Exhibit 10.1
AMENDMENT NO. 6 TO CREDIT
AGREEMENT AND WAIVER
This Amendment No. 6 to Credit
Agreement and Waiver (“Amendment”) executed as of
November 13, 2008 by and between Software Brokers of America, Inc.,
a Florida corporation (“Company”) and Comerica Bank
(“Bank”).
RECITALS:
A. Company and Bank entered into
that certain Credit Agreement dated August 25, 2005, as
previously amended (“Agreement”).
B. Company and Bank desire to amend
the Agreement as set forth below.
C. Company has requested that Bank
waive certain existing Events of Default.
NOW, THEREFORE, Company and Bank
agree as follows:
1. Company has advised Bank that it
failed to comply with the provisions of Sections 6.11 and 6.12 of
the Agreement for its fiscal quarter ending September 30, 2008
(the “Covenant Violations”). Company has requested that
the Bank waive any Event of Default under the Agreement resulting
from the Covenant Violations. Bank hereby waives any Event of
Default under the Agreement resulting from the Covenant Violations.
This waiver shall not be deemed to amend or alter in any respect
the terms and conditions of the Agreement or any of the other Loan
Documents, or to constitute a waiver or release by the Bank of any
right, remedy or Event of Default under the Agreement or any of the
other Loan Documents, except to the extent specifically set forth
herein.
2. The definition of
“Borrowing Base” set forth in Section 1 of the
Agreement is amended to read as follows:
“‘Borrowing
Base’ shall mean, as of any date of determination, an amount
equal to the sum of (i) eighty-five percent (85%) of
Eligible Accounts, plus (ii) the Applicable Percentage of the
amount equal to ninety percent (90%) of Eligible Insured
Foreign Accounts, plus (iii) the lesser of (A) an
amount equal to the sum of (1) sixty percent (60%) of
Eligible Inventory plus (2) sixty percent (60%) of the
aggregate undrawn face amount of outstanding Eligible Commercial
Letters of Credit, or (B) $14,000,000. In no case may the
Borrowing Base include reliance on account of both the Eligible
Inventory purchased with an Eligible Commercial Letter of Credit
and the Eligible Commercial Letter of Credit”.
3. The definition of
“Revolving Credit Maturity Date” set forth in
Section 1 of the Agreement is amended to read as
follows:
“Revolving Credit Maturity
Date” shall mean the earlier of (i) January 1, 2010
or (ii) the date on which the Revolving Commitment shall
terminate in accordance with the provisions of this
Agreement.
4. The definition of
“Revolving Credit Note” set forth in the Agreement is
amended to read as follows:
“‘Revolving Credit
Note’ shall mean the Revolving Credit Note dated November 13,
2008 made in the principal amount of $30,000,000 by Company payable
to Bank, as may be amended, restated, supplemented or replaced from
time to time, a copy of which is annexed hereto as Exhibit
‘B’.”
5. Section 2.4 of the Agreement
is amended to read as follows:
“2.4 The Revolving Credit
Note shall mature on the Revolving Credit Maturity Date. Interest
on the principal amount from time to time outstanding under the
Revolving Credit Note shall accrue at the rate and shall be
calculated and payable as set forth in the Revolving Credit
Note.”
6. Section 2.5 of the Agreement
is amended to read as follows:
“2.5 [Intentionally
deleted.]”
7. Section 2.6 of the Agreement
is amended to read as follows:
“2.6 [Intentionally
deleted.]”
8. Section 2.8 of the Agreement
is amended to read as follows:
“2.8 The aggregate
principal amount at any time outstanding under the Revolving Credit
Note plus the aggregate undrawn amount of Letters of Credit (and
the unpaid amount of any draws or other demands for payment under
any Letters of Credit) shall never exceed the lesser of
(i) the Revolving Credit Commitment Amount, and (ii) the
Borrowing Base. Company shall immediately make all payments
necessary to comply with this provision.”
9. Section 2.9 of the Agreement
is amended to read as follows:
“2.9 [Intentionally
deleted.]”
10. Section 2.10 of the
Agreement is amended to read as follows:
“2.10 [Intentionally
deleted.]”
11. Section 2.11 of the
Agreement is amended to read as follows:
“2.11 [Intentionally
deleted.]”
12. Sections 3.1 through 3.6 of the
Agreement are amended to read as follows:
“3.1 [Intentionally
deleted.]
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3.2 [Intentionally
deleted.]
3.3 [Intentionally
deleted.]
3.4 [Intentionally
deleted.]
3.5 [Intentionally
deleted.]
3.6 [Intentionally
deleted.]”
