Document:

Exhibit
10.02

 

AMENDED
AND RESTATED

EMPLOYMENT
AGREEMENT

 

This AMENDED AND
RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and
entered into effective as of July 1, 2007 (the “Effective Date”), by and
between Entercom Communications Corp., a Pennsylvania corporation (“Employer”
or the “Company”), and Joseph M. Field (“Executive”).

 

RECITALS

 

A.            Prior to May 3, 2002, Executive rendered services to the
Employer in the position of Chief Executive Officer of the Employer upon and
subject to the terms, conditions and other provisions of that certain
Employment Agreement between the Executive and Employer dated as of June 25,
1993, as amended (the “Prior Agreement”).

 

B.            Effective as of May 3, 2002 and through the Effective
Date, Executive has rendered services to the Employer in the position of
Chairman of the Board pursuant to that certain Employment Agreement between the
Executive and Employer dated as of July 1, 2002.

 

C.            Effective as of the Effective Date, Employer desires to
continue to retain the services of Executive in the position of Chairman of the
Board upon and subject to the terms, conditions and other provisions set forth
herein.

 

D.            Executive desires to continue to render services to
Employer upon and subject to the terms, conditions and other provisions set
forth herein.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises, the mutual promises hereinafter
set forth, and other good and valuable consideration had and received, the
parties hereby agree as follows:

 

1.             Employment. Upon and subject to the terms,
conditions and other provisions of this Agreement, Employer shall continue to
employ Executive, and Executive hereby accepts such continued employment and
agrees to exercise and perform faithfully, exclusively and to the best of his
ability on behalf of Employer during the Employment Term (as defined herein),
the duties and responsibilities of Chairman of the Employer’s Board of
Directors (the “Board”), with the general powers and duties of
management usually vested in said office.

 

2.             Executive’s Services and Duties.

 

2.1.        During the Employment Term, Executive
shall:

 

2.1.1.     Observe and conform to the policies and
directions promulgated from time to time by the Board;

 

 

2.1.2.     Use all reasonable efforts to serve
Employer faithfully, diligently and competently and to the best of his ability;
and

 

2.1.3.     Devote his full business time, energy,
ability, attention and skill to his employment hereunder.

 

2.2.          The services to be performed by
Executive hereunder may be changed or adjusted from time to time at the
reasonable discretion of the Board. The Board shall retain full direction and
control of the means and methods by which Executive performs the above services
and of the place or places at which such services are to be rendered.

 

2.3.          Except with the prior written approval
of the Board, Executive during the Employment Term will not (i) accept any
other employment with a third party, (ii) serve on the board of directors or
similar body of any other business entity in any way directly or indirectly
competitive with the business of the Company or (iii) engage, directly or
indirectly, in any other business activity (whether or not pursued for
pecuniary advantage) that is or may be competitive with, or that might place
him in a competing position to or otherwise conflict with, that of Employer or
any of its subsidiaries, affiliates or divisions.

 

3.             Term. The term of this agreement shall continue
for so long as Executive remains duly elected and qualified and serves in the
capacity of Chairman of the Board (the “Employment Term”).

 

4.             Compensation and Other Benefits. As compensation
in full for the services to be rendered by Executive hereunder, during the
Employment Term, Employer shall pay, and Executive shall be entitled to
receive, the following compensation and benefits, which compensation and
benefits shall be subject to all appropriate federal, state and local
withholding taxes:

 

4.1.        An
annual retainer (the “Annual Retainer”) in an amount equal to three (3)
times the annual retainer payable to non-employee members of the Board pursuant
to the Company’s non-employee director compensation policies as in effect from
time to time. The Annual Retainer shall be paid at the same time as retainers
are paid to non-employee directors and shall be payable in restricted stock
units which vest over one year; provided that Executive shall have the right to
elect, on or before the date of grant, to receive the Annual Retainer in cash
in lieu of restricted stock units. The initial Annual Retainer shall be
prorated for the period commencing on the Effective Date through the date of
the first annual meeting of the Company’s shareholders and shall be payable in
cash as soon as reasonably practicable following the execution of this
Agreement.

 

4.2.        Executive
shall be entitled to participate in or receive medical, disability and life
insurance, vacation and any other benefits that Employer provides from
time-to-time to its most senior executive officers. However, except as provided
in Section 10.2, nothing herein is intended, or shall be construed to
require Employer to institute or continue any,

 

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or any particular, plan
or benefits other than insurance benefits which Executive may at his cost
continue pursuant to COBRA.

 

4.3.        During
the Employment Term, the Board or the Compensation Committee shall grant
Executive annual equity compensation awards of the same type and for an
underlying number of shares equal to three (3) times the number of shares
underlying the awards granted to each non-employee member of the Board pursuant
to the Company’s non-employee director compensation policies as in effect from
time to time. Any such equity compensation awards shall be granted at the same
time as the awards granted to non-employee members of the Board and shall
contain such similar terms (not inconsistent with this Agreement or awards
granted to non-employee members of the Board) as the Board and/or the
Compensation Committee determine.

 

4.4.        During
the Employment Term, Executive shall either be provided with a Company-owned
automobile for his business and personal use or be provided with a monthly
automobile allowance of $1,200.

 

4.5         During
the Employment Term, Executive shall continue to have the use of his existing (or
otherwise comparable) office.

 

4.6         During
the Employment Term, Executive shall continue to be permitted to use Company
aircraft for personal use in accordance with Company policies as in effect from
time to time; provided, however, that Executive shall be entitled to personal
use of Company aircraft on terms at least as favorable to him as those accorded
to the Company’s Chief Executive Officer.

 

5.             Certain Business Expenses. Employer shall
reimburse Executive for business expenses (a) which are reasonable and
necessary for Executive to perform and were incurred by Executive in the course
of the performance of his duties pursuant to this Agreement and in accordance
with Employer’s general policies and (b) for which Executive has submitted
vouchers and completed an expense report in the form required by Employer as
consistent with Employer’s policies in place from time-to-time.

 

6.             Confidential Information.

 

6.1.        Executive
acknowledges that, because of his employment hereunder, he will be in a
confidential relationship with Employer and will have access to confidential
information and trade secrets of Employer and the subsidiaries, affiliates and
divisions thereof. Executive acknowledges and agrees that the following
constitutes confidential and/or trade secret information belonging exclusively
to Employer (collectively, “Confidential Information”):

 

(a)          all information related to customers
including, without limitation, customer lists, the identities of existing, past
or prospective customers, prices charged or proposed to be charged to
customers, customer contacts, special customer requirements and all related
information;

 

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(b)         all marketing plans, materials and
techniques;

 

(c)          all methods of business operation and
related procedures of Employer; and

 

(d)         all patterns, devices, compilations of
information, copyrightable material and technical information, if any, in each
case which relates in any way to the business of Employer or any subsidiary,
affiliate or division thereof.

 

6.2.          Executive agrees that:

 

6.2.1.     Except in the limited performance of his
duties under this Agreement, Executive shall not use for his own benefit or
disclose to any third party Confidential Information acquired by reason of his
employment under this Agreement or his former status as an officer and
shareholder of Employer, including, but not limited to, Confidential
Information belonging or relating to Employer or its subsidiaries, affiliates,
divisions or customers;

 

6.2.2.     Executive shall not induce or persuade
other employees of Employer or former or current employees of Employer or any
subsidiary, affiliate or division thereof, to join him in any activity
prohibited by this Section 6;

 

6.2.3.     For the twelve (12) month period following
any termination of Executive’s employment with the Company, Executive shall
not, without the express prior written permission of the Company, employ, offer
to employ, counsel a third party to employ, or participate in any manner in the
recommendation, recruitment or solicitation of the employment of any person who
was an employee of the Company on the date of the termination of Executive’s
employment or at any time within the ninety (90) days prior thereto. In the
event that any such person shall be employed in a position under Executive’s
direct or indirect supervision within such twelve (12) month period without the
Company’s express prior written permission, it shall be conclusively presumed
that this restriction has been violated.

