Document:

Exhibit

Exhibit 10.2(g)

Schedule A
Notice of Performance Stock Unit Grant
	
					
	Participant:
	[●]

	Company:
	Anthem, Inc.

	Notice:
	You have been granted the following award of performance stock units of common stock of the Company in accordance with the terms of the Plan and the attached Performance Stock Unit Agreement.

	Plan:
	2017 Anthem Incentive Compensation Plan

	Grant:
	Grant Date:  [●]
Number of Performance Stock Units:  [●]

	Performance Period:
	The period beginning on the Grant Date and ending on the Vesting Date is the Performance Period.  Subject to achievement of the performance measures described below, the number of your Performance Stock Units listed in the “Shares” column, and any related Dividend Equivalents shall vest on the date listed in the “Vesting Date” column.  Achievement of the performance measures described below may increase or decrease the total number of Performance Stock Units covered by the Grant and any related Dividend Equivalents that vest on the Vesting Date.

	 
	Shares
	Vesting Date

	 
	 

	 
	 
	 
	 

	 
	Achievement of the following performance measures must be approved by the Compensation Committee of the Board of Directors of Anthem, Inc.  You will earn between 0% and [•]% (share amounts will be interpolated) of the number of Performance Stock Units originally covered by the Grant.  The total number of Performance Stock Units, as adjusted for achievement of the performance measures, will vest on the date listed in the Vesting Date column above.  If achievement of the performance measure results in a number of shares awarded that is more or less than 100%, then the number of Dividend Equivalents payable upon the Vesting Date shall be adjusted accordingly.

	 
	Annual Run Rate Value (Annual Gross Financial Improvement (Savings)) 

	 
	 
	 

	 
	Percent of Shares Vesting
	 
	 
	 

	 
	 
	 
	 
	 

	 
	In the event that a Change of Control (as defined in the Plan) occurs before your Termination, your Performance Stock Unit Grant will remain subject to the terms of this Agreement, unless the successor company does not assume the Performance Stock Unit Grant.  If the successor company does not assume the Performance Stock Unit Grant, then the Performance Stock Units shall immediately vest upon a Change of Control and the Shares covered by the award shall be immediately delivered upon the Change of Control, provided that in the event that the Performance Stock Units are deferred compensation within the meaning of Code Section 409A, such Stock Units shall only be delivered upon the Change of Control if such Change of Control is a “change in control event” within the meaning of Code Section 409A and the delivery is made in accordance with Treasury Regulation 1-409A-3(j)(ix).

 

	
					
	Acceptance:
	In order to accept your Performance Stock Units, you must electronically accept this Agreement through the Company’s broker at any time within ninety (90) days after the Grant Date.  To effect your acceptance, please follow the instructions included with your grant materials.  Acceptance of the Agreement includes acceptance of the terms and conditions of the Plan.  If you do not timely and electronically accept this Agreement, this Agreement will be null and void as of the 90th day after the Grant Date and you will have no right or claim to the Performance Stock Units described above.

Performance Stock Unit Award Agreement
This Performance Stock Unit Award Agreement (this “Agreement”) dated as of the Grant Date (the “Grant Date”) set forth in the Notice of Performance Stock Unit Grant attached as Schedule A hereto (the “Grant Notice”) is made between Anthem, Inc. (the “Company”) and the Participant set forth in the Grant Notice.  The Grant Notice is included in and made part of this Agreement.
1.Performance Period.   The Performance Period with respect to the Performance Stock Units shall be as set forth in the Grant Notice (the “Performance Period”).  The Participant acknowledges that the Performance Stock Units may not be sold, transferred, pledged, assigned, encumbered, alienated, hypothecated or otherwise disposed of (whether voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy)).  Upon the completion of the applicable portion of the Performance Period and subject to the performance measure described in the attached Grant Notice, the restrictions set forth in this Agreement with respect to the Performance Stock Units theretofore subject to such completed Performance Period shall lapse and the Shares covered by the related portion of the award shall be immediately delivered, except as may be provided in accordance with Section 10 hereof.

