Document:

Exhibit

HSBC Loan #: 11-4004213

FIRST AMENDMENT TO LOAN AGREEMENT 
AND GUARANTY OF RECOURSE CARVEOUTS
Dated as of June 21, 2017
Between
1334 YORK, LLC, as Borrower,
and
SOTHEBY’S, as Guarantor
and
HSBC BANK USA, NATIONAL ASSOCIATION, 
as Agent,
and
THE LENDERS NAMED HEREIN, 
as Lenders

		
	Location:
	1334 York Avenue, New York New York

 

USActive 37092109.8 

FIRST AMENDMENT TO LOAN AGREEMENT 
AND GUARANTY OF RECOURSE CARVEOUTS
THIS FIRST AMENDMENT TO LOAN AGREEMENT AND GUARANTY OF RECOURSE CARVEOUTS, dated as of June 21, 2017 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “First Amendment”), between 1334 YORK, LLC, a Delaware limited liability company (“Borrower”), having an address at 1334 York Avenue, New York, New York 10021, SOTHEBY’S, a Delaware corporation, having an address at 1334 York Avenue, New York, New York 10021 (“Guarantor”), and HSBC BANK USA, NATIONAL ASSOCIATION, a bank organized under the laws of the United States of America, having an address at 452 Fifth Avenue, New York, New York 10018, as administrative agent (including any of its successors and assigns, “Agent”) for itself and the other Lenders signatory hereto (collectively, together with such other co‐lenders as may exist from time to time, “Lenders”).
W I T N E S S E T H :
WHEREAS, Borrower, Agent and Lenders entered into that certain Loan Agreement, dated as of July 1, 2015 (as amended, restated, replaced, supplemented or otherwise modified from time to time the “Loan Agreement”), and Guarantor made that certain Guaranty of Recourse Carveouts for the benefit of Agent for the benefit of Lenders, dated as of July 1, 2015 (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Guaranty”).  Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Agreement; and
WHEREAS, Borrower, Agent and Lenders desire to enter into this First Amendment to amend the Loan Documents as set forth below.
NOW, THEREFORE, in consideration of the covenants set forth in this First Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree, represent and warrant as follows:
1.Amendments to Loan Agreement.  
(a)    Reduction of Net Worth Covenant.  The amount of “$425,000,000” in Section 4.1.12(d) of the Loan Agreement is hereby deleted and replaced with “$325,000,000” in such instance in such section.
(b)    Reduction of Loan Amount.  On or as of July 3, 2017, Borrower shall prepay the Loan in compliance with Section 2.5.1(b) of the Loan Agreement in an amount equal to $32,000,000.00, consisting of (a) a $25,000,000.00 cash payment by Borrower and (b) an application by Agent of $7,000,000.00 projected to be held in the Restricted Account as of July 1, 2017, together with all other costs and expenses as set forth in Section 2.5.1(b) of the Loan Agreement in connection with such prepayment, provided, however, that notwithstanding anything to the contrary set forth 

USActive 37092109.8    

in the Loan Agreement, the Agent and Lenders agree that Borrower is hereby deemed to have provided notice of all prepayments of the Loan contemplated pursuant to this Section 1(b) of this First Amendment and shall not be required to provide any notice of any additional prepayments of the Loan applied by Lender pursuant to Section 1(c) of this First Amendment.  
(c)    Commitment to Annual Prepayments.  On July 1, 2018 (or if not a Business Day, the next succeeding Business Day) and on July 1 (or, if July 1 is not a Business Day, the next succeeding Business Day) of each subsequent Fiscal Year thereafter (to the extent the Loan shall remain outstanding on any such date) (each such date, the “Pay Down Date”), Agent shall apply to the prepayment of the outstanding principal amount of the Loan any amounts then on deposit in accordance with the requirements of the Loan Documents in the Restricted Account until such time as the Loan has been prepaid by Borrower from any funds on deposit in the Restricted Account in an aggregate amount of up to, but in no event exceeding,  $25,000,000.00 on a cumulative basis when taking into account all such payments on each such Pay Down Date.
2.    Borrower Representations and Warranties.  Borrower hereby represents and warrants as of the date hereof to Agent and the Lenders that:
(a)    The outstanding principal balance of the Loan as of the date hereof is $310,957,131.00.  The outstanding principal balance of the Loan on July 3, 2017 including after giving effect to the prepayment of the Loan upon the terms set forth in  Section 1(b) above will be $278,301,634.00.
(b)    Borrower has no claims, counterclaims, defenses or set-offs with respect to the Loan or the Loan Documents, as modified by this First Amendment.
(c)    Each and all representations and warranties of Borrower in the Loan Documents are true and correct on the date hereof (after giving effect to this First Amendment) except to the extent (x) any such representation and warranty is by its terms expressly applicable only as of the Closing Date, including without limitation the representation and warranty with respect to the rent roll attached as Schedule 3.1.21(a) of the Loan Agreement or (y) disclosed to Agent in writing on or prior to the date hereof.
(d)    Borrower acknowledges that the initial Amortization Schedule attached to the Loan Agreement as Schedule 2.4.1 remains in full force and effect with respect to the monthly principal payments set forth thereon; provided, however, that (i) the final repayment of the principal balance of the Loan due to Lenders shall be the actual outstanding principal balance of the Loan as of such date after taking into account the aggregate amount of (A) all prepayments of the principal balance of the Loan made by Borrower as of such date and (B) all scheduled payments of principal made by Borrower on each monthly Payment Date in accordance with the Amortization Schedule as of such date and (ii) the amounts set forth in the columns entitled “Starting Principal Balance” and “Ending Principal Balance” on the initial Amortization Schedule shall no longer be applicable  and instead, the principal balance of the Loan on any date shall be an amount equal to the principal balance set forth in such columns on the initial Amortization Schedule reduced by the aggregate amount of all prepayments of the principal amount of the Loan made by Borrower as of such date.  

