIAMI), INC. 

 By: _________________________________

  Title: ________________________________
 

 By: _________________________________

  Title: ________________________________
 

          [CORPORATE SEAL] 

 Accepted and agreed: 

WACHOVIA BANK, NATIONAL

ASSOCIATION, as Agent and sole Lender 

 By: _________________________________

  Title: ________________________________
 

Fifth Amendment to Loan and Security Agreementc55077_ex10-68.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT 

       THIS SIXTH
AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made
and entered into on July 1, 2008, by and among SED
INTERNATIONAL HOLDINGS,  INC., a Georgia
corporation (“Parent”), SED INTERNATIONAL,
INC., a Georgia corporation (“SED”), SED
MAGNA (MIAMI),  INC., a Delaware corporation
(“Magna”; Parent, SED and Magna are collectively referred to herein
as “Borrowers” and each individually as “Borrower”), the
parties to the Loan Agreement (as hereinafter defined) from time  to time as
lenders (collectively, “Lenders” and each individually, “Lender”)
and WACHOVIA BANK, NATIONAL ASSOCIATION,
a national banking association, in its capacity as agent for Lenders (in  such
capacity, “Agent”) .

Recitals: 

       Borrowers, Agent and Lenders are parties to that certain Loan and Security Agreement dated September 21, 2005, as amended by that certain letter amendment dated January 24, 2006, that certain Second
Amendment to Loan and Security Agreement dated May 17, 2006, that certain letter amendment dated May 17, 2006, that certain letter amendment dated December 21, 2006, that certain letter amendment dated February 1, 2007, that certain Third Amendment
to Loan and Security Agreement dated March 1, 2007, that certain letter amendment dated April 25, 2007, that certain letter amendment dated May 18, 2007, that certain Fourth Amendment to Loan and Security Agreement dated August 23, 2007, that
certain letter amendment dated October 15, 2007, and that certain Fifth Amendment to Loan and Security Agreement dated as of January 21, 2008 (as so amended, and as at any other time amended, restated, modified or supplemented, the “Loan
Agreement”) , pursuant to which Lenders have made certain revolving credit loans and other financial accommodations to Borrowers. 

       The parties desire to amend the Loan Agreement as hereinafter set forth. 

       NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby severally acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows: 

       1.       Definitions. All capitalized terms used in this Amendment, unless otherwise defined herein,
shall have the meaning ascribed to such terms in the Loan Agreement. 

       2.       Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows: 

       (a)      By deleting the definitions of “Eligible Foreign Account” and “Foreign Accounts Loan Limit” contained in Section 1.127 of the Loan Agreement, and by substituting the following new definitions in
lieu thereof, in proper alphabetical sequence: 

       “Eligible Foreign Account” means an Account which satisfies all of the criteria for an “Eligible Account” set forth in the definition thereof other than clause (f) thereof and which arises from a sale
or lease to an account debtor with its chief executive office or principal place of business outside the United States or the Commonwealth of Puerto Rico or Canada, if either: (i) the account debtor has delivered to such Borrower an irrevocable
letter of credit issued or confirmed by a bank satisfactory to Agent and payable only in the United States of America and in U.S. dollars, sufficient to cover such Account, in form and substance satisfactory to Agent and if required by Agent, the
original of such 

letter of credit has been delivered to Agent or Agent’s agent and the issuer thereof, and such Borrower has complied with the terms of Section 5.3(f) hereof with respect to the assignment of the proceeds of such letter of credit
to Agent or naming Agent as transferee beneficiary thereunder, as Agent may specify, or (ii) such Account is subject to credit insurance payable to Agent issued by an insurer and on terms and in an amount acceptable to Agent; provided, that, any amount which is included as an “Eligible Foreign Account” on any Borrowing Base certificate shall not also be included as an
Eligible Account on the same Borrowing Base certificate; provided further that, (i) the accounts of Golden Distribuidora LTDA constituting “Eligible Foreign Accounts” shall not exceed, in the aggregate, $1,500,000, and (ii) the accounts of any other account debtor constituting “Eligible Foreign Accounts”
shall not exceed, in the aggregate, $900,000, for such account debtor. 

       “Foreign Accounts Loan Limit” means, for the period beginning on June 24, 2008 and ending on September 19, 2008, an amount equal to $7,500,000, and at all times thereafter, an amount equal to
$6,000,000. 

       (b)      By deleting the reference to “$6,000,000” in Schedule 9.9(k) of the Loan Agreement, and by substituting “$7,000,000” in lieu thereof. 

       (c)      By deleting the reference to “$4,000,000” in Section 9.9(l) of the Loan Agreement, and by substituting “$5,000,000” in lieu thereof. 

       3.       Ratification and Reaffirmation.  Each Borrower hereby ratifies and reaffirms the
Obligations, each of the Financing Agreements and all of such Borrower’s covenants, duties, indebtedness and liabilities under the Financing Agreements. 

       4.       Acknowledgments and Stipulations. Each Borrower acknowledges and stipulates that the Loan
Agreement and the other Financing Agreements executed by such Borrower are legal, valid and binding obligations of such Borrower that are enforceable against such Borrower in accordance with the terms thereof; all of the Obligations are owing and
payable without defense, offset or counterclaim (and to the extent there exists any such defense, offset or counterclaim on the date hereof, the same is hereby waived by such Borrower); and the security interests and liens granted by Borrowers in
favor of Agent are duly perfected, first priority security interests and liens, subject only to liens and other encumbrances permitted under the Loan Agreement. 

