Document:

ex_178069.htm

Exhibit 10.13(i)

 

NINTH AMENDMENT

TO LOAN AND SECURITY AGREEMENT

 

            THIS NINTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made and entered into as of the 20th day of December, 2019, by and among ATLANTICUS HOLDINGS CORPORATION, a Georgia corporation, as Borrower (“Borrower”), certain Subsidiaries of Borrower as guarantors (“Guarantors”), and DOVE VENTURES, LLC, a Nevada limited liability company, as lender (together with any successors or assigns thereto, “Lender”).

                                                           

W I T N E S S E T H:

 

            WHEREAS, Borrower, Guarantors and Lender are parties to a certain Loan and Security Agreement dated as of November 26, 2014, as amended by (1) a certain First Amendment to Loan and Security Agreement dated as of November 23, 2015, (2) a certain Second Amendment to Loan and Security Agreement dated as of November 22, 2016, (3) a certain Third Amendment to Loan and Security Agreement dated as of November 22, 2017, (4) a certain Fourth Amendment to Loan and Security Agreement and First Amendment to Pledge Agreement dated as of June 5, 2018, (5) a certain Fifth Amendment to Loan and Security Agreement dated as of October 22, 2018, (6) a certain Sixth Amendment to Loan and Security Agreement dated as of November 21, 2018, (7) a certain Seventh Amendment to Loan and Security Agreement dated as of November 5, 2019 and (8) a certain Eighth Amendment to Loan and Security Agreement dated as of November 19, 2019 (as so amended, the “Loan Agreement”), pursuant to which Lender has made two separate term loans to Borrower, each in the principal amount of Twenty Million Dollars ($20,000,000) (the “Term Loans”); and

           

WHEREAS, the Credit Parties request that Lender amend the Loan Agreement as set forth herein and Lender is willing to grant such request, subject to the terms and conditions hereof; and

 

            NOW, THEREFORE, for and in consideration of the premises, the terms and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

	 	
			1.

				
			Defined Terms.  Defined terms used herein, as indicated by the initial capitalization thereof, shall have the same respective meanings ascribed to such terms in the Loan Agreement unless otherwise specifically defined herein.

			

 

	 	
			2.

				
			Amendment.  The definition of “Termination Date” contained in Section 1.1 of the Loan Agreement is hereby amended by deleting such definition in its entirety and substituting in lieu thereof a new definition of “Termination Date” to read as follows:

			 

			“Termination Date” means the earliest of (a) the prepayment of the Term Loans in full, (b) the date, if any, of the acceleration of the maturity of the Term Loans pursuant to Section 9.1(a) and (c) December 31, 2019.

			 

			

 

	 	
			3.

				
			Representations and Warranties; No Default.  The Credit Parties hereby jointly and severally represent and warrant to the Lender as follows:

			

	 	
			a.

				
			all of the representations and warranties of the Credit Parties contained in the Loan Agreement and the other Loan Documents are true and correct in all material respects (or, to the extent such representation or warranty is qualified as to materiality, remain true and correct) on and as of the date hereof as fully as though such representations and warranties had been made on the date hereof; provided that each reference to the Loan Agreement therein shall be deemed to be a reference to the Loan Agreement after giving effect to this Amendment; and

			

 

	 	
			b.

				
			on and as of the date of this Amendment and after giving effect to the waivers contained herein, no Default or Event of Default has occurred and is continuing under the Loan Agreement.

			

 

 

 

 

 

	 	
			4.

				
			Guarantor Reaffirmation.  Each Guarantor hereby consents to and approves all of the terms of this Amendment and further, after giving effect to this Amendment (a) reaffirms all of its covenants, agreements, indebtedness, liabilities and obligations under the Loan Agreement and the other Loan Documents to which it is a party, (b) reaffirms the guaranty by such Guarantor of the Obligations and the grant of Liens in all of such Guarantor’s interests in the Collateral owned by it as security for the payment and performance of the Obligations, (c) agrees that notwithstanding the effectiveness of this Amendment or the transactions contemplated thereby, all such covenants, agreements, indebtedness, liabilities, obligations guaranty, grant of Liens and the terms of the Loan Documents to which it is a party are not impaired or affected in any manner whatsoever (except to the extent expressly modified or waived pursuant to this Amendment) and shall continue to be in full force and effect and shall continue to secure all Obligations, and (d) agrees that the Loan Documents to which it is a party shall and do remain in full force and effect.

			

 

	 	
			5.

