WAIVER AND FIRST AMENDMENT TO CREDIT AGREEMENT
Exhibit 10.21
WAIVER AND FIRST AMENDMENT TO CREDIT AGREEMENT
THIS WAIVER AND FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into
as of September 16, 2009, by and among XXXXX FARGO FOOTHILL, LLC, a Delaware limited liability
company, as the arranger and administrative agent (“Agent”) for the Lenders (as defined in
the Credit Agreement referred to below), the Lenders party hereto and REALPAGE, INC., a Delaware
corporation (the “Borrower”).
WHEREAS, Borrower, Agent, and Lenders are parties to that certain Credit Agreement dated as of
September 3, 2009 (as amended, restated, modified or supplemented from time to time, the
“Credit Agreement”);
WHEREAS, Borrower has informed Agent that (a) Borrower has entered into that certain Asset
Purchase Agreement dated as of September 9, 2009, among Borrower, EverGreen Solutions, Inc.
(“Evergreen”) and Xxxxxxxxxx Xxxxxx (the “Evergreen Purchase Agreement”) pursuant
to which Borrower has acquired substantially all of the assets of Evergreen (such acquisition, the
“Evergreen Acquisition”) and (b) Borrower intends to enter into that certain Stock Purchase
Agreement dated as of September 14, 2009, among Borrower, A.L. Wizard, Inc. (“Wizard”) and
the stockholders of Wizard party thereto (the “Wizard Purchase Agreement”) pursuant to
which Borrower shall acquire all of the Stock of Wizard (such acquisition, the “Wizard
Acquisition”);
WHEREAS, Events of Default have occurred and are continuing under Section 8.2(a) of the Credit
Agreement as a result of Borrower’s failure to (i) satisfy the requirements set forth in clauses
(c), (d), and (g) of the definition of “Permitted Acquisition” in Schedule 1.1 of the Credit
Agreement prior to consummating the Evergreen Acquisition and (ii) deliver notice to Agent and
Lenders of the event described in clause (i) above pursuant to Schedule 5.1(j) of the Credit
Agreement (the “Existing Defaults”);
WHEREAS, Events of Default shall occur and be continuing under Section 8.2(a) of the Credit
Agreement in the event Borrower consummates the Wizard Acquisition as a result of Borrower’s
failure to satisfy the requirements set forth in clause (g) of the definition of “Permitted
Acquisition” in Schedule 1.1 of the Credit Agreement (the “Potential Default” and, together
with the Existing Defaults, the “Existing and Potential Defaults”); and
WHEREAS, Borrower has requested that Agent and the Lenders (a) waive the Existing and
Potential Defaults and deem the Evergreen Acquisition and the Wizard Acquisition to be Permitted
Acquisitions notwithstanding the Existing and Potential Defaults and (b) amend the Credit Agreement
in certain respects in connection with the consummation of the Evergreen Acquisition and the Wizard
Acquisition.
NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the
parties hereto agree as follows:
1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein and
not otherwise defined shall have the meanings ascribed to such terms in the Credit Agreement.
2. Waiver. Subject to the terms and conditions set forth herein, Agent and Lenders
hereby waive the Existing and Potential Defaults, and agree to treat the Evergreen Acquisition and
the Wizard Acquisition as Permitted Acquisitions notwithstanding the Existing and Potential
Defaults. The foregoing waiver shall not constitute (i) a waiver of, or consent to, any other
breach of, or any other Event of Default under, the Credit Agreement or any other Loan Document or
(ii) except as expressly set forth herein, a waiver, release or limitation upon the exercise by
Agent or any Lender of any of its rights, legal or equitable, under the Credit Agreement, the other
Loan Documents and applicable law, all of which are hereby reserved.
3. Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, Schedules P-1, 4.1(c), 4.6(a), 4.6(b), 4.6(c), 4.6(d), 4.7(b), 4.13, 4.15, 4.17, 4.19, 4.25
and 4.27 to the
Credit Agreement are replaced with Schedules P-1, 4.1(c), 4.6(a), 4.6(b), 4.6(c), 4.6(d),
4.7(b), 4.13, 4.15, 4.17, 4.19, 4.25 and 4.27 attached hereto.
