Document:

Exhibit 10.1

 

EXECUTION VERSION

 

FIRST AMENDMENT TO CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), is made and entered into as of December 14, 2016, by and among INTERSECTIONS INC., a Delaware corporation ("Intersections" or the "Borrower Representative"), INTERSECTIONS ENTERPRISES INC., a Delaware corporation ("Enterprises"), INTERSECTIONS HOLDINGS INC., a Delaware corporation ("Holdings"), IISI INSURANCE SERVICES INC., an Illinois corporation formerly known as IISI Inc. and Intersections Insurance Services Inc. ("IISI"), CAPTIRA ANALYTICAL, LLC, a Delaware limited liability company ("Captira"), I4C INNOVATIONS INC., a Delaware corporation ("i4c" and together with Intersections, Enterprises, Holdings, IISI, and Captira, each individually, a "Borrower" and collectively, the "Borrowers"), CRYSTAL FINANCIAL SPV LLC, a Delaware limited liability company (a "Term Lender"), CRYSTAL FINANCIAL LLC, a Delaware limited liability company, as administrative agent for the Secured Parties (in such capacity, together with its successors and assigns, the "Administrative Agent").

W I T N E S S E T H:

WHEREAS, the Borrowers, the other Credit Parties party thereto from time to time, the Term Lenders and the Administrative Agent are parties to that certain Credit Agreement dated as of March 21, 2016 (as may amended, amended and restated, refinanced, replaced, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"; capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Term Lenders have made certain term loans and other financial accommodations available to the Borrowers upon the terms and conditions set forth therein;

WHEREAS, the Borrower Representative has informed the Administrative Agent of its intention to conduct an orderly sale, wind-down, liquidation or dissolution of i4c, IISI and Captira;

 WHEREAS, in order to consummate such a sale, wind-down, liquidation or dissolution, the Borrowers have requested, among other things, that certain provisions of the Credit agreement be amended; and

WHEREAS, the Administrative Agent and the Term Lenders are willing to amend certain provisions of the Credit Agreement subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Credit Parties, the Administrative Agent and the Term Lenders party hereto do hereby agree as follows:

1.            Amendments to the Credit Agreement. Subject to and upon the satisfaction of the conditions set forth in Section 2 hereof on the First Amendment Effective Date (as defined below), and as of the First Amendment Effective Date, the Credit Agreement (including the schedules and exhibits thereto) is hereby amended as set forth on Exhibit A attached hereto, such that stricken text (indicated textually in the same manner as the following example:  stricken text or stricken text) shall be deemed to be deleted therefrom and all newly inserted double-underlined text (indicated textually in the same manner as the following example:  double-underlined text or double-underlined text) and any formatting changes shall be deemed to be inserted. In addition, as of the First Amendment Effective Date, Exhibit C (Form of Compliance Certificate) to the Credit Agreement shall be replaced by the Form of Compliance Certificate attached hereto as Exhibit B.

2.            Conditions Precedent to Effectiveness of this Amendment.  This Amendment shall become effective as of the date upon which each of the following conditions has been satisfied in full in the Administrative Agent's sole discretion (such date, the "First Amendment Effective Date"):

(a)            the Administrative Agent shall have received one or more counterparts of this Amendment duly executed and delivered by the Borrowers and the Term Lenders;

(b)            Borrowers shall have paid to Agent, for the ratable benefit of each of the Term Lenders signatory to this Amendment, an amendment fee in an aggregate amount equal to $100,000, which shall be fully earned, due and payable on the date hereof; and

(c)            the Administrative Agent and Term Lenders shall have received such other assurances, certificates, documents, consents or opinions as the Administrative Agent or Term Lenders reasonably may require, each in form and substance reasonably satisfactory to the Administrative Agent and Term Lenders.

