Document:

ex_165591.htm

Exhibit 10.63

 

VIVEVE MEDICAL, INC.

 

 

AMENDMENT NO. 1 TO

Series B Preferred Stock and Warrant Purchase Agreement

 

This AMENDMENT NO. 1 (this “Amendment”) to that certain Series B Preferred Stock and Warrant Purchase Agreement dated November 12, 2019 (the “Agreement”) is entered into as of November 20, 2019, by and among by and among CRG Partners III L.P., CRG Partners III - Parallel Fund “A” L.P., CRG Partners III - Parallel Fund “B” (Cayman) L.P., and CRG Partners II (Cayman) Lev AIV I L.P. (together, “CRG” or the “Purchasers”, with each of the purchasing entities, a “Purchaser”) and Viveve Medical, Inc., a Delaware corporation (the “Company”). All capitalized terms not defined herein shall have the meanings ascribed to them in the Agreement.

 

R E C I T A L S

 

WHEREAS, pursuant to Section 14 of the Agreement, any term of the Agreement may be amended or waived with the written consent of the Company and each of the Purchasers; and

 

WHEREAS, the undersigned Purchasers and the Company now desire to amend the Agreement as set forth below.

 

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

 

1.     Amendment to the Agreement.

 

1.1     The first four sentences of the first paragraph of Section 3(c) of the Agreement are hereby amended and restated to read in their entirety as follows:

 

The authorized capital stock of the Company consists of 75,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock. All of the outstanding shares of Common Stock and of the stock of each of the Company’s subsidiaries have been duly authorized, validly issued and are fully paid and nonassessable, free and clear of all liens. Following the Authorized Common Stock Increase (as defined below), the Underlying Shares to be issued upon conversion of the Preferred Stock and exercise of the Warrants will be duly authorized by all necessary corporate action and when issued and paid for in accordance with the terms of this Agreement and as set forth in the Series B Certificate of Designation and the Warrants, as the case may be, and such Underlying Shares will be validly issued and outstanding, fully paid and nonassessable, free and clear of all liens and the holders shall be entitled to all rights accorded to a holder of Common Stock. Following the Authorized Common Stock Increase, the Company shall reserve from its duly authorized capital stock a number of shares of Common Stock for issuance of the Underlying Shares. Immediately after giving effect to the Closing, the pro forma outstanding capitalization of the Company will be as set forth under “Pro Forma Capitalization” in Schedule 3(c) attached hereto. For purposes of this Agreement, the “Authorized Common Stock Increase” means effectiveness of an amendment to the Certificate of Incorporation filed with the Secretary of State of the State of Delaware, following approval by the Company’s Board of Directors and stockholders in accordance with Section 242 of the Delaware General Corporation Law, that authorizes at least 125 million shares of Common Stock.

 

 

 

 

1.2     Section 3(d) of the Agreement is hereby amended and restated to read in its entirety as follows:

 

Issuance of Shares and Warrants. The Shares are duly authorized and, upon issuance in accordance with the terms hereof, shall be duly issued, fully paid and nonassessable, and are free and clear from all taxes, liens and charges with respect to the issue thereof. The Warrants are duly authorized and, upon execution and delivery by the Company in accordance with the terms hereof will constitute legal, valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. Following the Authorized Common Stock Increase, any Underlying Shares will have been duly authorized and reserved for issuance and, upon conversion of the Shares or exercise of the Warrants into shares of Common Stock, will be validly issued, fully paid and nonassessable, and are free and clear from all taxes, liens and charges with respect to the issue thereof.

 

1.3     Section 6(b) of the Agreement is hereby amended and restated to read in its entirety as follows:

 

