Document:

ex10-1.htm

Exhibit 10.1

 

  

SEVENTH AMENDMENT 

TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

 

THIS SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this “Amendment”), is entered into as of October 6, 2015, by and among SPEED COMMERCE, INC., a Minnesota corporation (the “Company”), the Guarantors listed on the signature pages hereof, the Lenders (as defined in the Credit Agreement (as hereinafter defined)) listed on the signature pages hereof, and GARRISON LOAN AGENCY SERVICES LLC, (“GLAS”), as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “Administrative Agent”) and GLAS, as collateral agent for the Secured Parties (in such capacity, together with its successors and assigns in such capacity, the “Collateral Agent”, and together with the Administrative Agent, collectively, the “Agents” and each an “Agent”).

 

W I T N E S S E T H:

 

WHEREAS, the Company, the Guarantors, the lenders from time to time party thereto (“Lenders”) and Agents are parties to that certain Amended and Restated Credit and Guaranty Agreement dated as of November 21, 2014 (as amended by the Consent and First Amendment, dated as of April 14, 2015, the Consent and Second Amendment, dated as of May 11, 2015, the Third Amendment, dated as of June 30, 2015, the Fourth Amendment, dated as of July 2, 2015, the Fifth Amendment, dated as of July 22, 2015 and the Sixth Amendment, dated as of September 17, 2015, as amended hereby and as may be further amended, restated, supplemented or otherwise modified from time to time, after giving effect to this Amendment, the “Credit Agreement”); and

 

WHEREAS, the Agents and the Lenders agree to amend the Credit Agreement on the terms set forth herein, subject to the terms and conditions hereof.

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.     Defined Terms. Capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement.

 

2.     Amendments to Credit Agreement. Upon satisfaction of the conditions to effectiveness set forth in Section 3 below, the Credit Agreement is hereby amended as follows:

 

(a)     Section 1.1 of the Credit Agreement is hereby amended by inserting the following new definitions in their correct alphabetical order:

 

““Fifth Amendment Date Series 3 Term Loan” has the meaning set forth in Section 2.3.”

 

““Fifth Amendment Date Series 3 Term Loan Commitment” means the commitment of a Lender to make or otherwise fund a Fifth Amendment Date Series 3 Term Loan, and “Fifth Amendment Date Series 3 Term Loan Commitments” means such commitments of all such Lenders in the aggregate. The amount of each Lender’s Fifth Amendment Date Series 3 Term Loan Commitment, if any, is set forth on Appendix A, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Fifth Amendment Date Series 3 Term Loan Commitments as of the Seventh Amendment Effective Date is Three Million Dollars ($3,000,000).”

 

 

 

 

  

““Seventh Amendment” means that certain Seventh Amendment to Amended and Restated Credit and Guaranty Agreement, dated as of the Seventh Amendment Effective Date.

 

““Seventh Amendment Effective Date” means October 6, 2015.”

 

(b)     Section 1.1 of the Credit Agreement is hereby amended by amending and restating the defined term “Fifth Amendment Date Term Loan” in its entirety as follows:

 

““Fifth Amendment Date Term Loan” means any Fifth Amendment Date Series 1 Term Loan, Fifth Amendment Date Series 2 Term Loan or Fifth Amendment Date Series 3 Term Loan, and “Fifth Amendment Date Term Loans” shall mean all of the foregoing, collectively.”

 

(c)     Section 1.1 of the Credit Agreement is hereby amended by amending and restating the defined term “Fifth Amendment Date Term Loan Commitment” in its entirety as follows:

 

““Fifth Amendment Date Term Loan Commitment” means any Fifth Amendment Date Series 1 Term Loan Commitment, Fifth Amendment Date Series 2 Term Loan Commitment or Fifth Amendment Date Series 3 Term Loan Commitment, and “Fifth Amendment Date Term Loan Commitments” shall mean all of the foregoing, collectively.”

