Document:

EXECUTION COPY

 

AMENDMENT NO. 7

 

AMENDMENT NO. 7 dated as of January 17, 2006 to the Credit Agreement referred to below, between MDC Partners Inc., a Canadian corporation (“MDC Partners”), Maxxcom Inc., an Ontario corporation (“Maxxcom Canada”), Maxxcom Inc., a Delaware corporation (“Maxxcom U.S.” and together with MDC Partners and Maxxcom Canada, the “Borrowers”), each of the Lenders identified under the caption “LENDERS” on the signature pages hereto and JPMorgan Chase Bank, N.A., as U.S. administrative agent for the Lenders (in such capacity, the “U.S. Administrative Agent”).

 

The Borrowers, the Lenders party thereto (individually, a “Lender” and, collectively, the “Lenders”), the U.S. Administrative Agent, JPMCB, as Collateral Agent (in such capacity, the “Collateral Agent”), and JPMCB, Toronto Branch, as Canadian Administrative Agent (in such capacity, the “Canadian Administrative Agent” and together with the U.S. Administrative Agent, the “Administrative Agents”) are parties to a Credit Agreement dated as of September 22, 2004 (as amended, the “Credit Agreement”).  The Borrowers and the Required Lenders wish to amend the
Credit Agreement in certain respects, and accordingly, the parties hereto hereby agree as follows:

 

Section 1.  Definitions.  Capitalized terms used in this Amendment No. 7 and not otherwise defined are used herein as defined in the Credit Agreement (as amended hereby).

 

Section 2.  Amendments.  Effective as provided in Section 5 hereof, the Credit Agreement shall be amended as follows:

 

2.01.  References in the Credit Agreement (including references to the Credit Agreement as amended hereby) to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein” and “hereof”) shall be deemed to be references to the Credit Agreement as amended hereby.

 

2.02.       Section 7.06 of the Credit Agreement is hereby amended by (i) relettering the existing clause (o) thereof to “(p)”and (ii) inserting new clause (o) to read as follows:

 

“(o) Investments in Pegasus Partners III, L.P. in an aggregate amount not exceeding U.S. $700,000.”

Section 3.  Representations and Warranties.  Each Borrower represents and warrants (as to itself and each of its Subsidiaries) to the Agents and  Lenders that (a) the representations and warranties set forth in Article V of the Credit Agreement, as amended hereby, and in each of the other Loan Documents are complete and correct on the date hereof as if made on and as of such date and as if each reference in said Article V to “this Agreement” included reference to this Amendment No. 7 and (b) no Default shall have occurred and be continuing under the Credit Agreement, as amended hereby.

 

Section 4.  Confirmation of Security Documents.  Each of the Borrowers hereby confirms and ratifies all of its obligations under the Loan Documents to which it is a party, including its obligations as a guarantor under Article III of the Credit Agreement as amended hereby.  By its execution on the respective signature lines provided below, each of the Guarantors hereby confirms and ratifies all of its obligations and the Liens granted by it under the Security Documents to which it is a party, represents and warrants that the representations and warranties set forth in such Security Documents are complete and correct on the date hereof as if made on and as of such date and confirms that all references in such 

 

 

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Security Documents to the “Credit Agreement” (or words of similar import) refer to the Credit Agreement as amended hereby without impairing any such obligations or Liens in any respect.

 

Section 5.  Conditions Precedent to Effectiveness.  The amendments set forth in Section 2 hereof shall become effective, as of the date hereof, upon receipt by the U.S. Administrative Agent of one or more counterparts of this Amendment No. 7 executed by the Obligors and the Required Lenders.

 

Section 6.  Miscellaneous.  Except as herein provided, the Credit Agreement shall remain unchanged and in full force and effect.  This Amendment No. 7 may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement and any of the parties hereto may execute this Amendment No. 7 by signing any such counterpart.  This Amendment No. 7 shall be governed by, and construed in accordance with, the law of the State of New York.