2.Ownership.  Upon expiration of the applicable portion of the Performance Period and subject to the performance measure described in the attached Grant Notice, the Company shall transfer the Shares covered by the related portion of the award to the Participant’s account with the Company’s captive broker.
3.Termination.
(a)    Death and Disability.  If the Participant’s Termination is due to death or Disability (for purposes of this Agreement, as defined in the applicable Anthem Long-Term Disability Plan), then the Performance Period shall immediately lapse, causing any restrictions which would otherwise remain on the Performance Stock Units to immediately lapse, and the Shares covered by the award shall be immediately delivered.
(b)    Other Terminations.  Unless Section 3(c) is applicable, if the Participant’s Termination is by the Company or an Affiliate or by the Participant for any reason other than death or Disability, then all Performance Stock Units for which the Performance Period had not lapsed prior to the date of such Termination shall be immediately forfeited.
(c)    Termination after Change of Control.  If after a Change in Control the Participant’s Termination is (i) by the Company or an Affiliate without Cause or (ii), if the Participant participates in the Agreement Plan, by the Participant for Good Reason (as defined in the Agreement Plan), then there shall be paid out in cash to the Participant within 30 days following termination of employment the value of the Performance Stock Units to which the Participant would have been entitled if performance achieved 100% of the target performance measures as described in the attached Grant Notice.  Notwithstanding any provision of this Agreement to the contrary, in the event that the Participant becomes entitled to vest in Performance Stock Units under any provision of this Section 3 by reason of any Termination and such Termination occurs within the two year period following a Change in Control that is a “change in control event” within the meaning of Code Section 409A, the Participant’s Performance Stock Units shall be paid to the Participant immediately upon such Termination.
(d)    Clawback Provision.  Notwithstanding any other provisions of this Agreement to the contrary, in the event that the Participant is a non-executive participant in the Agreement Plan, is an Executive (as defined by the Company) at the time of the Participant’s Termination, regardless of whether the Executive is then a participant in such Agreement Plan, the Performance Stock Units shall be forfeited if the Participant breaches any provision of Section 3.6 or 3.10 of the Agreement Plan, in which case the Participant shall be subject to the “Return of Consideration” provision contained in Section 3.7 of the Agreement Plan.
4.    Transferability of the Performance Stock Units.  The Participant shall have the right to appoint any individual or legal entity in writing, on a Designation of Beneficiary form, as his/her beneficiary to receive any Shares (to the extent not previously terminated or forfeited) under this Agreement upon the Participant’s death.  Such designation under this Agreement may be revoked by the Participant at any time and a new beneficiary may be appointed by the Participant by execution and submission to the Company, or its designee, of a revised Designation of Beneficiary form to this Agreement.  In order to be effective, a designation of beneficiary must be completed by the 