3.            Consent to Sale of Assets. Subject to and upon the terms contained within the Credit Agreement, as amended by this Amendment, the Administrative Agent and the Required Lenders consent to the sale of Capital Stock, wind-down or other disposition of all of the assets of i4c, Captira, Holdings, and the Habits at Work Business in one or a series of related transactions and the dissolution of i4c, Captira, and Holdings; provided, that each such transaction constitutes a Wind-Down Event.

4.            Confirmation Regarding Post-Closing Obligations.  The Administrative Agent confirms that the Credit Parties have complied with each of the covenants contained, as of the Closing Date, in Schedule 6.18 on or before the time periods prescribed therein or such compliance has been waived by the Administrative Agent.

5.            Representations And Warranties.  Each Borrower and each other Credit Party hereby represent and warrant to the Administrative Agent and the Term Lenders as follows:

(a)            The execution, delivery and performance by each Credit Party of this Amendment and the performance by such Credit Party of its obligations and agreements under this Amendment and the Credit Agreement, as amended hereby, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of any of such Credit Party's certificate or articles of incorporation (or equivalent thereof), (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any material Contractual Obligation (other than the creation of Liens under the Loan Documents) to which such Credit Party is a party or affecting such Credit Party or the properties of such Credit Party or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Credit Party or its property is subject; or (iii) violate any Law, except to the extent that any such violation, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

(b)            This Amendment has been duly executed and delivered by such Credit Party.  Each of this Amendment and the Credit Agreement, as amended hereby, constitutes a legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with their respective terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles, whether enforcement is sought by a proceeding in equity or at law.

(c)            No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is required in connection with the execution, delivery or performance by any Credit Party of this Amendment or the Credit Agreement as amended hereby.

(d)            Each of the representations and warranties of the Borrowers and each other Credit Party contained in the Loan Documents is true and correct in all material respects (but without any duplication of any materiality qualifications) on and as of the First Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (but without any duplication of any materiality qualifications) as of such earlier date.

(e)            No Default or Event of Default exists, and after giving effect to this Amendment, no Default or Event of Default shall exist or arise therefrom.

6.            Release.  As a material inducement to the Administrative Agent and each Term Lender entering into this Amendment, which is to the direct advantage and benefit of the Borrowers and the other Credit Parties, each Credit Party, for itself and its respective Affiliates, does hereby release, waive, relinquish, acquit, satisfy and forever discharge the Administrative Agent and each Term Lender, and each other Secured Party and all of the respective past, present and future officers, directors, employees, agents, attorneys, representatives, participants, heirs, Affiliates, successors and assigns of each such Person (collectively the "Discharged Parties" and each a "Discharged Party"), from any and all manner of debts, warranties, representations, covenants, promises, contracts, controversies, agreements, liabilities, costs, losses, deficiencies, diminution in value, disbursements, obligations, expenses, damages, judgments, executions, actions, suits, claims, counterclaims, demands, defenses, setoffs, objections, adverse consequences, amounts paid in settlement,  and causes of action of any nature whatsoever, whether at law or in equity or otherwise, either now accrued or hereafter maturing and whether known or unknown, fixed or contingent, direct or indirect, or derivative, asserted or unasserted, foreseen or unforeseen, suspected or unsuspected, which such Credit Party or such Affiliate now has or hereafter can, shall or may have by reason of any matter, cause, thing or event occurring on or prior to the First Amendment Effective Date arising out of, in connection with or relating to (a) the Obligations, including, but not limited to, the administration or funding thereof, (b) any of the Loan Documents or the indebtedness evidenced and secured thereby, and (c) any other agreement or transaction between any Credit Party or Affiliate and any Discharged Party relating to or in connection with the Loan Documents or the transactions contemplated therein, except that this Section 6 shall not waive or release any of the Term Lenders', the Administrative Agent's, or any other Discharged Party's contractual obligations under the Credit Agreement or any of the other Loan Documents.

