Document:

Exhibit 10.1

 

FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

This FIRST AMENDMENT TO
CREDIT AGREEMENT AND WAIVER dated as of July 9, 2015 (this “Amendment”), among Elephant
Talk Europe Holding B.V., a besloten vennootschap met beperkte annsprakelijkheid organized under the laws of
the Netherlands (the “Borrower”), Elephant Talk Communications
Corp., a Delaware corporation (the “Parent”), Elephant
Talk North America Corp., a Delaware corporation (“ET North America”), Elephant
Talk Group International B.V., a a besloten vennootschap met beperkte annsprakelijkheid organized under the laws
of the Netherlands (“ET Group Netherlands”, and collectively with Parent and ET North America, the “Guarantors”,
and each individually, a “Guarantor”, collectively with the Borrower, the “Credit Parties”,
and each individually, a “Credit Party”), Corbin Mezzanine
Fund I, L.P., as sole existing lender (“Corbin”) and ATALAYA
ADMINISTRATIVE LLC, as administrative agent and collateral agent for the Lenders under the Credit Agreement described
below (in such capacity, together with its successors and assigns, the “Administrative Agent”).

 

WHEREAS, the Credit Party
have entered into a Credit Agreement dated as of November 17, 2014 with Corbin, such other financial institutions that may from
time to time become party thereto (collectively with Corbin, the “Lenders”, and each individually, a
“Lender”) and the Administrative Agent (as so amended and as the same may be further amended or supplemented
from time to time, the “Credit Agreement”), pursuant to which the Lenders agreed, subject to the terms and conditions
set forth therein, to make certain loans to the Borrower;

 

WHEREAS, the Borrower has
informed the Administrative Agent that, as of the date hereof, certain Events of Default have occurred and are continuing under
the Credit Agreement, including, without limitation, the termination of the Iusacell Agreement which constitutes an Event of Default
under Section 10.01(o) of the Agreement (collectively, the “Existing Events of Default”);

 

WHEREAS, none of the Existing
Events of Default have been cured and all of the Existing Events of Default are continuing;

 

WHEREAS, the Borrower has
requested that the Administrative Agent and the Lenders enter into this Amendment to (a) waive the Existing Events of Default and
(b) amend the Credit Agreement to among other things, modify certain terms and conditions as more particularly set forth herein;

 

WHEREAS, the Lenders and
the Administrative Agent have agreed to waive the Existing Events of Default and to make the foregoing amendments to the Credit
Agreement as more particularly set forth herein, subject to the terms and conditions sets forth herein;

 

NOW, THEREFORE, in consideration
of the promises and the mutual agreements contained in this Amendment, the Credit Parties, the Lenders party hereto and the Administrative
Agent hereby agree as follows:

 

1.           Capitalized
Terms. Capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement.

 

    	 

    	 

    

 

2.           Amendments
to Credit Agreement. Subject to the satisfaction of the conditions precedent set forth in Section 6 below and in reliance
on the representations and warranties set forth in Section 4 and the acknowledgments set forth in Section 5, the
Credit Agreement is hereby amended as follows:

 

(a)          Amendment
to Section 1.01 of the Credit Agreement. Section 1.01 of the Credit Agreement is hereby amended as follows:

 

(i)          Section
1.1 of the Credit Agreement is hereby amended by deleting the definitions of “Applicable Margin”, “Prepayment
Premium” and “Warrants” in their entirety and substituting the following therefor:

 

“Applicable
Margin” shall mean a percentage per annum equal to eleven percent (11.00%), provided, however that:

 

(a)          in
the event that either (i) Adjusted EBITDA for the Consolidated Companies for the Test Period ending on December 31, 2015, as reflected
in the annual financial statements and Compliance Certificate delivered pursuant to Sections 8.01(c) and (d) exceeds
$9,973,000 or (ii) the Borrower receives Net Equity Proceeds (other than as a result of an Excluded Issuance) in excess of $5,000,000
during the period from the First Amendment Closing Date through December 31, 2015 (which Net Equity Proceeds shall not be subject
to prepayment as required by Section 4.02(a)(iv)), the Applicable Margin shall be reduced by one half of one percent (0.50%)
(it being understood that the Applicable Margin shall not be reduced by more than 0.50% pursuant to this clause (a)); and

 

(b)          in
the event that Adjusted EBITDA for the Consolidated Companies for the Test Period ending on December 31, 2016, as reflected in
the annual financial statements and Compliance Certificate delivered pursuant to Sections 8.01(c) and (d) exceeds
$17,329,000, the Applicable Margin shall be reduced by one half of one percent (0.50%).