Participant on the Designation of Beneficiary form and received by the Company, or its designee, prior to the date of the Participant’s death.  If the Participant dies without such designation, the Performance Stock Units will become part of the Participant’s estate.
5.    Dividend Equivalents.  In the event the Company declares a dividend on Shares (as defined in the Plan), for each unvested Performance Stock Unit on the dividend payment date, the Participant shall be credited with a Dividend Equivalent, payable in cash, with a value equal to the value of the declared dividend.  The Dividend Equivalents shall be subject to the same restrictions as the unvested Performance Stock Units to which they relate.  No interest or other earnings shall be credited on the Dividend Equivalents, provided that additional Dividend Equivalents may be awarded or forfeited in the same proportion as the number of Performance Stock Units determined to be awarded or forfeited based on the achievement of the performance measures.  Subject to continued employment with the Company and Affiliates and, as applicable, achievement of performance measures, the restrictions with respect to the Dividend Equivalents shall lapse at the same time and in the same proportion as the initial award of Performance Stock Units.  No additional Dividend Equivalents shall be accrued for the benefit of the Participant with respect to record dates occurring prior to, or with respect to record dates occurring on or after the date, if any, on which the Participant has forfeited the Performance Stock Units or any Performance Stock Units have been settled.  For any specified employee, any Dividend Equivalents subject to Code Section 409A and payable upon a termination of employment shall be subject to a six month delay.  The Dividend Equivalents shall be subject to all such other provisions set forth herein, and may be used to satisfy any or all obligations for the payment of any tax attributable to the Dividend Equivalents and/or Performance Stock Units.
6.    Taxes and Withholdings.  Upon the expiration of the applicable portion of the Performance Period (and delivery of the underlying Shares), or as of which the value of any Performance Stock Units first becomes includible in the Participant’s gross income for income tax purposes, the Participant shall satisfy all obligations for the payment of any tax attributable to the Performance Stock Units.  The Participant shall notify the Company if the Participant wishes to pay the Company in cash, check or with shares of Anthem common stock already owned for the satisfaction of any taxes of any kind required by law to be withheld with respect to such Performance Stock Units.  Any such election made by the Participant must be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Compensation Committee of the Board of Directors of the Company (“Committee”), in its sole discretion deems appropriate.  If the Participant does not notify the Company in writing at least 14 days prior to the applicable lapse of the Performance Period, the Committee is authorized to take any such other action as may be necessary or appropriate, as determined by the Committee, to satisfy all obligations for the payment of such taxes.  Such other actions may include withholding the required amounts from other compensation payable to the Participant, a sell-to-cover transaction or such other method determined by the Committee, in its discretion. 
7.    No Rights as a Shareholder.  The Participant shall have no rights of a shareholder (including, without limitation, dividend and voting rights) with respect to the Performance Stock Units, for record dates occurring on or after the Grant Date and prior to the date any such Performance Stock Units vest in accordance with this Agreement.
8.    No Right to Continued Employment.  Neither the Performance Stock Units nor any terms contained in this Agreement shall confer upon the Participant any express or implied right to be retained in the employment or service of the Company or any Affiliate for any period, nor restrict in any way the right of the Company, which right is hereby expressly reserved, to terminate the Participant’s employment or service at any time for any reason.  The Participant acknowledges and agrees that any right to have restrictions on the Performance Stock Units lapse is earned only by continuing as an employee of the Company or an Affiliate at the will of the Company or such Affiliate, or satisfaction of any other applicable terms and conditions contained in the Plan and this Agreement, and not through the act of being hired, being granted the Performance Stock Units or acquiring Shares hereunder.
9.    The Plan.  This Agreement is subject to all the terms, provisions and conditions of the Plan, which are incorporated herein by reference, and to such regulations as may from time to time be adopted by the Committee.  Unless defined herein, capitalized terms are as defined in the Plan.  In the event of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be modified accordingly.  The Plan and the prospectus describing the Plan can be found on the Company’s HR intranet.  A paper copy of the Plan and the prospectus shall be provided to the Participant upon the Participant’s written request to the Company at Anthem, Inc., 120 Monument Circle, Indianapolis, Indiana  46204, Attention:  Corporate Secretary, Shareholder Services Department.

