SEC Contract Filing

Filing Date: 2018-09-20

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex_124276.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<p style="margin-bottom: 0px; text-align: right; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 10.1</b></font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><u><b>FIRST AMENDMENT TO CREDIT AGREEMENT</b></u></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;"><b>THIS FIRST AMENDMENT TO CREDIT AGREEMENT </b>(the &ldquo;<b>Amendment</b>&rdquo;) is made effective as of September 19, 2018 by and between <b>MAM SOFTWARE GROUP, INC.</b>, a Delaware corporation (<b>&ldquo;</b><b>Borrower&rdquo;</b>) and <b>UNIVEST BANK AND TRUST CO.</b> (<b>&ldquo;</b><b>Lender&rdquo;</b>).</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><u><b>BACKGROUND</b></u></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;"><b>A.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;Lender and Borrower have previously entered into that certain Credit Agreement dated March 1, 2017 (as amended and as it may hereafter be amended, restated, replaced or supplemented from time to time, the <b>&ldquo;Credit Agreement</b>&rdquo;).</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;"><b>B.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;Borrower has requested and Lender has agreed to amend certain terms and conditions of the Credit Agreement on the terms and conditions set forth herein.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;"><b>C.&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms not otherwise defined herein shall have the meanings set forth therefor in the Credit Agreement.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;"><b>NOW, THEREFORE, </b>intending to be legally bound hereby, the parties hereto agree as follows<b>:</b></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b><u><b>Fixed Charges</b></u><b>. </b>The defined term &ldquo;<u>Fixed Charges</u>&rdquo; as set forth in Section 1.01 of the Credit Agreement shall be and is hereby amended to read, in its entirety, as follows:</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 36pt;text-align:justify;text-indent:36pt;">&ldquo;<u>Fixed Charges</u>&rdquo; means, for any period, without duplication, the sum of current maturities of long term debt, <u><i>plus</i></u> cash interest expense, <u><i>plus</i></u> cash income taxes, <u><i>plus</i></u> Dividends, <u><i>plus</i></u> cash expense incurred in connection with a Permitted Stock Repurchase.&rdquo;</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b><u><b>Permitted Stock Repurchase Plan</b></u>. Notwithstanding anything to the contrary contained in the Credit Agreement, including without limitation, any prohibition on Restricted Payments or Dividends, Lender agrees that Borrower may repurchase certain issued and outstanding Equity Interests of Borrower; <u>provided</u> <u>that</u>, (i) Borrower provides to Lender ten (10) days prior written notice of such repurchase or prior to establishing a trading plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, the terms and conditions related thereto and such other information as Lender may reasonably require; (ii) Borrower may not repurchase more than $500,000 in the aggregate of such Equity Interests of Borrower in any fiscal quarter; (iii) Borrower may not repurchase more than $2,000,000 in the aggregate of such Equity Interests of Borrower prior to the expiration of the Revolving Credit Maturity Date; and (iv) no Default or Event of Default shall exist or be continuing at the time of or result from such repurchase (each, a <b>&ldquo;Permitted Stock Repurchase&rdquo;</b>). Lender further agrees that the proceeds of the Revolving Credit Facility may be used by Borrower