 

Reductions in the Applicable Margin
resulting from (x) clauses (a)(i) or (b) of this definition shall be effective as of the first day of the calendar month immediately
following delivery to the Administrative Agent of the annual financial statements and Compliance Certificate delivered pursuant
to Sections 8.01(c) and (d) reflecting the required Adjusted EBITDA and (y) clause (a)(ii) of this definition shall
be effective as of the first day of the calendar month immediately following the Borrower’s receipt of the required Net Equity
Proceeds.

 

“Prepayment
Premium”  shall mean a prepayment premium equal to: (a) two percent (2.0%) of the amount prepaid if such
prepayment occurs on or before June 30, 2016, (b) one and one-quarter percent (1.25%) of the amount prepaid if such prepayment
occurs on or after July 1, 2016 and on or before March 31, 2017, and (c) zero percent (0.0%) of the amount prepaid if such prepayment
occurs on or after April 1, 2017.

 

    	- 2 -

    	 

    

 

“Warrants”
shall mean, collectively, that certain Warrant, dated as of the Closing Date, issued by Parent to Corbin Mezzanine Fund I, L.P.
and the First Amendment Warrants.

 

(ii)         Section
1.01 of the Credit Agreement is hereby further amended by inserting the following new definitions therein in appropriate alphabetical
order:

 

“Exit
Fee” means an exit fee in the amount of $300,000.

 

“First
Amendment” means the First Amendment to Credit Agreement and Waiver dated as of the First Amendment Closing Date
among the Credit Parties, the Lenders party thereto and the Administrative Agent.

 

“First Amendment Closing
Date” means July 9, 2015.

 

“First
Amendment Warrants” shall mean the Warrants dated as of the First Amendment Closing Date issued by the Borrower to
the Lenders, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Iusacell
Settlement Agreement” shall have the meaning given to the term “Settlement Agreement” in the Iusacell
Settlement Letter Agreement.

 

“Iusacell
Settlement Letter Agreement” shall mean that certain Letter Agreement dated as of June 19, 2015 by and among Agent
and Borrower, as may be amended, restated or otherwise modified from time to time.

 

“Liquidity”
shall mean the sum, for the Consolidated Companies, of unrestricted cash and Cash Equivalents.

 

“Remaining
Settlement Proceeds” shall have the meaning given to such term in the Iusacell Settlement Letter Agreement.

 

(b)          Amendment
to Section 2.06 of the Credit Agreement. Section 2.06 of the Credit Agreement is hereby amended by amending and
restating clause (a) in its entirety to read as follows:

 

“(a)          The
Borrower agrees to pay to the Administrative Agent, for the benefit of the Lenders, on each of the dates set forth below (each
a “Term Loan Repayment Date”), the principal of the Term Loan in an amount set forth opposite such date
(each a “Term Loan Repayment Amount”) (which Term Loan Repayment Amount may be reduced as a result of,
and after giving effect to, the application of prepayments under Sections 4.01 and 4.02 in accordance with the order
of priority set forth in Section 4.01 and Section 4.02(c), as applicable).

 

	Term Loan Repayment Date	 	Term Loan Repayment Amount	 
	Each of January 1, 2016, April 1, 2016, July 1, 2016 and October 1, 2016	 	$	85,000	 
	Each of January 1, 2017, April 1, 2017, July 1, 2017 and October 1, 2017	 	$	275,000	 

 

    	- 3 -

    	 

    

 

For the avoidance
of doubt, the Administrative Agent and the Lenders agree that all Term Loan Repayment Amounts are payable without Prepayment Premium.”

 

(c)          Amendment
to Section 2.09 of the Credit Agreement. Section 2.09 of the Credit Agreement is hereby amended by amending and
restating clause (c) in its entirety to read as follows:

 

“(c)          (i)
From and after the occurrence and during the continuance of any Event of Default, upon notice by the Administrative Agent or the
Collateral Agent to the Borrower or (ii) automatically upon the Consolidated Companies’ failure to comply with the Liquidity
covenant contained in Section 9.13(c), the Borrower shall pay interest on the principal amount of all Loans and all other
unpaid Obligations, to the extent permitted by Applicable Law, at the Default Rate, which Default Rate shall accrue (x) with respect
to clause (i) above, from the date of such Event of Default (regardless of the date of notice of the imposition of the Default
Rate) until waived in writing and (y) with respect to clause (ii) above, from the last day of the calendar month for which Consolidated
Companies fail to comply with Section 9.13(c), through and including the last day of the first calendar month for which
the Consolidated Companies are in compliance with Section 9.13(c), and, in all cases, shall be payable on demand and in
cash. All such interest shall be payable on demand and in cash. Nothing in this clause (c) shall be deemed to cause a Default or
Event of Default solely as a result of the Consolidated Companies failure to comply with Section 9.13(c); provided, however,
that the failure to pay the amounts required by clause (ii) above shall constitute a Default (and, if such failure continues beyond
any applicable grace, cure or notice period, an Event of Default) pursuant to Section 10.01(a)(ii).”