7.            Reaffirmation and Confirmation.  The Credit Parties hereby (a) acknowledge and reaffirm their respective obligations as set forth in each Loan Document (as amended or otherwise modified by this Amendment), (b) agree to continue to comply with, and be subject to, all of the terms, provisions, conditions, covenants, agreements and obligations applicable to them set forth in each Loan Document (as amended or otherwise modified by this Amendment), which remain in full force and effect, and (c) confirm, ratify and reaffirm that (i) the guarantees and indemnities given by them or any other Credit Party pursuant to the Credit Agreement and/or any other Loan Documents continue in full force and effect, following and notwithstanding, the amendments thereto pursuant to this Amendment; and (ii) the security interest granted to the Administrative Agent, for the benefit of each Secured Party, pursuant to the Loan Documents in all of their right, title, and interest in all then existing and thereafter acquired or arising Collateral in order to secure prompt payment and performance of the Obligations, is continuing and is and shall remain unimpaired and continue to constitute a first priority security interest (subject to Permitted Liens) in favor of the Administrative Agent, for the benefit of each Secured Party, with the same force, effect and priority in effect immediately prior to entering into this Amendment.

8.            Estoppel. To induce the Administrative Agent and the Term Lenders to enter into this Amendment, each Credit Party hereby acknowledges and agrees that, after giving effect to this Amendment, as of the date hereof, to the knowledge of each Credit Party, there exists no right of offset, defense, counterclaim or objection in favor of such Credit Party as against the Administrative Agent or any Term Lender with respect to the Obligations.

9.            Provisions Of General Application.

(a)            Effect of this Amendment.  Except as set forth in Section 1 and Section 3 of this Amendment, no other changes, modifications, waivers or forbearances to the Loan Documents are intended or implied and in all other respects the Loan Documents are hereby specifically ratified, restated and confirmed by all parties hereto as of the Fourth Amendment Effective Date.  To the extent of conflict between the terms of this Amendment and the other Loan Documents, the terms of this Amendment shall govern and control.  The Credit Agreement and this Amendment shall be read and construed as one agreement.

(b)            Binding Effect.  This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

(c)            Survival of Representations and Warranties.  All representations and warranties made in this Amendment or any other document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other documents, and no investigation by the Administrative Agent or any Term Lender or any closing shall affect the representations and warranties or the right of the Administrative Agent and the Term Lenders to rely upon them.

(d)            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.

(e)            Reviewed by Attorneys.  Each Credit Party represents and warrants to the Administrative Agent and the Term Lenders that it (i) understands fully the terms of this Amendment and the consequences of the execution and delivery of this Amendment, (ii) has been afforded an opportunity to have this Amendment reviewed by, and to discuss this Amendment and each other document executed in connection herewith with, such attorneys and other persons as such Credit Party may wish, and (iii) has entered into this Amendment and executed and delivered all documents in connection herewith of its own free will and accord and without threat, duress or other coercion of any kind by any Person.  The parties hereto acknowledge and agree that neither this Amendment nor the other documents executed pursuant hereto shall be construed more favorably in favor of one than the other based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation and preparation of this Amendment and the other documents executed pursuant hereto or in connection herewith.

(f)            Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW (OTHER THAN THE NEW YORK GENERAL OBLIGATIONS LAW §5-1401 and §5-1402)).

(g)            Counterparts.  This Amendment may be executed in any number of counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission or electronic imaging means shall be as effective as delivery of a manually executed counterpart hereof.

(h)            Entire Agreement.  The Credit Agreement as modified by this Amendment embodies the entire agreement between the parties hereto relating to the subject matter hereof and supersedes all prior agreements, representations and understandings, if any, relating to the subject matter hereof.

[Signature Pages Follow]

 

IN WITNESS WHEREOF, the Borrowers have caused this Amendment to be duly executed by their respective officers thereunto duly authorized, as of the date first above written.