USActive 37092109.8    -2-

For the avoidance of doubt, Agent and Lenders acknowledge that interest payable on the Loan pursuant to the terms of the Loan Documents at any time while the Loan is outstanding shall be payable on the outstanding principal balance of the Loan on the applicable date of determination in accordance with the terms of Section 2.2.1 of the Loan Agreement.
(e)    Agent and Lenders acknowledge and agree that, notwithstanding anything to the contrary set forth in Section 4.1.15 of the Loan Agreement, Borrower is hereby permitted to modify, amend or supplement the terms of any Interest Rate Protection Agreement entered into by Borrower in accordance with the terms of the Loan Documents, if and to the extent required to reflect any principal prepayment of the Loan made by Borrower in accordance with the terms of the Loan Documents, including the principal prepayments of the Loan made in accordance with this First Amendment.
(f)    Borrower is validly existing under the laws of the State of Delaware and has the requisite power and authority to execute and deliver this First Amendment and to perform the Loan Documents, as applicable, as amended by this First Amendment.  The execution and delivery of this First Amendment and the performance of the Loan Documents, as applicable, as modified by this First Amendment, have been duly authorized by all requisite action by or on behalf of Borrower.  This First Amendment has been duly executed and delivered on behalf of Borrower.
(g)    No consent, approval, authorization or order of any court or Governmental Authority or other Person is required for the execution, delivery and performance by Borrower of, or compliance by Borrower with, this First Amendment or the other Loan Documents or the consummation of the transactions contemplated hereby and thereby, other than those which have been or will be obtained by Borrower.
3.    Amendment to Guaranty.  The amount of “$425,000,000” in the definition of “Required Minimum Net Worth” in Section 1.2 of the Guaranty is hereby deleted and replaced with “$325,000,000” in such instance in such section. 
4.    Reaffirmation of Guaranty and Environmental Indemnity.  In connection with this First Amendment, Guarantor hereby: 
(a)    Consents to and acknowledges this First Amendment and the modifications and transactions contemplated hereby and acknowledges and agrees that neither this First Amendment nor any documents entered into in connection with this First Amendment shall (i) constitute, or be deemed to constitute, a novation, release, waiver or satisfaction of Guarantor’s obligations under the Guaranty, the Environmental Indemnity or any other Loan Documents or (ii) impair, reduce or otherwise affect the nature of the obligations of Guarantor under the Guaranty, except as specifically provided in Section 3 of this First Amendment, or the Environmental Indemnity; and
(b)    Acknowledges that the Guaranty, as modified by this First Amendment, and the Environmental Indemnity and the obligations of Guarantor contained therein are hereby ratified and confirmed, are continuing and remain in full force and effect and constitute the valid and legally 

USActive 37092109.8    -3-

binding obligations of Guarantor, except to the extent modified pursuant to this First Amendment or any amendments to such Loan Documents entered into in connection with this First Amendment.
(c)    Acknowledges that this reaffirmation of the Guaranty, as modified by this First Amendment, and the Environmental Indemnity is for the benefit of Agent and the Lenders.
(d)    Acknowledges and agrees that its ratifications and reaffirmations set forth in this First Amendment are not required by the Loan Documents and that Agent’s request in this First Amendment or in any other Loan Document that Guarantor ratify and reaffirm the Guaranty, as modified by this First Amendment, and the Environmental Indemnity and the obligations owed thereunder shall not be deemed in any way to create such a requirement or any duty or obligation or otherwise require Agent to obtain any ratifications, reaffirmations, consents or waivers that are not otherwise expressly required under the Guaranty, as modified by this First Amendment, or the Environmental Indemnity.
5.    Expenses.  Borrower shall pay to Agent and Lenders all reasonable out-of-pocket costs and expenses incurred by Agent and Lenders in connection with this First Amendment (including, without limitation, reasonable attorneys’ fees and disbursements and filing and recording costs).
6.    Other References.  All references in the Loan Documents to the Loan Agreement shall mean the Loan Agreement, as modified by this First Amendment, as the same may hereafter be supplemented, amended, modified, extended, renewed, restated or replaced from time to time.  All references in the Loan Documents to the Guaranty shall mean the Guaranty, as modified by this First Amendment, as the same may hereafter be supplemented, amended, modified, extended, renewed, restated or replaced from time to time.  
7.    Continued Force and Effect.  This First Amendment is not intended to, and shall not be construed to, effect a novation, and except as expressly provided in this First Amendment, neither the Loan Agreement nor any of the other Loan Documents have been modified, amended, cancelled, terminated, released, satisfied, superseded or otherwise invalidated by execution of this First Amendment.  In the event of any conflict between the terms of this First Amendment and the terms of the Loan Agreement or any of the other Loan Documents, the terms of this First Amendment shall control.
8.    Governing Law.  This First Amendment shall be governed by, and construed in accordance with, the laws of the State of New York pursuant to Section 5-1401 of the General Obligations Law without regard to its principles of conflicts of laws.
9.    Successors and Assigns.  This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and permitted assigns.
10.    Modifications.  No modification, amendment, extension, discharge, termination or waiver of any provision of this First Amendment, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver 