13. Section 6.1(e) of the
Agreement is amended to read as follows:
“(e) within ten
(10) days after the end of each month, a borrowing base
certificate in the form annexed hereto as Exhibit “C”,
with appropriate insertions certified by an authorized officer of
Company as being correct and accurate to the best of such
officer’s knowledge; and on Monday of each week and as of the
close of business on the prior Friday, a weekly update to the
borrowing base certificate in the form annexed hereto as Exhibit
“C-1”, with appropriate insertions certified by an
authorized officer of Company as being correct and accurate to the
best of such officer’s knowledge; and”
14. Section 6.4 of the
Agreement is amended to read as follows:
“6.4 Permit Bank, through
its authorized attorneys, accountants, and representatives, to
examine Company=s books, accounts, records, ledgers and assets of
every kind and description at all reasonable times during normal
business hours upon oral or written request of Bank, including,
without limitation, (i) semi-annual Collateral audits at
Company’s sole expense, provided, that Company shall only be
obligated to pay the expenses for two such Collateral audits per
year unless an Event of Default has occurred and is continuing and
(ii) appraisals of Company’s inventory by a third party
appraiser acceptable to Bank, provided, that Company shall only be
obligated to pay the expenses for such appraisal once every other
year (commencing in 2008) unless an Event of Default has occurred
and is continuing.”
15. Section 7.11 of the
Agreement is amended to read as follows:
“7.11 Make or allow to
remain outstanding any Investment except the following permitted
Investments (all of the exceptions set forth below being subject to
the provisions of Section 7.13 of this
Agreement):
(a) Investments of cash in
cash equivalents and any extensions, renewals or reinvestments
thereof;
(b) sales of inventory on
open account (or otherwise on credit) and in the ordinary course of
business and Investments in the form of notes or other similar
instruments evidencing or supporting the obligation of an Account
Debtor received in connection with such sales;
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(c) deposits made in the ordinary
course of business in order to obtain goods or
services;
(d) existing Investments
described in attached Schedule 7.11 and any extensions, renewals or
reinvestments thereof (excluding any increases
thereof);
(e) Investments received in
settlement of amounts due or owing to Company as a result of
insolvency proceedings or other disputes involving an Account
Debtor or upon the foreclosure or enforcement of any lien in favor
of Company;
(f) loans and advances to
employees of Company that constitute Investments so long as the
aggregate amount outstanding does not exceed US$75,000 at any
time;
(g) loans to the Guarantor;
and
(h) additional Investments not to
exceed US $100,000 in the aggregate.”
16. Any reference to the term
“Prime-based Rate” in the Agreement shall mean the rate
then applicable under the Revolving Credit Note.
17. Exhibit “B” of the
Agreement is amended to read in the form annexed hereto as Exhibit
“B”. Exhibit “C-1” is added to the
Agreement to read in the form of Exhibit “C-1” annexed
hereto.
18. Company shall furnish Bank
within 45 days after and as of December 31, 2008, (i) a
balance sheet and statement of profit and loss and surplus
reconciliation of Company for Company’s fiscal year ending on
such date, certified by an authorized officer of Company as being
correct and accurate to the best of his knowledge, and (ii) a
covenant compliance report satisfying the requirements of
Section 6.6 of the Agreement. Nothing set forth in this
paragraph shall modify in any respect Company’s obligations
to provide Bank with a detailed audit report for such fiscal year
as and when set forth in Section 6.1(a) of the Agreement as
required under Section 6.6 of the Agreement.
19. Company will reimburse the Bank
for all costs and expenses, including reasonable attorneys’
fees, incurred by the Bank in connection with the preparation of
this Amendment and the documents, instruments and agreements
executed in connection herewith.
20. The amendments and waiver
contained herein shall be effective upon execution of this
Amendment by Company and Bank, receipt by Bank of all other loan
documents, if any, listed on the Closing Agenda of even date
herewith duly executed by the parties thereto and payment of the
fee required under paragraph 8 above.
21. Except as modified hereby, all
of the terms and conditions of the Agreement shall remain in full
force and effect, the liability of the Company howsoever arising or
provided for in the Agreement, as hereby modified or amended, is
hereby reaffirmed.
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22. The Company hereby represents
and warrants that, after giving effect to the amendments and waiver
contained herein; (a) execution, delivery and performance of
this Amendment and any other documents and instruments required
under this Amendment or the Agreement are within Company’s
corporate powers, have been duly authorized, are not in
contravention of law or the terms of Company’s Articles of
Incorporation or Bylaws, and do not require the consent or approval
of any governmental body, agency, or authority; and this Amendment
and any other documents and instruments required under this
Amendment or the Agreement, will be valid and binding in accordance
with their terms; (b) the continuing representations and
warranties of Company set forth in Sections 5.1 through 5.5 and 5.7
through 5.15 of the Agreement are true and correct on and as of the
date hereof with the same force and effect as made on and as of the
date hereof; (c) the continuing representations and warranties
of Company set forth in Section 5.6 of the Agreement are true
and correct as of the date hereof with respect to the most recent
financial statements furnished to the Bank by Company in accordance
with Section 6.1 of the Agreement; and (d) no Event of
Default (as defined in the Agreement), or condition or event which,
with the giving of notice or the running of time, or both, would
constitute an Event of Default, has occurred and is continuing as
of the date hereof.