 

6.2.4      So long as Executive is employed by the
Company and for a period of twelve (12) months thereafter Executive shall not
directly or indirectly, provide any service either as an employee, employer,
consultant, contractor, agent, principal, partner, substantial stockholder,
corporate officer or director of or for a company or enterprise which competes
in any material manner with the then present or Planned Business Activities (as
defined below) of the Company, including without limitation, audio programming,
production, engineering, promotion or broadcasting regardless of the method of
its delivery, which methods include, without limitation, AM, FM, satellite,
PCS, cable, Internet, or any other means. For purpose of the foregoing “Planned
Business Activities” shall mean a business initiative materially discussed
by the Board or which is currently under consideration by the Board or which
has been approved by the Board.

 

6.2.5.     This Section 6 shall survive
termination of this Agreement.

 

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7.             Employer Property.

 

7.1.        Any patents, inventions, discoveries,
applications or processes, software and computer programs devised, planned,
applied, created, discovered or invented by Executive in the course of his
employment under this Agreement and which pertain to any aspect of the business
of Employer or its subsidiaries, affiliates, divisions or customers, shall be
the sole and absolute property of Employer and Executive shall make prompt
report thereof to Employer and promptly execute any and all documents
reasonably requested to assure Employer the full and complete ownership
thereof.

 

7.2.        All records, files, lists, drawings,
documents, equipment and similar items relating to Employer’s business which
Executive shall prepare or receive from Employer shall remain Employer’s sole
and exclusive property. Upon termination of this Agreement, Executive shall
return promptly to Employer all property of Employer in his possession and
Executive represents that he will not copy, or cause to be copied, printed,
summarized or compiled, any software, documents or other materials originating
with and/or belonging to Employer. Executive further represents that he will
not retain in his possession any such software, documents or other materials in
machine or human readable forms. The requirements of this Section 7.2
shall not be applicable to Executive’s “rolodex” and other similar list of
personal business associates and contacts at the time of termination that is
not part of the Employer’s books and records (collectively, “Executive
Property”).

 

7.3.        This Section 7 shall survive
termination of this Agreement.

 

8.             Executive Representations and Warranties. Executive
warrants and represents to and covenants with Employer as follows:

 

8.1.        No Conflict. The execution,
delivery and performance of this Agreement by Executive does not conflict with
or violate any provision of or constitute a default under any agreement,
judgment, award or decree to which Executive is a party or by which Executive
is bound. No consent of any third party is necessary for Executive to enter
into this Agreement and comply fully with his obligations hereunder. Executive
is not party to or bound by any other employment agreement, non-compete
agreement, confidentiality agreement or similar agreement.

 

8.2.        Enforceable Agreement. This
Agreement is the valid enforceable agreement of Executive, enforceable against
him in accordance with its terms.

 

9.             Termination. Executive’s employment hereunder may
be terminated by the Board under the following circumstances:

 

9.1.        Death. Executive’s employment
hereunder shall terminate automatically upon his death.

 

9.2.        Disability. This Agreement shall
terminate on Executive’s physical or mental disability or infirmity which, in
the opinion of a competent physician

 

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mutually selected in
advance of such disability or infirmity by Executive and the Compensation
Committee, renders Executive unable to perform his duties under this Agreement
for more than one hundred twenty (120) days during any one hundred eighty (180)-day
period (“Disability”).

 

9.3.        “Date of Termination” shall mean
(i) if Executive’s employment is terminated by his death, the date of his
death; or (ii) if Executive’s employment is terminated by reason of his
Disability, the date on which Executive is determined by a competent physician
to suffer from such Disability in accordance with Section 9.2.

 

9.4.        Termination Obligations.

 

9.4.1.     Executive hereby acknowledges and agrees
that all personal property and equipment furnished to or prepared by Executive
in the course of or incident to his employment belong to Employer and shall be
promptly returned to Employer upon termination of the Employment Term. “Personal
Property” includes, without limitation, all books, manuals, records,
reports, notes, contracts, customer or other lists, blueprints, and other
documents, or materials, or copies thereof, whether in hard copy or in any
electronic format, and all other proprietary information relating to the
business of Employer or any subsidiary, affiliate or division thereof, but
shall exclude Executive Property. Following termination, Executive will not
retain any written or other tangible material containing any Confidential
Information or other proprietary information of Employer or any subsidiary,
affiliate or division thereof.

 

9.4.2.     The representations and warranties
contained in this Section 9.4 and Executive’s obligations under Section
6 and Section 7 hereof shall survive termination of the Employment
Period and the expiration or termination of this Agreement.

 

10.           Compensation Upon Death, During
Disability or Upon Termination.

 

10.1.      Death or Disability. If Executive’s
employment hereunder shall be terminated during the Employment Term as a result
of Executive’s death or Disability, Executive shall be deemed to have performed
all of the requisite services under this Agreement for the remainder of the
term for which the Executive was elected in which the termination occurred, and
in addition Employer shall pay Executive or Executive’s estate in a single lump
sum an amount equal to the Annual Retainer as in effect immediately prior to
Executive’s termination.

 

10.2.      Post-Termination
Benefits. In addition to the foregoing, upon Executive’s termination of
employment hereunder for any reason, then commencing as of the Executive’s Date
of Termination, the Employer shall provide to Executive and Executive’s spouse
medical insurance coverage for the duration of their respective lives on terms
comparable to those applicable to Executive and Executive’s spouse, as
applicable, under the Employer’s benefit plans in place as of Executive’s Date
of Termination. Such post-employment insurance coverage may be provided by
Employer in a manner selected by Employer, including without limitation the
purchase of separate insurance policies for the benefit of Executive and
Executive’s spouse or providing coverage under its medical insurance plans or
arrangements. The manner of providing such coverage shall be subject to the
approval of Executive, which approval shall not be unreasonably withheld.

 

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10.3.      Stock
Based Awards. If Executive ceases to serve as Chairman of the Board during
the Employment Term for any reason other than a removal from his position as
Chairman the Board for Cause (as defined below) pursuant to the Company’s
bylaws, as in effect from time to time, all of Executive’s stock-based rights
shall become vested, exercisable and payable with respect to all of the equity
subject thereto. For purposes of this Agreement, “Cause” shall mean any
one or more of the following (each as determined by the Board in its sole
discretion): (i) Executive’s material breach of any term of this Agreement;
(ii) the commission by the Executive of any act of fraud, theft or criminal
dishonesty with respect to the Employer or any of its subsidiaries, divisions
or affiliates, or the conviction of the Executive of any felony; (iii)
Executive’s misconduct in the performance of his duties hereunder, including,
without limitation, his failure or refusal to carry out any proper direction by
the Board with respect to services to be rendered by him hereunder or the
manner of rendering such services or his habitual neglect of his duties as an officer
of Employer after written notice and reasonable opportunity to cure; (iv)
Executive’s repeated material neglect of his duties on a general basis after
written notice and reasonable opportunity to cure; or (v) the commission by
Executive of any act of moral turpitude which (a) brings the Employer or any of
its affiliates into public disrepute or disgrace, (b) causes material injury to
the customer relations, operations or the business prospects of the Employer or
(c) in the reasonable opinion of FCC counsel for Employer, would pose a
substantial risk of revocation or non-renewal of any of the FCC licenses held
by the Company.