USActive 37092109.8    -4-

or consent shall be effective only in the specific instance, and for the specific purpose, for which given. 
11.    Entire Agreement.  This First Amendment contains the entire agreement of the parties hereto in respect of the transactions contemplated hereby, and all prior agreements among or between such parties, whether oral or written are superseded by the terms of this First Amendment.
12.    Interpretation.  Wherever possible, each provision of this First Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this First Amendment shall be prohibited by or invalid under applicable 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 First Amendment.
13.    Headings.  The Section headings in this First Amendment are included herein for convenience of reference only and shall not constitute a part of this First Amendment for any other purpose.
14.    Counterparts.  This First Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same instrument and shall become effective when copies hereof, when taken together, bear the signatures of each of the parties hereto and it shall not be necessary in making proof of this instrument to produce or account for original signatures or more than one of such fully executed counterparts.  Electronically delivered copies of signature pages hereto shall be deemed to have the same effect as originals thereof.

[SIGNATURE PAGES TO FOLLOW]

USActive 37092109.8    -5-

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed by their duly authorized representatives, all as of the day and year first above written.
BORROWER:
1334 YORK, LLC
		
	By:
	 /s/Michael L. Gillis     
Name: Michael L. Gillis
Title: VP, Treasurer

WITH RESPECT TO SECTIONS 3 and 4 ONLY:
GUARANTOR:
SOTHEBY’S, a Delaware corporation
		
	By:
	 /s/ Michael Goss     
Name: 
Title:

[SIGNATURES CONTINUED ON NEXT PAGE]

AGENT:
HSBC BANK USA, NATIONAL ASSOCIATION, a bank organized under the laws of the United States of America, as Agent
		
	By:
	 /s/Gregory Kinsey     
Name: Gregory Kinsey
Title: Vice President

LENDER:
HSBC BANK USA, NATIONAL ASSOCIATION, a bank organized under the laws of the United States of America
		
	By:
	 /s/Gregory Kinsey     
Name: Gregory Kinsey 
Title: Vice President

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED, NEW YORK BRANCH
		
	By:
	 /s/Jerome Sanzo     
Name: Jerome Sanzo
Title: Executive Director

		
	By:
	 /s/Ran (Vivian) Zhang     
Name: Ran (Vivian) Zhang 
Title: Vice President

ING CAPITAL LLC
		
	By:
	 /s/Elizabeth M. Whitworth     
Name: Elizabeth M. Whitworth
Title: Director

		
	By:
	 /s/Victor Sanchez     
Name: Victor Sanchez
Title: Director

RAYMOND JAMES BANK, N.A., a national banking association
		
	By:
	 /s/Douglas S. Marron     
Name: Douglas S. Marron 
Title: Senior Vice President

TIAA-CREF TRUST COMPANY, FSB, a federal savings bank
		
	By:
	 /s/Edward E. Randall     
Name: Edward E. Randall
Title: Head of Corporate Lending

AOZORA BANK, LTD.
By:     /s/Atsushi Goto     
Name:  Atsushi Goto 
Title:   General Manager
MIDFIRST BANK, a federally chartered savings association
		
	By:
	 /s/Darrin Rigler
Name: Darrin Rigler
Title: SVPExhibit
10.1

 

AMENDMENT
NO. 2 TO FINANCING AGREEMENT

 

AMENDMENT
NO. 2 TO FINANCING AGREEMENT (this “Amendment”), dated as of June 21, 2017, to the Financing Agreement, dated
as of January 28, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Financing Agreement”),
by and among Propel Media, Inc., a Delaware corporation, formerly known as Kitara Holdco Corp. (the “Parent”),
each subsidiary of the Parent listed as a “Borrower” on the signature pages thereto (together with the Parent
and each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “Borrower”
and collectively, the “Borrowers”), each subsidiary of the Parent listed as a “Guarantor” on
the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor”
thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “Guarantor”
and collectively, the “Guarantors”), the lenders from time to time party thereto (each a “Lender”
and, collectively, the “Lenders”), HPS Investment Partners, LLC, a Delaware limited liability company (“HPSIP”),
as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “Collateral
Agent”), and PNC Bank, National Association (“PNC”), as administrative agent for the Lenders (in such
capacity, together with its successors and assigns in such capacity, the “Administrative Agent” and together
with the Collateral Agent, each an “Agent” and, collectively, the “Agents”). The Borrowers,
the Guarantors, the Agents and the Lenders are sometimes referred to collectively as the “Parties,” and each of the
Parties is sometimes referred to individually as a “Party.”