 

(d)          Amendment
to Section 3.01 of the Credit Agreement. Section 3.01 of the Credit Agreement is hereby amended by (i) amending
and restating clause (b) in its entirety to read as follows and (ii) adding the following clause (c) to the end thereof:

 

“(b)          The
Borrower agrees to pay to the Administrative Agent, for the account of each Lender that holds a Term Loan, upon a prepayment of
all or a portion of such Term Loan of such Lender (other than a prepayment made pursuant to Sections 4.02(a)(iii) or 4.02(a)(v)),
and including, without limitation, upon payment of the Remaining Settlement Proceeds, the Prepayment Premium on the amount so prepaid
whether such payment is made before or after an Event of Default or an acceleration of all or any part of the Obligations.

 

(c)          The
Borrower agrees to pay to the Administrative Agent, for the account of each Lender that holds a Term Loan, upon repayment in full
of the Term Loans, the Exit Fee, whether such payment is made before or after and Event of Default or an acceleration of all or
any part of the Obligations.”

 

    	- 4 -

    	 

    

 

(e)          Amendment
to Section 9.13 of the Credit Agreement. Section 9.13 of the Credit Agreement is hereby amended and restated
in its entirety as follows:

 

“(a) Maximum
Total Leverage Ratio. The Total Leverage Ratio, as of the last day of each Test Period set forth below, to be greater than
the Total Leverage Ratio set forth below opposite such Test Period:

 

	Test Period	 	Total Leverage Ratio
	June 30, 2015	 	1.20:1.00
	September 30, 2015 and the last day of each fiscal quarter thereafter	 	1.60:1.00

 

(b)          Minimum
Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio, as of the last day of each Test Period set forth below, to be
less than the Fixed Charge Coverage Ratio set forth below opposite such Test Period:

 

	Test Period	 	Fixed Charge Coverage Ratio
	June 30, 2015	 	1.30:1.00
	September 30, 2015	 	0.50:1.00
	December 31, 2015	 	1.10:1.00
	March 31, 2016	 	1.40:1.00
	June 30, 2016	 	1.70:1.00
	September 30, 2016 and the last day of each fiscal quarter thereafter	 	2.25:1.00

 

(c)          Maximum
Consolidated Maintenance Capital Expenditures. Consolidated Maintenance Capital Expenditures, for each Test Period ending on
each date set forth below, to be greater than the amount set forth below opposite such Test Period:

 

	Test Period	 	Consolidated Maintenance

Capital Expenditures Amount
	December 31, 2015	 	$6,000,000
	December 31, 2016	 	$6,000,000
	December 31, 2017	 	$6,000,000

 

(d)          Minimum
Adjusted EBITDA. The Adjusted EBITDA, for each Test Period ending on each date set forth below, to be less than the amount
set forth below opposite such Test Period:

 

	Test Period	 	Adjusted EBITDA Amount
	June 30, 2015	 	$7,500,000
	September 30, 2015	 	$6,750,000
	December 31, 2015	 	$7,650,000
	March 31, 2016	 	$8,000,000
	June 30, 2016	 	$8,250,000
	September 30, 2016 and the last day of each fiscal quarter thereafter	 	$9,000,000

 

    	- 5 -

    	 

    

 

In addition, the Credit Parties will
not permit Adjusted EBITDA for any Test Period to be less than 75% of Adjusted EBITDA for the immediately preceding Test Period.

 

(e)          Minimum
Liquidity. As of the last day of each calendar month, commencing on July 31, 2015, the Consolidated Companies shall have Liquidity
of at least $2,000,000; provided, however, that (i) the failure of the Consolidated Companies to satisfy this Liquidity
requirement shall not alone result in a Default or Event of Default and (ii) any such failure shall be subject to Section 2.09(c).”