10.    Compliance with Laws and Regulations.
(a)    The Performance Stock Units and the obligation of the Company to deliver Shares hereunder shall be subject in all respects to (i) all applicable Federal and state laws, rules and regulations and (ii) any registration, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in its discretion, determine to be necessary or applicable.  Moreover, the Company shall not deliver any certificates for Shares to the Participant or any other person pursuant to this Agreement if doing so would be contrary to applicable law.  If at any time the Company determines, in its discretion, that the listing, registration or qualification of Shares upon any national securities exchange or under any state or Federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable, the Company shall not be required to deliver any certificates for Shares to the Participant or any other person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Company.
(b)    The Shares received upon the expiration of the applicable portion of the Performance Period shall have been registered under the Securities Act of 1933 (“Securities Act”).  If the Participant is an “affiliate” of the Company, as that term is defined in Rule 144 under the Securities Act (“Rule 144”), the Participant may not sell the Shares received except in compliance with Rule 144.  Certificates representing Shares issued to an “affiliate” of the Company may bear a legend setting forth such restrictions on the disposition or transfer of the Shares as the Company deems appropriate to comply with Federal and state securities laws.
(c)    If, at any time, the Shares are not registered under the Securities Act, and/or there is no current prospectus in effect under the Securities Act with respect to the Shares, the Participant shall execute, prior to the delivery of any Shares to the Participant by the Company pursuant to this Agreement, an agreement (in such form as the Company may specify) in which the Participant represents and warrants that the Participant is purchasing or acquiring the shares acquired under this Agreement for the Participant’s own account, for investment only and not with a view to the resale or distribution thereof, and represents and agrees that any subsequent offer for sale or distribution of any kind of such Shares shall be made only pursuant to either (i) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the Shares being offered or sold, or (ii) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption the Participant shall, prior to any offer for sale of such Shares, obtain a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or approved by the Company, as to the applicability of such exemption thereto.
11.    Code Section 409A Compliance.  It is intended that this Agreement meet the short-term deferral exception from Code Section 409A.  This Agreement and the Plan shall be administered in a manner consistent with this intent and any provision that would cause the Agreement or Plan to fail to satisfy this exception shall have no force and effect.  Notwithstanding anything contained herein to the contrary, Shares in respect of any Performance Stock Units that (a) constitute “nonqualified deferred compensation” as defined in Code Section 409A and (b) vest as a consequence of the Participant’s Termination shall not be delivered until the date that the Participant incurs a “separation from service” within the meaning of Code Section 409A (or, if the Participant is a “specified employee” within the meaning of Code Section 409A and the regulations promulgated thereunder, the date that is six months following the date of such “separation from service” (or death, if earlier).  In addition, each amount to be paid or benefit to be provided to the Participant pursuant to this Agreement that constitutes deferred compensation subject to Code Section 409A, shall be construed as a separate identified payment for purposes of Code Section 409A.
12.    Notices.  All notices by the Participant or the Participant’s assignees shall be addressed to Anthem, Inc., 120 Monument Circle, Indianapolis, Indiana 46204, Attention:  Stock Administration, or such other address as the Company may from time to time specify.  All notices to the Participant shall be addressed to the Participant at the Participant’s address in the Company’s records.
13.    Other Plans.  The Participant acknowledges that any income derived from the Performance Stock Units shall not affect the Participant’s participation in, or benefits under, any other benefit plan or other contract or arrangement maintained by the Company or any Affiliate.
14.    Recoupment Policy for Incentive Compensation.  The Company's Recoupment Policy for Incentive Compensation, as may be amended from time to time, shall apply to the Performance Stock Units, any Shares 

delivered hereunder and any profits realized on the sale of such Shares to the extent that the Participant is covered by such policy.  If the Participant is covered by such policy, the policy may apply to recoup Performance Stock Units awarded, any Shares delivered hereunder or profits realized on the sale of such Shares either before, on or after the date on which the Participant becomes subject to such policy.
ANTHEM, INC.
By:            ___________________________     
Printed:     Lewis Hay III 
Its:             Chair, Compensation Committee 
                   of the Board of DirectorsEXHIBIT 10.1

 

Execution Version

 

SEVENTH AMENDMENT AND WAIVER TO
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This SEVENTH AMENDMENT AND WAIVER TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is dated as of April 24, 2018 by and among SUMMER INFANT, INC. and SUMMER INFANT (USA), INC., as “Borrowers” under the Loan Agreement referenced below (“Borrowers”), SUMMER INFANT CANADA, LIMITED and SUMMER INFANT EUROPE LIMITED, as “Guarantors” under the Loan Agreement referenced below (“Guarantors” and together with the Borrowers, the “Obligors”),  the “Lenders” party to the Loan Agreement referenced below (“Lenders”), and BANK OF AMERICA, N.A., in its capacity as “Agent” for the Lenders under the Loan Agreement referenced below (“Agent”).