 

WHEREAS,
the Borrowers, the Guarantors, the Agents and the Required Lenders hereby agree to modify the Financing Agreement on and subject
to the terms and conditions set forth herein.

 

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

 

1. 
Definitions. Any capitalized term used herein and not defined shall have the meaning assigned to it in the Financing Agreement.

 

2. 
Amendments.

 

(a) 
New Definitions. Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions, in appropriate
alphabetical order:

 

(i) 
““Amendment No. 2” means Amendment No. 2 to Financing Agreement, dated as of June 21, 2017, by and among
the Loan Parties, the Collateral Agent and the Required Lenders.”

 

(ii) 
““Amendment No. 2 Effective Date” means the ‘Amendment Effective Date’ as set forth in Amendment No. 2.”

 

(iii) 
““DeepIntent Acquisition” means the acquisition of all of the outstanding Equity Interests of DeepIntent
Parent pursuant to the DeepIntent Acquisition Agreement.”

 

     

     

    

 

(iv) 
““DeepIntent Acquisition Agreement” means the Stock Purchase Agreement, dated as of June 21, 2017, between
Parent, as buyer, the stockholders of DeepIntent Parent, as sellers, and the stockholder representative named therein, as in effect
on the date hereof.”

 

(v) 
““DeepIntent Parent” means DeepIntent Technologies, Inc., a Delaware corporation.

 

(vi) 
““DeepIntent Subsidiary” means DeepIntent, Inc., a Delaware corporation.

 

(b) 
Existing Definitions.

 

(i) 
The definition of “Permitted Acquisition” in Section 1.01 of the Financing Agreement is hereby amended by amending and
restating the lead-in section immediately prior to clause (a) therein in its entirety to read as follows:

 

““Permitted
Acquisition” means (i) the DeepIntent Acquisition and (ii) any other Acquisition by a Loan Party or any wholly-owned
Subsidiary of a Loan Party to the extent that each of the following conditions shall have been satisfied:”.

 

(ii) 
The definition of “Total Leverage Ratio” in Section 1.01 of the Financing Agreement is hereby amended and restated in
its entirety to read as follows:

 

““Total
Leverage Ratio” means, with respect to any Person and its Subsidiaries for any period, on a consolidated basis, the ratio
of (a) all Indebtedness of such Person and its Subsidiaries as of the end of such period (other than (i) Indebtedness as to which
no cash payments in respect of interest, principal or other amounts are required (or could be required under any circumstance)
to be made prior to the date that is six months following the Final Maturity Date; (ii) obligations payable in connection with
the Future Ads Acquisition, including but not limited to earnout payments and deferred consideration, whenever payable, so long
as no portion of any such obligation is required to be paid in cash (or could be required under any circumstance to be paid in
cash) prior to the date that is six months following the Final Maturity Date; (iii) the cash payment required to be made pursuant
to clause 2.1(b)(iii) of the Future Ads Acquisition Agreement, so long as such payment is not made prior to the date required
by the Future Ads Acquisition Agreement as in effect on the date hereof, (iv) the Deferred Payments (as defined in the DeepIntent
Acquisition Agreement) required to be made pursuant to Section 1.1(b) of the DeepIntent Acquisition Agreement, so long as such
Deferred Payments are not made prior to the date set forth in the DeepIntent Acquisition Agreement, (v) the Purchase Price Holdback
Amount (as defined in the DeepIntent Acquisition Agreement) to the extent such amount is required to be paid pursuant to Section
1.5(f) of the DeepIntent Acquisition Agreement, so long as such amount is not paid prior to the date set forth in the DeepIntent
Acquisition Agreement, (vi) any Earnout Amount (as defined in the DeepIntent Acquisition Agreement) payable pursuant to Section
1.2 of the DeepIntent Acquisition Agreement and (vii) amounts required to be paid pursuant to the terms of the Fee Letter) to
(b) Consolidated Adjusted EBITDA of such Person and its Subsidiaries for such period.”

 

    	 	2	 

     

    

 

3. 
Conditions Precedent to Effectiveness of this Amendment. This Amendment shall become effective only upon satisfaction in
full, in a manner satisfactory to the Agents, of the following conditions precedent (the first date upon which all such conditions
shall have been satisfied being hereinafter referred to as the “Amendment Effective Date”):

 

(a) 
Payment of Fees, Etc. The Borrowers shall have paid on or before the Amendment Effective Date all fees, costs, expenses
and taxes then payable, if any, pursuant to Section 2.06 or 12.04 of the Financing Agreement.