 

3.           Waiver
of Existing Events of Default. Subject to the satisfaction of the conditions precedent set forth in Section 6 below and in
reliance on the representations and warranties set forth in Section 4 and the acknowledgments set forth in Section 5, the Administrative
Agent and the Lenders hereby waive the Existing Events of Default. The parties hereby acknowledge and agree that the foregoing
waiver is limited to the Existing Events of Default and shall not constitute a waiver of any other presently existing or future
Default or Event of Default.

 

4.           No
Default; Representations and Warranties, Etc. Each Credit Party hereby represents, warrants, confirms and covenants that: (a)
the representations and warranties of the Credit Parties contained in Article VII of the Credit Agreement, as amended hereby,
are true and correct on and as of the date hereof and deemed to be made as of the date hereof (except to the extent that such representations
and warranties expressly relate to an earlier date, in which case, such representations were true and correct as of such date);
(b) after giving effect to this Amendment, the Credit Parties are in compliance with all of the terms and provisions set forth
in the Credit Agreement and the other Loan Documents to be observed or performed thereunder and no Default or Event of Default
has occurred and is continuing; and (c) the execution, delivery and performance by the Borrower of this Amendment, the First Amendment
Warrant Documents and all other documents, instruments and agreements executed and delivered in connection herewith or therewith,
and the consummation of the transactions contemplated hereby or thereby (i) have been duly authorized by all necessary organizational
action on the part of the Credit Parties (including any necessary shareholder consents or approvals), (ii) have not violated, conflicted
with or resulted in a default under and will not violate or conflict with or result in a default under any applicable law or regulation,
any term or provision of the organizational documents of the Credit Parties or any term or provision of any material indenture,
agreement or other instrument binding on the Credit Parties or any of its assets, (iii) do not require any consent, waiver or approval
of or by any Person which has not been obtained, and (iv) have not violated or conflicted with and will not violate or conflict
with any pre-emptive rights of any Person.

 

    	- 6 -

    	 

    

 

5.           Acknowledgment,
Ratification and Confirmation.

 

(a)          The
Borrower hereby confirms and acknowledges that, as of the date hereof and after giving effect to this Amendment, (i) the Borrower
is indebted to the Lenders for Term Loans in an aggregate outstanding principal amount equal to $6,500,000 plus accrued and unpaid
interest thereon, as provided in the Credit Agreement; and (ii) the Borrower is indebted to the Administrative Agent and the Lenders
for all accrued and unpaid fees and expenses of the Administrative Agent and the Lenders (including but not limited to, reasonable
fees and disbursements of counsel) and other Obligations, as provided in the Loan Documents.

 

(b)          Each
of the Credit Parties hereby confirms and acknowledges that, as of the date hereof (i) there exists no defense to the repayment
by each such Person of all amounts and Obligations owing under and in respect of the Credit Agreement or any of the other Loan
Documents, as amended and otherwise modified hereby, and (ii) such Person has no claim against any Lender or the Administrative
Agent in respect of any matter relating to or arising under this Amendment, the Credit Agreement or any of the other Loan Documents,
the Warrants or any of the transactions contemplated hereby or thereby.

 

(c)          The
Borrower hereby acknowledges, ratifies and confirms that it remains obligated to pay all principal, interest, fees and other amounts
owing to the Administrative Agent and the Lenders under and in respect of the Credit Agreement, as amended hereby, and the other
Loan Documents when due and payable in accordance with the terms thereof.

 

(d)          Each
of the Credit Parties confirms and acknowledges that Credit Agreement, the Security Documents and each of the other Loan Documents,
as amended and otherwise modified by the amendments and other modifications specifically provided herein, are and shall continue
to be in full force and effect and are hereby in all respects ratified and confirmed.

 

(e)          Without
limiting the generality of the foregoing clause (d), each of the Guarantors hereby acknowledges and confirms that all obligations
and liabilities of the Borrower in respect of the principal amount of the Term Loans under the Credit Agreement, as amended hereby,
including without limitation, all obligations and liabilities of the Borrower for principal in respect of the Term Loans, (whether
now outstanding or hereafter arising or incurred) constitute “Guaranteed Obligations” under and as defined in the Guaranties
and are guarantied by and entitled to the benefits of the Guaranties.