23. Company hereby waives,
discharges, and forever releases Bank and the Bank’s
employees, officers, directors, attorneys, stockholders and
successors and assigns (collectively, the “Released
Parties”), from and of (i) any and all claims, causes of
action, allegations or assertions that Company and/or Intcomex has
or may have had against any or all of the Released Parties arising
under or in connection with the financial arrangements between
Company under Agreement and/or any of the other Loan Documents (as
defined in the Credit Agreement) at any time up through and
including the date of this Amendment, and (ii) any and all
other claims, causes of action, allegations or assertions that
Company has or may have had against any or all of the Released
Parties at any time up through and including the date of this
Amendment, and which are known to Company (collectively, the
“Known Claims”), regardless if any such Known
Claims arose as a result of Bank’s actions or omissions in
connection with the financial arrangements between Company and
Bank, any amendments, extensions, or modifications thereto, or
Bank’s administration of those financial
arrangements.
WITNESS the due execution hereof on
the date and year first above written.
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COMERICA
BANK
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SOFTWARE
BROKERS OF AMERICA, INC.
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By:
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/s/ Mark
Koszyk
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By:
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/s/ Anthony
Shalom
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Mark
Koszyk
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Anthony
Shalom
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Its:
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Senior Vice
President
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Its:
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President
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Acknowledgement
The above Amendment is hereby
acknowledged by the undersigned Guarantor as of November 13,
2008:
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INTCOMEX,
INC.
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By:
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/s/ Anthony
Shalom
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Anthony
Shalom
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Its:
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CEO
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6
EXHIBIT
“B”
THIS REVOLVING CREDIT NOTE
RENEWS, EXTENDS AND/OR MODIFIES THAT CERTAIN $30,000,000 REVOLVING
CREDIT NOTE DATED AUGUST 17, 2007 BY SOFTWARE BROKERS OF AMERICA,
INC. PAYABLE TO COMERICA BANK, WHICH RENEWED, EXTENDED, INCREASED
AND/OR MODIFIED THAT CERTAIN $27,500,000 REVOLVING CREDIT NOTE
DATED MAY 17, 2007 BY SOFTWARE BROKERS OF AMERICA, INC. PAYABLE TO
COMERICA BANK WHICH RENEWED, EXTENDED, INCREASED AND/OR MODIFIED
THAT CERTAIN $25,000,000 REVOLVING CREDIT NOTE DATED AUGUST 25,
2005 BY SOFTWARE BROKERS OF AMERICA, INC. PAYABLE TO COMERICA BANK,
EVIDENCING AN ORIGINAL PRINCIPAL AMOUNT OF $25,000,000. IN
CONNECTION WITH THE ISSUANCE OF THE $25,000,000 REVOLVING CREDIT
NOTE, FLORIDA DOCUMENTARY STAMP TAX IN THE AMOUNT OF $2450 WAS PAID
DIRECTLY TO THE FLORIDA DEPARTMENT OF REVENUE CERTIFICATE OF
REGISTRATION NO. 38-0477375-16-01. NO ADDITIONAL DOCUMENTARY STAMP
TAX IS DUE ON THIS NOTE.
REVOLVING CREDIT
NOTE
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$30,000,000
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November 13, 2008
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On or before the Maturity Date, FOR
VALUE RECEIVED, the undersigned promise(s) to pay to the order of
COMERICA BANK (herein called “Bank”), at any office of
the Bank in the State of Michigan, the principal sum of THIRTY
MILLION DOLLARS ($30,000,000), or so much of said sum as has been
advanced and is then outstanding under this Note, together with
interest thereon at the Daily Adjusting LIBOR Rate, except during
any period of time during which, in accordance with the terms and
conditions of this Note, the Indebtedness hereunder shall bear
interest at the Prime-based Rate.
This Note is a note under which
advances, repayments and re-advances may be made from time to time,
subject to the terms and conditions of this Note and the Credit
Agreement. AT NO TIME SHALL THE BANK BE UNDER ANY OBLIGATION TO
MAKE ANY ADVANCES TO THE UNDERSIGNED PURSUANT TO THIS NOTE
(NOTWITHSTANDING ANYTHING EXPRESSED OR IMPLIED IN