Stockholder Approval. As promptly as reasonably practicable following the date of this Agreement, and in any event no later than April 30, 2020, the Company shall prepare and file with the SEC a definitive proxy statement on Schedule 14A (as amended or supplemented from time to time, such definitive proxy statement the “Proxy Statement”) and hold a meeting of its stockholders no later than May 30, 2020, to obtain the approval of its stockholders of the issuance of the Underlying Shares upon conversion of the Shares and exercise of the Warrants and to effect the Authorized Common Stock Increase, and such other stockholder approvals as may be required under the rules and regulations of Nasdaq (such approvals, the “Stockholder Approval”). The Company shall cause the Proxy Statement to comply as to form in all material respects with the requirements of the Exchange Act and the rules and regulations promulgated thereunder. Each of the Company and the Purchasers shall use its reasonable best efforts to respond as promptly as reasonably practicable to any comments of the SEC with respect to the Proxy Statement. The Proxy Statement shall include a recommendation of the Company’s Board of Directors that the Company’s stockholders vote in favor of the issuance of the Underlying Shares and the proposal to effect the Authorized Common Stock Increase. The Company shall promptly notify the Purchasers in writing upon the receipt of any comments from the SEC or its staff or any request from the SEC or its staff for amendments or supplements to any preliminary proxy statement filed prior to the Proxy Statement or on the Proxy Statement and shall promptly provide the Purchasers with a copy of all written correspondence between the Company or any representatives of the Company, on the one hand, and the SEC or its staff, on the other hand, with regard to the such materials. The Company shall give the Purchasers and their counsel a reasonable opportunity to review and comment on any preliminary proxy statement and the Proxy Statement, including all amendments and supplements thereto, prior to filing such documents with the SEC.

 

2

 

 

1.4     Section 8(i) of the Agreement is hereby amended and restated to read in its entirety as follows:

 

Public Offering. On the Closing Date, the Company shall contemporaneously close an underwritten public offering of its Class A units consisting of shares of Common Stock and warrants to purchase Common Stock and Class B Units consisting of shares of Series A Preferred Stock and warrants to purchase Common Stock, as set forth in the Form S-1 File No.: 333-233639, or such other amount or equity financing satisfactory to CRG (the “Public Offering”).

 

1.5     Exhibit A of the Agreement is hereby amended and restated to read in its entirety as set forth on Exhibit A attached hereto.

 

1.6     Exhibit B of the Agreement is hereby amended and restated to read in its entirety as set forth on Exhibit B attached hereto.

 

2.     Miscellaneous.

 

2.1     Full Force and Effect. Except as otherwise provided in Section 1 above, the terms and conditions of the Agreement shall remain in full force and effect.

 

2.2     Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Amendment shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.

 

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2.3     Applicable Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York, without reference to the principles thereof relating to the conflict of laws.

 

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

 

2.5     Amendments and Waivers. Any term of this Amendment may be amended and the observance of any term of this Amendment may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and each of the Purchasers. In accordance with Section 14 of the Agreement, this Amendment shall be binding upon each party to the Agreement.

 

 

[Remainder of Page Intentionally Left Blank.]

 

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IN WITNESS WHEREOF, the undersigned have executed, or caused to be executed on their behalf by an agent there unto duly authorized, this Amendment as of the date first above written.

	
			 

				
			VIVEVE MEDICAL, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			/s/ Scott Durbin

				
			 

			
	
			 

				
			 

				
			Scott Durbin

				
			 

			
	
			 

				
			 

				
			Chief Executive Officer

				
			 

			

 

5

 

 

 

IN WITNESS WHEREOF, the undersigned have executed, or caused to be executed on their behalf by an agent there unto duly authorized, this Amendment as of the date first above written.

 

	
			 

				
			CRG:

			 

			CRG PARTNERS III L.P., its General Partner

			By: CRG PARTNERS III GP L.P., its General

			Partner

			By: CRG PARTNERS III GP LLC, its General Partner

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			/s/ Nathan Hukill

				
			 

			
	 	Name:	Nathan Hukill	 
	 	Title:	Authorized Signatory	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			CRG PARTNERS III–PARALLEL FUND “A” L.P.

			By: CRG PARTNERS III–PARALLEL FUND “A”

			GP L.P., its General Partner

			By: CRG PARTNERS III GP LLC, its General Partner

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			/s/ Nathan Hukill

				
			 

			
	 	Name:	Nathan Hukill	 
	 	Title:	Authorized Signatory	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			CRG PARTNERS III–PARALLEL FUND “B” (CAYMAN) L.P.

			By: CRG PARTNERS III (CAYMAN) GP L.P., its General Partner

			By: CRG PARTNERS III GP LLC, its General Partner

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			/s/ Nathan Hukill

				
			 

			
	 	Name:	Nathan Hukill	 
	 	Title:	Authorized Signatory	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			WITNESS:

				
			/s/ Nicole Nesson

				
			 

			
	
			 

				
			 Name:

				
			 Nicole Nesson

				
			 

			

 

6

 

 

	
			 

				
			CRG PARTNERS III (CAYMAN) LEV AIV I L.P.

