Document:

a102swkfourthamendmentto

                           FOURTH AMENDMENT TO                  AMENDED AND RESTATED CREDIT AGREEMENT                                                    THIS FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT   AGREEMENT (this “Amendment”), dated as of May 8, 2018 (the “Effective Date”), is entered   into by and among HOOPER HOLMES, INC., a New York Corporation (“Borrower”), each of   the undersigned financial institutions (individually each a “Lender” and collectively “Lenders”)   and SWK FUNDING LLC, a Delaware limited liability company, in its capacity as administrative   agent for the other Lenders (in such capacity, “Agent”).                                     RECITALS          WHEREAS, Borrower, Agent and Lenders entered into that certain Amended and Restated   Credit Agreement, dated as of May 11, 2017, which amended and restated that certain Credit   Agreement, dated as of April 17, 2015, by and among the Borrower, Agent and Lenders (as   heretofore amended and as the same may be further amended, modified or restated from time to   time, being hereinafter referred to as the “Credit Agreement”; capitalized terms used in this   Amendment are defined in the Credit Agreement unless otherwise stated);           WHEREAS, Borrower, Agent and Lenders desire to enter into an immediate initial   forbearance to allow for further discussions among Borrower, Agent and Lenders regarding a   resolution acceptable to Borrower, Agent and Lenders; and           WHEREAS, Borrower, Agent and Lenders desire and are willing, to amend the Credit   Agreement as set forth below.                                     AGREEMENT          NOW, THEREFORE, in consideration of the premises herein contained and other good   and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the   parties, intending to be legally bound, agree as follows:                                     ARTICLE I                                Limited Forbearance             1.1   Certain Events of Default have occurred and are continuing, including, without   limitation, Borrower’s failure to repay all outstanding principal and interest in relation to the   August 2017 Term Loan on or prior to April 30, 2018 (collectively, the “Existing Defaults”).  At   the request of Borrower, Agent and Lenders shall forbear from exercising any remedies in   connection with any Existing Default so long as Borrower complies with the covenants set forth   in Section 3.2 of this Amendment.  The forbearance provided for in this Section 1.1 shall   automatically terminate on June 1, 2018 (the “Forbearance Period”) without the need for any   further action or notice by Agent or Lenders.  Notwithstanding anything herein to the contrary,   Borrower, Agent, and Lenders may extend such Forbearance Period by written agreement.                                            1  [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938  

 

       1.2   Nothing contained in this Amendment or any other communication between Agent,   any Lender, Borrower or any other Loan Party shall be a waiver of any past, present or future   violation, Default or Event of Default of Borrower under the Credit Agreement or any Loan   Document.  Subject to Section 1.1 of this Amendment, Agent and each Lender hereby expressly   reserves any rights, privileges and remedies under the Credit Agreement and each Loan Document   that Lender may have with respect to any violation, Default or Event of Default, and any failure   by Agent or any Lender to exercise any right, privilege or remedy as a result of the violations set   forth above shall not directly or indirectly in any way whatsoever either (i) impair, prejudice or   otherwise adversely affect the rights of Agent or any Lender, except as set forth herein, at any time   to exercise any right, privilege or remedy in connection with the Credit Agreement or any Loan   Document, (ii) amend or alter any provision of the Credit Agreement or any Loan Document or   any other contract or instrument or (iii) constitute any course of dealing or other basis for altering  any obligation of Borrower or any rights, privilege or remedy of Agent or any Lender under the  Credit Agreement or any Loan Document or any other contract or instrument.  Nothing in this  Amendment shall be construed to be a consent by Agent or any Lender to any prior, existing or  future violations of the Credit Agreement or any Loan Document.          1.3   Subject to the terms of this Amendment, Borrower is hereby notified that  irrespective of (i) any waivers or consents previously granted by Agent or any Lender regarding  the Credit Agreement and the Loan Documents, (ii) any previous failures or delays of Agent or  any Lender in exercising any right, power or privilege under the Credit Agreement or the Loan  Documents or (iii) any previous failures or delays of Agent or any Lender in the monitoring or in  the requiring of compliance by Borrower with the duties, obligations and agreements of Borrower   in the Credit Agreement and the Loan Documents, Borrower will be expected to comply strictly   with its duties, obligations and agreements under the Credit Agreement and the Loan Documents.                                       ARTICLE II                           Amendments to Credit Agreement          2.1   Amendment to Section 2.1.1. Effective as of the Effective Date, Section 2.1.1 of   the Credit Agreement is amended and restated in its entirety to read as follows:                 “2.1.1 Term Loan Commitments.                      (a)   The Lenders, severally and for themselves alone, made (i) a term               loan (the “Original Term Loan”) in connection with the Existing Credit Agreement               in the original principal amount of $5,000,000 and (ii) an additional term loan               (“Additional Term Loan” and together with the Original Term Loan, collectively               the “Closing Date Term Loan”) on the Closing Date in the original principal amount               of $2,824,123.80, resulting in an aggregate, outstanding principal amount of              $6,500,000 as of the Closing Date.  The Lenders, severally and for themselves              alone, made an additional term loan to Borrower, on or about August 8, 2017, in              the amount of $2,000,000 (the “August 2017 Term Loan”).  As of May 8, 2018               (and immediately prior to the additional advance of the Term Loan described in the               next sentence) (x) the outstanding principal balance of the Closing Date Term Loan               is $6,500,000.00 and (y) the outstanding principal balance of the August 2017 Term               Loan is $1,750,000.00.                                           2  [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938     