				
			Expenses.  Borrower agrees to pay, immediately upon demand by Lender, all costs, expenses, attorneys' fees, and other charges and expenses incurred by Lender in connection with the negotiation, preparation, execution and delivery of this Amendment and any other instrument, document, agreement or amendment executed in connection with this Amendment.

			

 

	 	
			6.

				
			Defaults Hereunder.  The breach of any representation, warranty or covenant contained herein or in any document executed in connection herewith, or the failure to observe or comply with any term or agreement contained herein or in any document executed in conjunction herewith, shall constitute an Event of Default under the Loan Documents and Lender shall be entitled to exercise all rights and remedies it may have under the Loan Agreement, any of the other Loan Documents and applicable law.

			

 

	 	
			7.

				
			Conditions Precedent.  This Amendment shall not become effective until executed and delivered by Lender and a duly authorized officer of each Credit Party.

			

 

	 	
			8.

				
			References in Loan Documents.  All references in the Loan Agreement and the other Loan Documents to the Loan Agreement shall hereafter be deemed to be references to the Loan Agreement as amended hereby and as the same may hereafter be amended from time to time.

			

 

	 	
			9.

				
			No Claims, Offset.  The Credit Parties hereby represent, warrant, acknowledge and agree to and with Lender that (a) no Credit Party holds or claims any right of action, claim, cause of action or damages, either at law or in equity, against Lender which arises from, may arise from, allegedly arise from, are based upon or are related in any manner whatsoever to the Loan Agreement and the Loan Documents or which are based upon acts or omissions of Lender in connection therewith and (b) the Obligations are absolutely owed to Lender, without offset, deduction or counterclaim.

			

 

	 	
			10.

				
			No Novation.  The terms of this Amendment are not intended to and do not serve to effect a novation as to the Loan Agreement.  The parties hereto expressly do not intend to extinguish any debt or security interest created pursuant to the Loan Agreement.  Instead, it is the express intention of the parties hereto to affirm the Loan Agreement and the security created thereby.

			

 

	 	
			11.

				
			Limitation of Amendment.  Except as expressly set forth herein, this Amendment shall not be deemed to waive, amend or modify any term or condition of the Loan Agreement or any of the other Loan Documents, each of which is hereby ratified and reaffirmed, and which shall remain in full force and effect, nor to serve as a consent to any matter prohibited by the terms and conditions thereof.

			

 

	 	
			12.

				
			Loan Document.  This Amendment shall constitute a “Loan Document” for all purposes of the Loan Agreement and the other Loan Documents.

			

 

	 	
			13.

				
			Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.  Signature pages to this Amendment may be detached from multiple separate counterparts and attached to the same document and any facsimile copy of any such executed signature page shall be valid as an original. 

			

 

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			14.

				
			Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties hereto.  Notwithstanding any other language to this Amendment or the Loan Agreement, any one of the Lenders may at any time assign all or any portion of its rights under the Loan Agreement, as amended hereby, and the Notes, as replaced and substituted pursuant to the Loan Agreement, as amended hereby, in accordance with Section 12.3 of the Loan Agreement.

			

 

	 	
			15.

				
			Section References.  Section titles and references used in this Amendment shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto evidenced hereby.

			

 

	 	
			16.

				
			Further Assurances.  Each Credit Party agrees to take such further action as Lender shall reasonably request in connection herewith to evidence the amendments herein contained to the Loan Agreement.

			

 

	 	
			17.

				
			Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of Nevada.

			

 

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            IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above.

	 	
			BORROWER:

			
	 	
			ATLANTICUS HOLDINGS CORPORATION

			
	 	 
	 	
			By: /s/ William R. McCamey                          

			
	 	
			      William R. McCamey

			      Chief Financial Officer

			
	 	 

	 	
			GUARANTORS:

			
	 	
			CC SERVE CORPORATION

			
	 	 
	 	
			By: /s/ William R. McCamey                          

			
	 	
			William R. McCamey

			Vice President

			
	 	 
	 	
			CIAC CORPORATION

			
	 	 
	 	
			By: /s/ William R. McCamey                          

			
	 	
			William R. McCamey

			President

			
	 	 
	 	 
	 
	 	
			MOBILE TECH INVESTMENTS, LLC

			
	 	 
	 	
			By: /s/ Brian Stone                                          

			
	 	
			Brian Stone

			President

			
	 	 

[Signatures continue on following page]

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			LENDER:

			
	 	
			DOVE VENTURES, LLC, as Lender

			By: Bravo Two Company, Inc.,

			       its manager

			

