Document:

Exhibit 10.1

 

AMENDMENT
NUMBER 1 TO THE LOAN AND SECURITY AGREEMENT 

AND TO THE LOAN AGREEMENT SCHEDULE

 

This
Amendment Number 1 to the Loan and Security Agreement and to the Loan Agreement Schedule (“Amendment No. 1”)
dated effective as of December 9, 2016 by and between SYSOREX GLOBAL, a Nevada corporation with offices at 2479 East Bayshore
Road, Suite 195, Palo Alto, CA 94303 (“SG”), SYSOREX USA, a California corporation with offices at 2479 East
Bayshore Road, Suite 195, Palo Alto, CA 94303 (“SUSA”) and SYSOREX GOVERNMENT SERVICES, INC., a Virginia corporation
with offices at 2479 East Bayshore Road, Suite 195, Palo Alto, CA 94303 (“SGS” and together with SUSA and SG,
jointly and severally the “Borrower”), and GEMCAP LENDING I, LLC, a Delaware limited liability company with
offices at 24955 Pacific Coast Highway, Suite A202, Malibu, CA 90265 (together with its successors and assigns, the “Lender”).

 

RECITALS

 

A.       Borrower
and Lender are parties to the Loan and Security Agreement dated as of November 14, 2016 (the “Loan Agreement”).

 

B.       In
connection with the Loan Agreement, Borrower executed and delivered to Lender (i) the Loan Agreement Schedule dated as of November
14, 2016 (the “Loan Schedule”), and (ii) other Loan Documents.

 

C.       Borrower
acknowledges that for the period from November 21, 2016 through and including December 6, 2016, Borrower did not deposit Collections
of Accounts received by Borrower in the account designated by Lender in violation of the Loan Documents.

 

D.       Borrower
has requested additional availability for unbilled Accounts.

 

E.       As
an accommodation to Borrower, Lender has consented to provide additional availability for unbilled Accounts in accordance with
this Amendment No. 1, subject to the terms and conditions set forth herein.

 

F.       In
consideration of Lender’s consent and accommodation, Borrower has agreed to pay all of Lender’s fees and costs including
Lender’s attorneys’ fees and costs in respect of the transactions regarding this Amendment No. 1.

 

G.       Capitalized
terms used but not defined herein have the meanings set forth in the Loan Agreement.

 

     

     

    

 

NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants and agreements herein contained and other good and valuable
consideration, Lender and Borrower mutually covenant, warrant and agree as follows:

 

1.       Amendments.
Subject to Section 2 below, the Loan Agreement and the Loan Schedule, effective as of the date hereof, are amended as follows:

 

A.       The
definition of “Borrowing Base” in Section 1.14 of the Loan Agreement is hereby deleted and restated in its
entirety as follows:

 

“Borrowing
Base” shall be calculated at any time as the sum of (i) the product obtained by multiplying the outstanding amount of
all Eligible Accounts (not including and specifically excluding Eligible Unbilled Accounts), net of all Taxes, discounts, allowances
and credits given or claimed, by up to eighty-five percent (85%), and (ii) (A) for the period from December 9, 2016 through and
including January 9, 2017, the product obtained by multiplying the amount of only Eligible Unbilled Accounts net of all Taxes,
discounts, allowances and credits given or claimed, by up to eighty-five percent (85%), (B) for the period from January 10, 2017
through and including February 8, 2017, the product obtained by multiplying the amount of only Eligible Unbilled Accounts net
of all Taxes, discounts, allowances and credits given or claimed, by up to seventy percent (70%), (C) for the period from February
9, 2017 through and including March 9, 2017, the product obtained by multiplying the amount of only Eligible Unbilled Accounts
net of all Taxes, discounts, allowances and credits given or claimed, by up to fifty percent (50%), and (D) from and after March
10, 2017, the product obtained by multiplying the amount of only Eligible Unbilled Accounts net of all Taxes, discounts, allowances
and credits given or claimed, by zero percent (0%), it being the understanding of Borrower, that on and after March 10, 2017,
Lender shall not make Advances against Eligible Unbilled Accounts; provided, that, at all times, the aggregate amount of Eligible
Unbilled Accounts shall not exceed twenty percent (20%) of the aggregate amount of Eligible Accounts. For the avoidance of doubt,
when any Eligible Unbilled Account becomes an Eligible Account, Lender shall credit the amount already Advanced by Lender on any
such Eligible Unbilled Account.

