Document:

exv10w1

 

Exhibit
10.1

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

This Second Amendment (this “Amendment”) is made as of December 31, 2007 to that certain Amended
and Restated Credit Agreement dated September 29, 2006, as previously amended by First Amendment to
Amended and Restated Credit Agreement dated as of September 30, 2007 (the “Credit Agreement”)
between CITIZENS BANK OF MASSACHUSETTS, now known as RBS CITIZENS, N.A. (“Bank”) and VIRTUSA
CORPORATION, a Delaware corporation with an address of 2000 West Park Drive, Westborough,
Massachusetts 01581 (“Borrower”). Capitalized terms used and not defined in this Amendment shall
have the meanings ascribed to them in the Credit Agreement.

RECITALS

Borrower has requested that Bank agree to extend the Revolving Credit Maturity Date through March
31, 2008 and that Bank agree to eliminate the pledge of the capital stock of its subsidiary,
Virtusa Securities Corporation.

Bank is amenable to so extending the Revolving Credit Maturity Date and so amending the Credit
Agreement, but only on the terms and conditions set forth in the Credit Agreement as amended
hereby.

AGREEMENT

In consideration of the foregoing, of the undertakings of Borrower and Bank herein and for other
good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

1.
Effective December 31, 2007, the definition of the term “Revolving Credit Maturity Date”
contained in Section 1.1 of the Credit Agreement is deleted and replaced with the following text:

     “Revolving
Credit Maturity Date. March 31, 2008.”

2. Effective December 31, 2007, the definition of the term “Security Documents” contained in
Section 1.1 of the Credit Agreement is deleted and replaced with the following text:

     “Security
Documents. A security agreement, a negative pledge agreement with respect to
intellectual property of the Borrower and the Letter of Credit Pledge Agreement, and any subsequent
pledge or security agreements granted by Borrower to Lender, each in favor of the Lender to secure
Obligations, in each case as amended and/or restated and in effect from time to time, and any
additional documents evidencing or perfecting the Lender’s lien on the Collateral.”

3. Borrower and Bank hereby agree that the Pledge Agreement shall be cancelled and of no
further force and effect as of December 31, 2007. Bank shall cancel and return the Pledge
Agreement to Borrower promptly after the date of this Amendment.

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4. Except as set forth on the disclosure schedule attached hereto as Exhibit A, Borrower
represents and warrants that all of the representations and warranties made by Borrower in the
Credit Agreement and other Loan Documents are and continue to be true and correct on the date
hereof, except to the extent that any of such representations and warranties relate by their terms
solely to a date prior to date of this Amendment. Except as set forth on the disclosure schedule
attached hereto as Exhibit A, Borrower hereby ratifies and confirms all of its covenants
and
agreements contained in the Credit Agreement and represents that it is not aware of any default
of any of the terms and provisions of the Credit Agreement.

5. Borrower further represents and warrants that this Amendment is its valid and binding
obligation, enforceable against it in accordance with its terms, except as may be affected by
bankruptcy and other similar laws of general application affecting the rights and remedies of
creditors.

6.
Borrower shall promptly execute and deliver such further documents, instruments and
agreements and take such further action as Bank may reasonably request, in its sole discretion, to
effect the purposes of this Amendment and the Credit Agreement and other Loan Documents,
including, but not limited to the execution and delivery of all documents necessary or reasonably
required by Bank to ensure that Bank has perfected liens on all assets of Borrower to the extent
originally provided under the Credit Agreement and the other Loan Documents. Borrower hereby
appoints any officer or agent of Bank as Borrower’s true and lawful attorney in fact, with power
of substitution to endorse the name of Borrower or any of their officers or agents in such regard,
exercisable by Bank during the continuance of an Event of Default.

7. Except as otherwise expressly provided in this Amendment, nothing in this Amendment shall
extend to or affect in any way any of the Obligations or any of the rights and remedies of Bank
arising under the Credit Agreement and other Loan Documents, and Bank shall not be deemed to
have waived any or all of such rights and remedies with respect to any Event of Default or event
or condition which, with notice or the lapse of time, would become an Event of a Default and
which, upon Borrower’s execution and delivery of this Amendment, might otherwise exist or
which might hereafter occur.