			By: CRG PARTNERS III (CAYMAN) GP L.P., its General Partner

			By: CRG PARTNERS III (CAYMAN) GP LLC, its General Partner

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			/s/ Nathan Hukill

				
			 

			
	 	Name:	Nathan Hukill	 
	 	Title: 	Authorized Signatory	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			WITNESS:

				
			/s/ Nicole Nesson

				
			 

			
	
			 

				
			 Name:

				
			 Nicole Nesson

				
			 

			

 

 

7

 

 

SCHEDULE 3(c)

 

PRO FORMA CAPITALIZATION

 

8

 

 

EXHIBIT A

 

FORM OF SERIES B CERTIFICATE OF DESIGNATION

 

9

 

 

EXHIBIT B

 

FORM OF WARRANT

 

10Exhibit

EXECUTION VERSION

FIRST AMENDMENT
TO 
CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT dated as of November 20, 2019 (this “Amendment”) is by and among (a) NOODLES & COMPANY (the “Borrower”), (b) each of the Guarantors (as defined in the Credit Agreement referred to below) signatory hereto, (c) U.S. BANK NATIONAL ASSOCIATION, as administrative agent (in such capacity, the “Administrative Agent”), L/C Issuer and Swing Line Lender (each such term defined in the Credit Agreement referred to below) and (d) the lenders signatory hereto and amends that certain Credit Agreement, dated as of May 9, 2018 (as further amended, restated, extended, supplemented, modified and otherwise in effect from time to time, the “Credit Agreement”), by and among the Borrower, the other Loan Parties (as defined in the Credit Agreement) party thereto, the Lenders (as defined in the Credit Agreement) party thereto, the Administrative Agent, and U.S. Bank National Association, as L/C Issuer and Swing Line Lender.  Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement.
WHEREAS, upon satisfaction of the conditions set forth herein, the Revolving Credit Facility Blockage Conditions described in the Credit Agreement will be satisfied;
WHEREAS, upon satisfaction of the Revolving Credit Facility Blockage Conditions, each Lender’s portion of the outstanding Revolving Credit Commitments and Term Loan Commitments (together with all currently outstanding Loans) shall now be rebalanced in a manner consistent with the methodology for Increasing Lenders and Augmenting Lenders described in Section 2.16 of the Credit Agreement;
WHEREAS, in order to carry out such rebalancing and such other modifications, the Borrower has requested that the Administrative Agent and the Lenders agree to amend certain of the terms and provisions of the Credit Agreement, as specifically set forth in this Amendment and issue new Notes to reflect such rebalancing; 
WHEREAS, prior to the date hereof the Borrower dissolved the following Loan Parties: (a) THE NOODLE SHOP, CO. – MARYLAND, INC., a Maryland corporation; (b) THE NOODLE SHOP, CO. – WASHINGTON COUNTY, LLC, a Maryland limited liability company; (c) THE NOODLE SHOP, CO. – MONTGOMERY COUNTY, MARYLAND, a Maryland corporation; (d) THE NOODLE SHOP, CO. – CHARLES COUNTY, INC., a Maryland corporation; (e) THE NOODLE SHOP, CO. – HOWARD COUNTY, INC., a Maryland corporation; (f) THE NOODLE SHOP, CO. – HARFORD COUNTY, LLC, a Maryland limited liability company; and (g) THE NOODLE SHOP, CO. – CARROLL COUNTY, LLC, a Maryland limited liability company (collectively, the “Dissolved Subsidiaries”), and the Borrower has requested that the Administrative Agent and the Lenders consent to the dissolution of the Dissolved Subsidiaries; and
WHEREAS, the Borrower, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement and consent to the dissolution of the Dissolved Subsidiaries as provided more fully herein below.
NOW THEREFORE, in consideration of the mutual agreements contained in the Credit Agreement and herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

§1.Amendments to the Credit Agreement.
§1.1    Amendment to Section 1.01.  The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended and restated as follows:
“Applicable Rate” means, applicable percentage per annum set forth below for each Type of Loan (and for the Letter of Credit Fees and Commitment Fees) determined by reference to the Consolidated Total Lease Adjusted Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):

	
					
	Pricing Level
	Consolidated Total Lease Adjusted Leverage Ratio
	Eurodollar Rate Loans and Letter of Credit Fees
	Base Rate Loans
	Commitment Fee