 

(d)     Section 2.3 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“2.3     Fifth Amendment Date Term Loans.

 

(a)      Fifth Amendment Date Term Loan Commitments.

 

(i)     Fifth Amendment Date Series 1 Term Loan Commitments. Subject to the terms and conditions hereof (including, without limitation, the satisfaction of only the conditions precedent set forth in Section 3.3), each Lender with a Fifth Amendment Date Series 1 Term Loan Commitment severally agrees to make, on the Fifth Amendment Effective Date, a term loan to Company in an aggregate amount not to exceed such Lender’s Fifth Amendment Date Series 1 Term Loan Commitment (each, a “Fifth Amendment Date Series 1 Term Loan”). Company may make only one borrowing under the Fifth Amendment Date Series 1 Term Loan Commitment which shall be on the Fifth Amendment Effective Date. Any amount borrowed under this Section 2.3(a)(i) and subsequently repaid or prepaid may not be reborrowed. All amounts owed hereunder with respect to the Fifth Amendment Date Series 1 Term Loans shall be paid in full no later than the Term Loan Maturity Date. Each Lender’s Fifth Amendment Date Series 1 Term Loan Commitment shall terminate immediately and without further action on the Fifth Amendment Effective Date after giving effect to the funding of such Lender’s Fifth Amendment Date Series 1 Term Loan Commitment on such date.

 

 

 

 

  

(ii)     Fifth Amendment Date Series 2 Term Loan Commitments. Subject to the terms and conditions hereof (including, without limitation, the satisfaction of only the conditions precedent set forth in Section 3.4), each Lender with a Fifth Amendment Date Series 2 Term Loan Commitment severally agrees to make, at any time during the period beginning on August 20, 2015 and ending on or prior to December 23, 2015 (the “Series 2 Availability Period”), a term loan to Company in an aggregate amount not to exceed such Lender’s Fifth Amendment Date Series 2 Term Loan Commitment (each, a “Fifth Amendment Date Series 2 Term Loan”). Company may make only one borrowing under the Fifth Amendment Date Series 2 Term Loan Commitment which shall be made during the Series 2 Availability Period. Any amount borrowed under this Section 2.3(a)(ii) and subsequently repaid or prepaid may not be reborrowed. All amounts owed hereunder with respect to the Fifth Amendment Date Series 2 Term Loans shall be paid in full no later than the Term Loan Maturity Date. Each Lender’s Fifth Amendment Date Series 2 Term Loan Commitment shall terminate immediately and without further action upon the earlier of (x) the funding of such Lender’s Fifth Amendment Date Series 2 Term Loan Commitment, or (y) 1:00 p.m. (New York City time) on December 23, 2015 to the extent that the conditions precedent to the funding of the Fifth Amendment Date Series 2 Term Loans are not satisfied as of such time.

 

(iii)     Fifth Amendment Date Series 3 Term Loan Commitments. Subject to the terms and conditions hereof (including, without limitation, the satisfaction of only the conditions precedent set forth in Section 3.5), each Lender with a Fifth Amendment Date Series 3 Term Loan Commitment severally agrees to make, at any time and from time to time during the period beginning on October 6, 2015 and ending on or prior to the Term Loan Maturity Date (the “Series 3 Availability Period”), one or more term loans to Company in an aggregate amount not to exceed such Lender’s Fifth Amendment Date Series 3 Term Loan Commitment (each, a “Fifth Amendment Date Series 3 Term Loan”). Company may make one or multiple borrowings under the Fifth Amendment Date Series 3 Term Loan Commitment which, in all cases, shall be made during the Series 3 Availability Period. Any amount borrowed under this Section 2.3(a)(iii) and subsequently repaid or prepaid may not be reborrowed. All amounts owed hereunder with respect to the Fifth Amendment Date Series 3 Term Loans shall be paid in full no later than the Term Loan Maturity Date. Each Lender’s Fifth Amendment Date Series 3 Term Loan Commitment shall terminate immediately and without further action upon the earlier of (x) the funding of the full amount of such Lender’s Fifth Amendment Date Series 3 Term Loan Commitment, or (y) 1:00 p.m. (New York City time) on the Business Day preceding the Term Loan Maturity Date to the extent that the conditions precedent to the funding of the Fifth Amendment Date Series 3 Term Loans are not satisfied as of such time.