 

(b) 
Representations and Warranties. The representations and warranties contained in this Amendment and in Article VI of the
Financing Agreement and in each other Loan Document shall be true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality”
or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in
all respects subject to such qualification) on and as of the Amendment Effective Date as though made on and as of such date, except
to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation
or warranty shall be true and correct in all material respects on and as of such earlier date).

 

(c) 
No Default; Event of Default; Material Adverse Effect. No (i) Default or Event of Default shall have occurred and be continuing
on the Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms or (ii) event or
development shall have occurred since December 31, 2016, which could reasonably be expected to have a Material Adverse Effect.

 

(d) 
Delivery of Documents. The Collateral Agent shall have received on or before the Amendment Effective Date the following,
each in form and substance satisfactory to the Collateral Agent and, unless indicated otherwise, dated the Amendment Effective
Date:

 

(i) 
this Amendment, duly executed by the Administrative Borrower, the Collateral Agent and the Required Lenders;

 

(ii) 
a copy of the resolutions of the Parent and each of DeepIntent Parent and DeepIntent Subsidiary, certified as of the Amendment
Effective Date by an Authorized Officer thereof, authorizing (A) the transactions contemplated by this Amendment and the other
Loan Documents to which such Loan Party is or will be a party, and (B) the execution, delivery and performance by such Loan Party
of this Amendment and each other Loan Document to which such Loan Party is or will be a party and the execution and delivery of
the other documents to be delivered by such Person in connection herewith and therewith;

 

(iii) 
a certificate of an Authorized Officer of each Loan Party and each of DeepIntent Parent and DeepIntent Subsidiary, certifying
the names and true signatures of the representatives of such Persons authorized to sign this Amendment and each other Loan Document
to which such Loan Party is or will be a party and the other documents to be executed and delivered by such Loan Party in connection
herewith and therewith, together with evidence of the incumbency of such Authorized Officers (or, other than in the case of DeepIntent
Parent and DeepIntent Subsidiary, a certification that no changes have been made to each certificate of incumbency delivered to
the Collateral Agent on or after the Effective Date);

 

    	 	3	 

     

    

 

(iv) 
a certificate of the appropriate official(s) of the jurisdiction of organization of DeepIntent Parent and DeepIntent Subsidiary
certifying as of a recent date not more than 30 days prior to the Amendment Effective Date as to the good standing of such Loan
Party, in such jurisdictions, except, in each case, where the failure to be so qualified could not reasonable be expected to have
a Material Adverse Effect;

 

(v) 
a true and complete copy of the charter, certificate of formation, certificate of limited partnership or other publicly filed
organizational document of each of DeepIntent Parent and DeepIntent Subsidiary certified as of a recent date not more than 30
days prior to the Amendment Effective Date by an appropriate official of the jurisdiction of organization of such Person, which
shall set forth the same complete name of such Person as is set forth herein and the organizational number of such Person, if
an organizational number is issued in such jurisdiction;

 

(vi) 
a copy of the Governing Documents of each of DeepIntent Parent and DeepIntent Subsidiary, together with all amendments thereto,
certified as of the Amendment Effective Date by an Authorized Officer of such Person;

 

(vii) 
a certificate of an Authorized Officer of the Administrative Borrower, certifying as to the matters set forth in subsections (b)
and (c) of this Section 3;

 

(viii) 
a Joinder Agreement, duly executed by DeepIntent Parent, DeepIntent Subsidiary and the Loan Parties;

 

(ix) 
with respect to the Security Agreement, a Security Agreement Supplement, in the form attached as Exhibit C thereto, duly executed
and delivered by DeepIntent Parent and DeepIntent Subsidiary;

 

(x) 
a Pledge Amendment, substantially in the form of Exhibit A to the Security Agreement, duly executed by the equity holder of DeepIntent
Parent and DeepIntent Subsidiary, together with the original certificates representing all of the Equity Interests of DeepIntent
Parent and DeepIntent Subsidiary required to be pledged thereunder (if any) and all promissory notes of DeepIntent Parent and
DeepIntent Subsidiary required to be pledged thereunder, accompanied by undated stock or other powers executed in blank and other
proper instruments of transfer;

 

(xi) 
evidence satisfactory to the Collateral Agent of the filing of appropriate financing statements on Form UCC-1 or under other applicable
laws in any jurisdiction in such office or offices as may be necessary or, in the opinion of the Collateral Agent, desirable to
perfect the security interests purported to be created by the Security Agreement with respect to the assets and Equity Interests
of DeepIntent Parent and DeepIntent Subsidiary;

 