	1
	<3.00:1.00
	2.00%
	1.00%
	0.20%

	2
	>3.00:1.00 but <3.50:1.00
	2.25%
	1.25%
	0.25%

	3
	>3.50:1.00 but <4.00:1.00
	2.50%
	1.50%
	0.30%

	4
	>4.00:1.00
	2.75%
	1.75%
	0.35%

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Total Lease Adjusted Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then, Pricing Level 4 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered.
Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Sections 2.08(b) and 2.10.
§1.2    Amendment to Section 1.01.  The definition of “Consolidated EBITDA” in Section 1.01 of the Credit Agreement is hereby amended by restating such definition in its entirety as follows:
“Consolidated EBITDA” means, at any date of determination, an amount equal to Consolidated Net Income of the Borrower and its Subsidiaries on a consolidated basis for the most recently completed Measurement Period plus (a) the following to the extent deducted in calculating such Consolidated Net Income and without duplication: (i) Consolidated Interest Charges, (ii) the provision for Federal, state, local and foreign income

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taxes paid or payable, (iii) depreciation and amortization expense, (iv) Consolidated Restaurant Pre-Opening Costs in an amount not to exceed an average of $85,000 per Restaurant for all Restaurants incurred during such Measurement Period, (v) non-cash rent expense, (vi) non-cash compensation expense, (vii) non-recurring expenses or charges (or minus non-recurring income items) reducing (or in the case of non-recurring income, increasing) such Consolidated Net Income, in each case, which do not represent a cash item in such period or any future period, (viii) without duplication of any add backs pursuant to clause (vii) above, non-recurring cash expenses (including severance payments) or charges and non-recurring non-cash charges, (ix) without duplication of any other amounts herein, one-time non-recurring cash expenses or charges and non-recurring non-cash charges associated with (A) the Identified Restaurant Closures/Re-Franchisings (2017) in an aggregate amount not to exceed (1) $15,000,000 prior to the First Amendment Effective Date and (2) $3,000,000 on or after the First Amendment Effective Date, when combined with any addbacks under clause (B)(2) below and (B) the 16 Restaurant locations that closed in the fourth Fiscal Quarter of the Borrower of 2015 in an aggregate amount not to exceed (1) $900,000 prior to the First Amendment Effective Date and (2) $3,000,000 on or after the First Amendment Effective Date, when combined with any addbacks under clause (A)(2) above, (x) one time fees and out of pocket expenses incurred in connection with Permitted Acquisitions, and (xi) fees and expenses arising from the Transaction or any follow-on public offering, sale or registration of the Borrower’s securities.
§1.3    Amendment to Section 1.01.  The definition of “Maturity Date” in Section 1.01 of the Credit Agreement is hereby amended by restating such definition in its entirety as follows:
“Maturity Date” means November 20, 2024; provided, however, that, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.
§1.4    Amendment to Section 1.01  Section 1.01 of the Credit Agreement is hereby amended by adding the following new definitions in the appropriate alphabetical order:
“2019/2020 Permitted Equity Interest Repurchases” means the repurchase by Borrower of up to $15,000,000 of Borrower’s Equity Interest during the 12 month period beginning on November 20, 2019 and ending on November 20, 2020.
“CardFact Acquisition” means the acquisition of all of the Equity Interests of CardFact XI, Inc., a Florida corporation (“CardFact XI”), by a Loan Party (including by means of a merger of CardFact XI with and into a Loan Party) pursuant to an acquisition agreement reasonably acceptable to the Administrative Agent, provided that either (i) CardFact XI shall merge with and into a Loan Party, with a Loan Party being the surviving entity or (ii) CardFact XI will become a Loan Party and otherwise comply with the requirements of Section 6.12 in connection with such acquisition.
“First Amendment Effective Date” means November 20, 2019.
§1.5    Amendment to Section 2.07.  Section 2.07 of the Credit Agreement is hereby amended by amending and restating clause (c) of such section in its entirety as follows:

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(c)    The Borrower shall repay the Term Loans on each date set forth below (or, if such date is not a Business Day, on the immediately succeeding Business Day) in the aggregate principal amount set forth opposite such date:
	