 

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 7 to be duly executed and delivered as of the day and year first above written.

 

MDC PARTNERS INC.

 

By:________________________________

 Name:

Title: Authorized Signatory

 

By:________________________________

 Name:

Title: Authorized Signatory

 

 

 

MAXXCOM INC., an Ontario corporation

 

By:________________________________

 Name:

Title: Authorized Signatory

 

By:________________________________

 Name:

Title: Authorized Signatory

 

 

 

MAXXCOM INC., a Delaware corporation

 

By:________________________________

 Name:

Title: Authorized Signatory

 

By:________________________________

 Name:

Title: Authorized Signatory

 

 

 

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Agreed as set forth in Section 4 above:

 

GUARANTORS

	
            Signed sealed and delivered by the attorney of Placard Pty Ltd ACN 074 646 343 under power of attorney and who has received no notice of the revocation of the power, in the presence of:
 	
             
 
	
            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
 Signature of witness
 	
            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
 Signature of attorney
 
	
            Name of witness: Ray Forzley
 	
            Name of attorney: Walter Campbell
 

 

 

 

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1208075 ONTARIO LIMITED

1220777 ONTARIO LIMITED

1385544 ONTARIO LIMITED

2026646 ONTARIO LIMITED

656712 ONTARIO LIMITED 

AMBROSE CARR LINTON CARROLL INC.

ASHTON POTTER CANADA INC.

ASHTON-POTTER CANADA LTD.

BRUCE MAU DESIGN INC.

BRUCE MAU HOLDINGS LTD.

CAMPBELL + PARTNERS COMMUNICATIONS LTD.

COMPUTER COMPOSITION OF CANADA INC.

HENDERSON BAS

MAXXCOM (NOVA SCOTIA) CORP.

MAXXCOM INTERACTIVE INC.

METACA CORPORATION

STUDIOTYPE INC.

TREE CITY INC.

 

 

By:________________________________

 Name:

Title: Authorized Signatory

 

By:________________________________

 Name:

Title: Authorized Signatory

 

 

 

 

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ACCENT ACQUISITION CO.

ACCENT INTERNATIONAL, INC.

ACCENT MARKETING SERVICES, L.L.C.

ASHTON-POTTER (USA) LTD.

BRATSKEIR & COMPANY, INC.

CHINNICI DIRECT, INC.

CMS U.S. HOLDCO, INC.

COLLE & MCVOY, INC.

CPB ACQUISITION INC.

CRISPIN PORTER & BOGUSKY LLC

DOTGLU LLC

FLETCHER MARTIN LLC

FMA ACQUISITION CO.

HELLO ACQUISITION INC.

KBP HOLDINGS LLC

KIRSHENBAUM BOND & PARTNERS LLC

KIRSHENBAUM BOND & PARTNERS WEST LLC

LAFAYETTE PRODUCTIONS LLC

MACKENZIE MARKETING, INC.

MARGEOTES/FERTITTA + PARTNERS LLC

MAXXCOM (USA) FINANCE COMPANY

MAXXCOM (USA) HOLDINGS INC.

MDC USA HOLDINGS INC.

MDC/KBP ACQUISITION INC.

MF+P ACQUISITION CO.

MONO ADVERTISING, LLC

PRO-IMAGE CORPORATION

SABLE ADVERTISING SYSTEMS, INC.

SMI ACQUISITION CO.

SOURCE MARKETING LLC

TARGETCOM LLC

VITROROBERTSON LLC

ZG ACQUISITION INC.

ZYMAN GROUP, LLC

 

 

 

By:________________________________

 Name:

Title: Authorized Signatory

 

By:________________________________

 Name:

Title: Authorized Signatory

 

 

 

 

 

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LENDERS

 

JPMORGAN CHASE BANK, N.A.