	 	
BORROWERS:

	 	 
	 	
INTERSECTIONS INC., a Delaware corporation, as the Borrower Representative

	 	 
	 	 
	 	
By:

	 /s/ Ronald L. Barden
	 	
Name:

	Ronald L. Barden 
	 	
Title:

	Chief Financial Officer

	 	
INTERSECTIONS ENTERPRISES INC., a Delaware corporation, as a Borrower

	 	 
	 	 
	 	
By:

	/s/ Ronald L. Barden
	 	
Name:

	Ronald L. Barden 
	 	
Title:

	Chief Financial Officer

	 	
INTERSECTIONS HOLDINGS INC., a Delaware corporation, as a Borrower

	 	 
	 	 
	 	
By:

	 /s/ Ronald L. Barden
	 	
Name:

	Ronald L. Barden 
	 	
Title:

	Chief Financial Officer

	 	
IISI INSURANCE SERVICES INC., an Illinois corporation, as a Borrower

	 	 
	 	 
	 	
By:

	 /s/ Ronald L. Barden
	 	
Name:

	Ronald L. Barden 
	 	
Title:

	Chief Financial Officer

	 	
CAPTIRA ANALYTICAL, LLC, a Delaware limited liability company, as a Borrower

	 	 
	 	 
	 	
By:

	 /s/ Ronald L. Barden
	 	
Name:

	Ronald L. Barden 
	 	
Title:

	Chief Financial Officer

	 	
I4C INNOVATIONS INC., a Delaware corporation, as a Borrower

	 	 
	 	 
	 	
By:

	 /s/ Ronald L. Barden
	 	
Name:

	Ronald L. Barden 
	 	
Title:

	Chief Financial Officer

	 	
ADMINISTRATIVE AGENT:

	 	 
	 	
CRYSTAL FINANCIAL LLC, as Administrative Agent

	 	 
	 	 
	 	
By:

	/s/ Rebecca E. Tarby
	 	
Name:

	
Rebecca E. Tarby

	 	
Title:

	
Managing Director

	 	
TERM LENDERS:

	 	 
	 	
CRYSTAL FINANCIAL SPV LLC, as a Term Lender

	 	 
	 	 
	 	
By:

	/s/ Rebecca E. Tarby
	 	
Name:

	Rebecca E. Tarby
	 	
Title:

	Managing Director

 

[Crystal/INTX - Signature Page to First Amendment to Credit Agreement]

  

EXHIBIT A

AMENDMENTS TO CREDIT AGREEMENT

Please see attached.

EXHIBIT B

AMENDED FORM OF COMPLIANCE CERTIFICATE

Please see attached.Exhibit

Exhibit 10.13

SECOND AMENDMENT TO
FIFTH AMENDED AND RESTATED CREDIT FACILITY AGREEMENT
THIS SECOND AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT FACILITY AGREEMENT (this “Amendment”) is made as of the 28th day of November, 2016, by and between IEC ELECTRONICS CORP., a corporation formed under the laws of the State of Delaware (“Borrower”) and MANUFACTURERS AND TRADERS TRUST COMPANY (“Lender”).
W I T N E S S E T H:
WHEREAS, the parties hereto are parties to a Fifth Amended and Restated Credit Facility Agreement dated as of December 14, 2015, as amended by that certain First Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of June 20, 2016 (as amended, and as the same may be further amended, modified, supplemented or restated from time to time, the “Credit Agreement”); and
WHEREAS, Borrower has requested and the Lender has agreed to make certain amendments to the Credit Agreement, all on the terms and conditions herein set forth.
NOW, THEREFORE, for due consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.    DEFINITIONS.    All capitalized terms used herein and not defined shall have the meaning given such terms in the Credit Agreement.
2.    AMENDMENTS.  Except as otherwise set forth below, effective as of the date of this Amendment:
(A)    Section 1.1 of the Credit Agreement is hereby amended by amending and restating the following definitions in their entirety to read as follows:
““Applicable Margin” means, with respect to the applicable facility, the per annum percentage points shown in the applicable column of the table below based on the applicable Debt to EBITDAS Ratio, calculated for Borrower on a consolidated basis and without duplication in accordance with GAAP:
	