 

                   (b)  On and subject to the terms and conditions set forth in that certain               Fourth Amendment to Amended and Restated Credit Agreement dated as of May               8, 2018 (the “Fourth Amendment”), each Lender, severally and for itself alone,               agrees to make up to three (3) additional term loans to Borrower (each such loan,               individually and collectively, the “May 2018 Term Loan”) in an aggregate amount               equal to such Lender’s applicable Pro Rata Share of $1,500,000.  $750,000 of the               May 2018 Term Loan shall be advanced to Borrower on or about May 7, 2018,               resulting in an aggregate, outstanding principal amount outstanding under the Term               Loan of $9,000,000.  During the period beginning on May 7, 2018 and ending on               May 25, 2018, so long as Borrower is in compliance with the covenants set forth in               the Fourth Amendment, Lenders shall make two (2) additional advances under the               May 2018 Term Loan.  $250,000 of the May 2018 Term Loan shall be advanced               on May 14, 2018; and $500,000 of the May 2018 Term Loan shall be advanced on               May 21, 2018.  The Additional Term Loan, the Original Term Loan, the August               2017 Term Loan and the May 2018 Term Loan shall be deemed a single term Loan               (each such loan, individually and collectively, the “Term Loan”).  The               Commitments of Lenders to make the May 2018 Term Loan shall terminate               concurrently with the making of the May 2018 Term Loan in accordance with this               Section 2.1.1(b). The Loan is not a revolving credit facility, and therefore, any               amount thereof that is repaid or prepaid by Borrower, in whole or in part, may not               be re-borrowed.                      (c)   Notwithstanding anything set forth in this Agreement (including,              without limitation, Section 2.9 hereof) or any other Loan Document to the contrary,               the remaining principal balance of the August 2017 Term Loan and the May 2018               Term Loan, together with all interest accrued in relation thereto, shall be due and               payable on or prior to June 1, 2018.”                                       ARTICLE III                    Conditions Precedent and Post-Closing Obligations          3.1   Conditions Precedent.  The effectiveness of this Amendment is subject to the   satisfaction of the following conditions precedent in a manner satisfactory to Agent, unless   specifically waived in writing by Agent in its sole discretion:                A.    Agent shall have received this Amendment and the Reaffirmation of the         Amended and Restated Guarantee and Collateral Agreement, duly executed by all parties         thereto.                B.    The representations and warranties contained herein and in the Credit         Agreement and the other Loan Documents, as each is amended hereby, shall be true and         correct as of the date hereof, as if made on the date hereof, except for such representations         and warranties as are by their express terms limited to a specific date.                C.    All corporate proceedings taken in connection with the transactions         contemplated by this Amendment and all documents, instruments and other legal matters         incident thereto shall be satisfactory to Agent.                                            3  [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938     

 

