Document:

Exhibit

August 10, 2017

WAIVER

BY ELECTRONIC TRANSMISSION
Cinedigm Corp.
45 West 36th Street, 7th Floor 
New York, NY  10018 
Attn:  Jeffrey S. Edell, Chief Financial Officer  
Email: jedell@cinedigm.com

RE: Limited Waiver of Debt Service Coverage Ratio Covenant and Amendment to Credit Agreement

Ladies and Gentlemen:

We refer to the Second Amended and Restated Credit Agreement, dated as of April 29, 2015 (as amended, amended and restated, supplemented or otherwise modified before the date hereof, the “Credit Agreement”), among Cinedigm Corp. (the “Borrower”), certain Lenders, Société Générale, as Administrative Agent, and CIT Bank, N.A. (formerly known as OneWest Bank, N.A. and OneWest Bank, FSB), as Collateral Agent.  Capitalized terms used and not defined herein shall have the meanings assigned thereto in the Credit Agreement.

Section 5.2 of the Credit Agreement requires the Borrower to maintain, as of the end of the Fiscal Quarter ending June 30, 2017, a Consolidated Debt Service Coverage Ratio of not less than 1.25:1.00.  

  Subject to the satisfaction of the conditions precedent set forth below, the Lenders hereby waive the Borrower’s compliance with Section 5.2 of the Credit Agreement solely for the Fiscal Quarter ending June 30, 2017. 

Section 2.6 of the Credit Agreement permits the Borrower to, at any time, reduce the Revolving Aggregate Maximum Credit Amount.  The Borrower hereby elects to reduce the Revolving Aggregate Maximum Credit Amount to $17,100,000, effective immediately.  The Administrative Agent and the Required Lenders hereby waive the three Business Days’ notice period set forth in Section 2.6 of the Credit Agreement in connection with such reduction.  In accordance with Section 2.6 of the Credit Agreement, such reduction of the Revolving Aggregate Maximum Credit Amount shall be (i) permanent and may not be reinstated, and (ii) made ratably among the Lenders in accordance with each Lender’s Applicable Percentage.
The Administrative Agent, the Required Lenders, and, by signing below, the Borrower and each other Loan Party hereby agree that, effective as of the date hereof:

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(i) Section 5.1 of the Credit Agreement is hereby amended and restated as follows:
“Minimum Liquidity. The Borrower shall maintain (a) at all times from July 15, 2016 through October 13, 2017, an aggregate amount of Minimum Liquidity of at least $800,000, and (b) at all times after October 13, 2017, at least $5,000,000 in Minimum Liquidity.” 
(ii) Notwithstanding anything to the contrary in the Credit Agreement or any other Loan Document, on the date the outstanding Obligations are repaid in full, the Borrower shall pay to the Administrative Agent, for the ratable benefit of the Lenders, a fee equal to 2.00% of the aggregate Commitments as of the date of such repayment, which fee shall be fully earned and nonrefundable when paid and shall be deemed an Obligation under the Credit Agreement.
This letter agreement shall become effective upon (i) the receipt by the Administrative Agent, for the ratable benefit of each Lender that has signed this letter agreement (such Lenders, the “Consenting Lenders”),  from the Borrower of a waiver fee equal to 1.00% of the aggregate Commitments of the Consenting Lenders as of  the date hereof, which fee shall be fully earned and nonrefundable when paid, and (ii) the receipt by the Administrative Agent from the Borrower of an amount equal to all out-of-pocket expenses incurred by the Agents in connection with this letter agreement, including the fees, charges and disbursements of counsel.

The waiver granted pursuant to the terms hereof is limited strictly to its respective terms, shall not be deemed to be a waiver or modification or any provision of the Credit Agreement except as expressly provided above, shall not extend to or effect any of the other obligations of Borrower under the Credit Agreement and shall not impair any rights consequent thereon. The Lenders shall have no obligation to issue any other or further waiver or any amendments or acknowledgements with respect to the matters addressed herein or any other matter.  The Borrower (i) affirms and ratifies all of its obligations under the Credit Agreement and the other Loan Documents, (ii) agrees that, except as otherwise expressly provided above, the waiver set forth in this letter agreement does not constitute a waiver, forbearance or other indulgence with respect to any Event of Default existing or hereafter arising, (iii) agrees that, except as expressly provided above, nothing contained in this letter agreement shall be deemed to constitute a waiver of any rights or remedies that the Lenders, the Administrative Agent or the Collateral Agent may have under the Credit Agreement or any other Loan Document or under applicable law, and (iv) represents and warrants that (x) this letter agreement has been duly authorized, executed and delivered by it and this letter agreement, the Credit Agreement and the other Loan Documents constitute its legal, valid and binding obligations, enforceable in accordance with their terms, (y) the representations and warranties contained in the Loan Documents, other than those expressly made as of a specific date, are true and correct in all material respects as if made on the date hereof, and (z) the cash flow forecasts delivered by the Borrower under Section 6.1(l) of the Credit Agreement are true and accurate in all material respects and there have been no material misrepresentations of the Borrower’s or its Subsidiaries’ cash flows, including intra-period cash flows, as of the date hereof.    

This letter agreement is a Loan Document.  On and after the date hereof, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words 

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of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this letter agreement.

                            

7SPP Ex 101

		

			Exhibit 10.1

		

		
			AMENDMENT NO. 1 TO FIRM GATHERING AND PROCESSING AGREEMENT
		

		
			This AMENDMENT NO. 1 TO FIRM GATHERING AND PROCESSING AGREEMENT (this “Amendment”), executed on June 30, 2017 with a deemed effective time of 12:01 a.m. on April 1, 2017, is by and between SN Catarina, LLC, a Delaware limited liability company (“Producer”), and Catarina Midstream, LLC, a Delaware limited liability company (“Gatherer”).  Producer and Gatherer may be referred to in this Amendment individually as a “Party” and collectively as the “Parties.”
		