				
	Pricing Grid - Applicable Margin

	 
	Debt to EBITDAS 
	 
	 

	Level
	Ratio
	Revolver
	Term Loan B

	I
	>2.75:1
	4.250%
	3.250%

	II
	>2.25<2.75
	3.000%
	2.500%

	III
	>1.75<2.25
	2.750%
	2.500%

	IV
	>1.25<1.75
	2.500%
	2.500%

	V
	>0.75<1.25
	2.250%
	2.500%

	VI
	<0.75
	2.000%
	2.500%

provided, however, that commencing on the Second Amendment Effective Date and continuing through and including the Fiscal Quarter ending September 30, 2017, the Applicable Margin shall be fixed at Level I.  Effective on the tenth (10th) day following the date on which the Borrower’s QCC Sheet is required to be delivered to the Lender pursuant to Section 12.6 for the Fiscal Quarter ending September 30, 2017, the Applicable Margin will be adjusted based upon the Debt to EBITDAS ratio shown therein.  Thereafter, changes, if any, in the Level applicable to Loans will be effective on the tenth (10th) day following each date on which the Borrower’s QCC Sheet is required to be delivered to the 

Exhibit 10.13

Lender pursuant to Section 12.6, based upon the Debt to EBITDAS ratio shown therein.  In the event that any QCC Sheet is not delivered by the date required, pricing will revert to Level I until the tenth (10th) day following the date of delivery of the delayed QCC Sheet, on which tenth (10th) day pricing will be adjusted to the applicable level shown by the QCC Sheet.  Upon the occurrence of a Default or Event of Default, the Applicable Margin shall immediately be adjusted to Level I and no reduction shall occur thereafter unless the Default is cured, or if the Default is also an Event of Default, the Event of Default is waived in writing by the Lender.”
““Applicable Unused Fee” means the per annum percentage points shown in the table below based on the applicable Debt to EBITDAS Ratio, calculated for Borrower on a consolidated basis and without duplication in accordance with GAAP: 
	
			
	Level
	Debt to EBITDAS
	Unused Fee

	I
	>2.75:1
	0.500%

	II
	>2.25<2.75
	0.500%

	III
	>1.75<2.25
	0.375%

	IV
	>1.25<1.75
	0.250%

	V
	>0.75<1.25
	0.250%

	VI
	<0.75
	0.250%

provided, however, that commencing on the Second Amendment Effective Date and continuing through and including the Fiscal Quarter ending September 30, 2017, the Applicable Unused Fee shall be fixed at Level I.  Effective on the tenth (10th) day following the date on which the Borrower’s QCC Sheet is required to be delivered to the Lender pursuant to Section 12.6 for the Fiscal Quarter ending September 30, 2017, the Applicable Unused Fee will be adjusted based upon the Debt to EBITDAS ratio shown therein.  Thereafter, changes, if any, in the Level applicable will be effective on the tenth (10th) day following each date on which the Borrower’s QCC Sheet is required to be delivered to the Lender pursuant to Section 12.6, based upon the Debt to EBITDAS ratio shown therein.  In the event that any QCC Sheet is not delivered by the date required, the Applicable Unused Fee will revert to Level I until the tenth (10th) day following the date of delivery of the delayed QCC Sheet, on which tenth (10th) day the Applicable Unused Fee will be adjusted to the applicable level shown by the QCC Sheet.  Upon the occurrence of a Default or Event of Default, the Applicable Unused Fee shall immediately be adjusted to Level I and no reduction shall occur thereafter unless the Default is cured, or if the Default is also an Event of Default, the Event of Default is waived in writing by the Lender.”
““Revolving Credit Note” means the Fourth Amended and Restated Revolving Credit Note described in Section 2.4, as such note may be amended, modified, supplemented or restated from time to time.”
(B)    Section 1.1 of the Credit Agreement is hereby amended by adding the following definition thereto in alphabetical order:
““Second Amendment Effective Date” means November 28, 2016.”
(C)    Section 2.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“2.1    Revolving Credit Commitment.  The Lender agrees, subject to Section 2.2 and the other terms and conditions hereinafter set forth, to make Revolving Credit Loans to the Borrower from time to time during the period from the Closing Date up to but not including the Revolving Credit Termination Date in an aggregate principal amount not to exceed at any time outstanding the amount of $16,000,000 (the “Revolving Credit Commitment”).  During the period from the Second Amendment Effective Date to the Revolving Credit Termination Date, within the limits of the Revolving Credit Commitment and subject to Section 2.2, the Borrower may borrow, prepay pursuant to Section 2.5, and reborrow under this Section 2.1.  Except as otherwise provided in this Agreement, the Revolving Credit Loans will be outstanding as LIBOR Loans.”  