 

(f)          Each
of the Credit Parties hereby confirms and acknowledges that all obligations, liabilities and Obligations of the Borrower under
the Credit Agreement, as amended hereby, including without limitation, all obligations of the Borrower for principal, interest
and all other amounts payable in respect of the Term Loans constitute “Secured Obligations” under and as defined in
each Security Document and are secured by and entitled to the benefits of the Security Documents, and the liens and security interests
granted in favor of the Administrative Agent for the benefit of itself and the Lenders under the terms of the Security Documents
are perfected, effective, enforceable and valid and such liens and security interests are, in each case, a first priority lien
and security interest (except to the extent otherwise expressly permitted by the Loan Documents) and such liens and security interests
are hereby in all respects ratified and confirmed.

 

    	- 7 -

    	 

    

 

6.           Conditions
to this Amendment. The effectiveness of this Amendment shall be subject to the satisfaction of the following conditions precedent:

 

(a)          Counterparts
of Amendment. The Agent shall have received from each party hereto either (a) a counterpart of this Amendment signed on behalf
of such party or (b) written evidence satisfactory to the Agent (which may include telecopy or electronic mail transmission of
a signed signature page of this Amendment) that such party has signed a counterpart of this Amendment.

 

(b)          Organizational
Matters. The Administrative Agent shall have received such resolutions, certificates and other documents as the Administrative
Agent may require to evidence the authority of the Credit Parties to enter into this Amendment and the First Amendment Warrant
Documents as the Administrative Agent may request, all of which shall be satisfactory in form and substance to the Administrative
Agent.

 

(c)          First
Amendment Warrants. The Administrative Agent shall have received from each party thereto counterparts of the First Amendment
Warrants duly executed by each such party, each such document to be in form and substance satisfactory to the Administrative Agent

 

(d)          Fees
and Expenses. The Agent shall have received all fees and other amounts due and payable to the Administrative Agent and the
Lenders in connection with this Amendment, including, without limitation, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed by the Borrower hereunder or under the Credit Agreement (including without limitation, the fees and disbursements
of counsel to the Agent in connection herewith).

 

(e)          Release
of Remaining Settlement Amount. The Remaining Settlement Amount shall, simultaneously with the effectiveness of this Amendment,
be released from the Administrative Agent and paid into an account of the Credit Parties which is subject to a Control Agreement.

 

(f)          Other
Documents. The Administrative Agent shall have received such other documents as the Administrative Agent shall have reasonably
requested, all of which shall be satisfactory in form and substance to the Administrative Agent.

 

    	- 8 -

    	 

    

 

7.           RELEASE.
EACH OF THE CREDIT PARTIES HEREBY ACKNOWLEDGES AND CONFIRMS THAT (A) IT DOES NOT HAVE ANY GROUNDS, AND HEREBY AGREES NOT TO CHALLENGE
(OR TO ALLEGE OR TO PURSUE ANY MATTER, CAUSE OR CLAIM ARISING UNDER OR WITH RESPECT TO), IN ANY CASE BASED UPON ACTS OR OMISSIONS
OF THE ADMINISTRATIVE AGENT OR ANY LENDER, THE EFFECTIVENESS, GENUINENESS, VALIDITY, COLLECTIBILITY OR ENFORCEABILITY OF THIS AMENDMENT,
THE CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS, THE LIENS SECURING SUCH OBLIGATIONS, OR ANY OF THE TERMS
OR CONDITIONS OF ANY LOAN DOCUMENT AND (B) IT DOES NOT POSSESS (AND HEREBY FOREVER WAIVES, REMISES, RELEASES, DISCHARGES AND HOLDS
HARMLESS THE ADMINISTRATIVE AGENT, EACH LENDER AND THEIR RESPECTIVE AFFILIATES, STOCKHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS,
AGENTS AND REPRESENTATIVES AND EACH OF THEIR RESPECTIVE HEIRS, EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS (COLLECTIVELY,
THE "INDEMNIFIED PARTIES") FROM AND AGAINST, AND AGREES NOT TO ALLEGE OR PURSUE) ANY ACTION, CAUSE OF ACTION,
SUIT, DEBT, CLAIM, COUNTERCLAIM, CROSS-CLAIM, DEMAND, DEFENSE, OFFSET, OPPOSITION, DEMAND AND OTHER RIGHT OF ACTION WHATSOEVER,
WHETHER IN LAW, EQUITY OR OTHERWISE (WHICH IT, ALL THOSE CLAIMING BY, THROUGH OR UNDER IT, OR ITS SUCCESSORS OR ASSIGNS, HAVE OR
MAY HAVE) AGAINST THE INDEMNIFIED PARTIES, OR ANY OF THEM, BY REASON OF, ANY MATTER, CAUSE OR THING WHATSOEVER, WITH RESPECT TO
EVENTS OR OMISSIONS OCCURRING OR ARISING ON OR PRIOR TO THE DATE HEREOF AND RELATING TO THIS AMENDMENT, THE CREDIT AGREEMENT OR
ANY OF THE OTHER LOAN DOCUMENTS (INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO THE PAYMENT, PERFORMANCE, VALIDITY OR ENFORCEABILITY
OF THE OBLIGATIONS, THE LIENS SECURING THE OBLIGATIONS OR ANY OR ALL OF THE TERMS OR CONDITIONS OF ANY LOAN DOCUMENT) OR ANY TRANSACTION
RELATING THERETO.