       5.       Representations and Warranties. Each Borrower represents and warrants to Agent and Lenders,
to induce Agent and Lenders to enter into this Amendment, that no Default or Event of Default exists on the date hereof; delivery and performance of this Amendment have been duly authorized by all requisite corporate action on the part of such
Borrower and this Amendment has been duly executed and delivered by such Borrower; and all of the representations and warranties made by such Borrower in the Loan Agreement are true and correct in all material respects on and as of the date hereof,
except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true, correct and complete in all material respects on and as of such earlier date.

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       6.       Reference to Loan Agreement.  Upon the effectiveness of this Amendment, each reference in
the Loan Agreement to “this Agreement,” “hereunder,” or words of like import shall mean and be a reference to the Loan Agreement, as amended by this Amendment. 

       7.       Breach of Amendment. This Amendment shall be part of the Loan Agreement and a breach of any
representation, warranty or covenant herein shall constitute an Event of Default. 

       8.       Conditions Precedent. The effectiveness of the amendments contained in Section 2 hereof is subject to the delivery to Agent of (a) an original counterpart of this Amendment executed by each Borrower, and (b) such other documents, instruments and agreements as the Agent may
require, in each case in form and substance satisfactory to Agent. 

       9.       Amendment Fee; Expenses of Agent.  In consideration of Agent’s and Lenders’ willingness to
enter into this Amendment as set forth herein, Borrowers jointly and severally agree to pay to Lenders an amendment fee in the amount of $15,000 in immediately available funds on the date hereof. Additionally, Borrowers jointly and severally
agree to pay, on demand, all costs and expenses incurred by Agent in connection with the preparation, negotiation and execution of this Amendment and any other Financing Agreements executed
pursuant hereto and any and all amendments, modifications, and supplements thereto, including, without limitation, the costs and fees of Agent’s legal counsel and any taxes or expenses associated with or incurred in connection with any instrument or
agreement referred to herein or contemplated hereby. 

       10.     Effectiveness; Governing Law.
This Amendment shall be effective upon acceptance by Agent and Lenders (notice of which acceptance is hereby waived), whereupon the same shall be governed by and construed in accordance with the internal laws of the
State of Georgia. 

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

       12.     No Novation, etc. Except as otherwise expressly provided in this Amendment, nothing herein shall be deemed to amend or
modify any provision of the Loan Agreement or any of the other Financing Agreements, each of which shall remain in full force and effect. This Amendment is not intended to be, nor shall it be construed to create, a novation or accord and
satisfaction, and the Loan Agreement as herein modified shall continue in full force and effect. 

       13.     Counterparts; Telecopied Signatures.  This Amendment may be executed in any number of
counterparts and by different parties to this Amendment on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any signature delivered by a party
by facsimile transmission shall be deemed to be an original signature hereto. 

       14.     Further Assurances. Each Borrower agrees to take such further actions as Agent shall
reasonably request from time to time in connection herewith to evidence or give effect to the amendments set forth herein or any of the transactions contemplated hereby. 

       15.     Section Titles. Section titles and references used in this Amendment shall be without
substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto. 

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       16.     Release of Claims. To
induce Agent and Lenders to enter into this Amendment, each Borrower hereby releases,
acquits and forever discharges Agent and each Lender, and all officers, directors,
agents, employees, successors and assigns of Agent and each Lender, from any
and all liabilities, claims, demands, actions or causes of action of any kind
or nature (if there be any), whether absolute or contingent, disputed or undisputed,
at law or in equity, which are known to such Borrower, that such Borrower now
has or ever had against Agent and any Lender arising under or in connection with
any of the Financing Agreements or otherwise. Each Borrower represents and warrants
to Agent and Lenders that such Borrower has not transferred or assigned to any
Person any claim that such Borrower ever had or claimed to have against Agent
or any Lender.

       17.     Waiver of Jury Trial. To
the fullest extent permitted by applicable law, the parties hereto each hereby
waives the right to trial by jury in any action, suit, counterclaim or proceeding
arising out of or related to this Amendment.

[Remainder of page intentionally left blank; signatures begin on following page.] 

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       IN WITNESS WHEREOF, the Borrowers have caused this Amendment to be duly executed under seal and delivered in Atlanta, Georgia by their respective duly authorized officers on the date first written
above. 

 

 SED INTERNATIONAL HOLDINGS, INC. 

 By: _________________________________
 

Title: ________________________________
 

 By: _________________________________
 

Title: ________________________________
 

          [CORPORATE SEAL] 

 SED INTERNATIONAL, INC. 

 By: _________________________________
 

Title: ________________________________
 

 By: _________________________________
 

Title: ________________________________
 

          [CORPORATE SEAL] 

SED MAGNA (MIAMI), INC. 

 By: _________________________________
 

Title: ________________________________
 

 By: _________________________________
 

Title: ________________________________
 

          [CORPORATE SEAL] 

 Accepted and agreed: 

WACHOVIA BANK, NATIONAL

ASSOCIATION, as Agent and sole Lender 

 By: _________________________________
 

Title: ________________________________
 

Sixth Amendment to Loan and Security Agreement

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