 

WHEREAS, Borrowers, Guarantors, Lenders and Agent are parties to that certain Amended and Restated Loan and Security Agreement dated as of April 21, 2015, as amended by that certain Amendment to Amended and Restated Loan and Security Agreement dated as of December 10, 2015 (the “First Amendment”), that certain Second Amendment to Amended and Restated Loan and Security Agreement dated as of May 24, 2016 (the “Second Amendment”), that certain Third Amendment and Waiver to Amended and Restated Loan and Security Agreement dated as of February 17, 2017 (the “Third Amendment”), that certain Fourth Amendment and Waiver to Amended and Restated Loan and Security Agreement dated as of October 16, 2017 (the “Fourth Amendment”), that certain Fifth Amendment and Waiver to Amended and Restated Loan and Security Agreement dated as of November 29, 2017 (the “Fifth Amendment”), and that certain Sixth Amendment to Amended and Restated Loan and Security Agreement dated as of March 1, 2018 (the “Sixth Amendment”) (the Amended and Restated Loan and Security Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment and the Sixth Amendment, and as the same may be further amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”);

 

WHEREAS, pursuant to the Fifth Amendment, the Loan Agreement was, among other things, amended to provide for the Revolver Borrowing Base (as defined in the Loan Agreement) to be temporarily increased by the Temporary Overadvance Amount (as defined in the Fifth Amendment) to address, among other things, the Revolver Overadvances (as defined in the Loan Agreement) that were primarily attributable to the Toys “R” Us Insolvency Proceedings (as defined in the Fourth Amendment); and

 

WHEREAS, notwithstanding the inclusion of the Temporary Overadvance Amount in the Revolver Borrowing Base, during the period from the Fifth Amendment Effective Date (as defined in the Fifth Amendment) through the date of this Amendment, the aggregate outstanding Revolver Loans have from time to time exceeded the Revolver Borrowing Base, resulting in continuing Revolver Overadvances (“Continuing Revolver Overadvances”);

 

WHEREAS, Borrowers have requested that Agent and Lenders waive any violations of the Loan Agreement that are directly attributable to the Continuing Revolver Overadvances and that Agent and Lenders amend certain provisions of the Loan Agreement to, among other things, extend the duration of the period during which the Temporary Overadvance Amount is in effect; and

 

WHEREAS, Lenders and Agent are willing to waive any violations of the Loan Agreement that are directly attributable to the Continuing Revolver Overadvances during the period from the Fifth Amendment Effective Date through the date of this Amendment and to amend certain provisions of the Loan Agreement, all as more fully described herein.

 

 

NOW, THEREFORE, in consideration of the foregoing and the agreements contained herein, the parties agree that the Loan Agreement is hereby amended as follows:

 

1.                                      Capitalized Terms.  Capitalized terms used herein which are defined in the Loan Agreement have the same meanings herein as therein, except to the extent such terms are amended hereby.

 

2.                                      Waiver of Violations Directly Attributable to Continuing Revolver Overadvances.  Subject to the satisfaction of the terms and conditions set forth in this Amendment, Agent and Lenders hereby waive any violations of the Loan Agreement that occurred during the period (the “Supplemental Overadvance Waiver Period”) commencing on the Fifth Amendment Effective Date and continuing through the Seventh Amendment Effective Date (as defined in Section 3(e) of this Amendment) that are directly attributable to the Continuing Revolver Overadvances.  The parties agree that (a) the foregoing waiver is limited solely to violations of the Loan Agreement occurring during the Supplemental Overadvance Waiver Period that are directly attributable to the Continuing Revolver Overadvances and (b) that nothing herein shall be construed as a waiver of any other provision of the Loan Agreement.