(xii) 
certified copies of request for copies of information on Form UCC-11, or certified copies of searches under any applicable jurisdiction,
in each case, listing all effective financing statements which name as debtor DeepIntent Parent or DeepIntent Subsidiary and which
are filed in the office or offices as may be necessary to perfect the security interests purported to be created by the Security
Agreement, together with copies of such financing statements, none of which shall cover any of the Collateral (other than Permitted
Liens), and the results of searches for any tax Lien and judgment Lien filed against such Person or its property, which results,
except as otherwise agreed to in writing by the Collateral Agent, shall not show any Liens other than Permitted Liens;

 

    	 	4	 

     

    

 

(xiii) 
a counterpart to the Intercompany Subordination Agreement, duly executed by DeepIntent Parent and DeepIntent Subsidiary;

 

(xiv) 
a counterpart to the VCOC Management Rights Agreements, duly executed by DeepIntent Parent and DeepIntent Subsidiary; and

 

(xv) 
copies of the DeepIntent Acquisition Agreement and all material agreements delivered in connection therewith as in effect on the
Amendment Effective Date, certified as true and correct copies thereof by an Authorized Officer of the Administrative Borrower.

 

(e) 
Approvals. All consents, authorizations and approvals of, and filings and registrations with, and all other actions in
respect of, any Governmental Authority or other Person required in connection with any Loan Document or the transactions contemplated
thereby or the conduct of the Loan Parties’ business shall have been obtained or made and shall be in full force and effect. There
shall exist no claim, action, suit, investigation, litigation or proceeding (including, without limitation, shareholder or derivative
litigation) pending or, to the knowledge of any Loan Party, threatened in any court or before any arbitrator or Governmental Authority
which (i) relates to the Loan Documents or the transactions contemplated thereby or (ii) could reasonably be expected to have
a Material Adverse Effect.

 

4. 
Representations and Warranties. Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:

 

(a) 
Representations and Warranties; No Event of Default. After giving effect to this Amendment, the representations and warranties
herein, in Article VI of the Financing Agreement and in each other Loan Document, on or immediately prior to the Amendment
Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applicable to
any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse
Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such
qualification) on and as of such date as though made on and as of such date, except to the extent that any such representation
or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct
on and as of such earlier date), and no Default or Event of Default has occurred and is continuing as of the Amendment Effective
Date (after giving effect to the amendments set forth in this Amendment) or would result from this Amendment becoming effective
in accordance with its terms.

 

    	 	5	 

     

    

 

(b) 
Organization, Good Standing, Etc. Each Loan Party (i) is a corporation, limited liability company or limited partnership
duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) has all
requisite power and authority to conduct its business as now conducted and as presently contemplated, and to execute and deliver
this Amendment, and to consummate the transactions contemplated hereby and by the Financing Agreement, as amended hereby, and
(iii) is duly qualified to do business in, and is in good standing in each jurisdiction where the character of the properties
owned or leased by it or in which the transaction of its business makes such qualification necessary except (solely for the purposes
of this subclause (iii)) where the failure to be so qualified and be in good standing could not reasonably be expected to have
a Material Adverse Effect.

 

(c) 
Authorization, Etc. The execution, delivery and performance by each Loan Party of this Amendment (i) are within the power
and authority of such Loan Party and have been duly authorized by all necessary action, (ii) do not and will not contravene any
of its Governing Documents, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any
Loan Document) upon or with respect to any of its properties, (iv) do not and will not result in any default, noncompliance, suspension,
revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations
or any of its properties, and (v) do not contravene any applicable Requirement of Law or any Contractual Obligation binding on
or otherwise affecting it or any of its properties except, in the case of clause (iv), to the extent where such contravention,
default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal could not reasonably be expected to have
a Material Adverse Effect.

 

(d) 
Enforceability of Loan Documents. This Amendment is a legal, valid and binding obligation of such Person, enforceable against
such Person in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and by principles of equity.

 

(e) 
Governmental Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental
Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Amendment other
than filings by the Parent to be made with the Securities and Exchange Commission following such execution and delivery.

 

(f) 
Continued Effectiveness of Financing Agreement. Each Loan Party hereby (a) confirms and agrees that each Loan Document
to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects,
except that on and after the Amendment Effective Date each reference in the Financing Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Financing Agreement, and each reference in
any other Loan Document to “the Financing Agreement”, “thereto”, “thereof”, “thereunder”
or words of like import referring to the Financing Agreement, shall mean and be a reference to the Financing Agreement as amended
by this Amendment, and (b) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to
the Collateral Agent or any Lender, or to grant to the Collateral Agent or any Lender a Lien on any collateral as security for
the Obligations of such Loan Party from time to time existing in respect of the Financing Agreement and the Loan Documents, such
pledge, assignment and/or grant of a Lien is hereby ratified and confirmed in all respects.