 

8.           Miscellaneous.

 

(a)          Except
as otherwise expressly set forth herein, nothing herein shall be deemed to constitute an amendment, modification or waiver of any
of the provisions of the Credit Agreement or the other Loan Documents, all of which remain in full force and effect as of the date
hereof and are hereby ratified and confirmed. The Borrower acknowledges and agrees that nothing contained herein shall be deemed
to entitle the Credit Parties to a consent to, or a waiver, amendment or modification of, any of the terms, conditions, obligations,
covenants or agreements contained in the Loan Documents in similar or different circumstances.

 

(b)          This
Amendment may be executed in any number of counterparts, each of which, when executed and delivered, shall be an original, but
all counterparts shall together constitute one instrument.

 

(c)          Whenever
the terms or sections amended hereby shall be referred to in the Credit Agreement, Loan Documents or such other documents (whether
directly or by incorporation into other defined terms), such defined terms shall be deemed to refer to those terms or sections
as amended by this Amendment.

 

(d)          This
Amendment shall be governed by the laws of the State of New York and shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

 

(e)          The
Borrower agrees to pay all reasonable expenses, including legal fees and disbursements incurred by the Administrative Agent in
connection with this Amendment and the transactions contemplated hereby.

 

[Remainder of page intentionally left blank]

 

    	- 9 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this Amendment which shall be deemed to be a sealed instrument as of the date first above written.

 

	 	BORROWER:
	 	 
	 	ELEPHANT TALK EUROPE HOLDING B.V.
	 	 	 
	 	By:	/s/Alex Vermeulun
	 	 	Name: Alex Vermeulun
	 	 	Title: Director
	 	 	 
	 	GUARANTORS:
	 	 
	 	ELEPHANT TALK COMMUNICATIONS CORP.
	 	 	 
	 	By:	/s/Alex Vermeulun
	 	 	Name: Alex Vermeulun
	 	 	Title: General Counsel
	 	 	 
	 	ELEPHANT TALK NORTH AMERICA CORP.
	 	 	 
	 	By:	/s/Alex Vermeulun
	 	 	Name: Alex Vermeulun
	 	 	Title: CEO
	 	 	 
	 	ELEPHANT TALK GROUP INTERNATIONAL B.V.
	 	 	 
	 	By:	/s/Alex Vermeulun
	 	 	Name: Alex Vermeulun
	 	 	Title:  Director

 

[First Amendment to Credit
Agreement and Waiver]

 

    	 

    	 

    

 

	 	ADMINISTRATIVE AGENT AND COLLATERAL AGENT:
	 	 
	 	ATALAYA ADMINISTRATIVE LLC
	 	 	 
	 	By:	/s/Michael Bogdan
	 	 	Name: Michael Bogdan
	 	 	Title: Authorized Signatory
	 	 	 
	 	LENDERS:
	 	 
	 	CORBIN MEZZANINE FUND I, L.P.
	 	 	 
	 	By:  	Corbin Capital Partners Management, LLC,
	 	 	its General Partner
	 	 	 
	 	By:	/s/ Anthony Anselmo
	 	 	Name: Anthony Anselmo
	 	 	Title: COO

 

[First Amendment to Credit
Agreement and Waiver]ex10-1.htm

Exhibit 10.1

 

 

OPTICAL CABLE CORPORATION

10b5-1 REPURCHASE AGREEMENT

 

This 10b5-1 Repurchase Agreement (this “Repurchase Agreement”) is dated as of July 14, 2015, between Optical Cable Corporation, a Virginia corporation (the “Company”), and BB&T Capital Markets, a division of BB&T Securities, LLC. (“Broker”).

 

WHEREAS, the Company desires to repurchase shares of its common stock (the “Stock”) in the open market and in private transactions; and

 

WHEREAS, the Company desires to engage the Broker to effect repurchases of shares of Stock in accordance with this Repurchase Agreement;

 

NOW, THEREFORE, the Company and the Broker hereby agree as follows:

 

	
1.
	