 

10.4.      Release
of Claims. As a condition to the
receipt of any of the post- termination benefits described in Section 10.2 hereunder
subsequent to the termination of the employment of Executive, Executive shall
be required to execute within ninety (90) days following the termination of his
employment a release in a form reasonably acceptable to Employer of all claims
arising out of his employment or the termination thereof including, but not
limited to, any claim of discrimination under state or federal law, but
excluding claims for indemnification under any agreement to which Executive is
a party or pursuant to Employer’s charter or by-laws or policies of insurance
maintained by Employer.

 

10.5.      Section 409A. Notwithstanding
anything herein to the contrary, (i) if at the time of Executive’s termination
of employment with the Company, Executive is a “specified employee” as defined
in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and the deferral of the commencement of any payments or benefits otherwise
payable hereunder as a result of such termination of employment is necessary in
order to prevent any accelerated or additional tax under Section 409A of the
Code, then the Company will defer the commencement of the payment of any such
payments or benefits hereunder (without any reduction in such payments or
benefits ultimately paid or provided to Executive) until the date that is six
months following Executive’s termination of employment with the Company (or the
earliest date as is permitted under Section 409A of the Code) and (ii) if any
other payments of money or other benefits due to Executive hereunder could
cause the application of an accelerated or additional tax under Section 409A of
the Code, such payments or other benefits shall be deferred if deferral will
make such payment or other benefits compliant under Section 409A of the Code,
or otherwise such payment or other benefits shall be restructured, to the
extent possible, in a manner, determined by the Board, that does not cause

 

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such an accelerated or additional tax. The
Company shall consult with Executive in good faith regarding the implementation
of the provisions of this Section 10.6.

 

11.           Parachute Payments.

 

11.1       If it is determined (as hereafter
provided) that Executive would be subject to the excise tax imposed by Code
Section 4999 to which Executive would not have been subject but for any payment
or stock option or restricted stock vesting (collectively a “Payment”)
occurring pursuant to the terms of this Agreement or otherwise as in connection
with a change in the ownership or effective control of Employer or a change in
the ownership of a substantial portion of the assets of the Employer within the
meaning of Code Section 280G(b)(2)(A)(i) (such tax, a “Parachute Tax”),
then Executive shall be entitled to receive an additional payment or payments
(a “Gross-Up Payment”) in an amount such that, after payment by
Executive of all taxes (including any Parachute Tax) imposed upon the Gross-Up
Payment, Executive retains an amount of the Gross-Up Payment equal to
two-thirds (2/3) of the Parachute Tax imposed upon the Payment.

 

11.2       Subject to the provisions of Section
11.1 hereof, all determinations required to be made under this Section
11, including whether a Parachute Tax is payable by Executive and the
amount of such Parachute Tax and whether a Gross-Up Payment is required and the
amount of such Gross-Up Payment, shall be made by the nationally recognized
firm of certified public accountants (the “Accounting Firm”) used by the
Company prior to the event giving rise to a Payment (or, if such Accounting
Firm declines to serve, the Accounting Firm shall be a nationally recognized
firm of certified public accountants selected by the Company). For purposes of
making the calculations required by this Section, the Accounting Firm may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code, provided that
the Accounting Firm’s determinations must be made with substantial authority
(within the meaning of Section 6662 of the Code). The Accounting Firm shall be
directed by the Company or Executive to submit its preliminary determination
and detailed supporting calculations to both the Company and Executive within
fifteen (15) calendar days after the determination date, if applicable, and any
other such time or times as may be requested by the Company or Executive. If
the Accounting Firm determines that any Parachute Tax is payable by Executive,
the Company shall pay the required Gross-Up Payment to, or for the benefit of,
Executive within five business days after receipt of such determination and
calculations. If the Accounting Firm determines that no Parachute Tax is
payable by Executive, it shall, at the same time as it makes such
determination, furnish Executive with an opinion that he has substantial
authority not to report any Parachute Tax on his federal tax return. Any good
faith determination by the Accounting Firm as to the amount of the Gross-Up
Payment shall be binding upon the Company and Executive absent a contrary
determination by the Internal Revenue Service or a court of competent
jurisdiction; provided, however,
that no such determination shall eliminate or reduce the Company’s obligation
to provide any Gross-Up Payments that shall be due as a result of such contrary
determination. As a result of the uncertainty in the application of Code
Section 4999 at the time of any determination by the Accounting Firm hereunder,
it is possible that Gross-Up Payments that will not have been made by the
Company should have been made (an “Underpayment”), consistent with the
calculations

 

8

 

required to be made hereunder. In the event of a final determination by
the Internal Revenue Service that an Underpayment has occurred, Executive shall
direct the Accounting Firm to determine the amount of the Underpayment that has
occurred and to submit its determination and detailed supporting calculations
to both the Company and Executive as promptly as possible. Any such
Underpayment shall be promptly paid by the Company to, or for the benefit of,
Executive within five business days after receipt of such determination and
calculations.

 

11.3       The Company and Executive shall each
provide the Accounting Firm access to and copies of any books, records and
documents in the possession of the Company or Executive, as the case may be,
reasonably requested by the Accounting Firm, and otherwise cooperate with the
Accounting Firm in connection with the preparation and issuance of the
determination contemplated by Section 11.2 hereof.

 

11.4       The federal tax returns filed by
Executive (and any filing made by a consolidated tax group which includes the
Company) shall be prepared and filed on a basis consistent with the
determination of the Accounting Firm with respect to the Parachute Tax payable
by Executive, as the same may be amended or supplemented. Executive shall make
proper payment of the amount of any Parachute Tax, and at the request of the
Company, provide to the Company true and correct copies (with any amendments)
of his federal income tax return as filed with the Internal Revenue Service,
and such other documents reasonably requested by the Company, evidencing such
payment.

 

12.           Notices. All notices and other
communications and legal process shall be in writing and shall be personally
delivered, transmitted by telecopier, telex or cable, or transmitted by Federal
Express or other reputable commercial overnight delivery service which provides
evidence of delivery, as elected by the party giving such notice, addressed as
follows:

 

	
  If to Employer:

  	
  Entercom Communications
  Corp.

  
	
   

  	
  401 City Avenue, Suite
  809

  
	
   

  	
  Bala Cynwyd,
  Pennsylvania 19004

  
	
   

  	
  Attention:      Secretary
  and General Counsel

  
	
   

  	
   

  
	
  If to Executive:

  	
  As set forth on the
  signature page hereto.

  

 

Notices shall be deemed
to have been given:  (i) on the first
business day after posting, if delivered by overnight courier as described
above, (ii) on the date of receipt if delivered personally, or (iii) on the
next business day after transmission if transmitted by telecopier, telex or
cable (and appropriate receipt of transmission is confirmed by telecopy or
telephone). Any party hereto may change its address for purposes hereof by
notice to the other parties hereto.

 

13.           Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

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14.           Headings. The headings herein
are for convenience only, do not constitute a part of this Agreement, and shall
not be deemed to limit or affect any of the provisions hereof.

 

15.           Entire Understanding. This
Agreement constitutes the entire agreement and understanding between the
parties hereto with respect to the employment of Executive by Employer, and
supersedes all other prior agreements, representations and understandings, both
written and oral, between the parties hereto with respect to the subject matter
hereof, including without limitation the Prior Agreement.

 

16.           Amendments. This Agreement may
not be modified or changed except by written instrument signed by each of the
parties hereto.

 

17.           Governing Law. This Agreement
shall be governed by and construed in accordance with the internal laws of the
Commonwealth of Pennsylvania, without regard to principles of conflicts of law.