Exhibit 10.13

(D)    Section 10.15 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“10.15    Maintenance of Cash Management System.  Maintain a cash management system satisfactory to the Lender, pursuant to which all collections of the Credit Parties would be deposited into accounts maintained with the Lender or with third-party institutions, governed by account control agreements to which Lender, the applicable third-party institution and the applicable Credit Party(ies) are parties (“blocked accounts”).  Such cash management system would permit the Lender to exercise full dominion over any and all blocked accounts, whether maintained with the Lender or any other third-party institution, in the event (i) that an Event of Default occurs and is continuing or (ii)(A) Unused Availability declines below $2,500,000 for a period of three (3) consecutive Business Days, or (B) Unused Availability declines below $2,500,000 on four (4) separate occasions during any consecutive thirty (30) day period (an event under clause (i) or (ii), a “Dominion Trigger Event”).  Upon the occurrence of a Dominion Trigger Event, full dominion by the Lender over cash collections of the Credit Parties shall commence and continue and remain in effect (x) if the Dominion Trigger Event arises under clause (i) above, until all Events of Default have been cured or waived, (y) if the Dominion Trigger Event arises under clause (ii) above, until Unused Availability is equal to or greater than $2,500,000 for ninety (90) consecutive days, in which case a Dominion Trigger Event shall no longer be deemed to be continuing and (z) if Dominion Trigger Events occur under both clauses (i) and (ii) above, then until both events set forth in clauses (x) and (y) above have occurred.” 
(E)    Section 12.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“12.1    Debt to EBITDAS.  Maintain at all times a Debt to EBITDAS Ratio, on a consolidated basis, no greater than the following ratios for the following periods, reported at the end of each Fiscal Quarter:
9/30/16 through and including 12/30/16                     < 3.00 to 1.00
12/31/16 through and including 3/31/17                    < 4.70 to 1.00
4/01/17 through and including 6/30/17                     < 5.80 to 1.00
7/01/17 through and including 9/30/17, and thereafter            < 3.10 to 1.00”
(F)    Effective as of September 30, 2016, Section 12.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“12.2    Minimum Quarterly EBITDAS.  Maintain at all times minimum EBITDAS for the trailing three months, on a consolidated basis, equal to or greater than (i) for the Fiscal Quarter ending 9/30/16, $1,080,000, (ii) for the Fiscal Quarter ending 12/30/16, negative $500,000, (iii) for the Fiscal Quarter ending 3/31/17, $240,000, (iv) for the Fiscal Quarter ending 6/30/17, $1,500,000, (v) for the Fiscal Quarter ending 9/30/17, $2,190,000 and (vi) thereafter, for each Fiscal Quarter, $2,190,000, in each case reported at each Fiscal Quarter end.”
(F)    Section 12.3 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“12.3    Fixed Charge Coverage Ratio.  Maintain at all times a Fixed Charge Coverage Ratio, on a consolidated basis, equal to or greater than the following ratios for the following periods, reported at the end of each Fiscal Quarter:
9/30/16 through and including 12/30/16                     ≥ 0.72 to 1.00
12/31/16 through and including 3/31/17                     ≥ 0.30 to 1.00
4/01/17 through and including 6/30/17                     ≥ 0.14 to 1.00

