Document:

WAIVER AND SECOND AMENDMENT TO SECOND AMENDED AND

 RESTATED CREDIT AGREEMENT

 

This WAIVER AND SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 7, 2008 (this “Amendment”), is executed by and among WESTELL TECHNOLOGIES, INC., a Delaware corporation (“Technologies”), WESTELL, INC., an Illinois corporation (“Westell”), TELTREND, LLC, a Delaware limited liability company and successor by merger to Teltrend, Inc. (“Teltrend”), CONFERENCE PLUS, INC., a Delaware corporation (“CPI”, and, together with Technologies, Westell and Teltrend, collectively, the “Companies”, and each, individually, a
“Company”), Technologies, as the representative for the Companies (the “Company Representative”), and LASALLE BANK NATIONAL ASSOCIATION, a national banking association (the “Bank”), whose address is 135 South LaSalle Street, Chicago, Illinois 60603.

 

R E C I T A L S:

 

A.        The Companies and the Bank entered into that certain Second Amended and Restated Credit Agreement dated as of June 30, 2006 (as the same may have been heretofore or may be hereafter amended, modified, or supplemented from time to time, the “Loan Agreement”), pursuant to which Loan Agreement the Bank has made a Revolving Loan to the Companies evidenced by that certain Amended and Restated Revolving Loan Note dated as of June 30, 2006, in the maximum principal amount of $40,000,000, executed by the Companies and made payable to the order of the Bank.

 

B.        The Companies and the Bank have agreed to enter into this Amendment for the purposes of (i) reducing the Revolving Commitments under the revolving loan facility from $40,000,000 to $25,000,000; (ii) the Bank waiving violations by the Companies of the Fixed Charge Coverage Ratio and Total Debt to EBITDA Ratio covenants set forth in Sections 11.14.1 and 11.14.3, respectively, of the Loan Agreement; and (iii) making certain other modifications to the Loan Agreement, all in accordance with the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Companies and the Bank hereby agree as follows:

 

A G R E E M E N T S:

 

	
            1.
 	
            RECITALS.  The foregoing Recitals are hereby made a part of this Amendment.
 

 

2.         DEFINITIONS.  Capitalized words and phrases used herein without definition shall have the respective meanings ascribed to such words and phrases in the Loan Agreement.

 

3.          WAIVER OF DEFAULTED COVENANTS.  The Companies have informed the Bank that for the fiscal quarter ended June 30, 2008, the Companies violated (i) the Fixed Charge Coverage Ratio covenant set forth in Section 11.14.1 of the Loan Agreement, and (ii) the Total Debt to EBITDA 

 

 

Ratio covenant set forth in Section 11.14.3 of the Loan Agreement (collectively, the “Defaulted Covenants”).  The Companies agree that, as a result of such Defaulted Covenants, Events of Default have occurred under Section 13.1.5 of the Loan Agreement.  The Companies have requested and the Bank agrees to waive compliance by the Companies with the Defaulted Covenants for the fiscal quarter ended June 30, 2008, as well as the resulting Events of Default.  This waiver shall apply only to the violations referred to above and only for the period described above, and shall not be deemed to be a waiver of any future violation of Section 11.14.1 or Section 11.14.3 of the
Loan Agreement, or of any violation of any other covenant or provision of the Loan Agreement, whether such violation currently exists or arises hereafter, nor shall this waiver prejudice any rights or remedies which the Bank may have or be entitled to with respect to such future violations or defaults.

 

	
            4.
 	
            AMENDMENTS TO THE LOAN AGREEMENT.
 

 

4.1       Revolving Commitment.  The definition of “Revolving Commitment” in Section 1.1 of the Loan Agreement is hereby amended in its entirety and replaced with the following:

 

 “Revolving Commitment means $25,000,000, as such amount may be reduced from time to time in accordance with Section 6.1.”

 

4.2        Note.  All references in the Loan Agreement to the Note shall be deemed to be references to the Modification Amended and Restated Revolving Loan Note in the form of Exhibit A attached to this Amendment and made a part hereof.        

 

5.         REPRESENTATIONS AND WARRANTIES.  To induce the Bank to enter into this Amendment, each Company hereby certifies, represents and warrants to the Bank that:

 

5.1       Organization.  Each Company is duly organized, existing and in good standing under the laws of the State of its organization with full and adequate power to carry on and conduct its business as presently conducted.  Such Company is duly licensed or qualified in all foreign jurisdictions wherein the nature of its activities require such qualification or licensing.  The Articles of Incorporation and Bylaws or Articles of Organization and Operating Agreement, as applicable, and Borrowing Resolutions and Incumbency Certificate of such Company have not been changed or amended since the most recent date that certified copies thereof were delivered to the Bank.  The exact legal name of each Company is as set forth in the preamble of this Amendment, and such Company currently does not conduct, nor has it
during the last five (5) years conducted, business under any other name or trade name.  Such Company will not change its name, its organizational identification number, if it has one, its type of organization, its jurisdiction of organization or other legal structure.