       3.2   Post-Closing Obligations.  Borrower shall comply with each of the additional   covenants and requirements at all times prior to the payment in full of the Obligations, the failure   of which would constitute an immediate Event of Default and termination of the forbearance   provided for in Section 1.1 of this Amendment:                A.    On the first Business Day of each week following the Effective Date,         Borrower shall provide to Agent an updated cash flow forecast for Borrower substantially        in the form attached hereto as Exhibit A, as well as a cumulative comparison of actual         results to prior cash flow projections delivered by Borrower to Agent in form and substance         acceptable to Agent.                 B.    Borrower’s actual expenses for the period covered in the cash flow forecast         attached hereto as Exhibit A shall not exceed the budget amounts for such expenses by         more than 15% unless otherwise agreed to by Agent in its sole discretion.                 C.    Borrower agrees to use reasonable best efforts to identify potential acquirers         or investors and to effectuate a transaction that results in a merger, acquisition, or similar         material investment (the “Transaction”) in Borrower as imminently as reasonably possible.          Borrower further agrees to cooperate with Agent and potential acquirers and investors and         to use reasonable best efforts to assist all parties in completing the Transaction.  In addition,         Borrower shall engage a financial advisor, reasonably acceptable to Agent, on or prior to         May 8, 2018 to advise and represent Borrower in relation to the Transaction, and Borrower         shall continue to engage such financial advisor, or a replacement financial advisor         reasonably acceptable to Agent, until the earlier of the consummation of such Transaction         or the payment in full of the Obligations..                                      ARTICLE IV                       Ratifications, Representations and Warranties          4.1   Ratifications.  The terms and provisions set forth in this Amendment shall modify   and supersede all inconsistent terms and provisions set forth in the Credit Agreement and the other   Loan Documents, and, except as expressly modified and superseded by this Amendment, the terms   and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed   and shall continue in full force and effect.  Borrower, Lenders and Agent agree that the Credit   Agreement and the other Loan Documents, as amended hereby, shall continue to be legal, valid,   binding and enforceable in accordance with their respective terms.  Borrower agrees that this   Amendment is not intended to and shall not cause a novation with respect to any or all of the   Obligations.          4.2   Representations and Warranties.  Borrower hereby represents and warrants to   Agent and Lenders that (a) the execution, delivery and performance of this Amendment and any   and all other Loan Documents executed and/or delivered in connection herewith have been  authorized by all requisite action (as applicable) on the part of Borrower and will not violate the  organizational documents of Borrower; (b) Borrower’s directors have authorized the execution,  delivery and performance of this Amendment and any and all other Loan Documents executed  and/or delivered in connection herewith; (c) the representations and warranties contained in the                                          4  [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938     

 

 Credit Agreement, as amended hereby, and any other Loan Document are true and correct on and   as of the date hereof and on and as of the date of execution hereof as though made on and as of  each such date (except to the extent such representations and warranties expressly relate to an  earlier date); and (d) except as disclosed to Agent, Borrower has not amended its organizational   documents since the date of the Credit Agreement.                                      ARTICLE V                               Miscellaneous Provisions          5.1   Survival of Representations and Warranties.  All representations and warranties   made in the Credit Agreement or any other Loan Document, including, without limitation, any   document furnished in connection with this Amendment, shall survive the execution and delivery  of this Amendment and the other Loan Documents, and no investigation by Agent or any Lender   or any closing shall affect the representations and warranties or the right of Agent and each Lender   to rely upon them.          5.2   Reference to Credit Agreement.  Each of the Credit Agreement and the other   Loan Documents, and any and all other Loan Documents, documents or instruments now or   hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit   Agreement, as amended hereby, are hereby amended so that any reference in the Credit Agreement   and such other Loan Documents to the Credit Agreement shall mean a reference to the Credit   Agreement, as amended hereby.          5.3   Expenses of Agent.  As provided in the Credit Agreement, Borrower agrees to pay   on demand all costs and expenses incurred by Agent, or its Affiliates, in connection with the   preparation, negotiation, and execution of this Amendment and the other Loan Documents   executed pursuant hereto and any and all amendments, modifications, and supplements thereto,   including, without limitation, the reasonable costs and fees of legal counsel, and all costs and   expenses incurred by Agent and each Lender in connection with the enforcement or preservation   of any rights under the Credit Agreement, as amended hereby, or any other Loan Documents,   including, without, limitation, the reasonable costs and fees of legal counsel.          5.4   Severability.  Any provision of this Amendment held by a court of competent   jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this   Amendment and the effect thereof shall be confined to the provision so held to be invalid or   unenforceable.          5.5   Successors and Assigns.  This Amendment is binding upon and shall inure to the   benefit of Agent and each Lender and Borrower and their respective successors and assigns, except   that Borrower may not assign or transfer any of its rights or obligations hereunder without the prior   written consent of Agent.          5.6   Counterparts.  This Amendment may be executed in one or more counterparts,   each of which when so executed shall be deemed to be an original, but all of which when taken   together shall constitute one and the same instrument.  This Amendment may be executed by   facsimile or electronic (.pdf) transmission, which facsimile or electronic (.pdf) signatures shall be   considered original executed counterparts for purposes of this Section 5.6, and each party to this                                          5  [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938     

 