 

18.           Dispute Resolution Process. The
parties hereby agree that, in order to obtain prompt and expeditious resolution
of any disputes under this Agreement, each claim, dispute or controversy of
whatever nature, arising out of, in connection with, or in relation to the
interpretation, performance or breach of this Agreement (or any other agreement
contemplated by or related to this Agreement or any other agreement between
Employer and Executive), including without limitation any claim based on
contract, tort or statute, or the arbitrability of any claim hereunder (a “Claim”),
shall be settled, at the request of any party of this Agreement, by final and
binding arbitration conducted in Montgomery County, Pennsylvania. All such
Claims shall be settled by one arbitrator in accordance with the Commercial
Arbitration Rules then in effect of the American Arbitration Association. Such
arbitrator shall be provided through the CPR Institute for Dispute Resolution (“CPR”)
by mutual agreement of the parties; provided that,
absent such agreement, the arbitrator shall be appointed by CPR. In either
event, such arbitrator may not have any preexisting, direct or indirect
relationship with any party to the dispute. Each party
hereto expressly consents to, and waives any future objection to, such forum
and arbitration rules. Judgment upon any award may be entered by any
state or federal court having jurisdiction thereof. Except as required by law
(including, without limitation, the rules and regulations of the Securities and
Exchange Commission), neither party nor the arbitrator shall disclose the
existence, content, or results of any arbitration hereunder without the prior
written consent of all parties.

 

Adherence to this dispute
resolution process shall not limit the right of Employer or Executive to obtain
any provisional remedy, including without limitation, injunctive or similar
relief set forth in Section 27, from any court of competent jurisdiction
as may be necessary to protect their respective rights and interests pending
arbitration. Notwithstanding the foregoing sentence, this dispute resolution
procedure is intended to be the exclusive method of resolving any Claims
arising out of or relating to this Agreement.

 

The arbitration
procedures shall follow the substantive law of the Commonwealth of
Pennsylvania, including the provisions of statutory law dealing with
arbitration, as it may exist at the time of the demand for arbitration, insofar
as said provisions are not in conflict with this

 

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Agreement and specifically excepting therefrom sections of any such
statute dealing with discovery and sections requiring notice of the hearing
date by registered or certified mail.

 

19.           Waiver of Jury Trial. Consistent with the intention of Section 18, each signatory to
this Agreement further waives its respective right to a jury trial of any claim
or cause of action arising out of this Agreement or any dealings between any of
the signatories hereto relating to the subject matter of this Agreement. The
scope of this waiver is intended to be all-encompassing of any and all disputes
that may be filed in any court and that relate to the subject matter of this
Agreement, including, without limitation, contract claims, tort claims, and all
other common law and statutory claims. This waiver is irrevocable, meaning that
it may not be modified either orally or in writing, and this waiver shall apply
to any subsequent amendments, supplements or other modifications to this
Agreement or to any other document or agreement relating to the transactions
contemplated by this Agreement.

 

20.           Construction. Whenever in this
Agreement the context so requires, references to the masculine shall be deemed
to include feminine and the neuter, references to the neuter shall be deemed to
include the masculine and feminine, references to the plural shall be deemed to
include the singular and references to the singular shall be deemed to include
the plural.

 

21.           Conflict. In the event of any
conflict between the provisions of this Agreement and the policies and
practices of Employer the provisions of this Agreement shall govern.

 

22.           Cooperation. Each party hereto
shall cooperate with the other party and shall take such further action and
shall execute and deliver such further documents as may be necessary or
desirable in order to carry out the provisions and purposes of this Agreement.

 

23.           Waiver. No waiver of any
provision of this Agreement shall in any event be effective, unless the same
shall be in writing and signed by the party making the waiver, and then such
waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given. The failure of any party to insist, in any one or more
instances, upon performance of any of the terms, covenants or conditions of
this Agreement shall not be construed as a waiver or relinquishment of any
rights granted hereunder or any such term, covenant or condition.

 

24.           Negotiation of Agreement. Any
rule of law, or any legal decision that would require interpretation of any
ambiguities in this Agreement against the party that drafted it, shall be of no
application and is hereby expressly waived. The provisions of this Agreement
shall be interpreted in a reasonable manner to effect the intentions of the
parties and this Agreement.

 

25.           Parties in Interest; Assignment.
This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective permitted successors, assigns, heirs and/or
personal representatives, except that neither this Agreement nor any interest
herein shall be assigned or assignable by operation of law or otherwise, by Executive
or Employer without

 

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the approval of the other party. Nothing
in this Agreement, expressed or implied, is intended to confer on any person
other than the parties and their respective successors and permitted assigns
any rights or remedies under or by reason of this Agreement.

 

26.           Severability. If any provision
of this Agreement shall be deemed invalid, unenforceable or illegal, then
notwithstanding such invalidity, unenforceability or illegality, the remainder
of this Agreement shall continue in full force and effect.

 

27.           Injunctive Relief. In the
event of breach by Executive of the terms of Section 6 or Section
7 , Employer shall be entitled to enforce the specific performance of this
Agreement by Executive and to enjoin Executive from any further violation of
either such provisions and to exercise such remedies cumulatively or in
conjunction with all other rights and remedies provided by law.

 

(Signature page
follows)

 

12

 

28.           Executive Acknowledgement.
Executive represents and agrees that he fully understands his right to discuss
all aspects of this Agreement with his private attorney, and that to the
extent, if any, that he desired, he availed himself of such right. Executive
further represents that he has carefully read and fully understands all of the
provisions of this Agreement, that he is competent to execute this Agreement,
that his agreement to execute this Agreement has not been obtained by any
duress and that he freely and voluntarily enters into it, and that he has read
this document in its entirety and fully understands the meaning, intent and
consequences of this document.

 

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

 

	
   

  	
  “EXECUTIVE”

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Joseph M. Field

  	
   

  	
   

  	
  August 2, 2007

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Joseph M. Field

  	
   

  	
  Date

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address for Notice:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  401 City Avenue

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Suite 809

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Bala Cynwyd, PA 19004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “EMPLOYER”

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entercom Communications Corp.,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a Pennsylvania corporation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  John C. Donlevie

  	
   

  	
   

  	
  August 2, 2007

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  John C. Donlevie

  	
   

  	
  Date

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Executive Vice President

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and Secretary

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
												

 

13Exhibit 10.101

 

TWELFTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

This TWELFTH AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as of November 16, 2007 (the “Amendment Date”) and entered into by and among BANK OF AMERICA, N.A., as lender (the “Lender”), with offices at 55 South Lake Avenue, Suite 900, Pasadena,
California 91101, and MEADE INSTRUMENTS CORP., a Delaware corporation, SIMMONS
OUTDOOR CORP., a Delaware corporation, and CORONADO INSTRUMENTS, INC., a
California corporation (such entities being referred to hereinafter each
individually as a “Borrower” and
collectively, the “Borrowers”).

 

WHEREAS,
the Lender and the Borrowers have entered into that certain Amended and
Restated Credit Agreement dated as of October 25, 2002 (as amended, restated or
modified from time to time, the “Agreement”);

 

WHEREAS,
the Borrowers have requested that the Lender amend the Agreement in certain
respects and the Lender has agreed to such amendments pursuant to the terms and
conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual conditions and agreements set forth
in the Agreement and this Amendment, and other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound, hereby agree as follows:

 

ARTICLE I

Definitions

 

Section 1.01.                             Definitions. Initially capitalized terms used but not defined in this Amendment
have the respective meanings set forth in the Agreement, as amended hereby.

 

ARTICLE II

 

Amendments

 

Section 2.01.                             New Definitions. The following definitions are hereby added
to Annex A to the Agreement to read in their entirety as follows:

 

“Borrower’s Plan” means that certain financial plan prepared by
the Borrowers titled “FY08-FY09 Projections 10-31-07 BAC” consisting of balance
sheet projections dated as of November 1, 2007 and income statement projections
dated as of October 31, 2007 and previously delivered to the Lender.

