SEC Contract Filing

Filing Date: 2015-05-15

Document Content:
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<TYPE>EX-10.38
<SEQUENCE>2
<FILENAME>scri_ex10z38.htm
<DESCRIPTION>FIRST AMENDMENT TO FINANCING AGREEMENT
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<TITLE>FIRST AMENDMENT TO FINANCING AGREEMENT</TITLE>
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<P style="margin-top:3.8px; margin-bottom:0px; font-size:12pt" align=right><B>EXHIBIT 10.38</B></P>
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<P style="margin-top:3.8px; margin-bottom:0px; font-size:12pt" align=center><B><U>FIRST AMENDMENT TO FINANCING AGREEMENT</U></B></P>
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<P style="margin-top:4.6px; margin-bottom:0px; text-indent:54.667px; font-size:12pt" align=justify>This FIRST AMENDMENT TO FINANCING AGREEMENT (this &#147;<B>Amendment</B>&#148;) is made and entered into as of May 14, 2015 by and among Social Reality, Inc., a Delaware corporation (&#147;<B>Social</B>&#148;), Steel Media, a California corporation (&#147;<B>Steel</B>&#148;; Steel together with Social, each a &#147;<B>Borrower</B>&#148; and collectively, the &#147;<B>Borrowers</B>&#148;), Social, as the Borrower Representative, the other Guarantors party hereto (such other Guarantors, collectively with the Borrowers, the &#147;<B>Credit Parties</B>&#148;), the financial institutions party hereto as &#147;Lenders&#148; (collectively, the &#147;<B>Lenders</B>&#148;), and Victory Park Management, LLC, as administrative agent and collateral agent for the Lenders and the Holders (in such capacity, the &#147;<B>Agent</B>&#148;). Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Financing Agreement.</P>
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<P style="margin:0px; padding-left:6.667px; padding-right:7.667px; text-indent:47.933px; font-size:12pt" align=justify><B>WHEREAS</B>, the Credit Parties, the Lenders and the Agent are parties to that certain Financing Agreement dated as of October 30, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the &#147;<B>Financing Agreement</B>&#148;); and</P>
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<P style="margin:0px; padding-left:6.667px; padding-right:7.733px; text-indent:47.933px; font-size:12pt" align=justify><B>WHEREAS</B>, the Credit Parties, the Lenders and the Agent desire to amend certain provisions of the Financing Agreement on the terms set forth herein.</P>
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<P style="margin:0px; padding-left:6.667px; padding-right:7.933px; text-indent:47.933px; font-size:12pt" align=justify><B>NOW, THEREFORE</B>, in consideration of the premises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:54.667px; width:102.733px; font-size:12pt; float:left">1.</P>
<P style="margin:0px; padding-left:6.667px; padding-right:7.667px; text-indent:-2px; font-size:12pt" align=justify><B><U>Limited Waiver</U></B>. Effective as of the date hereof, upon satisfaction of the conditions precedent set forth in Section 3 hereof, and in reliance upon the representations and warranties of the Credit Parties set forth in the Financing Agreement and in this Amendment, the Agent, the Lenders and the Holders hereby agree that the Credit Parties shall not be required to demonstrate compliance with any of the financial covenants set forth in Section 8.1 of the Financing Agreement for the measurement period ending December 31, 2014. The foregoing waiver shall not be deemed (a) a waiver of any Event of Default (or event or circumstance that, with the passage of time, the giving of notice, or both, would become an Event of Default) that has occurred and is continuing or, if there is any such Event of Default (or event or circumstance that, with the passage of time, the giving of notice, or both, would become an Event of Default) which has occurred or exists under the Financing Agreement or hereafter may occur under the Financing Agreement, as amended, or (b) to establish a custom or course of dealing among the Borrower, any other Credit Party, the Agent, the Holders, the Lenders or any of them. Except as specifically set forth herein, the Agent, the Holders and the Lenders hereby expressly reserve all of their rights, privileges and remedies under the Financing Agreement, as amended, the other Transaction Documents and applicable law.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:54.667px; width:102.733px; font-size:12pt; float:left">2.</P>
<P style="margin:0px; padding-left:6.667px; padding-right:7.867px; text-indent:-2px; font-size:12pt" align=justify><B><U>Amendments to Financing Agreement</U></B>. Subject to the terms and conditions of this Amendment, including the satisfaction of the conditions precedent set forth in Section 3 hereof, the Financing Agreement is amended as follows:</P>
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<P style=page-break-before:always;margin-top:0;margin-bottom:-4pt;font-size:4pt /><P style=margin-top:3.467px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; text-indent:102.667px; width:150.733px; font-size:12pt; float:left">(a)</P>
<P style="margin:0px; padding-left:6.667px; padding-right:7.733px; text-indent:-2px; font-size:12pt" align=justify>Section 1.1 of the Financing Agreement is hereby amended by substituting the definitions as set forth below in lieu of the current version of such def