 Amendment agrees that it will be bound by its own facsimile or electronic (.pdf) signature and that  it accepts the facsimile or electronic (.pdf) signature of each other party to this Amendment.         5.7   Effect of Waiver.  No consent or waiver, express or implied, by Agent to or for   any breach of or deviation from any covenant or condition by Borrower shall be deemed a consent   to or waiver of any other breach of the same or any other covenant, condition or duty.          5.8   Headings.  The headings, captions, and arrangements used in this Amendment are   for convenience only and shall not affect the interpretation of this Amendment.         5.9   Applicable Law.  THE TERMS AND PROVISIONS OF SECTIONS 10.17   (GOVERNING LAW) AND 10.18 (FORUM SELECTION; CONSENT TO JURISDICTION) OF   THE CREDIT AGREEMENT ARE HEREBY INCORPORATED HEREIN BY REFERENCE,   AND SHALL APPLY TO THIS AMENDMENT MUTATIS MUTANDIS AS IF FULLY SET  FORTH HEREIN.          5.10  Final Agreement.  THE CREDIT AGREEMENT AND THE OTHER LOAN   DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION   OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE   THIS AMENDMENT IS EXECUTED.  THE CREDIT AGREEMENT AND THE OTHER   LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY   EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS   OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE   PARTIES.  NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF   ANY PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN   AGREEMENT SIGNED BY BORROWER AND AGENT.               [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]                                           6  [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938     

 

   IN WITNESS WHEREOF, this Amendment has been executed and is effective as of the date first  above-written.                                 BORROWER:                                                       HOOPER HOLMES, INC.,                                 a New York corporation                                                                                                                                                                          By:                                                                                                       Name:  James Fleet                                                                Title:    Chief Restructuring Officer                                                                                                                           [Signature Page]                         Fourth Amendment to A&R Credit Agreement  #56922938  

 

 

 

                                 REAFFIRMATION OF      AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT                                                  The undersigned (the “Guarantor”) each hereby acknowledges and agrees to the   amendments of the Credit Agreement contained in this Fourth Amendment to Amended and   Restated Credit Agreement, dated as of May 8, 2018 (the “Amendment”), and acknowledges and   reaffirms its obligations owing to Agent and the Lenders under that certain Amended and Restated   Guarantee and Collateral Agreement, dated as of May 11, 2017 (the “Guarantee Agreement”)   and any of the other Loan Documents to which it is a party, and agrees that such Guarantee and   Loan Documents are and shall remain in full force and effect.  Although Guarantor has been  informed of the matters set forth herein and has acknowledged and agreed to same, Guarantor   understands that Agent and Lenders have no obligation to inform Guarantor of such matters in the   future or to seek Guarantor’s acknowledgement or agreement to future amendments or waivers,   and nothing herein shall create such a duty.                                     [Signatures Follow]      [Hooper] Fourth Amendment to A&R Credit Agreement   #56922938  

 

                                       HOOPER HOLMES, INC.,                                      a New York corporation                                                                                                                                                            By:                                                                       Name: James Fleet                                      Title: Chief Restructuring Officer                                         PROVANT HEALTH SOLUTIONS, LLC,                                      a Rhode Island limited liability company                                                                                                                      By:                                                                       Name: James E. Fleet                                      Title: Chief Restructuring Officer                                                                             HOOPER WELLNESS, LLC,                                      a Kansas limited liability company                                                                                                                      By:                                                                       Name: James E. Fleet                                      Title: Chief Restructuring Officer                                                                             ACCOUNTABLE HEALTH SOLUTIONS, LLC,                                      a Kansas limited liability company                                                                                                                      By:                                                                       Name: James E. Fleet                                       Title: Chief Restructuring Officer                                           [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938  

 

                                       HOOPER INFORMATION SERVICES, INC.,                                      a New Jersey corporation                                                                                                                                                            By:                                                                       Name: James E Fleet                                      Title: Chief Restructuring Officer                                                                             HOOPER DISTRIBUTION SERVICES, LLC,                                      a New Jersey limited liability company                                                                            By:  Hooper Holmes, Inc.,                                      its Manager                                                                                                                                                            By:    _________________________________                                        Name: James E Fleet                                      Title: Chief Restructuring Officer                                                                                                                   HOOPER KIT SERVICES, LLC,                                      a Kansas limited liability company                                                                            By:  Hooper Holmes, Inc.,                                      its sole Member                                                                                                                                                            By:    _______________________________                                       Name: James E Fleet                                      Title: Chief Executive Officer                                                                     [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938  

 

                                        EXHIBIT A                                                                             Form of Cash Flow Forecast                                                                                    (See Attached)                                                                                                [Hooper] Fourth Amendment to A&R Credit Agreement  #56922938a103cnhforbearanceagreem

