AMENDMENT AND WAIVER NO. 1 TO
CREDIT AGREEMENT
THIS AMENDMENT
AND WAIVER NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT ,
dated as of April 20, 2007 (the “ Amendment ”),
is by and among DEI SALES, INC. , a Florida corporation (the
“ Borrower ”), those Affiliates of the Borrower
identified as “Guarantors” on the signature pages
hereto (the “ Guarantors ”), the financial
institutions party hereto (collectively, the “ Lenders
”; and individually, a “ Lender ”), and
CANADIAN IMPERIAL BANK OF COMMERCE , acting through its New
York Agency, as administrative agent for the Lenders (in such
capacity, the “ Administrative Agent ”) and
collateral agent for the Secured Parties (in such capacity, the
“ Collateral Agent ”).
WHEREAS ,
the Borrower, the Lenders and the Administrative Agent are parties
to that certain Amended and Restated Credit Agreement dated as of
September 22, 2006 (as previously amended and modified and as
amended, modified, supplemented or restated from time to time, the
“ Credit Agreement ”; capitalized terms used
herein shall have the meanings ascribed thereto in the Credit
Agreement unless otherwise defined herein);
WHEREAS ,
the Borrower has requested that the Requisite Lenders amend
(A) Section 7.1 of the Credit Agreement to permit
indebtedness of up to $5 million in connection with the Omega
Litigation (as defined below), (B) the definition of
“Permitted Encumbrances” to permit the lien on the
indebtedness incurred in connection with the Omega Litigation,
(C) Section 7.9 of the Credit Agreement to
(i) increase the permitted lease payments to $500,000 in any
fiscal year and (ii) to provide for Borrower’s lease
agreement entered into as of December 16, 2002 between
Borrower and Legal and General Assurance Society Limited and
(D) Schedule 1.1(a) of the Credit Agreement.
WHEREAS ,
the Lenders have agreed to amend certain provisions of the Credit
Agreement, in each case on the terms and conditions set forth
herein.
WHEREAS ,
the Borrower has requested that the Required Lenders agree to waive
certain provisions of the Credit Agreement as set forth
herein.
WHEREAS ,
the Lenders have agreed to waive certain provisions of the Credit
Agreement on the terms and conditions set forth herein.
NOW,
THEREFORE , in consideration of the agreements hereinafter set
forth, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto
agree as follows:
1.1
Amendment to Credit Agreement . Subject to the
satisfaction of the closing conditions set forth in Section 2
below, from and after the Amendment No. 1 Effective Date
(defined below), the Credit Agreement is amended as
follows:
(a) Section 1.1
is hereby amended by:
(i) adding the
following definition (in alphabetical order):
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“ Omega Litigation
” shall mean the court judgment in favor of Omega Patents,
L.L.C. (“ Omega ”) for breach of a certain
license agreement and patent infringement for $1.8 million
(plus attorneys fees).”
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(ii) amending the
definition of “Permitted Encumbrances” by deleting
“and” at the end of clause (ix), replacing the
“.” at the end of clause (viii) with “;
and”, and adding the following new clause (xi):
“(xi) Liens arising from Indebtedness permitted to be
incurred pursuant to Section 7.1(ix) arising from the Omega
Litigation in an aggregate principal amount not to exceed
$5 million.”
(b) Section 7.1
of the Credit Agreement is hereby amended by:
(i) deleting
“and” at the end of clause (vii),
(ii) replacing the
“.” at the end of clause (viii) with “;
and”, and
(iii) adding the
following new clause (ix): “(ix) The Loan Parties may
become and remain liable with respect to Indebtedness arising from
the Omega Litigation in an aggregate principal amount not to exceed
$5 million.”
(c) Section 7.9
of the Credit Agreement is hereby amended by:
(i) replacing the
“and” appearing at the end of clause (C) with a
comma and inserting, immediately following clause (D), the phrase
“and (E) Borrower’s lease of the Surrey facility
pursuant to the lease agreement entered into as of
December 16, 2002, as amended from time to time and any
successor as replacement lease (the “ UK Lease
”),”
(ii) replacing the
“and” appearing in the parenthetical at the end of such
section before “the Maryland Lease” with a comma and
adding “and the UK lease” immediately following such
phrase, and
(iii) deleting
“$250,000” contained therein and substituting in its
place “$500,000”.
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