Exhibit 10.13

7/01/17 through and including 9/30/17                     ≥ 0.86 to 1.00
10/01/17 and thereafter                             ≥ 1.00 to 1.00”
3.    REPRESENTATIONS AND WARRANTIES.  Borrower hereby makes the following representations and warranties to the Lender as of the date hereof, each of which shall survive the effectiveness of this Amendment and continue in effect as of the date hereof so long as any Obligations remain unpaid:
3.1    Authorization.  Borrower has full power and authority to borrow under the Credit Agreement, as amended by this Amendment, and to execute, deliver and perform this Amendment and any documents delivered in connection with it and all other related documents and transactions, all of which have been duly authorized by all proper and necessary corporate action.  The execution and delivery of this Amendment by Borrower will not violate the provisions of, or cause a default under, Borrower’s Organizational Documents, any law or any agreement to which Borrower is a party or by which it or its assets are bound.
3.2    Binding Effect.  This Amendment has been duly executed and delivered by Borrower, and the Credit Agreement, as amended by this Amendment, is the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms, except to the extent that enforcement of any such obligations of the Borrower may be limited by bankruptcy, insolvency, reorganization or similar laws of general application affecting the rights and remedies of creditors generally.
3.3    Consents; Governmental Approvals.  Except as may be specifically identified in a written agreement to which Borrower and Lender are parties, no consent, approval or authorization of, or registration, declaration or filing with, any Governmental Authority or any other Person is required in connection with the valid execution, delivery or performance of this Amendment or any other document executed and delivered by Borrower herewith or in connection with any other transactions contemplated hereby.
3.4    Representations and Warranties.  The representations and warranties contained in the Credit Agreement, as amended by this Amendment, are true on and as of the date hereof with the same force and effect as if made on and as of the date hereof, except for those representations and warranties that by their terms are made as of a specific date, which representations and warranties Borrower hereby remakes as of such date.
3.5    No Events of Default.  No Default or Event of Default has occurred or is continuing.
3.6    No Material Misstatements.  Neither this Amendment nor any document delivered to Lender by Borrower or any Credit Party to induce Lender to enter into this Amendment contains any untrue statement of a material fact or, taken as a whole with the other Loan Documents, omits to state a material fact necessary to make the statements herein or therein not misleading in light of the circumstances in which they were made.
4.    CONDITIONS OF AMENDMENT.  The Lender shall have no obligation to execute or deliver this Amendment until each of the following conditions shall have been satisfied:
4.1    Authorization.    Borrower shall have taken all appropriate corporate action to authorize, and its directors, if and as required by Borrower’s Organizational Documents, shall have adopted resolutions authorizing the execution, delivery and performance of this Amendment and the taking of all other action contemplated by this Amendment, and Lender shall have been furnished with copies of all such 