 

By:________________________________

 Name:

Title: 

 

JPMORGAN CHASE BANK, N.A., TORONTO 

BRANCH

 

By:________________________________

 Name:

Title: 

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BANK OF MONTREAL (CHICAGO BRANCH)

 

By:________________________________

 Name:

Title: 

 

BANK OF MONTREAL

 

By:________________________________

 Name:

Title: 

 

 

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THE BANK OF NOVA SCOTIA, by its Atlanta Agency

 

By:________________________________

 Name:

Title: 

 

THE BANK OF NOVA SCOTIA

 

By:________________________________

 Name:

Title: 

 

By:________________________________

 Name:

Title: 

 

10

 

 

TORONTO DOMINION (TEXAS) INC.

 

By:________________________________

 Name:

Title: 

 

THE TORONTO-DOMINION BANK

 

By:________________________________

 Name:

Title: 

 

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CIBC INC.

 

By:________________________________

 Name:

Title: 

 

CANADIAN IMPERIAL BANK OF COMMERCE

 

By:________________________________

 Name:

Title: 

  

By:________________________________

 Name:

Title:ChoiceOne Exhibit 10.1 to Form 8-K - 01/23/06

EXHIBIT 10.1

	
Grantee:
	
 

	
 
	
Grant Date:
	
 

	
 
	
 
	
 
	
 
	
 

	
Address:
	
 

	
 
	
Vesting Date(s):
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Number of Shares:
	
 

	
 
	
Expiration Date:
	
 

	
 
	
 
	
 
	
 
	
 

	
Option Number:
	
 

	
 
	
Exercise Price:
	
 

STOCK OPTION AGREEMENT

(Incentive Stock Options)

                    This Stock Option Agreement ("Agreement") is made as of the grant date set forth above between CHOICEONE FINANCIAL SERVICES, INC., a Michigan corporation ("ChoiceOne"), and the grantee named above ("Grantee").

                    ChoiceOne Financial Services, Inc. Amended and Restated Executive Stock Incentive Plan (the "Plan") is administered by the Personnel and Benefits Committee of ChoiceOne's Board of Directors or such other committee designated by the Board of Directors (the "Committee"). The Committee has determined that Grantee is eligible to participate in the Plan. The Committee has granted stock options to Grantee, subject to the terms and conditions contained in this Agreement and in the Plan.

                    Grantee acknowledges receipt of a copy of the Plan and Plan Description and accepts this option subject to all of the terms, conditions, and provisions of this Agreement and the Plan.

          1.          Grant. ChoiceOne grants to Grantee an option to purchase shares of ChoiceOne common stock ("Common Stock"), as set forth above. This option is an incentive stock option as defined in Section 422(b) of the Internal Revenue Code of 1986, as amended. If the aggregate fair market value (determined at the time of grant) of the stock with respect to which incentive stock options are exercisable for the first time by Grantee during any calendar year exceeds $100,000, taking into account options under the Plan and all other stock option plans of ChoiceOne, options exceeding the $100,000 limitation will be considered nonqualified stock options.

          2.          Price. The price of the shares of Common Stock to be purchased upon the exercise of this option will equal the exercise price per share set forth above (subject to adjustment as provided in the Plan).

          3.          Term and Vesting. Grantee's right to exercise this option will vest over a three-year period as follows: one quarter of the shares will vest on the date of this Agreement and one quarter of the shares will vest on each successive anniversary of the date of this Agreement. The Grantee's right to exercise this option will terminate on the Expiration Date shown above, which is 10 years after the Grant Date, unless earlier terminated under the Plan. The Committee may, in its sole discretion, accelerate vesting of the option at any time before full vesting.

          4.          Exercise. The Grantee will exercise this option by delivering to ChoiceOne an executed notice of exercise in the form of Exhibit A, which will be effective upon receipt by ChoiceOne's Treasurer at ChoiceOne's main office, accompanied by full payment (as set forth below) of the option price. The notice will set forth the number of shares to be purchased. ChoiceOne will deliver to the Grantee a certificate or certificates for such shares; provided, that the time of delivery may be postponed for such period as may be required for ChoiceOne with reasonable diligence to comply with any registration requirements under the Securities Act of 1933, the Securities Exchange Act of 1934, any requirements under any other law or regulation applicable to the issuance, listing or transfer of such shares, or any agreement or regulation of any exchange or quotation service upon which shares of Common Stock may be listed or quoted for trading. If the Grantee fails to accept delivery of and pay for all or any part of the number of shares specified in the notice upon tender or delivery of the shares, the Grantee's right to exercise the option with respect to such undelivered shares will terminate. 