4. Covenants. Borrower hereby agrees, on or before the applicable time periods
contained therein, to deliver such other documents, agreements and instruments required to be
delivered to Agent pursuant to Section 5.11 of the Credit Agreement or as may be reasonably
required by Agent pursuant to Section 5.12 of the Credit Agreement in connection with the Evergreen
Acquisition and the Wizard Acquisition, each in form and substance reasonably satisfactory to Agent
and Lenders.
5. Continuing Effect. Except as expressly set forth in Section 2 and
Section 3 of this Amendment, nothing in this Amendment shall constitute a modification or
alteration of the terms, conditions or covenants of the Credit Agreement or any other Loan
Document, or a waiver of any other terms or provisions thereof, and the Credit Agreement and the
other Loan Documents shall remain unchanged and shall continue in full force and effect, in each
case as amended hereby.
6. Reaffirmation and Confirmation. Borrower hereby ratifies, affirms, acknowledges
and agrees that the Credit Agreement and the other Loan Documents to which it is a party represent
the valid, enforceable and collectible obligations of Borrower, and further acknowledges that there
are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with
respect to the Credit Agreement or any other Loan Document. Borrower hereby agrees that this
Amendment in no way acts as a release or relinquishment of the Liens and rights securing payments
of the Obligations. The Liens and rights securing payment of the Obligations are hereby ratified
and confirmed by Borrower in all respects.
7. Conditions to Effectiveness. This Amendment shall become effective upon the
satisfaction of the following conditions precedent:
(a) Agent shall have received a copy of this Amendment executed and delivered by Agent, the
Lenders and the Loan Parties;
(b) Agent shall have received such documents, agreements and instruments as may be reasonably
required by Agent in connection with this Amendment, each in form and substance reasonably
satisfactory to Agent; and
(c) No Default or Event of Default shall have occurred and be continuing on the date hereof or
as of the date of the effectiveness of this Amendment (other than the Existing and Potential
Defaults before giving effect to this Amendment).
8. Representations and Warranties. In order to induce Agent and Lenders to enter into
this Amendment, each Loan Party hereby represents and warrants to Agent and Lenders, both before
and after giving effect to this Amendment:
(a) All representations and warranties contained in the Loan Documents to which such Loan
Party is a party are true and correct in all material respects on and as of the date of this
Amendment (except to the extent any representation or warranty expressly related to an earlier date
and except to the extent that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality or dollar
thresholds in the text thereof);
(b) Borrower has delivered to Agent a complete and correct copy of the Evergreen Purchase
Agreement and the Wizard Purchase Agreement and the other material documents relative to the
Evergreen Acquisition and the Wizard Acquisition, including all schedules and exhibits thereto;
(c) No Default or Event of Default has occurred and is continuing (other than the Existing and
Potential Defaults before giving effect to this Amendment); and
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(d) This Amendment and the Loan Documents, as amended hereby, constitute legal, valid and
binding obligations of such Loan Party and are enforceable against such Loan Party in accordance
with their respective terms.
9. Miscellaneous.
(a) Expenses. Borrower agrees to pay on demand all reasonable costs and expenses of
Agent and the Lenders (including reasonable attorneys fees) incurred in connection with the
preparation, negotiation, execution, delivery and administration of this Amendment and all other
instruments or documents provided for herein or delivered or to be delivered hereunder or in
connection herewith. All obligations provided herein shall survive any termination of this
Amendment and the Credit Agreement as amended hereby.
(b) Choice of Law and Venue; Jury Trial Waiver; Reference Provision. Without limiting
the applicability of any other provision of the Credit Agreement or any other Loan Document, the
terms and provisions set forth in Section 12 of the Credit Agreement are expressly incorporated
herein by reference.
(c) Counterparts. This Amendment may be executed in any number of counterparts, and
by the parties hereto on the same or separate counterparts, and each such counterpart, when
executed and delivered, shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Amendment.