 

3.                                      Amendments to Section 1.1 of the Loan Agreement.  Section 1.1 of the Loan Agreement is hereby amended as follows:

 

(a)                                 The definition of “Availability Reserve” is hereby amended and restated in its entirety, as follows:

 

“Availability Reserve: the sum (without duplication) of (a) the Inventory Reserve; (b) the Rent and Charges Reserve; (c) reserves for accrued and unpaid Royalties, whether or not then due and payable; (d) the Bank Product Reserve; (e) the Canadian Priority Payables Reserve; (f) the UK Priority Payables Reserve; (g) the Dilution Reserve; (h) reserves for amounts owed by any Obligor to any processor (including, without limitation, the Approved Processors); (i) the aggregate amount of liabilities secured by Liens upon Collateral that are senior to Agent’s Liens (but imposition of any such reserve shall not waive an Event of Default arising therefrom); (j) the FILO Reserve; (k) the Liquidity Reserve; (l) the Past Due Reserve; and (m) such additional reserves, in such amounts and with respect to such matters, as Agent in its Permitted Discretion may elect to impose from time to time.

 

(b)                                 The definition of “EBITDA” is hereby amended by deleting existing clause (b)(xx) in its entirety and replacing it with the following new clause (b)(xx):

 

“(xx) solely with respect to the calculation of the Fixed Charge Coverage Ratio and the Leverage Ratio pursuant to Section 10.3.1 and 10.3.2, respectively, the aggregate amount of Accounts owing from the Toys “R” Us Companies written off as uncollectible by Borrowers during such period attributable to goods delivered by Borrowers to the Toys “R” Us Companies (A) prior to September 18, 2017 (the date on which Toys “R” Us, Inc commenced Insolvency Proceedings), which written off Accounts total $432,173, and (B) after September 18, 2017, which written off Accounts total $1,907,570;”

 

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(c)                                  The definition of “Temporary Overadvance Amount” is hereby amended and restated in its entirety, as follows:

 

“Temporary Overadvance Amount: means the following amounts during the following periods:

 

	
Applicable Period
    	
 
    	
Temporary
   Overadvance Amount
    	
 
    
	
Seventh Amendment Effective Date — April 30,   2018
    	
 
    	
$
    	
3,000,000
    	
 
    
	
May 1 — 7, 2018
    	
 
    	
$
    	
2,250,000
    	
 
    
	
May 8 — 14, 2018
    	
 
    	
$
    	
1,500,000
    	
 
    
	
May 15 — May 21, 2018
    	
 
    	
$
    	
750,000
    	
 
    
	
From and after May 22, 2018
    	
 
    	
$
    	
0
    	
 
    

 

(d)                                 The following new defined term “Liquidity Reserve” is hereby inserted in Section 1.1 of the Loan Agreement in the appropriate alphabetical order:

 

“Liquidity Reserve:  a reserve to be established by Agent on May 31, 2018, the amount of which Liquidity Reserve shall (a) equal fifty percent (50%) of Availability (determined without giving effect to the Liquidity Reserve), and (b) be reduced to $0 from and after the date that Availability (determined without giving effect to the Liquidity Reserve) shall have exceeded twelve and one-half percent (12.5%) of the Revolver Borrowing Base for thirty consecutive days.”

 

(e)                                  The following new defined term “Past Due Reserve” is hereby inserted in Section 1.1 of the Loan Agreement in the appropriate alphabetical order:

 

“Past Due Reserve:  a reserve to be established by Agent on May 31, 2018 and adjusted by Agent from time to time, the amount of which Past Due Reserve shall equal the aggregate amount of accounts payable that are more than sixty (60) days past due, book overdrafts, and other past due Indebtedness.”