 

5.2       Authorization.  Each Company is duly authorized to execute and deliver this Amendment and is and will continue to be duly authorized to borrow monies under the Loan Agreement, as amended hereby, and to perform its obligations under the Loan Agreement, as amended hereby.

 

 

2

 

 

 

5.3       No Conflicts.  The execution and delivery of this Amendment and the performance by such Company of its obligations under the Loan Agreement, as amended hereby, do not and will not conflict with any provision of law or of the Articles of Incorporation or Bylaws or Articles of Organization or Operating Agreement, as applicable, of such Company or of any agreement binding upon such Company.

 

5.4       Validity and Binding Effect.  The Loan Agreement, as amended hereby, is a legal, valid and binding obligation of such Company, enforceable against such Company in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies.

 

5.5       Compliance with Loan Agreement.  The representation and warranties set forth in Section 9 of the Loan Agreement, as amended hereby, are true and correct in all material respects with the same effect as if such representations and warranties had been made on the date hereof, with the exception that (i) any representations and warranties that refer to an earlier date must be true and correct in all material respects as of such date and (ii) all references to the financial statements shall mean the financial statements most recently delivered to the Bank and except for such changes as are specifically permitted under the Loan Agreement.  In addition, the Companies have complied with and are in compliance with all of the covenants set forth in the Loan
Agreement, as amended hereby, including, but not limited to, those set forth in Section 10 and Section 11 thereof.

 

5.6       No Event of Default.  As of the date hereof and except for the Defaulted Covenants, no Event of Default under Section 13 of the Loan Agreement, as amended hereby, or event or condition which, with the giving of notice or the passage of time, or both, would constitute an Event of Default, has occurred or is continuing.

 

6.         CONDITIONS PRECEDENT.  This Amendment shall become effective as of the date above first written after receipt by the Bank of the following:

 

	
            6.1
 	
            Amendment.  This Amendment executed by the Companies the Bank.
 

 

6.2        Modification Note.  A Modification Amended and Restated Revolving Loan Note of even date herewith in the amount of $25,000,000, executed by the Companies and made payable to the order of the Bank, substantially in the form of Exhibit A attached hereto.

 

6.3       Other Documents.  Such other documents and certificates as the Bank may responsibly request.

 

	
            7.
 	
            GENERAL.
 

 

7.1       Governing Law; Severability.  This Amendment shall be construed in accordance with and governed by the laws of Illinois.  Wherever possible each provision of the Loan Agreement and this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Loan Agreement and this Amendment 

 

3

 

 

shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of the Loan Agreement and this Amendment.

 

7.2       Successors and Assigns.  This Amendment shall be binding upon the Companies, the Bank and their respective successors and assigns, and shall inure to the benefit of the Companies and the Bank and the successors and assigns of the Bank.

 

7.3       Continuing Force and Effect of Loan Documents.  Except as specifically modified or amended by the terms of this Amendment, all other terms and provisions of the Loan Agreement and the other Loan Documents are incorporated by reference herein, and in all respects, shall continue in full force and effect.  The Companies, by execution of this Amendment, hereby reaffirm, assume and bind themselves to all of the obligations, duties, rights, covenants, terms and conditions that are contained in the Loan Agreement and the other Loan Documents.  

7.4       References to Loan Agreement.  Each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, or words of like import, and each reference to the Loan Agreement in any and all instruments or documents delivered in connection therewith, shall be deemed to refer to the Loan Agreement, as amended hereby.

 

7.5       Expenses.  The Companies shall pay all reasonable out-of-pocket costs and expenses in connection with the preparation of this Amendment and other related loan documents, including, without limitation, reasonable attorneys’ fees and time charges of attorneys who may be employees of the Bank or any affiliate or parent of the Bank.  The Companies shall pay any and all stamp and other taxes, UCC search fees, filing fees and other costs and expenses in connection with the execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, and agrees to save the Bank harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such costs and expenses.

 

7.6       Counterparts.  This Amendment may be executed in any number of counterparts, all of which shall constitute one and the same agreement.

 

[Signatures follow on the next page]

 

 

4

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Waiver and Second Amendment to Second Amended and Restated Credit Agreement as of the date first above written.