 

B.       The
following definition shall be added as a new Section 1.29A;

 

1.29A
“Eligible Unbilled Accounts” means Accounts (i) for which goods are to be provided to an Account Debtor
or work or services are to be performed for an Account Debtor and the Borrower has not invoiced the Account Debtor within thirty
(30) days after such Accounts are first included on the Borrowing Certificate, and (ii) which otherwise satisfy (1), (3), (5)
through and including (12) and (14) through and including (22) of the definition of Eligible Accounts. For the avoidance of doubt,
any unbilled Account that has not been invoiced to the Account Debtor within thirty (30) days after the date the Eligible Unbilled
Account is first included on the Borrowing Certificate will be made ineligible on the thirty-first (31st) day.

 

C.       Section
7(b)(ii) of the Loan Schedule is hereby deleted and restated in its entirety as follows:

 

(ii) Monthly
Financial Statements. Not later than thirty (30) days after the end of each calendar month, the unaudited balance sheets
and the related statements of income of Borrower, certified by the Chief Financial Officer, subject to year-end audit
adjustments, with an aging schedule for all accounts receivable and accounts payable, together with such other information
with respect to the business of Borrower as Lender may request

 

    	 	-2-	 

     

    

 

D.       Section
7(b)(vi) of the Loan Schedule is hereby deleted and restated in its entirety as follows:

 

(vi)
Other Weekly Reports. Weekly aging schedule for all Accounts, accounts payable and such other reports as requested
by Lender, in such form as Lender may request.

 

2.       Effectiveness.
The effectiveness of this Amendment No. 1 is conditioned upon and subject to the receipt by the Lender of each of the following
on or before the dates set forth below:

 

a.       A
copy of this Amendment No. 1 duly executed by Borrower and delivered to Lender by e-mail on or before December 9, 2016 with the
original of this Amendment No. 1 duly executed by Borrower and delivered to Lender on or before December 12, 2016;

 

b.       Borrower
shall have paid to Lender an accommodation fee in the amount of $50,000 on December 9, 2016. The accommodation fee shall be fully
earned on Lender’s receipt of such fee; and

 

c.       Receipt
by Lender on or before December 9, 2016, of all costs of Lender (including Lender’s attorneys’ fees and expenses)
in respect of the transactions relating to the Loan Documents and this Amendment No. 1.

 

3.       Waiver.
Upon the terms and subject to the conditions set forth in this Amendment No. 1, Lender hereby waives any Event of Default resulting
from the failure to deposit Collections of Accounts received by Borrower in the account designated by Lender through December
6, 2016. This waiver shall be effective only in this specific instance and for the specific purpose for which it is given, and
shall not entitle Borrower to any other or further waiver in any similar or other circumstances.

 

4.       Miscellaneous.
Except as herein expressly amended by this Amendment No. 1, all of the terms and provisions of the Loan Agreement and the
Loan Agreement Schedule shall continue in full force and effect and the foregoing together with the other Loan Documents are
hereby ratified and confirmed by Borrower. The Borrower acknowledges to Lender that no offsets, counterclaims or defenses
exist as of the date of this Amendment No. 1 with respect to any of the Loan Documents and the Obligations. The foregoing is
without prejudice to Lender’s rights under the Loan Agreement and the other Loan Documents referred to therein,
including, without limitation, applicable law, all of which rights are hereby expressly reserved. In addition to the
representations, warranties and covenants set forth in the Loan Agreement, the Borrower represents, warrants and covenants to
Lender that (i) Borrower been represented by the law firm of Mitchell Silberberg & Knupp LLP in connection with the
negotiation, execution and delivery of this Amendment No. 1, and (ii) such law firm has reviewed and approved this Amendment
No. 1. This Amendment No. 1 may be executed in counterparts and by facsimile or other electronic signatures, each of which
when so executed, shall be deemed an original, but all of which shall constitute but one and the same instrument