                        FORBEARANCE AGREEMENT         THIS FORBEARANCE AGREEMENT (this “Agreement”), entered into as of May ___,  2018, is made and entered into by and among CNH FINANCE FUND I, L.P. (formerly known as  SCM SPECIALTY FINANCE OPPORTUNITIES FUND, L.P.), a Delaware limited partnership  (“Lender”)  and  HOOPER  HOLMES,  INC.,  a  New  York  corporation  (“Hooper  Holmes”),  HOOPER DISTRIBUTION SERVICES, LLC, a New Jersey limited liability company (“Hooper  Distribution”),  HOOPER  WELLNESS,  LLC,  a  Kansas  limited  liability  company  (“Hooper  Wellness”), ACCOUNTABLE HEALTH SOLUTIONS, LLC, a Kansas limited liability company  (“Accountable  Health”),  HOOPER  INFORMATION  SERVICES,  INC.,  a  New  Jersey  corporation (“Hooper Information”), HOOPER KIT SERVICES, LLC, a Kansas limited liability  company (“Hooper Kit”), and PROVANT HEALTH SOLUTIONS, LLC, a Rhode Island limited  liability company (“Provant Health”, together with Hooper Holmes, Hooper Distribution, Hooper  Wellness,  Accountable  Health,  Hooper  Information  and  Hooper  Kit,  individually  as  a  “Borrower,” and collectively as “Borrowers”).         WHEREAS,  Borrowers  and  Lender  are  parties  to  that  certain  Credit  and  Security  Agreement dated as of April 29, 2016 (as amended to date, and as the same may from time to time  be further  amended,  restated, supplemented or otherwise modified, the “Credit Agreement”),  pursuant to which, subject to the terms and conditions set forth therein, Lender has made certain  credit facilities available to Borrowers.           WHEREAS, (a) Borrowers have failed to make a principal payment of $250,000 under the  Closing Date Subordinated Debt Documents when due on March 15, 2018, which is an Event of  Default  under Section  8.1(f) of  the  Credit  Agreement,  (b)  Borrowers  have  failed  to  make  a  principal payment of $1,750,000 under the Closing Date Subordinated Debt Documents when due  on April 30, 2018, which is an Event of Default under Section 8.1(f) of the Credit Agreement, (c)  the chief executive officer of the Borrowers has resigned giving rise to a Change of Control, which  is an Event of Default under Section 8.1(i) of the Credit Agreement, (d) Borrowers have failed to  furnish to Lender annual consolidated and consolidating financial statements for 2017, in the time  and as otherwise required by Section 6.1(a)(i) of the Credit Agreement, (e) Borrowers have failed  to  furnish  to  Lender  monthly  consolidated  and  consolidating  financial  statements  for  January,  February and March of 2018 in the time and as otherwise required by Section 6.1(a)(ii) of the  Credit Agreement, (f) Borrowers have failed to furnish to Lender Compliance Certificates and  bank statements required to be provided by Sections 6.1(a) of the Credit Agreement for 2017 and  January, February and March of 2018 in the time and as otherwise required, and (g) for the quarters  ending on December 31, 2017 and March 30, 2018, Borrowers have violated each of the financial  and loan covenants set forth on Annex I of the Credit Agreement, in breach of the covenant set  forth in Section 7.1 of the Credit Agreement (collectively, the “Subject Events of Default”);         WHEREAS, by reason of the existence of the Subject Events of Default, Lender has full  legal right to exercise its rights and remedies under the Credit Agreement and the other Loan  Documents as a result of the occurrence of the Subject Events of Default, and Borrowers have no  defenses, offsets or counterclaims to the exercise of such rights and remedies;         WHEREAS, Borrowers have requested and Lender has agreed to, among other things, for  the period from the date hereof through the Forbearance Period (as defined below) to forbear from    DM3\5190965.3  

 