 

“EBITDA Reserve” means a reserve to be established and adjusted
as follows:

 

(A) For the first two months of each fiscal quarter, beginning with the
month of October 2007, a reserve will be established by the Lender by measuring
for each such month the amount of the shortfall, if any, between the monthly
EBITDA for that month and the Borrower’s Plan. Such measurement will be based
on the Borrower’s month end financial statements for such month (the “Monthly Adjustment”).

 

 

(B) At the end of each fiscal quarter beginning with the fiscal quarter
ending November 30, 2007 and in lieu of the Monthly Adjustment made to the
EBITDA Reserve based on the monthly financing statements as set forth in
paragraph (A) above, the Lender will establish or increase the EBITDA Reserve
based on the shortfall, if any, between the Borrower’s fiscal quarter EBITDA
and the Borrower’s Plan. Such measurement and adjustment will be based on the
Borrower’s financial statements received by the Lender after the end of each
fiscal quarter (the “Fiscal Quarter Adjustment”).
In all cases, the Fiscal Quarter Adjustment made after the end of each quarter
will supersede the Monthly Adjustment for such quarter. Any excess for any
Fiscal Quarter in EBITDA over the Borrower’s Plan will not reduce any
previously created EBITDA Reserve.

 

(C) By way of illustration, if hypothetically the EBITDA Reserve based
upon the Monthly Adjustment during the fiscal quarter ending November 30, 2007
is $100,000 and the Fiscal Quarter Adjustment for the quarter ending November
30, 2007 is $75,000, the EBITDA Reserve, upon the calculation of the Fiscal
Quarter Adjustment, will be $75,000. If at the end of the fiscal quarter ending
February 29, 2008 the Fiscal Quarter Adjustment is $0, the EBITDA Reserve shall
remain at $75,000. If the EBITDA for the fiscal quarter ending February 29,
2008 is in excess over the Borrower’s Plan, the EBITDA Reserve will remain at
$75,000. If the Fiscal Quarter Adjustment for the fiscal quarter ending
February 29, 2008 is $25,000, the EBITDA Reserve will be increased to $100,000.

 

Section 2.02.                             Amended Definitions. The following definitions set forth in
Annex A to the Agreement are hereby amended and restated in their entirety to
read as follows:

 

“Adjusted Tangible Net Worth” means, at any date:  (a) the book value at which the Adjusted
Tangible Assets would be shown on a consolidated balance sheet of the Borrowers
at such date prepared in accordance with GAAP; plus (b) non-cash
inventory write-downs incurred during October 2007 through January 2008, up to
a maximum of $3,000,000; plus, but only to the extent included in
Adjusted Tangible Assets, (c) non-cash write-offs of intangible assets incurred
during October 2007 through January 2008, up to a maximum of $8,000,000; less
(d) the amount at which the consolidated liabilities of the Borrowers and their
Subsidiaries would be shown on such balance sheet.

 

“Applicable Margin” means:

 

(a)                                  with respect to Base Rate Revolving Loans and
all other Obligations (other than LIBOR Loans), 2.00%; and

 

(b)                                 with respect to LIBOR Loans, 4.25%;

 

2

 

in each case subject to adjustment, beginning with the receipt by the
Lender of the monthly Financial Statements for February 2008, and thereafter
from time to time, to the applicable percentage corresponding to the Fixed Charge
Coverage Ratio for the immediately preceding four fiscal quarters of the
Borrowers, as set forth below, respectively:

 

	
   

  	
   

  	
  Rolling Four Quarter Fixed

  Charge Coverage Ratio

  	
   

  	
  Base Rate

  Loans

  	
   

  	
  LIBOR Loans

  	
   

  
	
  Level 1

  	
   

  	
  Greater than 1.75 to 1.0

  	
   

  	
  0.50

  	
  %

  	
  3.00

  	
  %

  
	
  Level 2

  	
   

  	
  Equal to or less than 1.75
  to 1.0, but greater than 1.5 to 1.0

  	
   

  	
  1.00

  	
  %

  	
  3.25

  	
  %

  
	
  Level 3

  	
   

  	
  Equal to or less than 1.5
  to 1.0, but greater than 1.2 to 1.0

  	
   

  	
  1.25

  	
  %

  	
  3.50

  	
  %

  
	
  Level 4

  	
   

  	
  Equal to or less than 1.2
  to 1.0, but greater than 0.75 to 1.0

  	
   

  	
  1.50

  	
  %

  	
  3.75

  	
  %

  
	
  Level 5

  	
   

  	
  Equal to or less than 0.75
  to 1.0, but greater than 0.5 to 1.0

  	
   

  	
  2.00

  	
  %

  	
  4.25

  	
  %

  
	
  Level 6

  	
   

  	
  Equal to or less than 0.5
  to 1.0

  	
   

  	
  2.50

  	
  %

  	
  4.75

  	
  %

  

 

All adjustments after February 2008 in the Applicable Margin shall be
implemented quarterly on a prospective basis, commencing with the first day of
the first calendar month that occurs more than 5 days after the receipt by the
Lender of the quarterly unaudited or annual draft audited (as applicable)
Financial Statements evidencing the need for an adjustment. Concurrently with
the delivery of all quarterly Financial Statements, Meade shall deliver to the
Lender a certificate, signed by its chief financial officer, setting forth in
reasonable detail the basis for the continuance of, or any change in, the Applicable
Margin. Failure to timely deliver such Financial Statements shall, in addition
to any other remedy provided for in this Agreement, result in an increase in
the Applicable Margin to the highest level set forth in the foregoing grid,
until the first day of the first calendar month following the delivery of those
Financial Statements demonstrating that such an increase is not required. If a
Default or Event of Default has occurred and is continuing at the time any
reduction in the Applicable Margin is to be implemented, no reduction may occur
until the first day of the first calendar month following the date on which
such Default or Event of Default is waived in writing by the Lender or cured
(to the extent expressly permitted hereunder to be cured and within the time
frame so provided for such cure).

 

In the event that any audited Financial Statements filed with the SEC
vary from the draft or internally prepared Financial Statements used to
calculate the Applicable Margin for any period, then any resulting change in
the Applicable Margin evidenced by the audited Financial Statements for such
period shall be made retroactively to the date when the incorrect Applicable
Margin was implemented. If, as a result of any restatement of or other
adjustment to any Financial Statements or for any other reason, the Lender
determines in its judgment, reasonably exercised, that (a) the Fixed Charge
Coverage Ratio as calculated by Meade as of any applicable date was inaccurate
and (b) a proper calculation of the Fixed Charge Coverage Ratio would have
resulted in different pricing for any period, then (i) if the proper
calculation of the Fixed Charge Coverage Ratio would have resulted in higher
pricing for such period, the Borrowers shall automatically and retroactively be
obligated to pay to the Lender, promptly on demand by the Lender, an amount
equal to the excess of the amount of interest and fees that should have been
paid for such period over the amount of interest and fees actually paid for
such period; and (ii) if the proper calculation of the Fixed Charge
Coverage Ratio would have resulted in lower pricing for such period, the Lender
shall have no obligation to repay any interest or fees to the Borrowers or any
other Person; provided that if, as a result of
any restatement or other event a proper calculation of the Fixed Charge
Coverage Ratio would have resulted in higher pricing for one or

 

3

 

more periods and lower pricing for one or more other periods (due to
the shifting of income or expenses form one period to another period or any
similar reason), then the amount payable by the Borrowers pursuant to clause
(i) above shall be based upon the aggregate net excess (after taking into
account all revised higher and revised lower pricing), if any, of the amount of
interest and fees that should have been paid for all applicable periods over
the amount of interest and fees paid for all such periods. The retroactive
adjustments set forth in this paragraph shall not be applicable to any
restatement or adjustment to any Financial Statements occurring one year or
more following the payment in full of all Obligations and termination of this
Agreement.