 

    	 	6	 

     

    

 

5. 
Conditions Subsequent to Effectiveness. The Loan Parties agree that, in addition to all other terms, conditions and provisions
set forth in this Amendment, including, without limitation, those conditions to the Amendment Effective Date set forth herein,
the Loan Parties shall satisfy the conditions subsequent set forth below (it being understood that (i) the failure by the Loan
Parties to perform or cause to be performed any such condition subsequent shall constitute an immediate Event of Default (without
giving effect to any grace periods set forth in the Financing Agreement) and (ii) to the extent that the existence of any such
condition subsequent would otherwise cause any representation, warranty or covenant in this Amendment or any other Loan Document
to be breached, the Agents and the Required Lenders hereby waive such breach for the period from the Amendment Effective Date
until the date on which such condition subsequent is required to be fulfilled pursuant to this section):

 

(i) 
Within 5 Business Days after the Amendment Effective Date (or such longer period as the Collateral Agent may agree in its sole
discretion) the Collateral Agent shall have received (A) a Perfection Certificate, duly executed by DeepIntent Parent and DeepIntent
Subsidiary and completed in a manner satisfactory to the Collateral Agent; and (B) updated Schedules to the Financing Agreement
and the Security Agreement completed in a manner satisfactory to the Collateral Agent that contain such modifications as are necessary
(x) to account for the DeepIntent Acquisition and (y) to otherwise make such Schedules true and correct as of the Amendment Effective
Date.

 

6. 
Amendment Fee. Each Loan Party hereby agrees to pay the Collateral Agent, for the account of the Term Loan Lenders in accordance
with their Pro Rata Shares, an amendment fee in an amount equal to 1.25% times the aggregate principal amount of the Loans outstanding
on October 1, 2017 (the “Amendment Fee”), which Amendment Fee shall be fully earned, due and payable on October
1, 2017 only if the Obligations are not repaid in full and the Loan Documents are not terminated on or before September 30, 2017
(and which Amendment Fee, for the avoidance of doubt, shall not be earned, due and payable if the Obligations are repaid in full
and the Loan Documents are terminated (other than those obligations that by their express terms survive such termination) on or
before September 30, 2017).

 

7. 
Miscellaneous.

 

(a) 
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery
of an executed counterpart of a signature page to this Amendment by telefacsimile or electronic mail transmission shall be effective
as delivery of a manually executed counterpart of this Amendment.

 

(b) 
Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

 

(c) 
This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

 

    	 	7	 

     

    

 

(d) 
Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a “Loan Document” under the Financing
Agreement. Accordingly, it shall be an Event of Default under the Financing Agreement if (i) any representation or warranty made
by a Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect
when made, or (ii) a Loan Party shall fail to perform or observe any term, covenant or agreement contained in this Amendment.
The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the
Agents or any Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents, except
as expressly provided herein.

 

(e) 
Each Loan Party hereby acknowledges and agrees that: (a) neither it nor any of its Subsidiaries has any claim or cause of action
against any Agent or any Lender (or any of the directors, officers, employees, agents, attorneys or consultants of any of the
foregoing) and (b) the Agents and the Lenders have heretofore properly performed and satisfied in a timely manner all of their
obligations to the Loan Parties, and all of their Subsidiaries and Affiliates. Notwithstanding the foregoing, the Agents and the
Lenders wish (and the Loan Parties agree) to eliminate any possibility that any past conditions, acts, omissions, events or circumstances
would impair or otherwise adversely affect any of their rights, interests, security and/or remedies. Accordingly, for and in consideration
of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Subsidiaries
and Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “Releasors”)
does, to the maximum extent permitted by applicable law, hereby fully, finally, unconditionally and irrevocably release, waive
and forever discharge the Agents and the Lenders, together with their respective Affiliates and Related Funds, and each of the
directors, officers, employees, agents, attorneys and consultants of each of the foregoing (collectively, the “Released
Parties”), from any and all debts, claims, allegations, obligations, damages, costs, attorneys’ fees, suits, demands,
liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or
indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise,
which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act,
omission or thing whatsoever done or omitted to be done, in each case, on or prior to the Amendment Effective Date directly arising
out of, connected with or related to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or
transaction related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use,
operation or control of any of the assets of any Loan Party, or the making of any Loans or other advances, or the management of
such Loans or other advances or the Collateral. Each Loan Party represents and warrants that it has no knowledge of any claim
by any Releasor against any Released Party or of any facts or acts or omissions of any Released Party which on the date hereof
would be the basis of a claim by any Releasor against any Released Party which would not be released hereby.

 

(f) 
This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the
subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.

 

(g) 
The Borrowers agree to pay on demand all reasonable out-of-pocket costs and expenses of the Agents and the Lenders in connection
with the preparation, execution and delivery of this Amendment.

 

(h) 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER
BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE REVISIONS CONTEMPLATED HEREIN.

 

[Remainder
of Page Left Intentionally Blank]

 

    	 	8	 

     

    

 

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

 

	 	ADMINISTRATIVE
    BORROWER:
	 	 
	 	PROPEL
    MEDIA, INC.
	 	