 

(b)     Borrowing Mechanics for Fifth Amendment Date Term Loans. Each Lender shall make its Fifth Amendment Date Term Loan available to Administrative Agent not later than 12:00 p.m. (New York City time) on (i) the Fifth Amendment Effective Date, with respect to the Fifth Amendment Date Series 1 Term Loans, (ii) the date of funding (which shall be during the Series 2 Availability Period), with respect to the Fifth Amendment Date Series 2 Term Loans, and (iii) each date of funding (which shall be during the Series 3 Availability Period), with respect to each borrowing of a Fifth Amendment Date Series 3 Term Loan, in each case by wire transfer of same day funds in Dollars, at Administrative Agent’s Principal Office. Upon satisfaction or waiver of the conditions precedent specified herein, Administrative Agent shall make the proceeds of the Fifth Amendment Date Term Loans available to Company on the applicable date of funding described above by causing an amount of same day funds in Dollars equal to the proceeds of all such Fifth Amendment Date Term Loans received by Administrative Agent from Lenders to be credited to the account of Company at Administrative Agent’s Principal Office or to such other account as may be designated in writing to Administrative Agent by Company.”

 

 

 

 

  

(e)     A new Section 3.5 is hereby added as follows:

 

“3.4     Fifth Amendment Date Series 3 Term Loans. The obligation of each Lender with a Fifth Amendment Date Series 3 Term Loan Commitment to make each Fifth Amendment Date Series 3 Term Loan during the Series 3 Availability Period is subject to the satisfaction, or waiver by the Administrative Agent in its sole and absolute discretion of the following conditions on or before the requested date of funding of such Fifth Amendment Date Series 3 Term Loan:

 

(a)     Administrative Agent shall have received (i) fully executed and delivered funding request in respect of the Fifth Amendment Date Series 3 Term Loan, executed by an Authorized Officer and delivered to Administrative Agent at least two (2) Business Days prior to the last Business Day of the Series 3 Availability Period. Such request shall specify (x) the aggregate amount of Fifth Amendment Date Series 3 Term Loan requested by the Borrower, which shall be an amount not to exceed the aggregate undrawn amount of all Fifth Amendment Date Series 3 Term Loan Commitments as of the requested funding date, and (y) the requested date of funding; provided, neither Administrative Agent nor any Lender shall incur any liability to Company in acting upon any notice referred to above that Administrative Agent believes in good faith to have been given by a duly authorized officer or other person authorized on behalf of Company or for otherwise acting in good faith, and (ii) such other customary documentation in connection with the funding of such Fifth Amendment Date Series 3 Term Loan as Administrative Agent shall reasonably request;

 

(b)     as of the date of funding any Fifth Amendment Date Series 3 Term Loan, no event has occurred and is Continuing, or would result from the making of such Fifth Amendment Date Series 3 Term Loan, that would constitute a Default or an Event of Default;

 

(c)     the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects (except that any representations and warranties qualified by materiality, Material Adverse Effect, or any other threshold shall be true and correct in all respects) except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (or, with respect to any representations and warranties qualified by materiality, Material Adverse Effect, or any other threshold, true and correct in all respects) as of such earlier date;

 

 

 

 

  

(d)     since the Fifth Amendment Effective Date, no event, circumstance or change shall have occurred that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect;

 

(e)     the Company shall have paid all fees, costs and expenses of the Agents in connection with the funding of such Fifth Amendment Date Series 3 Term Loan, including, without limitation, reasonable fees, costs and expenses of Agents’ counsel; and

 

(f)     Administrative Agent, in its sole and absolute discretion, shall have approved the request for funding in respect of such Fifth Amendment Date Series 3 Term Loan. For the avoidance of doubt, Administrative Agent may approve or decline such request in its sole and absolute discretion, and if the Administrative Agent approves such request and the remaining conditions precedent set forth in this Section 3.4 are satisfied or waived, each Lender with a Fifth Amendment Date Series 3 Term Loan Commitment, severally and not jointly, agrees to fund its Fifth Amendment Date Series 3 Term Loan in accordance with this Agreement.”