 

“Availability Reserve” means a reserve in the initial amount of
$500,000 and, so long as no Event of Default has occurred and is continuing, to
be reduced to:  (i) $250,000 if the
financial covenants set forth in the Agreement are met with the delivery of the
monthly unaudited Financial Statements for the month of November 2008; and (ii)
zero if the financial covenants set forth in the Agreement are met with the
delivery of the monthly unaudited Financial Statements for the month of
February 2009. All adjustments in the Availability Reserve shall be implemented
on a prospective basis, commencing with the first day of the first calendar
month that occurs after the receipt by the Lender of the monthly unaudited
Financial Statements evidencing the need for such an adjustment.

 

“Maximum Revolver Amount” means $25,000,000.

 

“EBITDA” means, with respect to Meade and its consolidated
Subsidiaries, for any period, (a) Adjusted Net Earnings from Operations, plus,
to the extent deducted in the determination of Adjusted Net Earnings from
Operations for such period, (b) interest expenses, (c) provision for Federal,
state, local and foreign income taxes, (d) depreciation, (e) amortization, (f)
non-cash compensation costs and ESOP contributions, (g) non-cash inventory
write-downs incurred during October 2007 through January 2008, up to a maximum of
$3,000,000, and (h) non-cash write-offs of intangible assets incurred during
October 2007 through January 2008, up to a maximum of $8,000,000.

 

“Reserves” means reserves that limit the availability of credit
hereunder, consisting of reserves against Availability, Eligible Accounts or
Eligible Inventory, established by Lender from time to time in Lender’s
reasonable credit judgment. Without limiting the generality of the foregoing,
the following reserves shall be deemed to be a reasonable exercise of Lender’s
credit judgment: (a) Bank Product Reserves; (b) a reserve for accrued,
unpaid interest on the Obligations; (c) reserves for rent at leased
locations subject to statutory or contractual landlord liens; (d) the Slow
Moving Reserve; (e) the Dilution Adjustment Reserve; (f) warehousemen’s or
bailees’ charges; (g) the Working Capital Reserve; (h) the Availability
Reserve; and (i) the EBITDA Reserve.

 

Section 2.03.                             Amendment to Section 1.1. Section 1.1 of the Agreement is
hereby amended and restated to read in its entirety as follows:

 

“1.1                           Total Facility. Subject to all of the terms and conditions
of this Agreement, the Lender agrees to make available a total credit facility
of up to $25,000,000 (the ‘Total Facility’) to the Borrowers from time
to time during the term of this Agreement. The Total Facility shall be composed
of a revolving line of credit consisting of Revolving Loans and Letters of
Credit described herein.”

 

4

 

Section 2.04.                             Amendment to Section 5.2.  Section
5.2(k) of the Agreement is hereby amended in its entirety and replaced to
read as follows:

 

“                                                                                          k.                                       As soon as available, semi-monthly Borrowing
Base Certificates supporting information in accordance with Section 9 of the
Security Agreement, delivered as follows: 
(i) on or before the 20th day of each month as of the 15th day of such
month; and (ii) on or before the 10th day of each month as of the last day of
the prior month; provided, however,
that if the Aggregate Revolver Outstandings are zero, the Borrowing Base
Certificate may be provided within ten (10) Business Days after the end of each
month; provided, further,
however, that if the Borrowing Base
Certificate is delivered on a monthly basis, no Borrowings will be permitted
until a current semi-monthly Borrowing Base Certificate is provided by Meade. Notwithstanding
the forgoing, if at any time average monthly Availability is less than
$5,000,000, but greater than $2,000,000, then the Borrowing Base Certificate
shall be delivered on a weekly basis no later than Wednesday for the prior week.
If at any time average monthly Availability is less than $2,000,000, then the
Borrowing Base Certificate shall be delivered on a semi-weekly basis no later
than each Wednesday for the period Wednesday, Thursday and Friday of the prior
week and each Friday for the period of Saturday of the prior week and Monday
and Tuesday of the then current week. With the delivery of each Borrowing Base
Certificate required by this Section 5.2(k), the Borrowers will provide
separate backup reports reflecting each Borrower’s borrowing base.”

 

Section 2.05.                             Amendment to Section 7.12. Section 7.12 of the Agreement is
hereby amended and restated to read in its entirety as follows:

 

“7.12                     Guaranties. Neither the Borrower nor any Loan Party shall make, issue, or become
liable on any guaranty, except (i) a guaranty of the Obligations in favor of
the Lender, (ii) an unsecured guaranty by the Borrower with respect to the
German Credit Facility, (iii) an unsecured guaranty by MIHC of the existing
facility lease of MIM, and (iv) an unsecured guaranty by Meade of a new
facility lease of MIM not to exceed a guaranteed amount of $300,000.”

 

Section 2.06.                             Amendment to Section 7.13. Section 7.13 of the Agreement is
hereby amended and restated to read in its entirety as follows:

 

“7.13                     Debt. Neither the Borrower nor any Loan Party shall incur or maintain any
Debt, other than:  (a) the
Obligations; (b) Debt described on Schedule 6.9; (c) Debt permitted by Sections
7.10, 7.12 and 7.15; (d) Capital Leases of Equipment and
purchase money secured Debt incurred to purchase Equipment provided that (i)
Liens securing the same attach only to the Equipment acquired by the incurrence
of such Debt, and (ii) the aggregate amount of such Debt (including Capital
Leases) outstanding does not exceed $1,500,000 at any time; (e) Debt evidencing
a refunding, renewal or extension of the Debt described on Schedule 6.9;
provided that (i) the principal amount thereof is not increased, (ii) the
Liens, if any, securing such refunded, renewed or extended Debt do not attach
to any assets in addition to those assets, if any, securing the Debt to be
refunded, renewed or extended, (iii) no Person that is not an obligor or
guarantor of such Debt as of the Amendment Date shall become an obligor or
guarantor thereof, and (iv) the terms of such refunding, renewal or
extension are no less favorable to the Borrower or the Lender than the original
Debt; and (f) a intercompany unsecured loan from Meade Instruments Europe GmbH &
Co., KG in an aggregate principal amount not to exceed $2,500,000; provided that (i) no Default or Event of Default has
occurred or is continuing; and (ii) Meade Instruments Europe GmbH & Co., KG
enters into a written subordination agreement with Lender in form and substance
reasonably acceptable to the Lender.”

 

5

 

Section 2.07.                             Amendment to Section 7.15. The first sentence of Section 7.15
of the Agreement is hereby amended and restated to read in its entirety as follows:

 

“Except as permitted by Sections 7.10, 7.12 and 7.13,
neither the Borrower nor any of its Subsidiaries shall sell, transfer,
distribute, or pay any money or property, including, but not limited to, any
fees or expenses of any nature (including, but not limited to, any fees or
expenses for management services), to any Affiliate, or lend or advance money
or property to any Affiliate, or invest in (by capital contribution or
otherwise) or purchase or repurchase any stock or indebtedness, or any property,
of any Affiliate, or become liable on any guaranty of the indebtedness,
dividends, or other obligations of any Affiliate.”