         

	 	By:	/s/
        David Shapiro

	 	 	Name:
    David Shapiro
	 	 	Title:
      Chief Operating Officer

 

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

     

     

    

 

	 	COLLATERAL
    AGENT:
	 	 
	 	HPS
    INVESTMENT PARTNERS, LLC
	 	

         

	 	By:	/s/
        Vikas Keswani

	 	 	Name:
    Vikas Keswani
	 	 	Title:
      Managing Director

 

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

     

     

    

 

	 	ADMINISTRATIVE
    AGENT AND LENDER:
	 	 
	 	PNC
    BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By: 	/s/
    Tim Gallagher
	 		Name:
    Tim Gallagher
	 		Title:
      Vice President 

 

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

     

     

    

 

	 	LENDERS:
	 	 
	 	Reliance
    Standard Life Insurance Company
	 	 
	 	By:
    HPS Investment Partners, LLC, as Investment Manager 
	 	 
	 	By:	/s/
    Vikas Keswani
	 	 	Name:
    Vikas Keswani
	 	 	Title:
      Managing Director

 

	 	Specialty
    Loan Institutional Fund III, L.P.
	 	 
	 	By:
    HPS Investment Partners, LLC, its Investment Manager 
	 	 
	 	By:	/s/
    Vikas Keswani
	 	 	Name:
    Vikas Keswani
	 	 	Title:
      Managing Director

  

	 	Specialty
    Loan VG Fund, L.P.
	 	 	 
	 	By:
    HPS Investment Partners, LLC, its Investment Manager
	 	 
	 	By:	/s/
    Vikas Keswani
	 	 	Name:
    Vikas Keswani
	 	 	Title:
      Managing Director

 

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

     

     

    

 

	 	Aiguilles
    Rouges Sector E Investment Fund, L.P.
	 	 
	 	By:
    HPS Investment Partners, LLC, its Investment Manager
	 	 
	 	By:	/s/
    Vikas Keswani
	 	 	Name:
    Vikas Keswani
	 	 	Title:
      Managing Director

 

	 	Specialty
    Loan FA Subsidiary I, L.P.
	 	 
	 	By:
    HPS Investment Partners, LLC, its Investment Manager
	 	 
	 	By:	/s/
    Vikas Keswani
	 	 	Name:
    Vikas Keswani
	 	 	Title:
      Managing Director

 

	 	Specialty
    Loan FA Subsidiary II, L.P.
	 	 
	 	By:
    HPS Investment Partners, LLC, its Investment Manager
	 	 
	 	By:	/s/
    Vikas Keswani
	 	 	Name:
    Vikas Keswani
	 	 	Title:
      Managing Director

  

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

     

     

    

  

	 	MGG
    SPECIALTY FINANCE FUND LP
	 	 
	 	By: MGG
    Investment Group LP LLC, its general partner
	 	 	 
	 	By:
    	/s/
    Kevin Griffin
	 	 	Name:
    Kevin Griffin
	 	 	Title:
      CEO + CIO

  

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

     

     

    

  

	 	CERBERUS
    AUS LEVERED II LP
	 	 
	 	By:
    CAL II GP, LLC
	 	Its:
    General Partner
	 	 	 
	 	By:
    	/s/
    Joseph Naccarato
	 	 	Name:
    Joseph Naccarato
	 	 	Title:
      Vice President 
	 	 	 
	 	CERBERUS
    KRS LEVERED LLC
	 	 	 
	 	By:
    	/s/
    Joseph Naccarato
	 	 	Name:
    Joseph Naccarato
	 	 	Title:
      Vice President 
	 	 	 
	 	CERBERUS
    ASRS FUNDING LLC
	 	 	 
	 	By:
    	/s/
    Joseph Naccarato
	 	 	Name:
    Joseph Naccarato
	 	 	Title:
      Vice President 
	 	 	 
	 	CERBERUS
    N-1 FUNDING LLC
	 	 	 
	 	By:
    	/s/
    Joseph Naccarato
	 	 	Name:
    Joseph Naccarato
	 	 	Title:
      Vice President 
	 	 	 
	 	CERBERUS
    OFFSHORE LEVERED II LP
	 	 
	 	By: COL II GP Inc.
	 	Its: General Partner
	 	 	 
	 	By:
    	/s/
    Joseph Naccarato
	 	 	Name:
    Joseph Naccarato
	 	 	Title:
      Senior Managing Director 

 

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

     

     

    

  

	 	CERBERUS
    ONSHORE LEVERED II LLC
	 	 	 
	 	By:
    	/s/
    Joseph Naccarato
	 	 	Name:
    Joseph Naccarato
	 	 	Title:
      Vice President 
	 	 	 
	 	CERBERUS
    SWC LEVERED HOLDINGS II LP
	 	 
	 	By: CSL Holdings II GP LLC
	 	Its: General Partner
	 	 	 
	 	By:
    	/s/
    Joseph Naccarato
	 	 	Name:
    Joseph Naccarato
	 	 	Title:
      Senior Managing Director 

 

 

 

AMENDMENT
NO. 2 TO

FINANCING AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]