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	-3-	 

     

    

 

	By:	/s/ Nadir Ali	 
	Name:	Nadir Ali	 
	Title:	CEO	 

 

SYSOREX
USA

 

	By:	/s/
    Nadir Ali	 
	Name:	Nadir
    Ali	 
	Title:	CEO	 

 

SYSOREX
GOVERNMENT SERVICES, INC.

 

	By:	/s/
    Wendy Loundermon	 
	Name:	Wendy
    Loundermon	 
	Title:	President	 

 

LENDER:

 

GEMCAP
LENDING I, LLC

 

	By:	/s/
    James Thieken	 
		James
        Thieken,

        Executive
        Vice President
	 

 

[SIGNATURE
PAGE - AMENDMENT NUMBER 1 TO THE LOAN AND SECURITY AGREEMENT 

AND TO
THE LOAN AGREEMENT SCHEDULE]

 

 

-4-Exhibit

Exhibit 10.1

SECOND AMENDMENT AND JOINDER TO CREDIT AGREEMENT
THIS SECOND AMENDMENT AND JOINDER TO CREDIT AGREEMENT (“Agreement”) is executed as of December 7, 2016, WHEELER REIT, L.P., a Virginia limited partnership, the undersigned Guarantors, each of the undersigned (individually and collectively, the “Joining Party”), who are becoming guarantors pursuant to §5.5 of the Credit Agreement dated as of May 29, 2015, as amended by that certain First Amendment and Joinder Agreement dated April 12, 2016, as further amended from time to time in effect (the “Credit Agreement”), among WHEELER REIT, L.P. (the “Borrower”), the Guarantors, KeyBank National Association, a national banking association (“KeyBank”), as Administrative Agent for the lenders (“Agent”), and the lenders from time to time party thereto (“Lenders”).  Terms used but not defined in this Agreement shall have the meanings defined for those terms in the Credit Agreement.
RECITALS
A.The Borrower and the Guarantor have requested that the Lenders agree to increase the total Commitment by $25,000,000.00 and the Agent and the Lenders have agreed to do so, provided Borrower, the Guarantors, Agent and the Lenders agree to amend the Credit Agreement as set forth herein.
B.Each Joining Party is required, pursuant to §5.5 of the Credit Agreement, to become an additional Subsidiary Guarantor under the Credit Agreement, the Notes, and the Indemnity Agreement.
C.Joining Party expects to realize direct and indirect benefits as a result of the availability to Borrower of the credit facilities under the Credit Agreement.
NOW, THEREFORE, Joining Party, Borrower, the Guarantors, Agent and the Lenders agree as follows:
AGREEMENT
I.Amendment to Credit Agreement.  The Credit Agreement is hereby amended as follows:
1.    The following definitions in Section 1.1 of the Credit Agreement shall be deleted in their entirety and replaced with the following:
Borrowing Base Availability.  The lesser of (i) sixty five percent (65%) of the aggregate Appraised Value of each Collateral Property, (ii) sixty five percent (65%) of the aggregate cost basis (determined in accordance with GAAP) for each Collateral Property, or (iii) the Implied Debt Service Amount.
Total Commitment.  As of the date of this Agreement, the Total Commitment is Seventy Five Million and No/100 Dollars ($75,000,000.00).  The Total Commitment 