8. By execution of this Amendment, Borrower acknowledges and confirms that it does not, as of
the date of this Amendment, have any offsets, defenses or claims against Bank or any of its
officers, agents, directors or employees whether asserted or unasserted to the Obligations.

9. To the extent possible and except for the specific changes to the Credit Agreement effected
hereby, this Amendment shall be construed to be consistent with the provisions of the Credit
Agreement. In the event of any inconsistency between the provisions of this Amendment and
any other document (including, without limitation, any Loan Document), instrument, or
agreement entered into by and between Bank and Borrower, the provisions of this Amendment
shall govern and control. This Amendment shall be binding upon Bank and Borrower, and their
representatives, successors, and assigns, and shall inure to the benefit of Bank and Borrower and

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their respective successors and assigns. This Amendment and all documents, instruments, and
agreements executed in connection herewith incorporate all of the discussions and negotiations
between Borrower and Bank, either expressed or implied, concerning the matters included herein and
in such other documents, instruments and agreements, any statute, custom, or usage to the contrary
notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise affect the
provisions hereof. No modification, amendment, or waiver of any provision of this Amendment, or any
provision of any other document, instrument, or agreement between any Borrower and Bank shall be
effective unless executed in writing by the party to be charged with such modification, amendment,
or waiver.

10. Borrower acknowledges and agrees that it shall promptly pay to Bank the full amount of all
reasonable out-of-pocket costs and expenses of Bank incurred by Bank in preparation and
documentation of this Amendment and all documents ancillary hereto or incurred by Bank after
the date of this Amendment in connection with administration of the Obligations or enforcement
of any rights of Bank under the Credit Agreement and other Loan Documents or otherwise in
respect of any of the Obligations.

11. If any clause or provision of this Amendment is determined to be illegal, invalid or
unenforceable under any present or future law by the final judgment of a court of competent
jurisdiction, the remainder of this Amendment will not be affected thereby. It is the intention of
the parties that if any such provision is held to be invalid, illegal or unenforceable, there will
be added in lieu thereof an enforceable provision as similar in terms to such provision as is
possible, and that such added provision will be legal, valid and enforceable.

12. This Amendment is delivered to Bank in The Commonwealth of Massachusetts and it is the
desire and intention of the parties that this Amendment and the Loan Documents be in all
respects interpreted according to the laws of The Commonwealth of Massachusetts. Borrower
specifically and irrevocably consents to the personal and subject matter, jurisdiction and venue of
any court of The Commonwealth of Massachusetts sitting in the counties of Suffolk or
Middlesex or in the District Court of the United States for the District of Massachusetts with
respect to all matters concerning this Amendment or the Loan Documents or the enforcement of
any of the foregoing.

13. This Amendment may be executed in one or more counterparts, each of which will be
deemed an original document, but all of which will constitute a single document. This
Amendment will not be binding on or constitute evidence of a contract between the parties until
such time as a counterpart of this document has been executed by each of the parties and
delivered to Bank.

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WITNESS our hands and seals effective as of December 31, 2007.

	 	 	 	 	 	 	 	 	 
	WITNESS (to all)	 	 	 	BORROWER:	 	 
	 	 	 	 	VIRTUSA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Charles A. Speicher

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Charles A. Speicher	 	 	 	duly authorized VP +
General Counsel	 	 
	VP Controller
	 	 	 	 	 	 	 	 
	 	 	 	 	BANK:	 	 
	 	 	 	 	RBS CITIZENS, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/
	 	 	 	By:	 	/s/ Victoria Lazzell	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Victoria Lazzell, Senior Vice President	 	 

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EXHIBIT A

Disclosure Schedule to Second Amendment to Amended and Restated Credit Agreement

5EXHIBIT 10.14

November 29, 2007

Chris Moss

1 the Squerryes

Catherham, Surrey

CR3 5JW

England

Dear Chris,

This letter will serve as your formal offer of employment as Chief Executive Officer, Internet for INFONXX (the "Company") reporting to Robert Pines. In addition to your normal duties, you are expected to contribute wherever possible to the growth of the Company. Your offer of employment is contingent upon your signing the Company's employment-confidentiality agreement and employee handbook which will be provided before your start date. We anticipate a start date of November 12, 2007 although for statutory purposes, the terms and conditions of your employment with InfoNXX will be credited for time served prior with The Number (UK) Limited.