			

			By: /s/ Joshua C. Miller                                    

			Joshua C. Miller

			Assistant Secretary

			

 

5ex_178070.htm

Exhibit 10.13(j)

DOVE VENTURES, LLC

101 Convention Center Drive, Suite 850

Las Vegas, NV  89109

December 27, 2019

 

 

ATLANTICUS HOLDINGS CORPORATION

Five Concourse Parkway

Suite 300

Atlanta, GA 30328

Attn:  Chief Financial Officer

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Loan and Security Agreement dated as of November 26, 2014, (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), by and among Atlanticus Holdings Corporation, a Georgia corporation (the “Borrower”), certain Subsidiaries party thereto, as Guarantors (the “Guarantors” and, together with the Borrower, the “Credit Parties”) and Dove Ventures, LLC, as lender (the “Lender”).  We understand that, no later than 5:00 p.m. (Nevada time) on December 27, 2019 (such time and date, the “Anticipated Payoff Date”), Borrower desires to repay in full all of the Obligations, including but not limited to, principal, interest, expenses, fees and other charges owing by the Borrower to the Lender under the Loan Agreement, and to terminate the Loan Agreement (and the Commitments thereunder) and the other Loan Documents.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Loan Agreement.

 

	 	
			1.

				
			This payoff letter (this “Payoff Letter”) confirms that upon receipt by the Lender of:

			 

			

	 	
			a.

				
			a stock certificate representing 400,000 shares of the Borrower’s Series A Cumulative Convertible Preferred Stock, no par value (the “Stock Certificate”), with the designation, powers, and preferences and rights, and the qualifications, limitations and restrictions set forth in the Articles of Amendment Establishing Cumulative Convertible Preferred Stock, Series A filed with the Georgia Secretary of State;

			

 

	 	
			b.

				
			a wire transfer of immediately available funds in the aggregate amount of $270,000.00 in respect of accrued and unpaid interest on the outstanding principal amount (the “Accrued Interest Payment,” and, together with the Stock Certificate, the “Payoff Amount”); and

			

 

	 	
			c.

				
			a fully-executed counterpart of this Payoff Letter signed by Borrower;

			 

			(1) all of the Obligations (and any guarantees thereof by any Person) shall be satisfied in full, (2) the Loan Agreement and all other Loan Documents shall be terminated and of no further force and effect, and (3) all Liens granted or created under the Loan Agreement and any other Loan Documents shall be deemed to be automatically released and terminated; provided, that (A) any provision of the Loan Agreement or any Loan Document that by its terms specifically survives termination of such agreement shall remain in full force and effect, including, but not limited to, all of Borrower's Obligations to indemnify each Indemnified Person under Section 11.3 of the Loan Agreement and to reimburse the Lender for fees and expenses owed to the Lender pursuant to the Loan Agreement, as well as Section 14 of the Loan Agreement relating to governing law, consent to jurisdiction and jury trial waiver, shall remain in full force and effect, and (B) to the extent that any payments or proceeds (or any portion thereof) received by the Lender shall be subsequently invalidated, declared to be fraudulent or a fraudulent conveyance or preferential, set aside or required to be repaid to a trustee, receiver, debtor-in-possession or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent that the payment or proceeds is rescinded or must otherwise be restored by the Lender, whether as a result of any Insolvency Proceeding or otherwise, the Obligations, other Indebtedness of Credit Parties to the Lender, or part thereof which were intended to be satisfied by any such payment or proceeds shall be revived and continue to be in full force and effect, as if the payment or proceeds had never been received by the Lender, and this Payoff Letter shall in no way impair the claims of the Lender with respect to the revived Obligations or other Indebtedness of Credit Parties to the Lender.  If the Payoff Amount is not received by the Lender on or before 5:00 p.m. (Nevada time) on December 31, 2019, then this Payoff Letter shall terminate and be of no further force or effect.

			 

			

 

 

 

 

	 	
			2.

				
			Please transfer:

			

	 	
			a.

				
			the Stock Certificate to Lender on the Anticipated Payoff Date by Federal Express at the following address:

			

 

Dove Ventures, LLC

 

101 Convention Center Drive, Ste. 850

Las Vegas, Nevada 89109

 

	 	
			b.

				
			the Accrued Interest Payment to Lender, by wire transfer of immediately available funds, for receipt on the Anticipated Payoff Date, pursuant to the following instructions:

			

 

JPMorgan Chase Bank, N.A.

