-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T+eFN08njUPJMZqUYHf9K+xhsoNOCUog3c05z/4XSEuL+6BFEp03EVioBueXZcSr CoI0SRQegFZucSX0W5XCkA== 0001193125-08-252093.txt : 20081211 0001193125-08-252093.hdr.sgml : 20081211 20081211170404 ACCESSION NUMBER: 0001193125-08-252093 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20081203 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20081211 DATE AS OF CHANGE: 20081211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOAMERICA INC CENTRAL INDEX KEY: 0001101268 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 223693371 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29359 FILM NUMBER: 081244111 BUSINESS ADDRESS: STREET 1: C/O GOAMERICA, INC. STREET 2: 433 HACKENSACK AVENUE CITY: HACKENSACK STATE: NJ ZIP: 07601 BUSINESS PHONE: 2019961717 MAIL ADDRESS: STREET 1: C/O GOAMERICA STREET 2: 401 HACKENSACK AVENUE CITY: HACKENSACK STATE: NJ ZIP: 07601 8-K 1 d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): December 3, 2008

GoAmerica, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   0-29359   22-3693371
(State or Other Jurisdiction
of InCompany)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

433 Hackensack Avenue

Hackensack, NJ 07601

(Address of principal executive offices) (Zip code)

(201) 996-1717

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


INFORMATION TO BE INCLUDED IN THE REPORT

 

Item 1.01. Entry Into a Material Definitive Agreement.

In connection with the acquisition by GoAmerica, Inc. (the “Company”) of Verizon’s TRS division and Hands On Video Relay Services, Inc. on January 10, 2008, the Company entered into the following: (i) the Credit Agreement by and among the Company, as borrower, the lenders from time to time party thereto, the letter of credit issuers from time to time party thereto, Churchill Financial LLC, as administrative agent, and Ableco Finance LLC, as collateral agent (the “Churchill Credit Agreement”), and (ii) the Second Lien Credit Agreement by and among the Company, as borrower, the lenders from time to time party thereto, and Clearlake Capital Group, L.P., as administrative agent (the “Second Lien Agreement”).

On December 3 and 8, 2008, respectively, the parties to the Churchill Credit Agreement entered into a Third Amendment and Consent to Credit Agreement, and the parties to the Second Lien Agreement entered into a Third Amendment and Consent to Second Lien Credit Agreement. The principal purposes of the amendments are to permit the Company to change its name to “Purple Communications, Inc.” and similarly to change the names of its subsidiaries, and to permit the Company to repurchase up to $1 million of its outstanding common stock during the period ending December 31, 2009. The amendments to the Credit Agreement also provide for a $2 million reduction in the Company’s revolving line of credit, and for payment of a fee to the first lien lenders in an amount equal to 3% of the quarterly stock repurchases from time to time made by the Company.

Implementation of the corporate name change is subject to receipt and effectiveness of all required stockholder approvals, which the Company intends to obtain in the near future.

 

Item 8.01. Other Events.

As previously reported, the Company’s board of directors authorized a program to repurchase up to $1 million of the Company’s outstanding common stock, subject to receipt of requisite lender approvals. As disclosed in response to Item 1.01 above, such lender approval has been obtained, and the Company intends to implement the repurchase program as soon as possible.

Under the Repurchase Program, repurchases may be made from time to time by the Company in the open market or in private purchases in compliance with Securities and Exchange Commission guidelines, including without limitation Rule 10b-18 and Rule 10b-5. The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors, and may be executed in part or whole pursuant to a Rule 10b5-1(c) trading plan. The Repurchase Program may be suspended or discontinued at anytime. It is expected that any repurchased shares will be held in treasury. The Board of Directors has established certain parameters within which purchases of shares may be made, and a limit of $1 Million on the aggregate dollar amount of the shares that may be purchased pursuant to the program between the Program start date and December 31, 2009. The repurchase program will be funded using the company’s working capital.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit
Number

  

Description

10.1    Third Amendment and Consent to First Lien Credit Agreement, Dated December 3, 2008
10.2    Third Amendment and Consent to Second Lien Credit Agreement, Dated December 8, 2008


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

GoAmerica, Inc.
(Registrant)
By:   /s/ Michael J. Pendergast
Name:   Michael J. Pendergast
Title:   General Counsel & Corporate Secretary

Date: December 11, 2008


EXHIBIT INDEX

 

Exhibit
Number

  