Repurchases

 

A. Subject to the Company’s continued compliance with Section 2 hereof, the Broker shall (i) effect a purchase or purchases (each, a “Purchase”) of up to 400,000 shares of the Stock (the “Total Plan Shares”) as set forth in Attachment 1, and (ii) effect each Purchase in accordance with the trade parameters and trade order set forth in Attachment 1. 

 

Attachment 1 may be amended from time to time by Company with any such amendment being effective as soon as possible immediately following receipt by Broker, but in no event later than the next business day. Any such amendment shall be delivered by email or by fax from the President, Chief Financial Officer or any employee designated by either to Broker. If delivered by fax, such fax shall be transmitted to (804-649-0597), Attention: Reid Burford. If delivered by email, such email shall be delivered to rburford@bbandtcm.com.

 

B. Purchases shall be made in the open market. The Broker shall comply with all applicable requirements of Rule 10b-18 promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), specifically the requirements of paragraphs (b)(2), (b)(3) and (b)(4) of Rule 10b-18 under the Exchange Act, in connection with Purchases of Stock in the open market pursuant to this Repurchase Agreement. The Company agrees not to take any action that would cause Purchases not to comply with Rule 10b-18, Rule 10b5-1 or Regulation M.

 

	
2.
	
Commission and Fees

 

The Company shall pay to the Broker a commission of $.02 cents per share of Stock repurchased pursuant to this Repurchase Agreement. In addition, the Company shall pay to the Broker the DWAC fee for the transfer agent. In accordance with the Broker’s customary procedures, the Broker will deposit shares of Stock purchased hereunder into an account established by the Broker for the Company against payment to the Broker of the purchase price therefor and commissions and other amounts in respect thereof payable pursuant to this Section. The Company will be notified of all transactions pursuant to customary trade confirmations.

 

	
3.
	
Term of the Repurchase Agreement

 

A. This Repurchase Agreement shall become effective immediately and shall terminate upon the first to occur of the following:

 

	 	
(i)
	
the ending of the Trading Period, if any, as set forth in Attachment 1;

	 	 	 
	 	(ii)   	the purchase of the number of Total Plan Shares pursuant to this Repurchase Agreement;
	 	 	 
	 	(iii)	the end of the second business day following the date of receipt by the Broker of notice of early termination signed by the Company’s President or Chief Financial Officer, delivered to the Broker by fax, transmitted to (804-649-0597), Attention: Reid Burford;
	 	 	 
	 	(iv)    	the commencement of any voluntary or involuntary case or other proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or similar law or seeking the appointment of a trustee, receiver or other similar official, or the taking of any corporate action by the Company to authorize or commence any of the foregoing;

 

 

 

 

 

	 	(v)  	the public announcement of a tender or exchange offer for the Stock or of a merger, acquisition, recapitalization or other similar business combination or transaction as a result of which the Stock would be exchanged for or converted into cash, securities or other property; or
	 	 	 
	 	(vi) 	the failure of the Company to comply with Section 2 hereof.

 

B. Sections 2 and 13 of this Repurchase Agreement shall survive any termination hereof. In addition, the Company’s obligation under Section 2 hereof in respect of any shares of Stock purchased prior to any termination hereof shall survive any termination hereof.

 

	
4.
	
Market Disruptions and Restrictions

 

The Company understands that the Broker may not be able to effect a Purchase due to a market disruption or a legal, regulatory or contractual restriction or internal policy applicable to the Broker or otherwise. If any Purchase cannot be executed as required by Section 1 due to a market disruption, a legal, regulatory or contractual restriction or internal policy applicable to the Broker or any other event, such Purchase shall be cancelled and shall not be effected pursuant to this Repurchase Agreement.

 

	
5.
	
Representations of Company

 

The Company represents and warrants, on the date hereof and on the date of any amendment hereto, that:

 

A. it is not aware of material, nonpublic information with respect to the Company or any securities of the Company (including the Stock);

 

B. it is entering into or amending, as the case may be, this Repurchase Agreement in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act or other applicable securities laws; and

 

C. its execution of this Repurchase Agreement or amendment hereto, as the case may be, and the Purchases contemplated hereby do not and will not violate or conflict with the Company’s certificate of incorporation or bylaws or, if applicable, any similar constituent document, or any law, rule, regulation or agreement binding on or applicable to the Company or any of its subsidiaries or any of its or of their property or assets.