New York, New York

ABA: 021000021

Account Name: NFS

Acct#: 066-196-221

For Further Credit Dove Ventures Acct RJL-002129

 

	 	
			3.

				
			The Lender, concurrently with the satisfaction of the conditions referred to in Sections 1(a) and 1(b) above (a) authorizes Borrower or its designee to prepare and file any UCC termination statements and other filings necessary to terminate the UCC financing statements filed by Lender against any Credit Party, and (b) agrees to execute and deliver any lien releases, mortgage releases, discharges of security interests, and other similar discharge or release documents (in recordable form if applicable) as Borrower may reasonably request to effectuate the termination and release of the security interests and Liens securing the Obligations, and which are prepared at Borrower's expense.

			

 

	 	
			4.

				
			Each Credit Party hereby waives, releases, remises, and forever discharges the Lender, together with each of their respective Affiliates, each of its successors in title, past, present and future officers, directors, employees, limited partners, general partners, investors, attorneys, assigns, subsidiaries, shareholders, trustees, agents and other professionals (collectively, the “Releasees”), from any and all past, present and future claims, demands, suits, liens, lawsuits, adverse consequences, amounts paid in settlement, debts, deficiencies, diminution in value, disbursements, demands, obligations, liabilities, causes of action, damages, losses, costs and expenses of any kind or character, whether based in equity, law, contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law (each a “Claim” and collectively, the “Claims”), whether known or unknown, fixed or contingent, direct, indirect, or derivative, asserted or unasserted, matured or unmatured, foreseen or unforeseen, past or present, liquidated or unliquidated, suspected or unsuspected, which any Credit Party ever had from the beginning of the world, now has or might hereafter have against any such Releasee, which Claims relate, directly or indirectly, to any act or omission by any Releasee that occurred on or prior to the date of this Payoff Letter and relate, directly or indirectly, to the Loan Agreement, any other Loan Document, or any acts or omissions of any such Releasee in connection with, as a result of, arising out of, related to, or with respect to the Loan Agreement or any other Loan Document, or the debtor-creditor relationship evidenced by any of the Loan Documents, except for the duties and obligations set forth in this Payoff Letter.

			 

			Each Credit Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such Claims and agrees that this Payoff Letter shall be and remain effective in all respects notwithstanding any such differences or additional facts.  Each Credit Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

			 

			Each Credit Party hereby agrees, represents, and warrants that such party has not voluntarily, by operation of law or otherwise, assigned, conveyed, transferred or encumbered, either directly or indirectly, in whole or in part, any right to or interest in any of the Claims released pursuant to this Section 4.

			

 

2

 

 

	 	
			5.

				
			Borrower understands, acknowledges and agrees that the consideration referred to in Section 1 above represent enforceable obligations of it owed to the Lender pursuant to the provisions of the Loan Agreement and the other Loan Documents and confirms its agreement to the terms and provisions of this Payoff Letter by returning to the Lender a signed counterpart of this Payoff Letter.

			

 

	 	
			6.

				
			The Lender hereby agrees that it shall execute and deliver such additional documents and shall provide additional information as Borrower may reasonably require to carry out the terms of this Payoff Letter at Borrower's expense.

			

 

	 	
			7.

				
			This Payoff Letter may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Payoff Letter by signing any such counterpart.  Delivery of an executed counterpart of this Payoff Letter by telefacsimile or other electronic method shall be equally as effective as delivery of an original executed counterpart.  Any party delivering an executed counterpart of this Payoff Letter by telefacsimile or other electronic method also shall deliver an original executed counterpart, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Payoff Letter.

			

 

	 	
			8.

				
			This Payoff Letter shall be governed by, and construed and enforced in accordance with, the laws of the State of Nevada as applied to agreements among parties resident therein.  Whenever possible, each provision of this Payoff Letter shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Payoff Letter shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Payoff Letter.

			

 

	 	
			9.

				
			This is the entire agreement between the parties with respect to the subject matter of this Payoff Letter.  There are no other agreements or understandings, written or oral, express or implied.

			

 

[Signature pages follow]

3

 

 

 

	
			Very truly yours,

			

			DOVE VENTURES, LLC,

			

			

			By: /s/ Joshua C. Miller

			Joshua C. Miller

			Assistant Secretary

			

4

 

 

Agreed to by the undersigned as of the date first written above:

	
			“Borrower”

			

			ATLANTICUS HOLDINGS CORPORATION

			

			

			By: /s/William R. McCamey

			William R. McCamey

			Chief Financial Officer

				 

	 	 

 

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