This assignment will last for a duration of 24 months; however, this may be extended by mutual agreement with InfoNXX for another 12 months. If InfoNXX elects to extend the assignment, you will be notified in writing a minimum of three months prior to the expiration of the two-year term, at which time you can either accept or decline the offer.

As compensation for your work at the Company, you will receive the following:

Location

You will be based at the Global Headquarters office, located in New York, New York, USA.

Salary

·

Your base salary will be $150,000 per annum, payable bi-weekly and in accordance with the Company's standard payroll policies.

·

You will also receive a salary of £389,000 per annum. This will be paid in US dollars based on the exchange rate at the start of each fiscal quarter as reported on XE.com or another mutually accepted information source. At the time of this letter, the rate is $2.065 equating to £1. This salary will also be payable bi-weekly in accordance with the Company's standard payroll policies.

Relocation and Living Allowance

You will be reimbursed up to $180,000 for living and air travel. The expected split is $150,000 for reimbursement of apartment rental in the New York metro area and $30,000 for reimbursement of air travel. Air travel will cover yourself, your wife, Carol, and your two children. This reimbursement will be grossed up for tax purposes. These payments will be processed with the assistance of our outside relocation and tax firm, currently Ernst and Young.

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Bonus

You will be paid a cash bonus on objectives determined by the Chief Executive Officer of the Company.

Benefits

·

You will be eligible to participate in our Company PTO plan and you will receive Company paid holidays. You will be eligible to participate in all benefit programs offered to Company employees, including medical and dental insurance, and the Company's 401(k) program. Your eligibility in these benefit programs is subject to Company policy and applicable benefit guidelines and restrictions.

·

You are also entitled to defer up to £45,000 of your UK salary into a personal pension scheme or similar. The Company will reimburse (or gross-up) the US taxes which will be assessed as the US may not recognize the full deferral into the UK scheme.

this allowance [sic]. The cost of service will be capped at $20,000 in year one of your transfer and $10,000 through year two through the end of your assignment and repatriation to the UK.

Stock Options

As of the start date, Company management will recommend to the Board Of Directors that you be granted a stock option (the "Stock Option") entitling you to purchase up to 300,000 shares of Company Common Stock. If approved, upon each one-year anniversary of your employment start date, 1/3 of the number of shares purchasable pursuant to the Stock Option shall vest. The Stock Option will be an incentive stock option to the extent permitted by applicable law. The grant of Stock Options is subject in all respects to the approval of the Board of Directors and the terms of the Company's relative Stock Option Plan.

Jurisdiction

This Offer Letter shall be subject to and governed by the laws of the New York. You hereby expressly consent to the personal jurisdiction of the state and federal courts located in New York for any lawsuit arising from or relating to your employment with Company.

Confidentiality

You agree that you will not disclose terms or conditions of this offer to any Company employee. You further agree that should you disclose information in violation of this clause; you may be subject to penalty.

The terms above are the only terms of your offer. Your prior consultancy agreement will be terminated upon start of this assignment. The Company is not responsible for any other written or oral representations or agreements that have been made, which are not included in this letter. We look forward to having you as a member of our team. We are excited about the Company's prospects and your ability to help the Company achieve its goals.

			
	Sincerely,

	 

	/s/ Kevin Gaugush 

	 
	

	Kevin Gaugush 

	 
	

	Chief People Officer 

	 
	

			
	Accepted and Agreed:

	 

	/s/ Chris Moss

	 
	10/12/2007

	Chris Moss

	 
	Date of Signature

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