		
	Date
	Amount

	the last day of the Fourth Fiscal Quarter of Fiscal Year 2019 (December 31, 2019)
	$187,500

	the last day of the First Fiscal Quarter of Fiscal Year 2020 (March 31, 2020)
	$187,500

	the last day of the Second Fiscal Quarter of Fiscal Year 2020 (June 30, 2020)
	$187,500

	the last day of the Third Fiscal Quarter of Fiscal Year 2020 (September 29, 2020)
	$187,500

	the last day of the Fourth Fiscal Quarter of Fiscal Year 2020 (December 29, 2020)
	$187,500

	the last day of the First Fiscal Quarter of Fiscal Year 2021 (March 30, 2021)
	$187,500

	the last day of the Second Fiscal Quarter of Fiscal Year 2021 (June 29, 2021)
	$187,500

	the last day of the Third Fiscal Quarter of Fiscal Year 2021 (September 28, 2021)
	$187,500

	the last day of the Fourth Fiscal Quarter of Fiscal Year 2021 (December 28, 2021)
	$375,000

	the last day of the First Fiscal Quarter of Fiscal Year 2022 (March 29, 2022)
	$375,000

	the last day of the Second Fiscal Quarter of Fiscal Year 2022 (June 28, 2022)
	$375,000

	the last day of the Third Fiscal Quarter of Fiscal Year 2022 (September 27, 2022)
	$375,000

	the last day of the Fourth Fiscal Quarter of Fiscal Year 2022 (January 3, 2023)
	$531,250

	the last day of the First Fiscal Quarter of Fiscal Year 2023 (April 4, 2023)
	$531,250

	the last day of the Second Fiscal Quarter of Fiscal Year 2023 (July 4, 2023)
	$531,250

	the last day of the Third Fiscal Quarter of Fiscal Year 2023 (October 3, 2023)
	$531,250

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	Date
	Amount

	the last day of the Fourth Fiscal Quarter of Fiscal Year 2023 (January 2, 2024)
	$625,000

	the last day of the First Fiscal Quarter of Fiscal Year 2024 (April 2, 2024)
	$625,000

	the last day of the Second Fiscal Quarter of Fiscal Year 2024 (July 2, 2024)
	$625,000

	the last day of the Third Fiscal Quarter of Fiscal Year 2024 (October 1, 2024)
	$625,000

To the extent not previously paid, all unpaid Term Loans shall be paid in full in cash by the Borrower on the Maturity Date.
§1.6    Amendment to Section 7.03.  Section 7.03 of the Credit Agreement is hereby amended by (i) deleting the “and” at the end of clause (m) of such section, (ii) re-lettering clause (n) of such section as a new clause (o) of such section and (iii) adding a new clause (n) of such section as follows:
(n)    the CardFact Acquisition; provided, that the total cash consideration paid shall not exceed $10,000; and 
§1.7    Amendment to Section 7.04.  Section 7.04 of the Credit Agreement is hereby amended by amending and restating clause (e) of such section in its entirety as follows:
(e)    in connection with any Permitted Acquisition or the CardFact Acquisition, any Subsidiary of the Borrower may merge into or consolidate with any other Person or permit any other Person (other than the Borrower) to merge into or consolidate with it; provided that the Person surviving such merger shall be a Loan Party;
§1.8    Amendment to Section 7.06.  Section 7.06 of the Credit Agreement is hereby amended by amending and restating clause (e) of such section in its entirety as follows:
(e)    the Borrower may purchase, redeem or otherwise retire Equity Interests; provided that, before or after giving effect to any such purchase, redemption or acquisition of Equity Interests, (i) no Default or Event of Default shall have occurred and be continuing, and (ii) after giving pro forma effect to any such purchase or redemption, the Consolidated Total Lease Adjusted Leverage Ratio is less than 3.50 to 1.00; provided that the 2019/2020 Permitted Equity Interest Repurchases shall not be subject to the restrictions of Section 7.06(e)(ii).
§1.9    Amendment to Section 7.11.  Section 7.11 of the Credit Agreement is hereby amended by amending and restating clause (a) of such section in its entirety as follows:
(a)    Consolidated Total Lease Adjusted Leverage Ratio.  Permit the Consolidated Total Lease Adjusted Leverage Ratio as of the end of any Measurement Period to be greater than the applicable ratio set forth below opposite such Measurement Period:

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	Measurement Period End Date
	Maximum Consolidated Total Lease Adjusted Leverage Ratio

	the last day of the Fourth Fiscal Quarter of Fiscal Year 2019 (December 31, 2019)
	4.50 to 1.00

	the last day of the First Fiscal Quarter of Fiscal Year 2020 (March 31, 2020)
	4.50 to 1.00

	the last day of the Second Fiscal Quarter of Fiscal Year 2020 (June 30, 2020)
	4.50 to 1.00

	the last day of the Third Fiscal Quarter of Fiscal Year 2020 (September 29, 2020)
	4.50 to 1.00

	the last day of the Fourth Fiscal Quarter of Fiscal Year 2020 (December 29, 2020)
	4.25 to 1.00

	the last day of the First Fiscal Quarter of Fiscal Year 2021 (March 30, 2021)
	4.25 to 1.00

	the last day of the Second Fiscal Quarter of Fiscal Year 2021 (June 29, 2021) and the last day of each Fiscal Quarter ending thereafter.
	4.00 to 1.00