 

(f)     A new table titled “Fifth Amendment Date Series 3 Term Loan Commitments” is hereby added to Appendix A to the Credit Agreement as set forth on Annex A attached hereto.

 

3.     Conditions. The effectiveness of this Amendment is subject to the following conditions:

 

(a)     the execution and delivery of this Amendment by the Company, Guarantors, Agents, and each of the Lenders;

 

(b)     the execution and delivery of that certain 5th Amended and Restated Fee Letter by and between the Company and Administrative Agent, dated as of the date hereof;

 

(c)     the truth and accuracy of the representations and warranties contained in Section 4; and

 

(d)     the Company shall have paid all fees, costs and expenses of the Agents in connection with this Amendment and all transactions contemplated hereby, including, without limitation, reasonable fees, costs and expenses of Agents’ counsel.

 

4.     Representations and Warranties. The Credit Parties hereby represent and warrant to each Agent and each Lender as follows:

 

(a)     each Credit Party is a corporation or limited liability company, as applicable, duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation;

 

(b)     each Credit Party has the power and authority to execute, deliver and perform its obligations under this Amendment;

 

(c)     the execution, delivery and performance by the Credit Parties of this Amendment has been duly authorized by all necessary action and does not and will not require any registration with, consent or approval of, notice to or action by, any Person (including any Governmental Authority);

 

 

 

 

  

(d)     this Amendment constitutes the legal, valid and binding obligation of the Credit Parties, enforceable against each Credit Party in accordance with its terms;

 

(e)     immediately before and after giving effect to this Amendment and the transactions contemplated thereby to take place on the Seventh Amendment Effective Date, no Default or Event of Default exists or shall exist;

 

(f)     all representations and warranties contained in the Credit Agreement are true and correct as of the date hereof, except to the extent made as of a specific date, in which case each such representation and warranty is true and correct as of such date; and

 

(g)     by its signature below, each Credit Party agrees that it shall constitute an Event of Default if any representation or warranty made herein is untrue or incorrect in as of the date when made or deemed made.

 

5.     Agreement in Full Force and Effect as Amended. Except as specifically amended hereby, the Credit Agreement and the other Credit Documents shall remain in full force and effect and are hereby ratified and confirmed as so amended. Except as expressly set forth herein, this Amendment shall not be deemed to be an amendment or modification of any provisions of the Credit Agreement or any other Credit Document or any right, power or remedy of the Lenders, nor constitute a waiver of any provision of the Credit Agreement, any other Credit Document, or any other document, instrument and/or agreement executed or delivered in connection therewith or of any Default or Event of Default under any of the foregoing, in each case, whether arising before or after the date hereof or as a result of performance hereunder or thereunder. This Amendment also shall not preclude the future exercise of any right, remedy, power, or privilege available to the Lenders whether under the Credit Agreement, the other Credit Documents, at law or otherwise and nothing contained herein shall constitute a course of conduct or dealing among the parties hereto. All references to the Credit Agreement shall be deemed to mean the Credit Agreement as modified hereby. This Amendment shall not constitute a novation or satisfaction and accord of the Credit Agreement or the other Credit Documents, but shall constitute an amendment thereof. The parties hereto agree to be bound by the terms and conditions of the Credit Agreement and the Credit Documents as amended by this Amendment, as though such terms and conditions were set forth herein. Each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended by this Amendment, and each reference herein or in any other Credit Document to the “Credit Agreement” shall mean and be a reference to the Credit Agreement as amended and modified by this Amendment.