may increase in accordance with §2.11 or decreased in accordance with §2.4 at any time.
2.    The definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is hereby amended deleting the introductory clause thereof and replacing same with the following:
“Applicable Margin.  The Applicable Margin for LIBOR Rate Loans and Base Rate Loans shall be as set forth below based on the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate pursuant to §7.4(c):”
3.    The definition of “LIBOR” in Section 1.1 of the Credit Agreement is hereby amended by adding the following new sentence at the end thereof:
“If LIBOR as determined above shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.”
4.    The following definitions in Section 1.1 of the Credit Agreement are hereby deleted in their entirety:
AC Implied Debt Service Amount.  At any time of determination, a Loan Exposure such that the Implied Debt Service Coverage (calculated solely based on the Adjusted Net Operating Income from the AC Portfolio Assets) would be 1.25 to 1.0.
AC Portfolio Assets.  Those certain Collateral Properties owned by WHLR-Ladson Crossing, LLC, WHLR-Lake Greenwood Crossing, LLC, WHLR-Lake Murray, LLC, WHLR-Litchfield Market Village, LLC, WHLR-Moncks Corner, LLC, WHLR-Shoppes at Myrtle Park, LLC, WHLR-Ridgeland, LLC, WHLR-South Lake Pointe, LLC, WHLR-Mullins South Park, LLC, WHLR-St. Matthews, LLC, WHLR-Darien, LLC, WHLR-Devine Street, LLC, WHLR-Folly Road Crossing, LLC, and WHLR-Georgetown, LLC.
Initial Assets.  Those certain Collateral Properties owned by Lumber River Associates, LLC and Chesapeake Square Associates, LLC.
Margin Condition.  The satisfaction of the following conditions: (a) the Total Commitment has been reduced to $49,950,000.00, and (b) the Loan Exposure does not exceed the Borrowing Base Availability as determined solely by reference to subsection (B) thereof (regardless of the date of determination).
5.    The following paragraph in the beginning of Section 3.2 of the Credit Agreement is hereby deleted in its entirety:
Until such time as the Margin Condition has been met, Borrower shall pay to the Agent for the respective accounts of the Revolving Credit Lenders, as applicable, 

for application to the Revolving Credit Loans, the net proceeds of any incremental equity, preferred equity, subordinated debt, asset-sale proceeds, financing or refinancing, or any other incremental capital raised by Borrower or REIT during such period.
6.    Section 9.1 of the Credit Agreement shall be deleted in its entirety and replaced with the following:
“§9.1    Maximum Consolidated Leverage Ratio.  The REIT’s Consolidated Leverage Ratio shall not exceed sixty five percent (65%).”
7.    Schedule 1.1 of the Credit Agreement shall be deleted in its entirety and replaced with the Schedule 1.1 attached hereto.
II.    Fees.  On or prior to the execution of this Agreement, Borrower shall pay to Agent all reasonable costs and expenses of Administrative Agent in connection with this Agreement, including, without limitation, reasonable legal fees and expenses incurred by Agent, together with the additional fees to be paid to the Agent as set forth in the fee letter of even date between the Borrower and the Agent.
III.    Joinder.  By this Agreement, Joining Party hereby becomes a “Subsidiary Guarantor” under the Credit Agreement, the Notes, the Indemnity Agreement, and the other Loan Documents with respect to all the Obligations of Borrower now or hereafter incurred under the Credit Agreement and the other Loan Documents.  Joining Party agrees that Joining Party is and shall be bound by, and hereby assumes, all representations, warranties, covenants, terms, conditions, duties and waivers applicable to a Subsidiary Guarantor under the Credit Agreement, the Notes, the Indemnity Agreement and the other Loan Documents.
IV.    Release.  By its execution of this Agreement, the Agent acknowledges and agrees that Chesapeake Square Associates, LLC and Lumber River Associates, LLC have each been released as a Subsidiary Guarantor under the Credit Agreement and the other Loan Documents.
V.    Representations and Warranties.  Joining Party, Borrower and each Guarantor represent and warrant to Agent that, as of the Effective Date (as defined below), except as disclosed in writing by Borrower to Agent on or prior to the date hereof and approved by the Agent in writing (which disclosures shall be deemed to amend the Schedules and other disclosures delivered as contemplated in the Credit Agreement), the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects, as applied to Joining Party as a Subsidiary Guarantor on and as of the Effective Date as though made on that date, except where any such representation and warranty is limited to a specific date prior to the Effective Date or where the failure would not have a Material Adverse Effect.  As of the Effective Date, all covenants and agreements in the Loan Documents of the Subsidiary Guarantors are true and correct with 