exercising its rights and remedies under the Loan Documents with respect to the Subject Events  of  Default  subject  to  the  satisfaction  or  waiver,  in  Lender’s  sole  discretion,  of  each  of  the  conditions precedent set forth herein.         NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants  and conditions herein contained, and for other good and valuable consideration, the receipt and  sufficiency of which are hereby acknowledged, the parties agree as follows:         1.    Defined Terms.  Initially capitalized terms used herein and not defined herein that  are  defined  in  the  Credit  Agreement  shall  have  the  meanings  assigned  to  them  in  the  Credit  Agreement (as amended hereby).         2.    Agreement  to  Forbear.   During  the  period  commencing on  the  date  hereof  and  ending on the earlier to occur of (i) June 1, 2018 and (ii) the occurrence of any Additional Default  (as defined below) (the “Forbearance Period”), and subject to the specific conditions precedent set  forth in Section 8 hereof and to the other terms and conditions of this Agreement, Lender agrees  that it will forbear from exercising its rights and remedies under the Loan Documents due to the  Subject Events of Default.  Notwithstanding any provision of this Agreement, nothing contained  herein shall limit any rights or remedies of Lender under the Credit Agreement or any other Loan  Document based on any Default or Event of Default which is not a Subject Event of Default (each  an “Additional Default”).  Upon the expiration or termination of the Forbearance Period, Lender’s  forbearance shall automatically terminate and Lender shall be entitled to exercise any and all of its  rights and remedies under this Agreement, the Credit Agreement and the Loan Documents without  further  notice.   Borrowers  hereby  agree  that  Lender  shall  have  no  obligation  to  extend  the  Forbearance Period; provided, however, that Borrowers and Lender may extend such Forbearance  Period by written agreement.         3.    Default  Interest.   Beginning  on  the  first  day  of  the  Forbearance  Period  and  continuing  while  any  Event  of  Default  remains  outstanding  and  uncured,  in  accordance  with  Section 3.6 of the Credit Agreement, the Applicable Rate of interest with respect to the Obligations  shall accrue at the Default Rate.         4.    Overadvance.  In accordance with Section 2.1(a)(iii) of the Credit Agreement, the  Lender has made Advances to Borrowers of up to $250,000 in excess of Availability.  Subject to  the  terms  and  conditions  of  this  Agreement,  during  the  Forbearance  Period  the  Lender  shall  continue to  make  Advances  to  Borrowers  of  up  to  $250,000  in  excess  of  Availability  (the  “Overadvances”).   Borrowers  hereby  agree  that  Lender  shall  have  no  obligation  to  make  any  Overadvances beyond the Forbearance Period.         5.    No Waiver.  Nothing  contained in  this  Agreement  or any other communication  between Lender, Borrowers or any other loan party shall be a waiver of any past, present or future  violation, Default or Event  of Default of  Borrowers under the Credit Agreement or  any  Loan  Document.  Lender hereby expressly reserves any rights, privileges and remedies under the Credit  Agreement and each Loan Document that Lender may have with respect to any violation, Default  or Event of Default, and any failure by Lender to exercise any right, privilege or remedy as a result  of the violations set forth above shall not directly or indirectly in any way whatsoever either (i)  impair, prejudice or otherwise adversely affect the rights of Lender, except as set forth herein, at                                         2  DM3\5190965.3  

 

any time to exercise any right, privilege or remedy in connection with the Credit Agreement or  any  Loan  Document,  (ii)  amend  or  alter  any  provision  of  the  Credit  Agreement  or  any  Loan  Document or any other contract or instrument or (iii) constitute any course of dealing or other basis  for altering any obligation of Borrowers or any rights, privilege or remedy of Lender under the  Credit Agreement or any Loan Document or any other contract or instrument.  Nothing in this  Agreement shall be construed to be a consent by Lender to any prior, existing or future violations  of the Credit Agreement or any Loan Document.         6.    Future  Compliance.   Borrowers  are  hereby  notified  that  irrespective  of  (i)  any  waivers or consents previously granted by Lender regarding the Credit Agreement and the Loan  Documents,  (ii)  any  previous  failures  or  delays  of  Lender  in  exercising  any  right,  power  or  privilege under the Credit Agreement or the  Loan Documents  or (iii) any  previous failures  or  delays of Lender in the monitoring or in the requiring of compliance by Borrowers with the duties,  obligations  and  agreements  of  Borrowers  in  the  Credit  Agreement  and  the  Loan  Documents,  Borrowers will be  expected to  and  required to  comply strictly with  its  duties,  obligations  and  agreements under the Credit Agreement and the Loan Documents.         7.    Representations and Warranties.  Each Borrower represents and warrants to Lender  that, before and after giving effect to this Agreement:               (a)   All  warranties  and  representations  made  to  Lender  under  the  Credit  Agreement and the Loan Documents are true and correct on and as of the date hereof and on and  as of the date of execution hereof as though made on and as of each such date (except to the extent  such representations and warranties expressly relate to an earlier date).               (b)   The  execution,  delivery  and  performance  by  each  Credit  Party  of  this  Agreement and any assignment, instrument, document, or agreement executed and delivered in  connection herewith and the consummation of the transactions contemplated hereby and thereby  (i) have been duly authorized by all requisite action of the appropriate Credit Party and have been  duly executed and delivered by or on behalf of such Credit Party; (ii) do not violate any provisions  of  (A)  applicable  law,  statute,  rule,  regulation,  ordinance  or  tariff,  (B)  any  order  of  any  Governmental  Authority  binding  on  any  Credit  Party  or  any  of  the  Credit  Parties’  respective  properties the effect of which would reasonably be expected to have a Material Adverse Effect, or  (C) the certificate of incorporation or bylaws (or any other equivalent governing agreement or  document) of each Credit Party, or any agreement between any Credit Party and its shareholders,  members, partners or equity owners or among any such shareholders, members, partners or equity  owners; (iii) are not in conflict with, and do not result in a breach or default of or constitute an  Event  of Default, or an  event,  fact,  condition,  breach,  Default or Event  of Default under, any  indenture, agreement or other instrument to which any Credit Party is a party, or by which the  properties  or  assets of  any  Credit  Party  are  bound,  the  effect  of  which  would  reasonably  be  expected to have a Material Adverse Effect; (iv) except as set forth herein, will not result in the  creation or imposition of any Lien of any nature upon any of the properties or assets of any Credit  Party, and (v) do not require the consent, approval or authorization of, or filing, registration or  qualification with, any Governmental Authority or Credit Party unless otherwise obtained.               (c)   This Agreement and any assignment, instrument, document, or agreement  executed and delivered in connection herewith constitutes the legal, valid and binding obligation                                         3  DM3\5190965.3  