 

 

	
            WESTELL TECHNOLOGIES, INC., as a
 	
             

	
            Company and as the Company Representative
 

 

	
            By:
 	
            /s/ Amy T. Forster
 	
             

	
            Its:
 	
            CFO
 	
             

	
            Address:
 	
            750 North Commons Drive
 
	
             
	
            Aurora, Illinois  60504
 	
             

						

 

 

	
            WESTELL, INC., as a Company
 

 

	
            By:
 	
            /s/ Amy T. Forster
 	
             

	
            Its:
 	
            CFO
 	
             

	
            Address:
 	
            750 North Commons Drive
 
	
             
	
            Aurora, Illinois  60504
 	
             

						

 

 

	
            CONFERENCE PLUS, INC., as a Company
 

 

	
            By:
 	
            /s/ Amy T. Forster
 	
             

	
            Its:
 	
            CFO
 	
             

	
            Address:
 	
            750 North Commons Drive
 
	
             
	
            Aurora, Illinois  60504
 	
             

						

 

 

	
            TELTREND, LLC, as a Company
 

 

	
            By:
 	
            /s/ Amy T. Forster
 	
             

	
            Its:
 	
            CFO
 	
             

	
            Address:
 	
            750 North Commons Drive
 
	
             
	
            Aurora, Illinois  60504
 	
             

						

 

 

	
            LASALLE BANK NATIONAL ASSOCIATION,
 
	
            a national banking association
 	
             

 

	
            By:
 	
            /s/ Anne Eharoshe
 
	
            Name:
 	
            Anne Eharoshe
 	
             

Title:           Vice President

 

 

 

EXHIBIT A

 

MODIFICATION AMENDED AND RESTATED

REVOLVING LOAN NOTE

August 7, 2008

	
            $25,000,000.00
 	
            Chicago, Illinois
 

Each of the undersigned, for value received, hereby jointly and severally promises to pay to the order of LaSalle Bank National Association (the “Lender”) at the principal office of LaSalle Bank National Association (the “Administrative Agent”) in Chicago, Illinois, the aggregate unpaid amount of all Revolving Loans made to the undersigned by the Lender pursuant to the Credit Agreement referred to below (as shown on the schedule attached hereto (and any continuation thereof) or in the records of the Lender), such principal amount to be payable on the dates set forth in the Credit Agreement.

Each of the undersigned hereby jointly and severally further promises to pay interest on the unpaid principal amount of each Revolving Loan from the date of such Revolving Loan until such Revolving Loan is paid in full, payable at the rate(s) and at the time(s) set forth in the Credit Agreement.  Payments of both principal and interest are to be made in lawful money of the United States of America.

This Note evidences indebtedness incurred under, and is subject to the terms and provisions of, the Second Amended and Restated Credit Agreement, dated as of June 30, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement” terms not otherwise defined herein are used herein as defined in the Credit Agreement), among each of the undersigned, certain financial institutions (including the Lender) and the Administrative Agent, to which Credit Agreement reference is hereby made for a statement of the terms and provisions under which this Note may or must be paid prior to its due date or its due date accelerated.

This Note shall be in replacement of and in substitution for that certain Amended and Restated Revolving Loan Note dated June 30, 2006, in the original principal amount of $40,000,000, made by Westell Technologies, Inc., Westell, Inc., Conference Plus, Inc., and Teltrend, LLC and payable to the order of the Lender (the “Original Note”).  The indebtedness evidenced by the Original Note is continuing indebtedness, and nothing herein shall be deemed to constitute a payment, settlement or novation of the Original Note, or to release or otherwise adversely affect any lien, mortgage or security interest securing such indebtedness or any rights of the Lender against any guarantor, surety or other party primarily or secondarily liable for such indebtedness.

 

 

 

This Note is made under and governed by the laws of the State of Illinois applicable to contracts made and to be performed entirely within such State.

WESTELL TECHNOLOGIES, INC.

By:  /s/ Amy T. Forster

Name:  Amy T. Forster

Title: CFO

WESTELL, INC.

By:  /s/ Amy T. Forster

Name:  Amy T. Forster

Time:  CFO

TELTREND, LLC

By:  /s/ Amy T. Forster

Name:  Amy T. Forster

Title:  CFO

CONFERENCE PLUS, INC.