		
			RECITALS
		

		
			WHEREAS, Producer and Gatherer entered into that certain Firm Gathering and Processing Agreement, dated as of October 14, 2015 (the “Gathering Agreement”), pursuant to which Gatherer provides certain gathering, transportation and processing services to Producer;
		

		
			WHEREAS, due to recent changes in the hydraulic fracturing methods used by Producer, there has been increased water production resulting therefrom, which has adversely impacted the operation of the Gathering System;
		

		
			WHEREAS, it is hereby intended that the incremental fee assessed on the water delivered by Producer to Delivery Points along the Gathering System (such fee, the “Incremental Infrastructure Fee”) will be used for making infrastructure improvements to the Gathering System; and
		

		
			WHEREAS, in the Parties desire to amend the Gathering Agreement to impose upon Producer the Incremental Infrastructure Fee, together with such other amendments, as more fully set forth herein.
		

		
			NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other valuable consideration, the Parties hereby agree as follows:
		

			
	
			
				 Section 1.1
			Definitions.  Capitalized terms used throughout this Amendment and not defined herein have the meanings ascribed to them in the Gathering Agreement.  

		
			 
		

			
	
			
				 Section 1.2
			Amendments.  

			
	
			
				 (a)
			Exhibit B to the Gathering Agreement is hereby amended by inserting the following at the end thereof:

		
			Incremental Infrastructure Fee (based on the aggregate quantity of water, stated in Barrels, delivered by Gatherer to all Delivery Points)
		

		
			 
		

		
			With respect to water delivered on or after April 1, 2017 through and including March 31, 2018, $1.00 per Barrel of water.
		

		
			 
		

		
			With respect to water delivered on or after April 1, 2018, no fee shall be assessed or collected per Barrel of water.
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			In the event that Producer and Gatherer enter into any future amendment, supplement, or other modification to this Agreement, or any series of amendments, supplements, or other modifications to this Agreement, or any other agreement or series of agreements intended to amend, supplement, modify or replace this Agreement, relating to the gathering and processing of Producer’s Products (including, without limitation, a new firm gathering and processing agreement based on a “cost-of-service model” pursuant to which the gathering and processing fees charged thereunder would fluctuate based on various factors to ensure that each party to the agreement achieves a consistent return on investment) (each, a “Revised Agreement”), the aggregate Incremental Infrastructure Fee paid by Producer to Gather prior to the effective time of any such Revised Agreement shall be taken into account in connection with establishing the fee structure provided therein and in evaluating the respective rates of return in future operations.  
		

		
			 
		

			
	
			
				 (b)
			Section 5.3(b) of the Gathering Agreement is hereby deleted in its entirety and replaced with the following:

		
			(b)All amounts owed under this Agreement not subject to a good faith dispute pursuant to Section 5.5 (other than for indemnity obligations), including any amounts for prior period adjustments, late payments and the Quarterly Deficiency Payments, if any, will be netted between the Parties on a Monthly basis. If a Monthly statement reflects that Gatherer owes an amount to Producer, Gatherer will remit the amount due to Producer on or before the last Day of the Month in which such statement was rendered. If a Monthly statement reflects that Producer owes an amount to Gatherer, Producer will remit the amount due to Gatherer within thirty (30) Days after delivery to Producer of the monthly statement. Payment will be by ACH or wire transfer or immediately available funds.
		

		
			 
		

		
			If (i) Gatherer fails to pay the entire undisputed amount of any invoice or other payment request when such amount is due, or (ii) an amount disputed in good faith by Gatherer pursuant to Section 5.5 is later determined to be due to the Producer, then, in each case, Producer may bill Gatherer a charge for late payment which will be included by Producer on an invoice. The charge for any late payment will be equal to the product of (a) the unpaid, undisputed portion of the invoice, times (b) the ratio of the number of Days from the due date to the date of actual payment in full to 365, times (c) the lesser of (i) the then-effective prime interest rate as published in the Wall Street Journal, plus 2% per annum and (ii) the maximum interest rate permitted by applicable law. If the Wall Street Journal ceases to be published or discontinues publishing a prime rate, the unpaid balance shall bear interest compounded monthly at the prime rate 

		 

		

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published by the Federal Reserve plus two percent (2%) per annum. For the avoidance of doubt, Producer shall not be required to pay any such late payment to Gatherer for any reason under this Agreement.
		

		
			 
		

			
	
			
				 Section 1.3
			Continuation.  Except as amended hereby, the Gathering Agreement shall remain in full force and effect.

			
	
			
				 Section 1.4
			Governing Law.  This Amendment shall be governed and construed in accordance with the laws of the State of Texas, without reference to conflicts of laws principles that might apply the laws of another jurisdiction.

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by each of the Parties, effective as of the date first above written.
		

		
			GATHERER:
		

		
			CATARINA MIDSTREAM LLC
		

		
			 
		

		
			By: /s/ Gerald F. Willinger
		

		
			Name:  Gerald F. Willinger
		

		
			Title:  Chief Executive Officer
		

		
			 
		

		
			 
		

		
			PRODUCER:
		

		
			SN CATARINA, LLC
		

		
			 
		

		
			By: /s/ Antonio R. Sanchez, Jr.
		

		
			Name: Antonio R. Sanchez, Jr.
		

		
			Title: Executive Chairman

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