Document:

ex10_1.htm

EXHIBIT 10.1

 

		Amendment to Credit Agreement

 

 

This agreement is dated as of December 23, 2010, by and between ARI Network Services, Inc. (the "Borrower") and JPMorgan Chase Bank, N.A. (together with its successors and assigns the "Bank"). The provisions of this agreement are effective on the date that this agreement has been executed by all of the signers and delivered to the Bank (the "Effective Date").

WHEREAS, the Borrower and the Bank entered into a credit agreement dated July 9, 2004, as amended (if applicable) (the "Credit Agreement”); and

WHEREAS, the Borrower has requested and the Bank has agreed to amend the Credit Agreement as set forth in this agreement;

NOW, THEREFORE, in mutual consideration of the agreements contained herein and for other good and valuable consideration, the parties agree as follows:

	
1.

	
DEFINED TERMS. Capitalized terms used in this agreement shall have the same meanings as in the Credit Agreement, unless otherwise defined in this agreement.

	
2.

	
MODIFICATION OF CREDIT AGREEMENT. The Credit Agreement is hereby amended as follows:

	
  

	
2.1

	
From and after the Effective Date, Section 1.3 of the Credit Agreement captioned "Borrowing Base" is hereby amended restated to read as follows:

	
  

	
A.

	
80% of the book value of all Eligible Accounts, plus

	
  

	
B.

	
45% of the aggregate amount of expected revenue to be received by the Borrower from all Eligible Open Orders and Renewals; provided however, no amount shall be advanced on this component of the Borrowing Base if Borrower's Subscription Loss Rate is greater than or equal to 4.00% on average, averaged over the prior three months, minus

	
  

	
C.

	
$75,000.00

	
  

	
2.2

	
From and after the Effective Date, the following definition is hereby added to Section 2 of the Credit Agreement.

2.26       "Subscription Loss Rate" means, with respect to any calendar month, the percentage of the Eligible Open Orders and Renewals, determined as of the beginning of the month, that are not lost or cancelled, determined as of the end of that month.

	
3.

	
RATIFICATION. The Borrower ratifies and reaffirms the Credit Agreement and the Credit Agreement shall remain in full force and effect as modified by this agreement.

	
4.

	
BORROWER REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants that (a) the representations and warranties contained in the Credit Agreement are true and correct in all material respects as of the date of this agreement, (b) no condition, event, act or omission which could constitute a default or an event of default under the Credit Agreement. as modified by this agreement, or any other Related Document exists, and (c) no condition, event, act or omission has occurred and is continuing that with the giving of notice, or the passage of time or both, would constitute a default or an event of default under the Credit Agreement, as modified by this agreement, or any other Related Document.

	
5.

	
FEES AND EXPENSES. The Borrower agrees to pay all fees and out-of-pocket disbursements incurred by the Bank in connection with this agreement, both before and after judgment, including legal fees incurred by the Bank in the preparation, consummation, administration and enforcement of this agreement.

	
6.

	
EXECUTION AND DELIVERY. This agreement shall become effective only after it is fully executed by the Borrower and the Bank.

 

  

  

  

 

	
7.

	
ACKNOWLEDGEMENTS OF BORROWER I RELEASE. The Borrower acknowledges that as of the date of this agreement it has no offsets with respect to all amounts owed by the Borrower to the Bank arising under or related to the Credit Agreement, as modified by this agreement, or any other Related Document on or prior to the date of this agreement. The Borrower fully, finally and forever releases and discharges the Bank, its successors and assigns and their respective directors, officers, employees, agents and representatives (each a “Bank Party”) from any and all claims, causes of action, debts, demands and liabilities, of whatever kind or nature, in law or in equity, of the Borrower, whether now known or unknown to the Borrower. which may have arisen in connection with the Credit Agreement or the actions or omissions of any Bank Party related to the Credit Agreement on or prior to the date hereof. The Borrower acknowledges and agrees that this agreement is limited to the terms outlined above, and shall not be construed as an agreement to change any other terms or provisions of the Credit Agreement. This agreement shall not establish a course of dealing or be construed as evidence of any willingness on the Bank's part to grant other or future agreements, should any be requested.

	
8.

	
INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Credit Agreement, as modified by this agreement, and the other Related Documents contain the complete understanding and agreement of the Borrower and the Bank in respect of the Credit Facilities and supersede all prior understandings and negotiations. If anyone or more of the obligations of the Borrower under this agreement or the Credit Agreement, as amended by this agreement, is invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining obligations of the Borrower shall not in any way be affected or impaired, and the invalidity, illegality or unenforceability in one jurisdiction shall not affect the validity, legality 01' enforceability of the obligations of the Borrower under this agreement, the Credit Agreement, as modified by this agreement, 01' any other Related Document in any other jurisdiction. No provision of the Credit Agreement, as modified by this agreement, or the other Related Documents, may be changed, discharged, supplemented, terminated, or waived except in a writing signed by the party against whom it is being enforced.