 

Section 2.08.                             Amendment to Section 7.22. Section 7.22 of the Agreement is
hereby amended and restated to read in its entirety as follows:

 

“7.22                     Minimum EBITDA. Tested on a cumulative monthly basis
beginning October 2007 through September 2008, thereafter tested on a trailing
twelve month basis through February 2009, and thereafter tested quarterly on a
trailing four quarter basis, Meade and its consolidated Subsidiaries will
maintain EBITDA for each period set forth below of not less than the
corresponding amount set forth below: 

 

	
  Period

  	
   

  	
  Minimum EBITDA

  	
   

  
	
  October 2007

  	
   

  	
   

  	
  $

  	
  (1,000,000

  	
  )

  
	
  November 2007

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  December 2007

  	
   

  	
   

  	
  $

  	
  (950,000

  	
  )

  
	
  January 2008

  	
   

  	
   

  	
  $

  	
  (1,700,000

  	
  )

  
	
  February 2008

  	
   

  	
   

  	
  $

  	
  (2,000,000

  	
  )

  
	
  March 2008

  	
   

  	
   

  	
  $

  	
  (2,800,000

  	
  )

  
	
  April 2008

  	
   

  	
   

  	
  $

  	
  (3,300,000

  	
  )

  
	
  May 2008

  	
   

  	
   

  	
  $

  	
  (3,100,000

  	
  )

  
	
  June 2008

  	
   

  	
   

  	
  $

  	
  (3,900,000

  	
  )

  
	
  July 2008

  	
   

  	
   

  	
  $

  	
  (4,500,000

  	
  )

  
	
  August 2008

  	
   

  	
   

  	
  $

  	
  (4,000,000

  	
  )

  
	
  September 2008

  	
   

  	
   

  	
  $

  	
  (4,400,000

  	
  )

  
	
  October 2008

  	
   

  	
   

  	
  $

  	
  (2,500,000

  	
  )

  
	
  November 2008

  	
   

  	
   

  	
  $

  	
  (500,000

  	
  )

  
	
  December 2008

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  January 2009

  	
   

  	
   

  	
  $

  	
  900,000

  	
   

  
	
  February 2009 and thereafter

  	
   

  	
   

  	
  $

  	
  1,400,000”

  	
   

  

 

6

 

Section 2.09.                             Fixed Charge Coverage Ratio. Section 7.23 of the Agreement is
hereby amended and restated to read in its entirety as follows:

 

“7.23                     Fixed Charge Coverage Ratio. Meade and its consolidated Subsidiaries
will maintain a Fixed Charge Coverage Ratio for each period of four consecutive
fiscal quarters ending on the date set forth below of not less than the
applicable ratio set forth below, measured as of the last day of each such
period:

 

	
  Four Fiscal Quarter Period Ending

  	
   

  	
  Minimum

  Fixed Charge Coverage Ratio

  
	
  February 28, 2009

  	
   

  	
  0.65

  
	
  May 31, 2009

  	
   

  	
  0.80

  
	
  August 31, 2009 and
  thereafter

  	
   

  	
  1.0

  

 

For purposes of determining the Fixed Charge Coverage Ratio, Meade and
its consolidated Subsidiaries may exclude up to $900,000 of principal payments
due at maturity on the debt of Meade Instruments Europe GmbH & Co., KG so
long as such loan is fully paid within one year of the Amendment Date. If such
loan is fully paid within one year of the Amendment Date, the Fixed Charge
Coverage Ratio measured at February 28, 2009, will be adjusted to 0.45 to 1.”

 

Section 2.10.                             Amendment to Section 7.24.  Section
7.24 of the Agreement is hereby amended and restated to read in its
entirety as follows:

 

“7.24                     Adjusted Tangible Net Worth. Except for the months of September 2008 and
October 2008, the Borrowers shall not permit the Adjusted Tangible Net Worth,
determined for Meade and its consolidated Subsidiaries as of the last day of
each month, to be less than $17,000,000, plus 50% of the positive Net
Income of Meade and its consolidated Subsidiaries for the period beginning
March 1, 2008, and ending on the date of such calculation (the ‘Net Income Adjustment’). For September 2008, the Adjusted
Tangible Net Worth shall not be less than $16,000,000, plus the Net Income
Adjustment, and for October 2008 the Adjusted Tangible Net Worth shall not be
less than $16,500,000, plus the Net Income Adjustment.”

 

7

 

ARTICLE III

 

Waiver

 

Section 3.01.                             Waiver. The Lender hereby permanently waives the Covenant Violation, as
defined in that certain Limited Waiver Agreement dated as of October 11, 2007,
by and between the Lender and the Borrowers and amended by that certain Letter
Agreement dated as of November 9, 2007, by and between the Lender and the
Borrowers and further amended by that certain Letter Extension Agreement dated
as of November 15, 2007, by and between the Lender and the Borrowers, and
agrees not to exercise any default, rights or remedies available as a result of
the occurrence thereof so long as no new Default or Event of Default occurs and
is continuing.

 

Section 3.02.                             Limitation of Waiver. The waiver granted in Section 3.01
of this Amendment shall be limited strictly as written and shall not be deemed
to constitute a waiver of, or any consent to noncompliance with, any term or
provision of this Amendment, the Credit Agreement or any other Loan Document
except as expressly set forth herein. Further, the waiver granted in Section
3.01 of this Amendment shall not constitute a waiver of any Default or Event
of Default arising as a result of any future violation of any term or provision
of the Credit Agreement, or any rights or remedies as a result of an Event of
Default, or the violation of any other term or provision of this Amendment.

 

ARTICLE IV

 

Amendment Fee

 

Section 4.01.                             Amendment Fee. In connection with the preparation,
negotiation and execution of this Amendment, the Borrowers shall pay to the
Lender an amendment fee (the “Amendment Fee”)
in the amount of Fifty Thousand Dollars ($50,000), which, at the Lender’s
option, may be charged as an advance and a Revolving Loan under the Agreement,
and which fee is fully earned and payable as of the Amendment Date.

 

ARTICLE V

 

Management Consultant

 

Section 5.01.                             Management Consultant. On or before November 30, 2007, the
Borrowers will employ the services of an outside management consultant to
review and report in writing on a turnaround plan. A copy of the written report
will be promptly delivered to the Lender. Such outside management consultant
shall be selected by the Borrowers but shall be reasonably acceptable to the
Lender and shall be continually employed by the Borrowers until the Lender and
the Borrowers mutually agree that the services of a management consultant are
no longer needed.

 

ARTICLE VI

 

Conditions Precedent

 

Section 6.01.                             Conditions Precedent. This Amendment shall not be binding upon
the Lender until each of the following conditions precedent have been satisfied
in form and substance satisfactory to the Lender:

 

8

 

(i)                                     The representations and warranties contained
herein and in the Agreement, as amended hereby, shall be true and correct in
all material respects as of the date hereof as if made on the date hereof,
except for such representations and warranties limited by their terms to a
specific date;

 

(ii)                                  The Borrowers shall have delivered to the
Lender an executed original copy of this Amendment;

 

(iii)                               The Borrowers shall have delivered to the
Lender executed original copies of each of the Consents and Reaffirmations
attached to this Amendment;

 

(iv)                              The Borrowers shall have paid to the Lender
the Amendment Fee and all other fees, costs, and expenses owed to and/or
incurred by the Lender in connection with this Amendment;

 

(v)                                 No Default or Event of Default shall have
occurred and be continuing; and

 

(vi)                              All proceedings taken in connection with the
transactions contemplated by this Amendment and all documentation and other
legal matters incident thereto shall be satisfactory to the Lender in its sole
and absolute discretion.

 

ARTICLE VII

 

Miscellaneous

 

Section 7.01.                             Acknowledgment. Each Borrower hereby represents and
warrants that the execution and delivery of this Amendment and compliance by
such Borrower with all of the provisions of this Amendment:  (a) are within its powers and purposes; (b)
have been duly authorized or approved by such Borrower; and (c) when executed
and delivered by or on behalf of such Borrower, will constitute valid and
binding obligations of the Borrower, enforceable in accordance with their terms.
Each Borrower reaffirms its obligation to pay all amounts due the Lender under
the Loan Documents in accordance with the terms thereof, as modified hereby.