 

6.     Counterparts. This Amendment may be executed by one or more of the parties to this Amendment and any number of separate counterparts, each of which when so executed, shall be deemed an original and all said counterparts when taken together shall be deemed to constitute but one and the same instrument.

 

7.     Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of each Credit Party and its successors and assigns and Lenders and their successors and assigns.

 

8.     FATCA. Company and the Credit Parties do not believe that the amendments made pursuant to this Amendment shall be treated as a “significant modification” of the Loans under Treasury Regulation Section 1.1001-3 and as such the Loans should still constitute a grandfathered obligation for the purposes of FATCA.  From and after the date hereof, Company and the Credit Parties shall jointly and severally indemnify the Administrative Agent and Lenders, and hold them harmless from, any and all losses, claims, damages, liabilities and related expenses, including taxes and the fees, charges and disbursements of any counsel for any of the foregoing, arising in connection with the Administrative Agent’s and Lenders’ treating, for purposes of determining withholding Taxes imposed under FATCA, the Loans as modified hereby as qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

 

 

 

  

9.     Further Assurance. Each Credit Party hereby agrees from time to time, as and when requested by any Lender, to execute and deliver or cause to be executed and delivered, all such documents, instruments and agreements and to take or cause to be taken such further or other action as such Lender may reasonably deem necessary or desirable in order to carry out the intent and purposes of this Amendment, the Credit Agreement, and the Credit Documents.

 

10.     GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS.

 

11.     Severability. Wherever possible, each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

12.     Reaffirmation. Each Credit Party as debtor, grantor, pledgor, guarantor or in other any other similar capacity hereby ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Credit Documents to which it is a party. Each Credit Party hereby consents to this Amendment and acknowledges that each of the Credit Documents remains in full force and effect and is hereby ratified and reaffirmed. Except as expressly set forth herein, the execution of this Amendment shall not operate as a waiver of any right, power or remedy of the Lenders, constitute a waiver of any provision of any of the Credit Documents or serve to effect a novation of the Obligations.

 

13.     Acknowledgment of Rights; Release of Claims. Each Credit Party hereby acknowledges that: (a) it has no defenses, claims or set-offs to the enforcement by any Lender or Agent of Credit Parties’ liabilities, obligations and agreements on the date hereof; (b) to its knowledge, each Lender and Agent have fully performed all undertakings and obligations owed to it as of the date hereof; and (c) except to the limited extent expressly set forth in this Amendment, each Lender and Agent do not waive, diminish or limit any term or condition contained in the Credit Agreement or any of the other Credit Documents. Each Credit Party hereby waives, releases, remises and forever discharges the Lenders and Agents, their agents, employees, officers, directors, predecessors, attorneys and all others acting or purporting to act on behalf of or at the direction of the Lenders and Agents (“Releasees”) from any and all claims, suits, actions, investigations, proceedings or demands, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law of any kind or character, to the extent known on or prior to the date hereof, which the Company or any other Credit Party ever had or now has against the any of the Releasees which relates, directly or indirectly, to the Loans or the Credit Documents or any acts or omissions of the Releasees in respect of the Loans or the Credit Documents and arising from any event occurring on or prior to the date hereof. Without limiting the generality of the foregoing, each Credit Party waives and affirmatively agrees not to contest: (a) the right of each Agent and each Lender to exercise its rights and remedies under the Credit Agreement, this Amendment or the other Loan Documents, or (b) any provision of this Amendment.