          5.          Payment by Grantee. The exercise price for each share purchased under this option will be payable in cash (or by certified check, bank draft or money order) or in shares of Common Stock (including Common Stock to be received upon a simultaneous exercise) or other consideration substantially equivalent to cash. The Committee may permit payment of all or a portion of the exercise price in the form of a promissory note or installments according to terms approved by the Committee. The Board of Directors of ChoiceOne may restrict or suspend the power of the Committee to permit such loans and may require that adequate security be provided. For purposes of payment to ChoiceOne in whole or in part with shares of Common Stock (including shares of Common Stock to be received upon a simultaneous exercise), shares of Common Stock will be valued as follows: (a) if shares of Common Stock are listed or quoted for trading on an exchange or quotation system, at the mean of the highest and lowest sales prices of shares of Common Stock reported on such exchange or system that is the primary stock exchange or system for trading of Common Stock on the date of exercise, or if such exchange or system is closed on that date, the last preceding date on which such exchange or system was open for trading and on which shares of Common Stock were traded; or (b) if shares of Common Stock are not listed or quoted for trading on an exchange or quotation system, at a price determined by the Board of Directors. Such payment will be made by delivery, or satisfactory assurances of delivery, to ChoiceOne of the certificate(s) representing all of the shares of Common Stock to be used as payment, duly endorsed for transfer or accompanied by stock powers duly endorsed, in forms sufficient to vest lawful title in ChoiceOne. The Grantee will represent and warrant to ChoiceOne with respect to all Common Stock used as payment under the terms of this Agreement that the Grantee has good and marketable title to the shares to be used as payment and the absolute right to sell, assign,

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transfer and deliver the shares to ChoiceOne pursuant to this Agreement, free and clear of all liens, pledges, encumbrances, options, rights of first refusal or other claims of any nature whatsoever, except transfer restrictions required under applicable federal and state securities laws. Payment with Common Stock may be used in combination with payment with cash.

          6.          Registration and Listing. The option granted under this Agreement is conditional upon (a) the effective registration or exemption of the Plan, the option granted under the Plan and the shares of Common Stock to be received upon exercise of options pursuant to the Plan under the Securities Act of 1933 and applicable state or foreign securities laws, and (b) the effective listing of the stock on any applicable stock exchange or quotation system. 

          7.          Transferability. This option is not transferable by Grantee except by will or according to the laws of descent and distribution. ChoiceOne may, in the event it deems the same desirable to assure compliance with applicable federal and state securities laws, place an appropriate restrictive legend upon any certificate representing shares issued pursuant to the exercise of this option, and may also issue appropriate stop transfer instructions to its transfer agent with respect to such shares.

          8.          Acceleration. This option will be immediately exercisable in the event of any Change of Control of ChoiceOne. "Change of Control" is defined in the Plan. 

          9.          Termination of Employment. This option will terminate at the times provided in the Plan after the Grantee ceases to be an employee of ChoiceOne due to the Grantee's death, disability, retirement, Consensual Severance or termination for "cause." If the Grantee ceases employment with ChoiceOne for any reason other than described above, then Grantee may exercise this option for three months after his or her termination, but only to the extent that this option could have been exercised on the date of termination. For purposes of this Agreement, "Cause" for termination of employment will have the meaning given to that term under any employment or other severance agreement between the Grantee and ChoiceOne; in the absence of any such agreement or any definition of such term, "Cause" for the purposes of this Agreement will mean the Grantee's neglect, continued failure or inability to perform, or poor performance of, duties, consistent failure to attain assigned objectives, misappropriation of corporate property, intentional damage to ChoiceOne property, activities in aid of a competitor, insubordination, dishonesty, conviction of a crime involving moral turpitude or performance of any act (including any dishonest or fraudulent act) detrimental to the interests of ChoiceOne.