 

Section 7.02.                             Loan Documents Unmodified. Except as otherwise specifically modified
by this Amendment, all terms and provisions of the Agreement and all other Loan
Documents, as modified hereby, shall remain in full force and effect. Nothing
contained in this Amendment shall in any way impair the validity or
enforceability of the Loan Documents, as modified hereby or alter, waive,
annul, vary, affect, or impair any provisions, conditions, or covenants
contained therein or any rights, powers, or remedies granted therein. Any lien
and/or security interest granted to the Lender in the Collateral set forth in
the Agreement or any other Loan Document is and shall remain unchanged and in
full force and effect and the Agreement and the other Loan Documents shall
continue to secure the payment and performance of all of the Obligations
thereunder, as modified hereby, and the Borrowers’ obligations hereunder.

 

Section 7.03.                             Parties, Successors and Assigns. This Amendment shall be binding upon and
shall inure to the benefit of each of the Borrowers, the Lender, and their
respective successors and assigns.

 

Section 7.04.                             Counterparts. This Amendment may be executed in one or
more counterparts, each of which when so executed shall be deemed to be an
original, but all of which, when taken together shall constitute one and the
same instrument. A facsimile signature shall be deemed effective as an
original.

 

9

 

Section 7.05.                             Headings. The headings, captions and arrangements used in this Amendment are
for convenience only and shall not affect the interpretation of this Amendment.

 

Section 7.06.                             Expenses of the Lender. The Borrowers agree to pay on demand
(a) all reasonable costs and expenses incurred by the Lender in connection
with the preparation, negotiation and execution of this Amendment and the other
Loan Documents executed pursuant hereto and any and all subsequent amendments,
modifications, and supplements hereto or thereto, including, without
limitation, the costs and fees of the Lender’s legal counsel and the allocated
cost of staff counsel, and (b) all costs and expenses reasonably incurred by
the Lender in connection with the enforcement or preservation of any rights
under the Agreement, this Amendment and/or other Loan Documents, including,
without limitation, the reasonable costs and fees of the Lender’s legal
counsel, the allocated cost of staff counsel, and the costs and fees associated
with any environmental due diligence conducted in relation hereto.

 

Section 7.07.                             Total Agreement. This Amendment, the Agreement, and all
other Loan Documents shall constitute the entire agreement between the parties
relating to the subject matter hereof, and shall rescind all prior agreements
and understandings between the parties hereto relating to the subject matter
hereof, and shall not be changed or terminated orally.

 

Section 7.08.                             WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE
LAW, EACH OF THE BORROWERS AND THE LENDER IRREVOCABLY WAIVE THEIR RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF OR RELATED TO THIS AMENDMENT, THE AGREEMENT, THE OTHER LOAN DOCUMENTS,
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING
OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR ANY LENDER-RELATED PERSON OR PARTICIPANT, WHETHER WITH RESPECT TO
CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. WITHOUT LIMITING THE APPLICABILITY
OF ANY OTHER PROVISION OF THE AGREEMENT, THE TERMS OF SECTION 12.3 OF
THE AGREEMENT SHALL APPLY TO THIS AMENDMENT.

 

Section 7.09.                             RELEASE. THE BORROWERS EACH HEREBY REPRESENT AND WARRANT THAT AS OF THE DATE
OF THIS AMENDMENT THERE ARE NO CLAIMS OR OFFSETS AGAINST OR DEFENSES OR
COUNTERCLAIMS TO THE BORROWERS’ OBLIGATIONS UNDER THE AGREEMENT OR ANY OTHER
LOAN DOCUMENT, INCLUDING THIS AMENDMENT. THE BORROWERS WAIVE AND RELEASE ANY
AND ALL SUCH CLAIMS, OFFSETS, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR
UNKNOWN, ARISING PRIOR TO THE DATE OF THIS AMENDMENT.

 

THE BORROWERS INTEND THE
ABOVE RELEASE TO COVER, ENCOMPASS, RELEASE, AND EXTINGUISH, INTER ALIA, ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION THAT
MIGHT OTHERWISE BE RESERVED BY THE CALIFORNIA CIVIL CODE SECTION 1542, WHICH
PROVIDES AS FOLLOWS:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.”

 

THE BORROWERS ACKNOWLEDGE
THAT THEY MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO THOSE
NOW KNOWN OR BELIEVED TO BE TRUE WITH RESPECT TO SUCH CLAIMS, DEMANDS, OR
CAUSES OF ACTION, AND AGREE THAT THIS AMENDMENT AND THE ABOVE RELEASE ARE AND
WILL REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING ANY SUCH DIFFERENCES OR
ADDITIONAL FACTS.

 

[Signature
Pages Follow]

 

10

 

IN
WITNESS WHEREOF, the parties have executed and delivered this Amendment as of
the day and year first above written.

 

	
   

  	
   

  	
  “BORROWERS”:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MEADE
  INSTRUMENTS CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SIMMONS
  OUTDOOR CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CORONADO
  INSTRUMENTS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “LENDER”:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT M. DALTON

  
	
   

  	
   

  	
  Name:

  	
  Robert M. Dalton

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

CONSENTS AND REAFFIRMATIONS

 

Each
of MEADE INSTRUMENTS EUROPE CORP., a California corporation, and MEADE
INSTRUMENTS HOLDINGS CORP., a California corporation, hereby acknowledges the
execution of, and consents to, the terms and conditions of that Twelfth
Amendment to Amended and Restated Credit Agreement dated as of November 16,
2007, among MEADE INSTRUMENTS CORP., SIMMONS OUTDOOR CORP., CORONADO
INSTRUMENTS, INC. and BANK OF AMERICA, N.A. (the “Creditor”),
and reaffirms its obligations under (a) that certain Continuing Guaranty (the “Guaranty”) dated as of September 24, 2001, made by the
undersigned in favor of the Creditor, and (b) that certain Security
Agreement (the “Security Agreement”) dated as of
September, 2001, by and between the undersigned and the Creditor. Each of the
undersigned acknowledges and agrees that each of the Guaranty and the Security
Agreement remain in full force and effect and are hereby ratified and confirmed.

 

 

Dated as of November 16,
2007.

 

	
   

  	
  MEADE INSTRUMENTS EUROPE CORP.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MEADE INSTRUMENTS HOLDINGS CORP.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
  Chief Financial Officer

  

 

 

CONSENTS AND REAFFIRMATIONS

 

Each
of MTSC HOLDINGS, INC., a California corporation (“MTSC”),
MC HOLDINGS, INC., a California corporation (“MC HOLDINGS”),
and MEADE CORONADO HOLDINGS CORP., a California corporation (“MCHC”), hereby acknowledges the execution of, and consents
to, the terms and conditions of that Twelfth Amendment to Amended and Restated
Credit Agreement dated as of November 16, 2007, among MEADE INSTRUMENTS CORP.,
SIMMONS OUTDOOR CORP., CORONADO INSTRUMENTS, INC. and BANK OF AMERICA, N.A. (“Creditor”), and reaffirms its obligations under that certain
Continuing Guaranty (the “Guaranty”)
dated as of September 24, 2001 executed in favor of the Creditor and joined by
each of the undersigned pursuant to an Instrument of Joinder, dated as of (i)
October 25, 2002 with respect to MTSC and MC HOLDINGS, and (ii) December 1,
2004 with respect to MCHC (respectively, the “Instrument”).
Each of the undersigned acknowledges and agrees that each of the Guaranty and
Instrument remain in full force and effect and are hereby ratified and
confirmed.

 

 

Dated as of November 16,
2007.

 

 

	
   

  	
  MTSC HOLDINGS, INC.,

  
	
   

  	
  a California corporation,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MC HOLDINGS, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MEADE CORONADO HOLDINGS CORP.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL E. ROSS

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Finance and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

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