Exhibit 10.13

corporate action, certified by an authorized officer of Borrower as being true and correct and in full force and effect without amendment on the date hereof, and such other corporate documents as Lender may request.   
4.2    Consents.    Borrower shall have delivered to Lender any and all consents, if any, necessary to permit the transactions contemplated by this Amendment.
4.3    Fees.    Borrower shall have paid to the Lender all reasonable fees and disbursements of Lender’s counsel and all recording fees, search fees, charges and taxes in connection with this Amendment and all transactions contemplated hereby or made other arrangements with respect to such payment as are satisfactory to Lender.
4.4    Deliveries.   Borrower shall have delivered to Lender, each of the following documents, duly executed by the Borrower or as specified: (i) this Amendment, (ii) the Fourth Amended and Restated Revolving Credit Note, (iii) a Reaffirmation executed by the Borrower and each of the Guarantors and (iv) such additional documents, consents, authorizations, insurance certificates, governmental consents and other instruments and agreements as Lender or its counsel may reasonably require and all documents, instruments and other legal matters in connection with the Loan Documents shall be reasonably satisfactory to Lender and its counsel.
4.5    Representations and Warranties.    The representations and warranties set forth in this Amendment and in the Loan Documents shall be true, correct and complete on the date hereof, except those representations and warranties that by their terms are made as of a specific date, which representations and warranties Borrower hereby remakes as of such date.
4.6    No Event of Default.    No Event of Default or Default shall have occurred and be continuing on the date hereof.
4.7    No Material Misstatements.  Neither this Amendment nor any document delivered to Lender by or on behalf of Borrower to induce Lender to enter into this Amendment contains any untrue statement of a material fact or, taken as a whole with the other Loan Documents, omits to state a material fact necessary to make the statements herein or therein not misleading in light of the circumstances in which they were made.
4.8    No Material Adverse Change.  As of the date of this Amendment, no Material Adverse Effect shall have occurred with respect to the Borrower and its Subsidiaries taken as a whole since September 30, 2016, including, without limitation, the Credit Parties’ ability to meet the projections delivered by the Borrower to the Bank prior to the date of this Amendment.
4.9    No Litigation.  As of the date of this Amendment, except as set forth on Schedule 8.5 to the Credit Agreement, there shall not be any claim, action, suit, investigation, litigation, or legal proceeding pending or threatened in any court or before any arbitrator or governmental authority which relates to the legality, validity or enforceability of the Credit Agreement (as amended by this Amendment) or the transactions contemplated hereby or that, if adversely determined, is not adequately covered by insurance or would have a Material Adverse Effect on the Borrower or its Subsidiaries.
5.    MISCELLANEOUS.
5.1    Reaffirmation of Security Documents.  Borrower hereby (a) acknowledges and reaffirms the execution and delivery of the Security Documents, (b) acknowledges, reaffirms and agrees that the security interests granted under the Security Documents continue in full force and effect as security for all indebtedness, obligations and liabilities under the Loan Documents, as may be amended from time to 

Exhibit 10.13

time, and (c) remakes the representations and warranties set forth in the Security Documents as of the date hereof, except those representations and warranties that by their terms are made as of a specific date, which representations and warranties Borrower hereby remakes as of such date.
5.2    Entire Agreement; Binding Effect.  The Credit Agreement, as amended by this Amendment, represents the entire understanding and agreement between the parties hereto with respect to the subject matter hereof.  This Amendment supersedes all prior negotiations and any course of dealing between the parties with respect to the subject matter hereof.   This Amendment shall be binding upon Borrower and its successors and assigns, and shall inure to the benefit of, and be enforceable by the Lender and its successors and assigns.  The Credit Agreement, as amended hereby, is in full force and effect and, as so amended, is hereby ratified and reaffirmed in its entirety.
5.3    Severability.  If any provision of this Amendment shall be determined by a court to be invalid, such provision shall be deemed modified to conform to the minimum requirements of applicable law.
5.4    Headings.  The section headings inserted in this Amendment are provided for convenience of reference only and shall not be used in the construction or interpretation of this Amendment.
5.5    Counterparts.  This Amendment may be executed by the parties hereto in separate counterparts (including those delivered by facsimile or other electronic means), each of which, when so executed and delivered, shall be an original, but all such counterparts shall together constitute one and the same instrument.

[signature page follows]

Exhibit 10.13

[Second Amendment to Fifth Amended and Restated Credit Facility Agreement]
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be signed by their duly authorized officers as of the day and year first above written.

MANUFACTURERS AND TRADERS TRUST COMPANY
By:    /s/ Deborah Urtz-Gleason         
Name:    Deborah Urtz-Gleason
Title:    Vice President
IEC ELECTRONICS CORP.
By:    /s/ Michael T. Williams         
Name: Michael T. Williams
Title:    Chief Financial Officer

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