          10.          Shareholder Rights. Grantee will have no rights as a shareholder with respect to any shares covered by this option until exercise of the option and payment for such shares.

          11.          No Right to Employment. The grant of this option will not impose upon ChoiceOne or any subsidiary any obligation to retain the Grantee in its employ for any given period or upon any specific terms of employment. ChoiceOne or any subsidiary may at any

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time dismiss the Grantee from employment, free from any liability or claim under the Plan, unless otherwise expressly provided in any written agreement with the Grantee.          

          12.          Certifications. The Grantee acknowledges that he or she has been furnished and has read the Plan Description relating to the Plan. The Grantee hereby represents and warrants that the Grantee is acquiring the option granted under this Agreement for the Grantee's own account and investment and without any intent to resell or distribute the shares upon exercise of the option except in compliance with such conditions as ChoiceOne may reasonably specify to ensure compliance with federal and state securities laws.

          13.          Corporate Changes. In the event of any stock dividend, stock split or other increase or reduction in the number of shares of Common Stock outstanding, the number and class of shares covered by this option, and the exercise price, are subject to adjustment as provided in the Plan.

          14.          Administration. The Committee has full power and authority to interpret the provisions of the Plan, to supervise the administration of the Plan and to adopt forms and procedures for the administration of the Plan, except as limited by the Plan. All determinations made by the Committee will be final and conclusive.

          15.          Effective Date. This option will be effective as of the Grant Date set forth above.

          16.          Amendment. This option will not be modified except in writing and executed by the parties hereto.

          17.          Agreement Controls. The Plan is incorporated in this Agreement by reference. Capitalized terms not defined in this Agreement will have those meanings provided in the Plan. In the event of any conflict between the terms of this Agreement and the terms of the Plan, the provisions of this Agreement will control.

          The Board of Directors has issued this option upon recommendation of the Personnel and Benefits Committee of ChoiceOne.

	
 
	
CHOICEONE FINANCIAL SERVICES, INC.

	
 
	
 

	
 
	
 

	
 
	
By
	
 

	
 
	
 
	
James A. Bosserd

President and Chief Executive Officer

	
 
	
 
	
 

	
 
	
 
	
"ChoiceOne"

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Signature

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Print Name

	
 
	
 
	
 

	
 
	
 
	
"Grantee"

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EXHIBIT A

CHOICEONE FINANCIAL SERVICES, INC.

AMENDED AND RESTATED EXECUTIVE STOCK INCENTIVE PLAN

NOTICE OF EXERCISE

Date ________________

ChoiceOne Financial Services, Inc.

Attn: Treasurer

109 East Division Street

Sparta, Michigan 49345

          Re: Option No. ________________

Sir or Madam:

                    I hereby exercise Option No. _____________ granted to me on _______________, 20___, to the extent of ____________________ shares of the Common Stock of ChoiceOne Financial Services, Inc.

                    Pursuant to the terms and conditions of such option, I am enclosing herewith payment in the amount of _____________________________________ Dollars ($___________) or hereby enclose shares having an aggregate market value of ______________________________ Dollars ($__________). I authorize ChoiceOne or my subsidiary employer to withhold from any regular cash compensation payable to me any taxes required to be withheld under federal, state or local law as a result of this exercise. If required by ChoiceOne, I agree to remit to ChoiceOne, in cash, any such taxes prior to ChoiceOne's delivery of any shares of Common Stock purchased through this exercise.

	
 
	
Very truly yours,

	
 
	
 

	
 
	
 

	
 
	
 

	
Register shares in the name of:
	
 

	
 
	
 

	
Address:
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
Social Security Number:
	
 

	
 
	
 

	
Other Name, if Joint Ownership:

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