By:  /s/ Amy T. Forster

Name:  Amy T. Forster

Title:  CFO

 

 

 

(SIGNATURE PAGE TO MODIFICATION AMENDED AND RESTATED REVOLVING NOTE)

 

 

7ex105.htm

    EXHIBIT
10.5

    THIRD AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT

     

    THIS
THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as
of June 30, 2008 is among HEARTLAND FINANCIAL USA, INC., a corporation
formed under the laws of the State of Delaware (the “Borrower”), each of
the banks party hereto (individually, a “Bank” and collectively, the “Banks”) and THE
NORTHERN TRUST COMPANY, as agent for the Banks (in such capacity, together with
its successors in such capacity, the “Agent”).

     

    WHEREAS,
the Borrower, the Agent and the Banks have entered into an Amended and Restated
Credit Agreement dated as of June 8, 2007 (as hereto amended, the “Credit Agreement”);
and

     

    WHEREAS,
the Borrower, the Agent and the Banks wish to make certain amendments to the
Credit Agreement to add a Bank and increase the Total Commitments.

     

    NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

     

    1. Amendment.  Section 7.4(h)
of the Credit Agreement is hereby amended to state in its entirety as
follows:

     

    “(h)          Loan Loss Reserves
Ratio.  The Borrower and each Subsidiary Bank shall maintain at
all times on a consolidated basis a ratio of loan loss reserves to
non-performing loans (not including “other real estate owned”, any portion of non-performing loans
guaranteed by a governmental entity of the United States of America (including
the United States Department of Agriculture and the United States Small Business
Administration) and other repossessed assets) of not less than eighty
percent (80%) at any time on or before September 29, 2008 and ninety
percent (90%) at any time thereafter.”

     

    2. Additional
Bank.  JPMorgan Chase Bank, N.A. hereby is added as a Bank (the
“Additional Bank”) under the Credit Agreement and the other Loan Documents and
agrees to be bound by the Credit Agreement and the other Loan Documents as a
Bank.

     

    3. Commitments.  Schedule
1 of the Credit Agreement is hereby amended to state as set forth in
Schedule 1 of this Amendment.

     

    4. Borrowing/Prepayment.  Upon
the effectiveness of this Amendment, the Borrower shall give notice to the Agent
in accordance with Section 3.5(a)
of the Credit Agreement to make a Borrowing from the Additional Bank in an
amount sufficient to make payments on the outstanding Loans to the Banks other
than the Additional Bank so that immediately following the Borrowing and
payments each Bank shall hold its Percentage of the outstanding
Loans.  The Banks shall make disbursements among themselves to give
effect to such payments and Borrowing pursuant to instructions from the
Agent.  The Borrower shall pay accrued interest to the date of
prepayment on any Loans so prepaid, together with any amounts payable as a
result of such prepayment pursuant to Section 4.5 of
the Credit Agreement, such payments being due on the date of such
prepayments.

     

    5. Conditions to Effective
Date.  The Amendment shall be effective as of the date hereof
and shall be subject to the satisfaction of the following conditions
precedent:

     

    (a) The
Borrower, the Agent and the Banks shall have executed and delivered this
Amendment.

     

    (b) No
Default shall have occurred and be continuing under the Credit Agreement, and
the representations and warranties of the Borrower in Section 6 of the
Credit Agreement and in Section 6 hereof
shall be true and correct on and as of the Effective Date and the Borrower shall
have provided to the Agent a certificate of a senior officer of the Borrower to
that effect.

     

    (c) The
Borrower shall have delivered a Note to JPMorgan Chase Bank, N.A. in the amount
of its Commitment as revised pursuant to this Amendment.

     

    (d) The
Guarantor shall acknowledge and consent to this Amendment for purposes of its
Guaranty Agreement as evidenced by its signed acknowledgment of this Amendment
on the signature page hereof.

     

    (e) The
Borrower shall have delivered to the Agent, on behalf of the Banks, such other
documents as the Agent may reasonably request.

     

    6. Effectiveness
Notice.  The Agent shall promptly give notice to the parties of
the effectiveness hereof, which notice shall be conclusive, and the parties may
rely thereon; provided, that such notice shall not waive or otherwise limit any
right or remedy of the Agent or the Banks arising out of any failure of any
condition precedent set forth in Section 4 to be
satisfied.

     

    7. Ratification.  The
parties agree that the Credit Agreement, as amended hereby, and the Notes have
not lapsed or terminated, are in full force and effect, and are and shall remain
binding in accordance with their terms.

     

    8. Representations and
Warranties.  The Borrower represents and warrants to the Agent
and the Banks that:

     

    (a) No
Breach.  The execution, delivery and performance of this
Amendment will not conflict with or result in a breach of, or cause the creation
of a Lien or require any consent under, the articles of incorporation or bylaws
of the Borrower, or any applicable law or regulation, or any order, injunction
or decree of any court or governmental authority or agency, or any agreement or
instrument to which the Borrower is a party or by which it or its property is
bound.

