Exhibit 10.1
FIRST AMENDMENT TO CREDIT
AGREEMENT
THIS FIRST AMENDMENT TO CREDIT
AGREEMENT dated as of September 29, 2009 (the “
Amendment ”) is entered into among Spark Networks
Limited, a company organized under the laws of England and Wales
(the “ Borrower ”), Sparks Networks, Inc., a
Delaware corporation (the “ Parent ”), the
Subsidiary Guarantors, the Lenders party hereto and Bank of
America, N.A., as Administrative Agent. All capitalized terms used
herein and not otherwise defined herein shall have the meanings
given to such terms in the Credit Agreement (as defined
below).
RECITALS
WHEREAS, the Borrower, the Parent,
the Lenders and Bank of America, N.A., as Administrative Agent
entered into that certain Credit Agreement dated as of
February 14, 2008 (as amended and modified from time to time,
the “ Credit Agreement ”);
WHEREAS, the Borrower and the Parent
have requested that the Lenders amend the Credit Agreement as set
forth below;
NOW, THEREFORE, in consideration of
the premises and the mutual covenants contained herein, and for
other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as
follows:
1. Amendments . The Credit
Agreement is hereby amended as follows:
(a) The definition of “
Aggregate Commitments ” in Section 1.01 of the
Credit Agreement is hereby amended to read as follows:
“ Aggregate Commitments
” means the Commitments of all the Lenders. The amount of the
Aggregate Commitments in effect on the First Amendment Effective
Date is TWENTY-FIVE MILLION DOLLARS ($25,000,000).
(b) The pricing grid in the
definition of “ Applicable Rate ” in
Section 1.01 of the Credit Agreement is hereby amended to read
as follows:
Applicable Rate
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Pricing
Level
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Consolidated
Leverage Ratio
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Commitment Fee
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Eurodollar Rate +
Letter of Credit
Fees
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Base Rate +
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I
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<1.00 to 1.00
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0.250%
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1.75%
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0.75%
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II
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<1.50 to 1.00 but
³
1.00 to 1.00
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0.250%
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2.00%
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1.00%
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III
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³
1.50 to 1.00
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0.375%
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2.50%
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1.50%
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(c) The definition of “
Restricted Payments ” in Section 1.01 of the
Credit Agreement is hereby amended to read as follows:
“ Restricted Payment
” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or
other Equity Interest of the Parent or any Subsidiary, or any
payment (whether in cash, securities or other property), including
any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of
any such capital stock or other Equity Interest, or on account of
any return of capital to the Borrower’s stockholders,
partners or members (or the equivalent Person thereof).
(d) The following definitions of
“ Assumed Amortization ”, “ CMLTD
”, “ Consolidated Cash Taxes ”, “
Consolidated Fixed Charge Coverage Ratio ”, “
Consolidated Fixed Charges ” and “ First
Amendment Effective Date ” are hereby added to
Section 1.01 of the Credit Agreement in the appropriate
alphabetical order to read as follows:
“ Assumed Amortization
” means, as of any date of determination, the result obtained
by multiplying the sum of the Outstanding Amount of Committed Loans
plus the Outstanding Amount of L/C Obligations plus
the Outstanding Amount of Swing Line Loans as of such date by
12.5%.
“ CMLTD ” means
scheduled maturities of long-term Indebtedness (including Capital
Leases) of the Parent and its Subsidiaries arising for the
12 months following the date of determination, as determined
in accordance with GAAP. CMLTD shall not include any balances
related to Borrowings under this Agreement.
“ Consolidated Cash
Taxes ” means, for any period, for the Parent and its
Subsidiaries on a consolidated basis, the aggregate of all federal,
state and local income taxes paid in cash (or otherwise satisfied
or offset by a refund or overpayment in excess of $300,000 related
to a prior period) during such period.
“ Consolidated Fixed Charge
Coverage Ratio ” means, as of any date of determination,
the ratio of (a) the sum of (i) Consolidated Adjusted
EBITDA for the period of the four consecutive fiscal quarters most
recently ended less (ii) Consolidated Cash Taxes for
such period less (iii) capital expenditures, as
determined in accordance with GAAP, made by the Parent, the
Borrower or any of their respective Subsidiaries during such period
less (iv) earn-out payments in connection with the
acquisition of assets made in cash or Cash Equivalents during such
period to the extent not deducted in calculating Consolidated Net
Income to (b) Consolidated Fixed Charges.
“ Consolidated Fixed
Charges ” means, as of any date of determination, for the
Parent and its Subsidiaries on a consolidated basis, an amount
equal to the sum of (a) Consolidated Interest Charges for the
period of the four consecutive fiscal quarters most recently ended
plus (b) CMLTD plus (c) the amount of
redemptions/repurchases of Equity Interests by the Parent pursuant
to Section 7.06(e) during the period of the four
consecutive fiscal quarters most recently ended plus
(d) Assumed Amortization.
“ First Amendment Effective
Date ” means September 29, 2009.
(e) Section 7.12 of the Credit
Agreement is hereby amended to read as follows:
7.12 Financial Covenants
.
(a) Maximum Consolidated Leverage
Ratio . Permit the Consolidated Leverage Ratio at any time
during any period of four fiscal quarters of the Parent ending on
the last day of each fiscal quarter set forth below to be greater
than the ratio set forth below opposite such fiscal
quarter:
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Four Fiscal Quarters
Ending
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Maximum
Consolidated Leverage
Ratio
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Closing Date through
December 31, 2009
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2.00 to 1.00
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March 31, 2010 and each fiscal
quarter thereafter
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1.50 to 1.00
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(b) Minimum Consolidated Adjusted
EBITDA . Permit the Consolidated Adjusted EBITDA for each
period of four consecutive fiscal quarters of the Parent ending on
the last day of each fiscal quarter set forth below to be less than
the corresponding amount set forth below:
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Four Fiscal Quarters
Ending
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Minimum
Consolidated Adjusted
EBITDA
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Closing Date through
September 30, 2008
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$12,000,000
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December 31, 2008 through
June 30, 2009
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$13,000,000
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September 30, 2009 through
December 31, 2009
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$9,000,000
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March 31, 2010 and each fiscal
quarter ending thereafter
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$8,000,000
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(c) Minimum Fixed Charge Coverage
Ratio . Permit the Consolidated Fixed Charge Coverage Ratio for
each period of four consecutive fiscal quarters of the Parent
ending on the last day of each fiscal quarter set forth below to be
less th