	
9.

	
Governing Law and Venue. This agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin (without giving effect to its laws of conflicts). The Borrower agrees that any legal action or proceeding with respect to any of its obligations under this agreement may be brought by the Bank in any state or federal court located in the State of Wisconsin, as the Bank in its sole discretion may elect. By the execution and delivery of this agreement, the Borrower submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Borrower waives any claim that the State of Wisconsin is not a convenient forum or the proper venue for any such suit, action or proceeding.

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10.

	
NOT A NOVATION. This agreement is a modification only and not a novation. Except as expressly modified by this agreement, the Credit Agreement, any other Related Documents, and all the terms and conditions thereof, shall be and remain in full force and effect with the changes herein deemed to be incorporated therein. This agreement is to be considered attached to the Credit Agreement and made a part thereof. This agreement shall not release or affect the liability of any guarantor of any promissory note or credit facility executed in reference to the Credit Agreement or release any owner of collateral granted as security for the Credit Agreement. The validity, priority and enforceability of the Credit Agreement shall not be impaired hereby. To the extent that any provision of this agreement conflicts with any term or condition set forth in the Credit Agreement, or any other Related Documents, the provisions of this agreement shall supersede and control. The Bank expressly reserves all rights against all parties to the Credit Agreement and the other Related Documents.

	
11.

	
TIME IS OF THE ESSENCE. Time is of the essence under this agreement and in the performance of every term, covenant and obligation contained herein.

	  	
Borrower:

	  	  
	 	 	 	 
	  	
ARI Network Services, Inc.

	  
	  	  	  	  	  
	  	
By:

	
/s/ Darin R. Janecek

	  
	 	 	Darin R. Janecek	CFO
	  	  	
Printed Name

	
Title

	  	  	  	  	  
	  	
Date Signed

	
January 12, 2011

	  
	  	  	  	  	  
	  	
Bank:

	  	  
	 	 	 	 
	  	
JPMorgan Chase Bank, N.A.

	  	  	  	  	  
	  	
By:

	/s/ Anthony Bartell	  
	  	  	Anthony Bartell	VP
	  	  	
Printed Name

	
Title

	  	  	  	  	  
	  	
Date Signed

	January 12, 2011	  

Non-standard Tom Williams

B. Garnett \ W1000002000106996

792097925000 \ DW00b009615809ef2b0ex10k.htm

EXHIBIT 10K

 

AMENDMENT TO THE

2003 STOCK OPTION PLAN

2005 INDEPENDENT SALES AGENT STOCK OPTION PLAN

2006 STOCK OPTION PLAN

AND

2006 INDEPENDENT SALES AGENT STOCK OPTION PLAN

OF

AUTOINFO, INC.

WHEREAS, each of the AutoInfo, Inc. (the "Company") 2003 Stock Option Plan (the "2003 Plan"), 2005 Independent Sales Agent Stock Option Plan (the "2005 Plan"), 2006 Stock Option Plan (the "2006 Plan") and 2006 Independent Sales Agent Stock Option Plan (the "Independent Sales Agent Plan") (collectively, the "Plans") provide that "the Board of Directors (the "Board"), may at any time and from time to time, suspend, terminate, modify or amend the Plan; and

WHEREAS, on October 7, 2010 (the "Effective Date"), the Board of the Company by unanimous written consent adopted resolutions authorizing and approving an amendment to each of the Plans to permit the cashless exercise of Options granted and to be granted under the Plans.

NOW THEREFORE, as of the Effective Date, the Plans are hereby amended as follows:

	
  

	
1.

	
Section 6(d) of each of the 2003 Plan and 2005 Plan, respectively, is hereby amended to read as follows:

"(d)      Medium and Time of Payment.  The Option Price multiplied by the number of shares of Common Stock exercised by the Optionee shall be paid in full, at the time of exercise, (i) in cash; or (ii) by the cancellation of the number of shares of Common Stock covered by the Option upon exercise having a Fair Market Value equal to the Option Price multiplied by the number of shares of Common Stock exercised by the Optionee."

	
  

	
2.

	
Section 6(e) of each of the 2006 Plan and Independent Sales Agent Plan, respectively, is hereby amended to read as follows:

"(e)      Medium and Time of Payment.  The Option Price multiplied by the number of shares of Common Stock exercised by the Optionee shall be paid in full, at the time of exer­cise, (i) in cash; or (ii) by the cancellation of the number of shares of Common Stock covered by the Option upon exercise having a Fair Market Value equal to the Option Price multiplied by the number of shares of Common Stock exercised by the Optionee."

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