 

(f)                                   The following new defined term “Seventh Amendment Effective Date” is hereby inserted in Section 1.1 of the Loan Agreement in the appropriate alphabetical order:

 

“Seventh Amendment Effective Date:  the date on which that certain Seventh Amendment and Waiver to Amended and Restated Loan and Security Agreement became effective, which date is April 24, 2018.”

 

4.                                      Amendments to Section 10.1.2 of the Loan Agreement.  Section 10.1.2 of the Loan Agreement is hereby amended by deleting clauses (j) and (k) and replacing them in their entirety with the following new clauses (j), (k) and (l) as follows:

 

“(j)                              as soon as available, and in any event by Wednesday of each week, (x) a cash flow forecast for Obligors and Subsidiaries, in form reasonably satisfactory to the Agent, outlining the projected cash receipts and cash disbursements of Obligors and Subsidiaries on a weekly basis for each of the next thirteen weeks (each, a “13-Week Cash Flow Forecast”), together with a comparison of the actual cash receipts and cash disbursements for the preceding one-week period to the forecasts for such period set forth in the 13-Week Cash Flow Forecast delivered in the previous week, along with an explanation of any material variances, which 13-Week Cash Flow Forecast shall be prepared based upon good faith estimates and assumptions that the Obligors and

 

3

 

Subsidiaries believed were reasonable at the time made (it being understood and agreed that such 13-Week Cash Flow Forecast is not to be viewed as a statement of fact, is subject to the uncertainties and approximations inherent in any projections, and that actual results may differ from such projected results), and (y) updates of the amounts of Inventory and Eligible Inventory as of the last day of the previous week;

 

(k)                                 as soon as available an in any event with 30 days after the end of each month, a written report containing an analysis by management of the financial results of most recent Fiscal Month; and

 

(l)                                     such other reports and information (financial or otherwise) as Agent may reasonably request from time to time in connection with any Collateral or any Borrower’s, Subsidiary’s or other Obligor’s financial condition or business.”

 

5.                                      Interest Rate on Revolver Loans.  Notwithstanding anything to the contrary set forth in the Loan Agreement, the parties agree that during the period from the Seventh Amendment Effective Date through May 21, 2018, interest shall accrue on the outstanding principal amount of the Revolving Loans at the interest rate otherwise applicable thereto plus two percent (2%).

 

6.                                      No Default; Representations and Warranties, Etc.  Obligors hereby represent, warrant and confirm that: (a) after giving effect to this Amendment, all representations and warranties of Obligors in the Loan Agreement and the other Loan Documents are true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of the date hereof as if made on such date (except to the extent that such representations and warranties expressly relate to or are stated to have been made as of an earlier date, in which case, such representations and warranties shall be true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such earlier date); (b) after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing; and (c) the execution, delivery and performance by Obligors of this Amendment and all other documents, instruments and agreements executed and delivered in connection herewith or therewith (i) have been duly authorized by all necessary action on the part of Obligors (including any necessary shareholder consents or approvals), (ii) do not violate, conflict with or result in a default under and will not violate or conflict with or result in a default under any applicable law or regulation, any term or provision of the organizational documents of any Obligor or any term or provision of any material indenture, agreement or other instrument binding on any Obligor or any of its assets, and (iii) do not require the consent of any Person which has not been obtained.

 

7.                                      Ratification and Confirmation.  Obligors hereby ratify and confirm all of the terms and provisions of the Loan Agreement and the other Loan Documents and agree that all of such terms and provisions, as amended hereby, remain in full force and effect.  Without limiting the generality of the foregoing, Obligors hereby acknowledge and confirm that all of the “Obligations” under and as defined in the Loan Agreement are valid and enforceable and are secured by and entitled to the benefits of the Loan Agreement and the other Loan Documents, and Obligors hereby ratify and confirm the grant of the liens and security interests in the Collateral in favor of Agent, for the benefit of itself and Lenders, pursuant to the Loan Agreement and the other Loan Documents, as security for the Obligations.