respect to Joining Party and no Default or Event of Default shall exist or might exist upon the Effective Date in the event that Joining Party becomes a Subsidiary Guarantor.
VI.    Joint and Several.  Joining Party hereby agrees that, as of the Effective Date, the Credit Agreement, the Indemnity Agreement and the other Loan Documents heretofore delivered to the Agent and the Lenders shall be a joint and several obligation of Joining Party to the same extent as if executed and delivered by Joining Party, and upon request by Agent, will promptly become a party to the Credit Agreement, the Notes, the Indemnity Agreement and the other Loan Documents to confirm such obligation.
VII.    Further Assurances.  Joining Party, Borrower and each Guarantor agrees to execute and deliver such other instruments and documents and take such other action, as the Agent may reasonably request, in connection with the transactions contemplated by this Agreement.
VIII.    GOVERNING LAW.  THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
IX.    Counterparts.  This Agreement, which may be executed in multiple counterparts, constitutes the entire agreement of the parties regarding the matters contained herein and shall not be modified by any prior oral or written discussions.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging transmission (e.g. PDF by email) shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement is a Loan Document. Borrower and the Guarantors hereby ratify, confirm and reaffirm all of the terms and conditions of the Credit Agreement, and each of the other Loan Documents, and further acknowledge and agree that all of the terms and conditions of the Credit Agreement shall remain in full force and effect except as expressly provided in this Agreement.  Except where the context clearly requires otherwise, all references to the Credit Agreement in any other Loan Document shall be to the Credit Agreement as amended by this Agreement.
X.    Effective Date.  The effective date (the “Effective Date”) of this Agreement is the date first written above.
[Signature Page to Follow]

IN WITNESS WHEREOF, each party has executed this Agreement under seal as of the day and year first above written.
BORROWER:

WHEELER REIT, L.P., a Virginia limited partnership

		
	By:
	WHEELER REAL ESTATE INVESTMENT TRUST, INC., a Maryland corporation, its general partner

By:    /s/ Jon S. Wheeler
Name:    Jon S. Wheeler 
Title:    Chief Executive Officer

GUARANTOR:

WHEELER REAL ESTATE INVESTMENT TRUST, INC., a Maryland corporation

By:    /s/ Jon S. Wheeler
 
Name:     Jon S. Wheeler
Title:     Chief Executive Officer

WHLR-LADSON CROSSING, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-LAKE GREENWOOD CROSSING, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-LAKE MURRAY, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-LITCHFIELD MARKET VILLAGE, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-MONCKS CORNER, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-SHOPPES AT MYRTLE PARK, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-RIDGELAND, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-SOUTH LAKE POINTE, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-MULLINS SOUTH PARK, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-ST. MATTHEWS, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-DARIEN, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-DEVINE STREET, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-FOLLY ROAD CROSSING, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler

Jon S. Wheeler, Manager

WHLR-GEORGETOWN, LLC, a Delaware limited liability company

		
	By:  
	/s/ Jon S. Wheeler
Jon S. Wheeler, Manager

	
		
	 
	JOINING PARTY:

	 
	WHLR-LABURNUM SQUARE, LLC, a Delaware limited liability company 

By:   /s/ Jon S. Wheeler
Name: Jon S. Wheeler 
Title:    Chief Executive Officer 

ACKNOWLEDGED:
KEYBANK NATIONAL ASSOCIATION, as Agent
By:     /s/ Tom Schmitt
Name:    Tom Schmitt 
Title:     Vice President

SCHEDULE 1.1
LENDERS AND COMMITMENTS

	
			
	Name and Address
	 
Commitment
	

Commitment Percentage

	KeyBank National Association 
1200 Abernathy Road, Suite 1550 Atlanta, Georgia 30328 
Attention:   Tom Schmitt 
Telephone:   770-510-2109 
Facsimile:   770-510-2195 

	$75,000,000
	100%

2043496.6

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