10. Release.
(a) In consideration of the agreements of Agent and Lenders contained herein and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each
Loan Party, on behalf of itself and its successors, assigns, and other legal representatives,
hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent
and Lenders, and their successors and assigns, and their present and former shareholders,
affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees,
agents and other representatives (Agent, each Lender and all such other Persons being hereinafter
referred to collectively as the “Releasees” and individually as a “Releasee”), of
and from all demands, actions, causes of action, suits, controversies, damages and any and all
other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever
(individually, a “Claim” and collectively, “Claims”) of every name and nature,
known or unknown, suspected or unsuspected, both at law and in equity, which such Loan Party or any
of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or
claim to have against the Releasees or any of them for, upon, or by reason of any circumstance,
action, cause or thing whatsoever which arises at any time on or prior to the day and date of this
Amendment for or on account of, or in relation to, or in any way in connection with any of the
Credit Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.
(b) Each Loan Party understands, acknowledges and agrees that the release set forth above may
be pleaded as a full and complete defense and may be used as a basis for an injunction against any
action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the
provisions of such release.
(c) Each Loan Party agrees that no fact, event, circumstance, evidence or transaction which
could now be asserted or which may hereafter be discovered shall affect in any manner the final,
absolute and unconditional nature of the release set forth above.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized and delivered as of the date first above written.
| REALPAGE, INC., a Delaware corporation |
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| By: | /s/ Xxxxxxx X. Xxxxxx | |||
| Name: | Xxxxxxx X. Xxxxxx | |||
| Title: | Executive Vice President and Chief Financial Officer | |||
| XXXXX FARGO FOOTHILL, LLC, a Delaware limited liability company, as Agent and as a Lender |
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| By: | /s/ Xxxx X. Xxxxxxxx | |||
| Name: | Xxxx X. Xxxxxxxx | |||
| Title: | Vice President | |||
| COMERICA BANK, a Texas Banking Association, as a Lender |
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| By: | /s/ Xxxxx Xxxxxxx | |||
| Name: | Xxxxx Xxxxxxx | |||
| Title: | Senior Vice President | |||
Signature Page to Waiver and First Amendment to Credit Agreement
CONSENT AND REAFFIRMATION
Each Guarantor hereby (i) acknowledges receipt of a copy of the foregoing Waiver and First
Amendment to Credit Agreement (the “Amendment”; capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to such terms in the Amendment), (ii) consents to
Borrower’s execution and delivery of the Amendment; (iii) agrees to be bound by the Amendment
(including Section 10 thereof); (iv) affirms that nothing contained in the Amendment shall modify
in any respect whatsoever any Loan Document to which it is a party except as expressly set forth
therein; and (v) ratifies, affirms, acknowledges and agrees that each of the Loan Documents to
which such Guarantor is a party represents the valid, enforceable and collectible obligations of
such Guarantor, and further acknowledges that there are no existing claims, defenses, personal or
otherwise, or rights of setoff whatsoever with respect to the Credit Agreement or any other such
Loan Document. Each Guarantor hereby agrees that the Amendment in no way acts as a release or
relinquishment of the Liens and rights securing payments of the Obligations. The Liens and rights
securing payment of the Obligations are hereby ratified and confirmed by such Guarantor in all
respects. Although each Guarantor has been informed of the matters set forth herein and has
acknowledged and agreed to same, each Guarantor understands that neither Agent nor any Lender has
any obligation to inform any Guarantor of such matters in the future or to seek any Guarantor’s
acknowledgment or agreement to future amendments, waivers or consents, and nothing herein shall
create such a duty.
| OPSTECHNOLOGY, INC., a Delaware corporation |
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| By: | /s/ Xxxxxxx X. Xxxxxx | |||
| Name: | Xxxxxxx X. Xxxxxx | |||
| Title: | Vice President and Treasurer | |||
| MULTIFAMILY INTERNET VENTURES, LLC, a California limited liability company |
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| By: | /s/ Xxxxxxx X. Xxxxxx | |||
| Name: | Xxxxxxx X. Xxxxxx | |||
| Title: | Vice President and Treasurer | |||
| STARFIRE MEDIA, INC., a Delaware corporation |
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| By: | /s/ Xxxxxxx X. Xxxxxx | |||
| Name: | Xxxxxxx X. Xxxxxx | |||
| Title: | Treasurer | |||
| REALPAGE INDIA HOLDINGS, INC., a Delaware corporation |
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| By: | /s/ Xxxxxxx X. Xxxxxx | |||
| Name: | Xxxxxxx X. Xxxxxx | |||
| Title: | Treasurer | |||