§1.10    Amendment to Section 7.11.  Section 7.11 of the Credit Agreement is hereby amended by amending and restating clause (b) of such section in its entirety as follows:
(b)    Consolidated Fixed Charge Coverage Ratio.  Permit the Consolidated Fixed Charge Coverage Ratio as of the end of any Measurement Period of the Borrower ending on any Fiscal Quarter end date to be less than 1.25 to 1.00.
§1.11    Amendment to Section 7.12. Section 7.12 of the Credit Agreement is hereby amended by restating such section in its entirety as follows:
7.12    Capital Expenditures.  Make or become legally obligated to make any Capital Expenditures in an amount exceeding (i) $34,000,000 in Fiscal Year 2019, (ii) $37,000,000 in Fiscal Year 2020 and (iii) $45,000,000 in Fiscal Year 2021 and each Fiscal Year thereafter; provided, however, that the Capital Expenditure limit referenced above will be increased in any period by the positive amount equal to 50% of the amount (if any) equal to the difference obtained by taking the Capital Expenditure limit minus the actual amount of any Capital Expenditures expended during such prior period (the “Carry Over Amount”), and for purposes of measuring compliance herewith, the Carry Over Amount shall be deemed to be the last amount spent on Capital Expenditures in that succeeding period and may not be carried forward to the next succeeding year.  Capital Expenditures shall be determined by reference to Borrower’s statement of cash flow.

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§1.12    Amendment to Schedules. Schedules 2.01, 5.08(b), 5.13, 5.17, 5.20, 5.21 and 5.22 are hereby deleted in their entirety and replaced with Schedules 2.01, 5.08(b), 5.13, 5.17, 5.20, 5.21 and 5.22 attached  as Attachment A hereto.
§2.    Consent to Dissolution of Dissolved Subsidiaries.  Pursuant to Section 11.01 of the Credit Agreement, the Lenders party hereto constitute the Required Lenders necessary to consent to the dissolution of the Dissolved Subsidiaries. Pursuant to the terms hereof, the Lenders party hereto hereby consent to the dissolution of the Dissolved Subsidiaries. The Lenders and the Borrower agree that: Schedule 2(a) of the Pledge Agreement is deleted and replaced with Attachment B hereto.
§3.    Removal of Revolving Credit Facility Blockage. Each Loan Party and each of the Lenders party hereto, acknowledge and agree, that upon satisfaction of the conditions set forth in Section 6, pursuant to Section 2.17 of the Credit Agreement, the Revolving Credit Facility Blockage Conditions will be satisfied and each Lender’s portion of the Revolving Credit Commitments and Term Loan Commitments (together with all currently outstanding Loans) shall be rebalanced in a manner consistent with the methodology for Augmenting Lenders described in Section 2.16 of the Credit Agreement. 
§4.    Affirmation and Acknowledgment.  Each Loan Party hereby ratifies and confirms all of its Obligations to the Lenders and the Administrative Agent, and the Borrower hereby affirms its absolute and unconditional promise to pay to the Lenders the Loans, the other Obligations, and all other amounts due under the Credit Agreement as amended hereby.  Each Loan Party hereby ratifies and reaffirms the validity and enforceability of all of the Liens and security interests heretofore granted and pledged by such Loan Party pursuant to the Loan Documents to the Administrative Agent, on behalf and for the benefit of the Secured Parties, as collateral security for the Obligations, and acknowledges that all of such Liens and security interests, and all Collateral heretofore granted, pledged or otherwise created as security for the Obligations continues to be and remains collateral security for the Obligations.  Each of the Guarantors party to the Guaranty hereby acknowledges and consents to this Amendment and agrees that the Guaranty and all other Loan Documents to which each of the Guarantors are a party remain in full force and effect, and each of the Guarantors confirms and ratifies all of its Obligations thereunder.
§5.    Representations and Warranties.  Each Loan Party hereby represents and warrants to the Lenders and the Administrative Agent as follows:
(a)The execution, delivery and performance by each Loan Party of this Amendment and the performance by such Loan Party of its obligations and agreements under this Amendment and the Credit Agreement, as amended hereby, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of any of such Loan Party’s Organization Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any material Contractual Obligation (other than the creation of Liens under the Loan Documents) to which such Loan Party is a party or affecting such Loan Party or the properties of such Loan Party or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Loan Party or its property is subject; or (iii) violate any Law, except to the extent 