 

8.                                      Conditions to Effectiveness of Amendment.  This Amendment shall become effective as of the date when, and only when, each of the following conditions precedent shall have been satisfied or waived in writing by Agent:

 

(a)                                 Agent shall have received counterparts to this Amendment, duly executed by Agent, Lenders and Obligors.

 

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(b)                                 Borrowers shall have paid to Agent, for the account of each Lender (including Bank of America, N.A., in its capacity as a Lender), an amendment fee in an amount equal to 50 basis points multiplied by such Lender’s Commitment.

 

(c)                                  Borrowers shall have paid all other fees and amounts due and payable to Agent and its legal counsel in connection with the Loan Agreement, this Amendment and the other Loan Documents, including, (i) the fees payable pursuant to that certain Seventh Amendment Fee Letter dated as of the date hereof between Borrowers and Agent, and (ii) to the extent invoiced, all out-of-pocket expenses required to be reimbursed or paid by Borrowers under the Loan Agreement.

 

9.                                      Miscellaneous.

 

(a)                                 Except to the extent specifically amended hereby, the Loan Agreement, the other Loan Documents and all related documents shall remain in full force and effect.

 

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

 

(c)                                  Borrowers shall reimburse Agent for, or pay directly, all reasonable out-of-pocket costs and expenses of Agent (including, without limitation, the reasonable fees and expenses of Agent’s legal counsel) in connection with the preparation, negotiation, execution and delivery of this Amendment and the other Loan Documents, within 30 days of Borrowers’ receipt of invoices (in reasonably sufficient detail) setting forth such costs and expenses.

 

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

 

{Remainder of page intentionally left blank; signatures begin on the following page]

 

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

 

	
 
    	
BORROWERS
    
	
 
    	
 
    
	
 
    	
SUMMER   INFANT, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William Mote
    
	
 
    	
Name:
    	
William Mote
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
SUMMER INFANT   (USA), INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William Mote
    
	
 
    	
Name:
    	
William Mote
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    	
 
    
	
 
    	
GUARANTORS
    
	
 
    	
 
    
	
 
    	
SUMMER INFANT CANADA,   LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William Mote
    
	
 
    	
Name:
    	
William Mote
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    	
 
    
	
 
    	
SUMMER INFANT EUROPE   LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William Mote
    
	
 
    	
Name:
    	
William Mote
    
	
 
    	
Title:
    	
CFO
    

 

[Signature Page to Seventh Amendment and Waiver to Amended and Restated Loan and Security Agreement]

 

 

	
 
    	
AGENT
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A.,   as Agent
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Cynthia G. Stannard
    
	
 
    	
Name:
    	
Cynthia G. Stannard
    
	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Seventh Amendment and Waiver to Amended and Restated Loan and Security Agreement]

 

 

	
 
    	
LENDER
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A.,   as Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Cynthia G. Stannard
    
	
 
    	
Name:
    	
Cynthia G. Stannard
    
	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Seventh Amendment and Waiver to Amended and Restated Loan and Security Agreement]

 

 

	
 
    	
LENDER
    
	
 
    	
 
    
	
 
    	
CITIZENS BUSINESS   CAPITAL,
    
	
 
    	
A DIVISION OF CITIZENS   ASSET FINANCE, INC., as Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Peter Yelle
    
	
 
    	
Name:
    	
Peter Yelle
    
	
 
    	
Title:
    	
VP
    

 

[Signature Page to Seventh Amendment and Waiver to Amended and Restated Loan and Security Agreement]

 

 

	
 
    	
LENDER
    
	
 
    	
 
    
	
 
    	
KEYBANK NATIONAL   ASSOCIATION, as Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Peter Drooff
    
	
 
    	
Name:
    	
Peter Drooff
    
	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Seventh Amendment and Waiver to Amended and Restated Loan and Security Agreement]

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