     

    (b) Power and Action, Binding
Effect.  The Borrower has been duly incorporated and is validly
existing as a corporation under the laws of the State of Delaware and has all
necessary power and authority to execute, deliver and perform its obligations
under this Amendment and the Credit Agreement, as amended by this Amendment; the
execution, delivery and performance by the Borrower of this Amendment and the
Credit Agreement, as amended by this Amendment, have been duly authorized by all
necessary action on its part; and this Amendment and the Credit Agreement, as
amended by this Amendment, have been duly and validly executed and delivered by
the Borrower and constitute legal, valid and binding obligations, enforceable in
accordance with their respective terms.

     

    (c) Approvals.  No
authorizations, approvals or consents of, and no filings or registrations with,
any governmental or regulatory authority or agency or any other person are
necessary for the execution, delivery or performance by the Borrower of this
Amendment or the Credit Agreement, as amended by this Amendment, or for the
validity or enforceability thereof.

     

    9. Successors and
Assigns.  This Amendment shall be binding upon and inure to the
benefit of the Borrower, the Agent and the Banks and their respective successors
and assigns, except that the Borrower may not transfer or assign any of its
rights or interest hereunder.

     

    10. Governing
Law.  This Amendment shall be governed by, and construed and
interpreted in accordance with, the internal laws of the State of
Illinois.

     

    11. Counterparts.  This
Amendment may be executed in any number of counterparts and each party hereto
may execute any one or more of such counterparts, all of which shall constitute
one and the same instrument.  Delivery of an executed counterpart of a
signature page to this Amendment by telecopy shall be as effective as delivery
of a manually executed counterpart of this amendment.

     

    12. Expenses.  Whether
or not the effective date shall occur, without limiting the obligations of the
Borrower under the Credit Agreement, the Borrower agrees to pay, or to reimburse
on demand, all reasonable costs and expenses incurred by the Agent in connection
with the negotiation, preparation, execution, delivery, modification, amendment
or enforcement of this Amendment, the Credit Agreement and the other agreements,
documents and instruments referred to herein, including the reasonable fees and
expenses of Mayer Brown LLP, special counsel to the Agent, and any other counsel
engaged by the Agent.

    [Signature
Page Follows]

     

    IN
WITNESS WHEREOF, this Amendment has been executed as of the date first above
written.

    HEARTLAND
FINANCIAL USA, INC.

     

    By: /s/ John K.
Schmidt

    Name:                      
John K. Schmidt

    Title:
EVP, COO & CFO

     

    

     

    THE
NORTHERN TRUST COMPANY,

    as
Agent

     

    By: /s/ Lisa
McDermott

    Name:  Lisa
McDermott

    Title:  Vice
President

     

    

     

    BANKS:

     

    THE
NORTHERN TRUST COMPANY

     

    By:  /s/ Lisa
McDermott

    Name:  Lisa
McDermott

    Title:  Vice
President

    

    

    U.S. BANK NATIONAL
ASSOCIATION

     

    By:  /s/ Azad
Virani

    Name:  Azad
Virani

    Title:   Senior
Vice President

    

    

    JPMORGAN CHASE BANK,
N.A.

     

    By:  /s/ Craig
Love

    Name:  Craig
Love

    Title:  Senior
Vice President

    
 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    GUARANTOR
ACKNOWLEDGMENT

     

     

    The
undersigned Guarantor hereby acknowledges and consents to the Borrower’s
execution of this Amendment and reaffirms its obligations under its Guaranty
Agreement.

     

    CITIZENS
FINANCE CO.

     

    By:  /s/ John K.
Schmidt

     

    Name:  John
K. Schmidt

     

    Title:
Treasurer

     

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Schedule
1

     

    INFORMATION CONCERNING
BANKS

     

    

    
      	
              Name of Bank

            	
              Commitment

            	
              Applicable

              Lending Offices

            
	 
      	 
      	 
      
	
              The
      Northern Trust Company

            	
              $20,000,000

            	
              For
      all Loans:

              50
      South LaSalle Street

              Chicago,
      Illinois  60675

               

            
	
              U.S.
      Bank National Association

            	
              $20,000,000

            	
              For
      all Loans:

              222nd
      Avenue

              Cedar
      Rapids, Iowa  52401

               

            
	
              JPMorgan
      Chase Bank, N.A.

            	
              $20,000,000

            	
              For
      all Loans:  

              10
      South Dearborn Street, Mail Suite 

              IL1-1235,
      Chicago, Illinois 60603

            
	
              Total
      Commitments

            	
              $60,000,000

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