 

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]ex10-2.htm

Exhibit 10.2

 

SECOND AMENDMENT AGREEMENT

 

THIS SECOND AMENDMENT AGREEMENT , dated effective as of October 9, 2015 (this “Second Amendment Agreement”), is by and among Speed Commerce, Inc., a Minnesota corporation (“Parent”), Navarre Distribution Services, Inc., a Minnesota limited liability company, Navarre Distribution Services, ULC, a British Columbia unlimited liability company, Navarre Online Fulfillment Services, Inc., a Minnesota corporation, Navarre Digital Services, Inc., a Minnesota corporation, Navarre Logistical Services, Inc., a Minnesota corporation, Encore Software, Inc., a Minnesota corporation, and Viva Media, Inc., a Minnesota corporation (collectively, along with Parent, “Sellers” and each individually a “Seller”); WYNIT Distribution, LLC, a New York limited liability company (“WYNIT”), WD Encore Software, LLC, a New York limited liability company, WD Navarre Digital Services, LLC, a New York limited liability company, WD Navarre Holdings, LLC, a New York limited liability company, WD Navarre Distribution, LLC, a New York limited liability company and WD Navarre Canada, ULC, an Nova Scotia unlimited liability company (collectively, along with WYNIT, “Purchasers” and each individually a “Purchaser”). Capitalized terms used in this Second Amendment Agreement but not otherwise defined herein have the meanings ascribed thereto in the Asset Purchase Agreement (as defined herein).

 

RECITALS:

 

WHEREAS, Sellers and Purchasers entered into an Asset Purchase Agreement dated as of July 9, 2014 (the “Purchase Agreement”); 

 

WHEREAS, in connection with the Purchase Agreement, Sellers and Purchasers entered into that certain Transition Services Agreement, dated July 9, 2014 (the “Transition Services Agreement”); 

 

WHEREAS, in connection with the Purchase Agreement, WYNIT made that certain Secured Promissory Note in the original principal amount of Ten Million and 00/100 Dollars ($10,000,000.00) in favor of Parent, dated July 9, 2014 (the “Note”); 

 

WHEREAS, the parties hereto entered into that certain Amendment Agreement, dated December 31, 2014 (the “Amendment Agreement”), which amended the Purchase Agreement, the Transition Services Agreement, and the Note;

 

WHEREAS, Sellers and Purchasers desire to amend certain provisions of the Transaction Documents and the Amendment Agreement pursuant to the terms and subject to the conditions set forth herein;

 

WHEREAS, pursuant to Paragraph 5 of this Second Amendment Agreement, Purchasers have agreed to release, dismiss and discharge any and all indemnification claims arising under the Transaction Documents, including but not limited to claims for indemnification under Sections 3.15, 3.14(a) and 3.18 of the Purchase Agreement totaling at least $1,367,544.53, and any other claims relating to representations and warranties under the Transaction Documents, and Purchasers acknowledge that Sellers dispute the validity of such claims; 

 

 

 

 

  

WHEREAS, Sellers acknowledge and agree that Purchasers’ release, dismissal and discharge of claims pursuant to Paragraph 5 of this Second Amendment Agreement constitutes reasonably equivalent value in exchange for the consideration being provided by Sellers pursuant to this Second Amendment Agreement and that the terms of this Second Amendment Agreement are fair and reasonable; and 

 

NOW THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

	
1.
	
Incorporation of Recitals. The recitals hereto are incorporated herein by reference. 

 

	
2.
	
Net Working Capital. Following the execution of the Amendment Agreement, the parties agreed to revise the actual Net Working Capital from negative Seven Million Thirty-One Thousand Six Hundred Sixty-Two and 69/100 Dollars (<$7,031,662.69>) to negative Eight Million Five Hundred Thousand and 00/100 Dollars (<$8,500,000>), which results in an adjustment of One Million Four Hundred Sixty-Eight Thousand, Three Hundred Thirty-Seven and 31/100 Dollars ($1,468,337.31) in favor of the Purchasers pursuant to Section 2.10(h) of the Purchase Agreement. Further, on June 30, 2015, Purchasers made a required principal payment of One Hundred Thousand, Seven Hundred and Ninety-Two Dollars and Seventy-Eight Cents ($100,792.78) against Note. To affect such adjustment as agreed by the parties in this Second Amendment Agreement, Sellers shall reduce the current principal of the Note from One Million Three Hundred Sixty-Seven Thousand, Five Hundred Forty-Four and 53/100 Dollars ($1,367,544.53) to Zero and 00/100 effective as of the date hereof. Any interest due and owing under the Note on or after the effective date of this Second Amendment Agreement shall no longer be paid or payable to Sellers and any amounts paid prior to the effective date of this Second Amendment Agreement under the Note shall be retained by Sellers and shall not be returned to Purchasers. 