 

of  each  respective  Credit  Party,  enforceable  against  such  Credit  Party  in  accordance  with  its  respective terms.               (d)   Except for the Subject Events of Default, no Default or Event of Default has  occurred  and  is  continuing  or  would  exist  under  the  Credit  Agreement  or  any  of  the  Loan  Documents, before and after giving effect to this Agreement.         8.    Conditions  Precedent.   The  forbearance  set  forth  in Section  2 hereof  shall  be  effective  on  the  date  hereof  upon  completion  of  the  following  conditions  precedent  (with  all  documents to be in form and substance satisfactory to Lender and Lender’s counsel):               (a)   Lender shall have received this Agreement duly executed by Borrowers;               (b)   Lender shall have received that certain Fourth Amendment to Amended and  Restated  Credit  Agreement  by  and  among  Hooper  Holmes  and  Closing  Date  Subordinated  Creditor dated as of May 4, 2018, duly executed by all parties thereto;               (c)   Payment of all fees, charges and expenses payable to Lender on or prior to  the date hereof, if any, and a forbearance fee which Borrowers hereby agree Lender has fully  earned as of the date hereof in an amount equal to Eight Thousand Five Hundred and No/100  Dollars ($8,500.00);                (d)   All corporate and limited liability company proceedings taken in connection  with the transactions contemplated by this Agreement and all documents, instruments and other  legal matters incident thereto shall be satisfactory to Lender; and               (e)   Borrowers shall have executed and/or delivered such additional documents,  instruments and agreements as requested by Lender.         9.    Post-Closing  Obligations.  Borrowers  shall  comply  with  each  of  the  following  additional covenants and requirements at all times prior to the payment in full of the Obligations,  the  failure  of  which  would  constitute  an  immediate  Event  of  Default  and  termination  of  the  forbearance provided for in Section 2 of this Agreement:                (a)   On  the  first  Business  Day  of  each  week  during  the  Forbearance  Period,  Borrowers shall provide to Lender an updated cash flow forecast for Borrowers substantially in  the form attached hereto as Exhibit A, as well as a cumulative comparison of actual results to prior  cash  flow  projections  delivered  by  Borrowers  to  Lender  in  form and  substance  acceptable  to  Lender.   Any  financial  reporting  or  information  provided  to  the  Closing  Date  Subordinated  Creditor shall be provided contemporaneously to the Lender.                  (b)   Borrowers’ actual expenses for the period covered in the cash flow forecast  attached hereto as Exhibit A shall not exceed the budget amounts for such expenses by more than  15% unless otherwise agreed to by Lender in its sole discretion.                (c)   Borrowers agree to use reasonable best efforts to identify potential acquirers  or investors and to effectuate a transaction that results in a merger, acquisition, or similar material  investment  (the “Transaction”) in  Borrowers as  imminently as  reasonably  possible. Borrowers                                         4  DM3\5190965.3  

 