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that any such violation, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
(b)This Amendment has been duly executed and delivered by such Loan Party. Each of this Amendment and the Credit Agreement, as amended hereby, constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with their respective terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles, whether enforcement is sought by a proceeding in equity or at law.
(c)No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is required in connection with the execution, delivery or performance by such Loan Party of this Amendment or the Credit Agreement as amended hereby.
(d)The representations and warranties of such Loan Party contained in Article V of the Credit Agreement or in any other Loan Document are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that the representations and warranties contained in Sections 5.05(a) and 5.05(b) of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and 6.01(b) of the Credit Agreement, respectively.
(e)As of the date hereof, after giving effect to this Amendment, there exists no Default or Event of Default.
§6.    Conditions.  This Amendment shall become effective on the date when each of the following conditions precedent have been satisfied (the “First Amendment Effective Date”): 
(a)This Amendment shall have been duly executed and delivered by each Loan Party, the Administrative Agent and the Lenders.
(b)[Reserved].
(c)The Administrative Agent shall have received a favorable opinion of Gibson, Dunn & Crutcher LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to the matters concerning the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request, in form, scope and substance reasonably satisfactory to the Administrative Agent.
(d)The Administrative Agent shall have received a favorable opinion of Hogan Lovells US LLP, Colorado and Virginia local law counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to the matters concerning the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request, in form, scope and substance reasonably satisfactory to the Administrative Agent.

8
 

(e)The Administrative Agent shall have received certificates executed by a Responsible Officer of each Loan Party attaching (i) resolutions or other action authorizing the actions under this Amendment and the Credit Agreement as amended hereby, (ii) incumbency certificates, (iii) certified copies of the Organization Documents of such Loan Party, in each case, certified as true, accurate and complete and in effect on the date hereof (or a certification that there shall have been no changes to the Organization Documents of such Loan Party since the most recent date that certified copies of such Organization Documents were delivered to the Administrative Agent) and (iv) such other documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing and in good standing in its jurisdiction of organization.
(f)The Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower certifying (i) that the conditions specified in this Section 6 have been satisfied, and (ii) that there has been no event or circumstance since December 31, 2018 that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect.
(g)The representations and warranties set forth in Section 5 hereof shall be true and correct.
(h)All fees and expenses due and owing to the Administrative Agent and the Lenders and required to be paid on or before the First Amendment Effective Date pursuant to that certain First Amendment to Credit Agreement Fee Letter dated as of November 20, 2019 by and between the Administrative Agent and the Borrower, shall have been paid (or shall be paid concurrently with the closing of this Amendment).
(i)The Administrative Agent shall have been reimbursed for all reasonable and documented fees and out-of-pocket charges and other expenses incurred in connection with this Amendment, including, without limitation, the reasonable fees and disbursements of counsel for the Administrative Agent, to the extent documented and delivered to the Borrower prior to the date hereof (for the avoidance of doubt, a summary statement of such fees, charges and disbursements shall be sufficient documentation for the obligations set forth in this Section 6(i); provided that supporting documentation for such summary statement is provided promptly thereafter).
§7.    Miscellaneous Provisions.
§7.1    Except as expressly amended or otherwise modified by this Amendment, the Credit Agreement and all documents, instruments and agreements related thereto, including, but not limited to the other Loan Documents, are hereby ratified and confirmed in all respects and shall continue in full force and effect. No amendment, consent or waiver herein granted or agreement herein made shall extend beyond the terms expressly set forth herein for such amendment, consent, waiver or agreement, as the case may be, nor shall anything contained herein be deemed to imply any willingness of the Administrative Agent or the Lenders to agree to, or otherwise prejudice any rights of the Administrative Agent or the Lenders with respect to, any similar amendments, consents, waivers or agreements that may be requested for any future period, and this Amendment shall not 