 

	
3.
	
Release of Note. In connection with the foregoing, the Sellers hereby release the Purchasers from any obligations to pay any remaining amounts due under the Note and shall mark the Note “paid in full” and return the same to Purchasers within five (5) business days of the date hereof; provided, however, in the event that this Second Amendment Agreement or any of the consideration provided by Sellers herein is avoided, the release of the Note shall be ineffective and null and void, and Sellers rights to payment shall be reinstated. 

 

	
4.
	
Termination of Transition Services Agreement. Purchasers and Sellers acknowledge and agree that the Transition Services Agreement is hereby terminated and of no further force or effect.

  

 

 

 

 

	
5.
	
Release of the Sellers by the Purchasers. In consideration of the foregoing, Purchasers agree that all of the representations and warranties under the Transaction Documents and Amendment Agreement, and all time periods for asserting claims with respect thereto, shall have expired as of the date hereof, and that Purchasers shall have no right to bring any claim for indemnification under the Transaction Documents or Amendment Agreement; provided, however, in the event that this Second Amendment Agreement or any of the consideration provided by Sellers herein is avoided, Purchasers’ rights to assert any such claims shall be reinstated in full, subject to Sellers’defenses which are not and have not been waived, and all time periods for asserting such claims shall be extended to the date that is One Hundred and Twenty (120) days from the date that the Second Amendment Agreement or any of the consideration provided by Sellers herein is avoided, all subject to Sellers’ defenses. In addition, each of the Purchasers, on behalf of itself and its Affiliates, subsidiaries, parents, successors, assigns and its respective partners, members, managers, directors, officers, employees, agents and advisors (including legal counsel, accountants and financial and advisors) (collectively, the “Representatives”) of such Purchaser, hereby releases, dismisses and forever discharges each Seller along with their respective Affiliates, subsidiaries, parents, successors, assigns and its respective partners, members, managers, directors, officers, employees, agents and advisors (including legal counsel, accountants and financial and advisors) (collectively, “Seller Releasees”), from any and all claims, demands, rights, actions or causes of action, liabilities, damages, losses, obligations, judgments, suits, matters, costs, attorneys’ fees, and issues of any kind or nature whatsoever, whether known or unknown, contingent or absolute, suspected or unsuspected, disclosed or undisclosed, and whether sounding in fraud, tort, misrepresentation or breach of contract, that have been or could have been, could now be, or could in the future be, asserted, based in whole or in part on events, facts, or agreements existing as of the date of this Second Amendment Agreement (collectively, “Claims”), by any of the Purchasers or their Representatives by reason of, arising out of, relating to or in connection with any matter, fact, or thing whatsoever from the beginning of time through the date hereof, including, without limitation, any Claims arising under or relating to any representations, warranties, covenants or other obligations under the Transaction Documents and the Amendment Agreement and/or those identified in any notice, letter or other correspondence from Purchasers or its counsel; provided, however, in the event that this Second Amendment Agreement or any of the consideration provided by Sellers herein is avoided any and all Claims of the Purchasers and their Representatives released, dismissed or discharged by this Second Amendment Agreement shall no longer be deemed released. Notwithstanding the foregoing, nothing herein shall be deemed to have waived or adversely affected Sellers’ rights or Purchasers’ obligations under the Transaction Documents or Amendment Agreement or Sellers’ sale, transfer and assignment of the Purchased Assets or Sellers’ assignment of the Assumed Liabilities to Purchasers. 

