Document:

ex10-42.htm

Exhibit 10.42

 

LOAN AND SECURITY MODIFICATION AGREEMENT

 

This Loan and Security Modification Agreement is entered into as of December 23, 2015 by and between Bridgeline Digital, Inc. (“Borrower”) and Western Alliance Bank (“Bank”).

 

1.     DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other documents, a Loan and Security Agreement dated as of December 20, 2013 by and between Borrower and Bank, as may be amended from time to time (the “Loan and Security Agreement”). Capitalized terms used without definition herein shall have the meanings assigned to them in the Loan and Security Agreement. 

 

2.     EVENT OF DEFAULT; WAIVER. Borrower acknowledges that there are existing and uncured Events of Default arising from Borrower's failure to comply with Section 6.9(a) the period ended April 30, 2015 (the "Covenant Default"). Subject to the conditions contained herein and performance by Borrower of all of the terms of the Loan and Security Agreement after the date hereof, Bank waives the Covenant Default. Bank does not waive Borrower's obligations under such section after the date hereof, and Bank does not waive any other failure by Borrower to perform its Obligations under the Loan Documents. 

 

3.     DESCRIPTION OF CHANGE IN TERMS.

 

A.     Modification(s) to Loan and Security Agreement:

 

 1.     The following defined term set forth in Section 1.1 of the Loan and Security Agreement is amended and restated in its entirety to read as follows:

 

        “Revolving Line Maturity Date” means December 31, 2016.

 

4.     CONSISTENT CHANGES. The Loan Documents are each hereby amended wherever necessary to reflect the changes described above.

 

5.     NO DEFENSES OF BORROWER/GENERAL Release. Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under Loan Documents. Each of Borrower and its affiliates (each, a “Releasing Party”) acknowledges that Bank would not enter into this Loan and Security Modification Agreement without Releasing Party’s assurance that it has no claims against Bank or any of Bank’s officers, directors, employees or agents. Except for the obligations arising hereafter under this Loan and Security Modification Agreement, each Releasing Party releases Bank, and each of Bank’s and entity’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Bank of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the Loan and Security Agreement or the transactions contemplated thereby. Releasing Party waives the provisions of California Civil Code section 1542, which states:

 

	
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors in interest. The provisions, waivers and releases of this section shall inure to the benefit of Bank and its agents, employees, officers, directors, assigns and successors in interest. The provisions of this section shall survive payment in full of the Obligations, full performance of all the terms of this Loan and Security Modification Agreement and the other Loan Documents, and/or Bank’s actions to exercise any remedy available under the Loan Documents or otherwise.

 

 

 

 

 

6.     CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Loan Documents, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Loan Documents. Borrower represents and warrants that the representations and warranties contained in the Loan and Security Agreement are true and correct as of the date of this Loan and Security Modification Agreement, and that no Event of Default has occurred and is continuing. Except as expressly modified pursuant to this Loan and Security Modification Agreement, the terms of the Loan Documents remain unchanged and in full force and effect. Bank's agreement to modifications to the existing Loan Documents pursuant to this Loan and Security Modification Agreement in no way shall obligate Bank to make any future modifications to the Loan Documents. Nothing in this Loan and Security Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Loan Documents, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be released by virtue of this Loan and Security Modification Agreement. The terms of this paragraph apply not only to this Loan and Security Modification Agreement, but also to any subsequent loan and security modification agreements. 

 

7.     CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; REFERENCE PROVISION. This Loan and Security Modification Agreement constitutes a “Loan Document” as defined and set forth in the Loan and Security Agreement, and is subject to Sections 11 and 12 of the Loan and Security Agreement, which are incorporated by reference herein. 

 

8.     NOTICE OF FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE MATTERS CONTAINED HEREIN, (B) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (C) THIS WRITTEN AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

 

9.     CONDITIONS PRECEDENT. As a condition to the effectiveness of this Loan and Security Modification Agreement, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

(a)     payment of all Bank Expenses incurred through the date of this Loan and Security Modification Agreement; and

 

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

 

[signature page follows]

 

 

 

 

 

10.     COUNTERSIGNATURE. This Loan and Security Modification Agreement shall become effective only when executed by Bank and Borrower.

 

	
BORROWER: 
	
BANK: 

	
 
	
 

	
BRIDGELINE DIGITAL, INC.
	
WESTERN ALLIANCE BANK

	 	 
	By:     /s/Michael Prinn                    	By:     /s/Charles Wehr
	 	 
	Name: Michael Prinn                    	Name: Charles Wehr
	 	 
	Title:  CFO                         	Title:  Vice Presidentex10-43.htm

Exhibit 10.43

 

Michael Taglich

 

 

 BRIDGELINE DIGITAL, INC.

 

AMENDMENT #1 TO PROMISSORY NOTES 

 

THIS AMENDMENT #1 TO PROMISSORY NOTES (this “Amendment”) is made as of December 23, 2015, by and among Bridgeline Digital, Inc., a Delaware Corporation (the “Company”) and Michael Taglich (“Taglich”). 

 

WHEREAS, the Company has previously issued the following promissory notes to Taglich (the “Notes”):

 

	 	
●
	
$500,000 Term Note issued on January 7, 2015 with a maturity date of June 30, 2016;

	 	
●
	
$500,000 Term Note issued on February 12, 2015 with a maturity date of September 1, 2016;

	 	
●
	
$500,000 Term Note issued on May 12, 2015 with a maturity date of September 1, 2016;

	 	
●
	
$500,000 Term Note issued on July 21, 2015 with a maturity date of July 21, 2016; and

	 	
●
	
$250,000 Term Note issued on December 3, 2015 with a maturity date of March 3, 2016.

 

WHEREAS, the Notes all mature prior to March 1, 2017; and

 

WHEREAS, the Company and Taglich desire to amend the Notes to extend the maturity date of each of the Notes to March 1, 2017.

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants and obligations contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Taglich hereby agree as follows:

 

1.         Amendments. Each of the Notes is hereby amended as follows:

 

a.     The Maturity Date of the Notes shall be changed to March 1, 2017, by deleting all references to the current maturity date and replacing such references with the date “March 1, 2017”; 

 

b.     Effective January 1, 2016, the interest rate set forth in Section 2(a) of the Notes shall be increased by one and a half (1.5) percentage points; and

 

c.     The following language shall be added at the end of Section 2(d) of the Notes:

 

	
“If the Company prepays any portion of the principal amount of this Note on or before the Maturity Date the Company shall pay a premium equal to 2% of the amount of principal of this Note being prepaid.”

 

2.     No Other Amendments. Except as expressly set forth herein, each of the Notes shall remain in full force and effect in accordance with its terms.

 

3.      Counterparts. This Amendment may be executed by the parties hereto in separate counterparts, each of which once so executed and delivered (including by facsimile and other means of electronic transmission) shall be considered an original, but all such counterparts shall together constitute the same instrument.

 

 

1

 

 

Michael Taglich

 

 

4.      Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York except as to its conflicts of laws principles.

 

 

[Remainder of Page Intentionally Left Blank]

 

 

2

 

 

Michael Taglich

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 to Promissory Notes as of the day and year first above written.

 

 

 

	
 

 
	
BRIDGELINE DIGITAL, INC.

 

 

By: /s/ Michael Prinn_____________________

Name: Michael Prinn

Title: Chief Financial Officer

	  	  
	  	  
	 	 
	 	 
	 	/s/ Michael Taglich                                                     
	 	Michael Taglich

 

 

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