further agree to cooperate with Lender and potential acquirers and investors and to use reasonable  best efforts to assist all parties in completing the Transaction. In addition, Borrowers shall engage  a financial advisor, reasonably acceptable to Lender, on or prior to May 11, 2018 to advise and  represent Borrowers in relation to the Transaction, and Borrowers shall continue to engage such  financial advisor, or a replacement financial advisor reasonably acceptable to Lender, until the  earlier  of  the  consummation  of  such  Transaction  or  the  payment  in  full  of  the  Obligations.   Borrowers  shall  provide  to  Lender  any  and  all  information  and  documentation  provide  to  the  Closing Date Subordinated Creditor, with such information and documentation provided to Lender  contemporaneously with its provision to the Closing Date Subordinated Creditor.            10.   Miscellaneous.               (a)   Ratification.  Borrowers hereby restate, ratify and reaffirm each and every  term and condition set forth in the Credit Agreement and the Loan Documents effective as of the  date hereof.               (b)   Release.   By  execution  of  this  Agreement, Borrowers  acknowledge  and  confirm that Borrowers do not have any actions, causes of action, damages, claims, obligations,  liabilities, costs, expenses and/or demands of any kind whatsoever, at law or in equity, matured or  unmatured, vested or contingent arising out of or relating to this Agreement, the Credit Agreement  or the other Loan Documents against any Released Party (as defined below), whether asserted or  unasserted.  Notwithstanding any other provision of any Loan Document, to the extent that such  actions, causes of action, damages, claims, obligations, liabilities, costs, expenses and/or demands  may exist, Borrowers voluntarily, knowingly, unconditionally and irrevocably, with specific and  express intent, for and on behalf of itself, its managers, members, directors, officers, employees,  stockholders, Affiliates, agents, representatives, accountants, attorneys, successors and assigns and  their respective Affiliates  (collectively, the “Releasing Parties”), hereby fully and completely  release and forever discharge Lender, its Affiliates and its and their respective managers, members,  officers,  employees,  Affiliates,  agents,  representatives,  successors,  assigns,  accountants  and  attorneys (collectively, the “Indemnified Persons”) and any other Person or insurer which may  be responsible or liable for the acts or omissions of any of the Indemnified Persons, or who may  be liable for the injury or damage resulting therefrom (collectively, with the Indemnified Persons,  the  “Released  Parties”),  of  and  from  any  and  all  actions,  causes  of  action,  damages,  claims,  obligations, liabilities, costs, expenses and demands of any kind whatsoever, at law or in equity,  matured or unmatured, vested or contingent, that any of the Releasing Parties has against any of  the Released Parties, arising out of or relating to this Agreement, the Credit Agreement and the  other Loan Documents which Releasing Parties ever had or now have against any Released Party,  including, without limitation, any presently existing claim or defense whether or not presently  suspected, contemplated or anticipated.               (c)   Security  Interest.   Borrowers  hereby  confirm  and  agree  that  all  security  interests and liens granted to Lender continue in full force and effect and shall continue to secure  the Obligations.  All Collateral remains free and clear of any liens other than liens in favor of  Lender and Permitted Liens.  Nothing herein contained is intended to in any way impair or limit  the  validity,  priority  and  extent  of  Lender’s  existing  security  interest  in  and  liens  upon  the  Collateral.                                          5  DM3\5190965.3  

 

            (d)   Costs  and  Expenses.   Borrowers  agree  to  pay  on  demand  all  usual  and  customary costs and expenses of Lender and/or its Affiliates in connection with the preparation,  execution, delivery and enforcement of this Agreement and all other agreements and instruments  executed  in  connection  herewith,  including,  without  limitation,  reasonable  attorneys’  fees  and  expenses of Lender’s counsel.               (e)   GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY  AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF  THE  STATE  OF  NEW  YORK  WITHOUT  GIVING  EFFECT  TO  ITS  CHOICE  OF  LAW  PROVISIONS.               (f)   Counterparts.   This  Agreement  may  be  executed  in  any  number  of  counterparts,  each  of  which  when  so  executed  shall  be  deemed  to  be  an  original,  and  such  counterparts together shall constitute one and the same respective agreement.  Signatures sent by  facsimile or electronic mail shall be deemed originals for all purposes and shall bind the parties  hereto.               (g)   Loan  Document.   This  Agreement  and  any  assignment,  instrument,  document, or agreement executed and delivered in connection with or pursuant to this Agreement  shall be deemed to be a “Loan Document” under and as defined in the Credit Agreement for all  purposes.                               [Signature Pages Follow.]                                          6  DM3\5190965.3  

 

                                                IN  WITNESS  WHEREOF,  the  parties  hereto  have  duly  executed  and  delivered  this  Agreement as of the date first hereinabove written.                                         BORROWERS:                         HOOPER HOLMES, INC., a New York corporation                                     HOOPER WELLNESS, LLC, a Kansas limited                                     liability company                                     ACCOUNTABLE HEALTH SOLUTIONS, LLC, a                                     Kansas limited liability company                                      HOOPER INFORMATION SERVICES, INC., a                                     New Jersey corporation                                      HOOPER KIT SERVICES, LLC, a Kansas limited                                     liability company                                                                                                                      By:                                                                      Name:  James E. Fleet                                     Title:  Chief Restructuring Officer                                                                          HOOPER DISTRIBUTION SERVICES, LLC, a New                                     Jersey limited liability company                                                                                                                                                          By:                                                                      Name:  James E. Fleet                                     Title:  Chief Restructuring Officer                                                                          PROVANT  HEALTH  SOLUTIONS,  LLC,  a  Rhode                                     Island limited liability company                                                                                                                     By:                                                                      Name:  James E Fleet                                     Title:  Chief Restructuring Officer                         Signature Page to Forbearance Agreement  

 

                                          LENDER:                             CNH FINANCE FUND I, L.P.,                                       a Delaware limited partnership                                                                                                                                                         By:                                                                             Name:                                                                           Title:                                                                                                       Signature Page to Forbearance Agreement

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