 

	
6.
	
Waiver of Unknown Claims. Each of the Purchasers shall be deemed to have waived, and shall waive and relinquish to the fullest extent permitted by Legal Requirement any and all provisions, rights and benefits conferred by any Legal Requirement which governs or limits a Person’s release of unknown claims.

  

 

 

 

 

	
7.
	
Unknown Claims Released,. Each Purchaser, on behalf of itself and its Representatives, acknowledges that it may discover facts in addition to or different from those that they now know or believe to be true with respect to the subject matter of this Second Amendment Agreement, but affirms that, subject to the terms and conditions of this Second Amendment Agreement, it is its intention to fully, finally and forever settle and release any and all claims released hereby, known or unknown, suspected or unsuspected, which now exist in whole or in part, or heretofore existed, or may hereafter exist, and without regard to the subsequent discovery or existence of such additional or different facts.

 

	
8.
	
No Admission of Liability. It is expressly understood and agreed that this Amendment is not intended, nor shall it be construed by any Person to be, an admission of liability by or on behalf of any party hereto, by whom all such liability is expressly denied.

 

	
9.
	
Acknowledgment of Sellers. Sellers acknowledge that they are not currently insolvent nor will they be rendered insolvent as a result of entering into this Second Amendment Agreement, with it being understood that the term “insolvent” means either that (i) the sum of such entity’s debts exceeds the sum of its assets, at fair valuation, or (ii) the entity is unable to pay its debts as they become due.

 

	
10.
	
Effect of Second Amendment Agreement. Except for the changes specifically indicated above, no other changes are made to the Transaction Documents or Amendment Agreement, and such documents shall continue in full force in effect in accordance with their terms. Sellers and Purchasers have participated jointly in the negotiation and drafting of this Second Amendment Agreement. In the event an ambiguity or question of intent or interpretation arises, this Second Amendment Agreement shall be construed as if drafted jointly by Sellers and Purchasers and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Second Amendment Agreement.

 

	
11.
	
No Duress or Coercion. Each party hereto acknowledges and agrees that they have entered into this Second Amendment Agreement of their own free will and volition and were not coerced to do so nor under duress at the time of executing this Second Amendment Agreement. 

 

	
12.
	
Governing Law and Venue. This Second Amendment Agreement will be construed in accordance with, and governed in all respects by, the laws of the State of Delaware (without giving effect to principles of conflicts of law). Each of the Parties hereby consents to the Court of Chancery of the State of Delaware as the sole and exclusive forum for the resolution of any dispute relating to or arising out of this Second Amendment Agreement, except that, should the Court of Chancery of the State of Delaware decline jurisdiction over such dispute, each of the Parties also consents to the jurisdiction of the state and federal courts located in the State of Delaware with respect to any dispute relating to or arising out of this Amendment.

  

 

 

 

 

	
13.
	
Expenses. Each party hereto shall bear all costs and expenses incurred or to be incurred by it, him or her, as the case may be, in negotiating and preparing this Second Amendment Agreement and in closing and carrying out the transactions contemplated by this Amendment.

 

	
14.
	
Counterparts. This Second Amendment Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

 

	
15.
	
Additional Remedies. Each of the parties hereto agree that they will promptly execute and deliver all such documents and instruments as may be necessary and appropriate to effectuate the terms of this Second Amendment Agreement. The parties agree that monetary damages would be inadequate to remedy a breach of this provision and that specific performance is an appropriate remedy for the breach of this provision. 

 

	
16.
	
Illegality or Unenforceability of Provisions. In the event any one or more of the provisions contained in this Second Amendment Agreement shall for any reason be held in whole or in part to be invalid, illegal, or unenforceable in any respect, such invalid, illegal, or unenforceable term shall be ineffective and severable to the extent of such invalidity, illegality or unenforcability and the remaining provisions shall continue in full force and effect. 

 

[Signature Page to Follow]

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