 

	
6.
	
Rules 10b5-1 and 10b-18

 

It is the intent of the parties that this Repurchase Agreement comply with the requirements of Rule 10b5-1(c)(1)(i)(B) and Rule 10b-18 under the Exchange Act, and this Repurchase Agreement shall be interpreted to comply with the requirements thereof.

 

	
7.
	
Notification and Indemnification

 

The Company shall, on the business day prior to the intended date of such purchase, notify the Broker of the intention on the part of any affiliated purchaser, as defined in Rule 10b-18, of the Company to purchase the Stock on any day if such purchase is to be effected otherwise than through the Broker pursuant to this Repurchase Agreement and the Broker shall refrain from purchasing any Stock hereunder on the day following receipt of such notice. The Company shall be solely responsible for any purchases made by the Broker as the Company’s agent prior to the Broker’s receipt of such written notice. Notwithstanding the foregoing, if the Broker receives such notice, the Broker may nevertheless be entitled to make, and the Company shall be solely responsible for, a purchase hereunder pursuant to a bid made before such notice is received by the Broker. The Company shall be solely responsible for notifying the Broker of any purchases of the Stock by any such affiliated purchaser, and, without limiting the generality of Section 14 hereof, the Company agrees to indemnify and hold harmless the Broker for any failure to so notify the Broker or any error in any such notification. The Company also acknowledges that any action that it takes that causes or influences any such affiliated purchaser to purchase the Stock may cause the Daily Share Purchase Amount to be reduced.

 

 

 

 

 

	
8.
	
Exclusive Agreement

 

At the time of the Company’s execution of this Repurchase Agreement, the Company has not entered into a similar agreement with respect to the Stock. The Company agrees not to enter into any such agreement while this Repurchase Agreement remains in effect.

 

	
9.
	
Compliance

 

Except as specifically contemplated hereby, the Company shall be solely responsible for compliance with all statutes, rules and regulations applicable to the Company and the transactions contemplated hereby, including, without limitation, reporting and filing requirements.

 

	
10.
	
Applicable Law

 

This Repurchase Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia (without regard to its conflicts of laws provisions), and may be modified or amended only by a writing signed by the parties hereto.

 

	
11.
	
Authorization of Program

 

The Company represents and warrants that the transactions contemplated hereby are consistent with the Company’s publicly announced stock repurchase program (“Program”) and said Program has been duly authorized by the Company’s Board of Directors.

 

	
12.
	
Stock Splits

 

The number of Total Plan Shares, other share amounts and prices, if applicable, set forth in section 1(a) shall be adjusted automatically on a proportionate basis to take into account any stock split, reverse stock split or stock dividend with respect to the Stock or any change in capitalization with respect to the Company that occurs during the term of this Repurchase Agreement. 

 

	
13.
	
Authority; Influence and Control

 

Except as contemplated by Section 1.A. and Section 3.A. iii. of this Repurchase Agreement, the Company acknowledges and agrees that it will have limited authority, influence or control over any Purchase effected by the Broker pursuant to this Repurchase Agreement and the Company will not attempt to exercise any authority, influence or control over Purchases. The Broker agrees not to seek advice from the Company with respect to the manner in which it effects Purchases under this Repurchase Agreement.

 

	
14.
	
Indemnification

 

The Company agrees to indemnify and hold harmless the Broker and its affiliates and their officers, directors, employees and representatives against any loss, claim, damage or liability, including legal fees and expenses, arising out of any action or proceeding relating to this Repurchase Agreement or any Purchase, except to the extent that any such loss, claim, damage or liability is determined in a non-appealable determination of a court of competent jurisdiction to be solely the result of the indemnified person’s willful misconduct or gross negligence.

 

 

 

 

 

	
15.
	
Counterparts

 

This Repurchase Agreement may be executed in any number of counterparts, all of which, taken together, shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the undersigned have signed this Repurchase Agreement as of the date first written above.

 

	  	  	  	  	  	  	  	  	  
	
BB&T Capital Markets,

a division of BB&T Securities, LLC
	
 
	  	
 
	
Optical Cable Corporation

	  	  	  
	
 /s/ Reid Burford
	
 
	  	
 
	
 /s/ Tracy G. Smith

	
By:
	
 
	
Reid Burford
	
 
	  	
 
	
By:
	
 
	
Tracy G. Smith

	
Its:
	
 
	
Managing Director, Corporate Equity Services
	
 
	  	
 
	
Its:
	
 
	
Senior Vice President and Chief Financial Officer

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