9
 

be construed as a waiver of any other provision of the Loan Documents or to permit the Borrower or any other Loan Party to take any other action which is prohibited by the terms of the Credit Agreement and the other Loan Documents. The Credit Agreement and this Amendment shall be read and construed as a single agreement. All references in the Credit Agreement, or any related agreement or instrument, to the Credit Agreement shall hereafter refer to the Credit Agreement, as amended hereby. This Amendment shall constitute a Loan Document.
§7.2    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
§7.3    THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY LENDER, THE L/C ISSUER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AMENDMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.
§7.4    This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Amendment.
§7.5    The Borrower hereby agrees to pay to the Administrative Agent, on demand by the Administrative Agent, all reasonable and documented out-of-pocket costs and expenses incurred

10
 

or sustained by the Administrative Agent in connection with the preparation of this Amendment (including legal fees).
§7.6    The provisions of this Amendment are solely for the benefit of the Loan Parties, the Administrative Agent and the Lenders and no other Person shall have rights as a third party beneficiary of any of such provisions.
§7.7    The Joining Lender agrees that from and after the date hereof it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and shall have the obligations of a Lender thereunder.  Each of the Administrative Agent, each Lender other than the Joining Lender,  the Borrower and each Guarantor agrees that, as of the date hereof, the Joining Lender shall be a party to the Credit Agreement and the other Loan Documents and shall be a Lender for all purposes of the Credit Agreement and the other Loan Documents and shall have the rights and obligations of a Lender under the Credit Agreement and all other Loan Documents.  

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]

11
 

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

	
				
	 
	NOODLES & COMPANY, 
a Delaware corporation
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	Secretary
	 

	 
	 
	 
	 

	 
	TNSC, INC., 
a Colorado corporation
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	President
	 

	 
	 
	 
	 

	 
	THE NOODLE SHOP, CO. - COLORADO, INC., 
a Colorado corporation
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	President
	 

	 
	 
	 
	 

	 
	THE NOODLE SHOP, CO. - WISCONSIN, INC., 
a Wisconsin corporation
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	President
	 

	 
	 
	 
	 

	 
	THE NOODLE SHOP, CO. - ILLINOIS, INC., 
an Illinois corporation
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	President
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	
				
	 
	THE NOODLE SHOP, CO. - VIRGINIA, INC., 
a Virginia corporation
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	President
	 

	 
	 
	 
	 

	 
	THE NOODLE SHOP, CO. - KANSAS, LLC, 
a Kansas limited liability company
	 

	 
	 
	 
	 

	 
	By:
	TNSC, Inc.
	 

	 
	 
	its Member
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	President
	 

	 
	 
	 
	 

	 
	THE NOODLE SHOP, CO. - DELAWARE, INC., 
a Delaware corporation
	 

	 
	 
	 
	 

	 
	By:
	/s/ Melissa Heidman
	 

	 
	Name:
	Melissa Heidman
	 

	 
	Title:
	President
	 

    

	
						
	 
	 
	U.S. BANK NATIONAL ASSOCIATION,
	 
	 

	 
	 
	as a Lender, Administrative Agent, L/C Issuer and 
Swing Line Lender
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Courtney A. Boltz________________
	 
	 

	 
	 
	Name:
	Courtney A. Boltz
	 
	 

	 
	 
	Title:
	Vice President
	 
	 

	
						
	 
	 
	COMMUNITY BANKS OF COLORADO, A     
DIVISION OF NBH BANK,
	 
	 

	 
	 
	as a Lender
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Edward Southwick________________
	 
	 

	 
	 
	Name:
	Edward Southwick
	 
	 

	 
	 
	Title:
	Relationship Manager/Vice President
	 
	 

	
						
	JOINING LENDER
	 
	FIRST HORIZON BANK,
	 
	 

	 
	 
	as a Lender
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Daniel Nunes________________
	 
	 

	 
	 
	Name:
	Daniel Nunes
	 
	 

	 
	 
	Title:
	Authorized Signatory
	 
	 

	
						
	JOINING LENDER
	 
	BBVA USA,
	 
	 

	 
	 
	as a Lender
	 
	 

	 
	 
	 
	 

	 
	 
	By:
	/s/ Jake Wesley____________________
	 
	 

	 
	 
	Name:
	Jake Wesley
	 
	 

	 
	 
	Title:
	Assistant Vice President
	 
	 

Attachment A
[Disclosure Schedules to Credit Agreement]
On file with the Administrative Agent.

Attachment B
[Schedule 2(a) of the Pledge Agreement]
On file with the Administrative Agent.

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