Description

10.1    Third Amendment and Consent to First Lien Credit Agreement, Dated December 3, 2008
10.2    Third Amendment and Consent to Second Lien Credit Agreement, Dated December 8, 2008
EX-10.1 2 dex101.htm THIRD AMENDMENT AND CONSENT TO FIRST LIEN CREDIT AGREEMENT Third Amendment and Consent to First Lien Credit Agreement

Exhibit 10.1

THIRD AMENDMENT AND CONSENT TO CREDIT AGREEMENT

This THIRD AMENDMENT AND CONSENT TO CREDIT AGREEMENT, dated as of December 3, 2008 (this “Amendment”), to the Credit Agreement referred to below, by and among the lenders identified on the signature pages hereof (such lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), GoAmerica, Inc., a Delaware corporation (“Borrower”), the letter of credit issuers thereto (the “L/C Issuers”), Churchill Financial LLC, as administrative agent for the Lenders and the L/C Issuers (in such capacity, and together with its successors and permitted assigns, the “Administrative Agent”) and Ableco Finance LLC, as collateral agent for the Lenders and the L/C Issuers (in such capacity, and together with its successors and permitted assigns, the “Collateral Agent”, and together with the Administrative Agent, the “Agents”).

W I T N E S S E T H

WHEREAS, Borrower, Agents, the Lenders and L/C Issuers signatory thereto from time to time are parties to that certain Credit Agreement, dated as of January 10, 2008 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, Borrower has requested that Agents and Lenders consent to certain actions to be taken by the Loan Parties that would otherwise be in violation of the Credit Agreement;

WHEREAS, Agents and Required Lenders have agreed to provide such consents in the manner, and on the terms and conditions, provided for herein; and

WHEREAS, Borrower has requested, and Agents and Required Lenders have agreed, to amend the Credit Agreement in the manner, and on the terms and conditions, provided for herein.

NOW THEREFORE, in consideration of the promises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Loan Parties, Agents and Lenders hereby agree as follows:

1. Definitions. Capitalized terms not otherwise defined herein (including in the Recitals hereto) shall have the meanings ascribed to them in the Credit Agreement.

2. Consent to Credit Agreement. Notwithstanding anything to the contrary contained in the Credit Agreement or in any other Loan Document, including Section 8.11 of the Credit Agreement, as of the Third Amendment Effective Date (as defined below), Agents and Required Lenders hereby consent to the amendment of each of Borrower’s, Hands On’s and GoAmerica Communications Corp.’s (“GoAmerica Communications”) Constituent Documents to provide for the change of each of their legal names to Purple Communications, Inc., Purple Language Services Co. and Purple Relay Services Co., respectively; provided, that Borrower gives Agents 15 days prior written notice of such legal name change and delivers to the Agents

 

1


all documents reasonably requested by the Agents to maintain the validity, perfection and priority of the security interests granted to the Collateral Agent pursuant to the Loan Documents. Upon the effective time of all such legal name changes referred to in this paragraph 2 all references in the Credit Agreement and any other Loan Document to (a) GoAmerica, Inc. shall thereafter be “Purple Communications, Inc.”, (b) Hands On Video Relay Services, Inc. shall thereafter be “Purple Language Services Co.” and (c) GoAmerica Communications shall thereafter be “Purple Relay Services Co.”.

3. Amendments to Credit Agreement. The Credit Agreement is hereby amended as of the Third Amendment Effective Date as follows:

(a) Section 1.1 of the Credit Agreement is hereby amended by:

(i) amending the definition of “Revolving Credit Commitment” by deleting “$15,000,000” where it appears in the last sentence thereof and substituting in lieu thereof “$13,000,000”.

(ii) adding the following new definition in the appropriate alphabetical order:

“‘Third Amendment Effective Date’ means December 3, 2008.”

(b) Section 2.11 of the Credit Agreement is hereby amended by adding a new clause (d) following clause (c) therein as follows:

“(d) Borrower Buy-Back Fees. The Borrower shall pay to the Administrative Agent for the ratable benefit of the Lenders (in accordance with their Pro Rata Shares of the Facilities) a fee equal to 3.00% of the amount of each Restricted Payment made pursuant to Section 8.5(e), which fee shall be fully earned on the date such Restricted Payment is made and shall be due and payable on the earlier of (i) ten (10) Business Days after the last day of each calendar quarter during which such Restricted Payment is made, and (ii) the date on which the Obligations become due and payable pursuant to Section 9.2.”

(c) Section 6.1 of the Credit Agreement is hereby amended by adding a new clause (n) following clause (m) therein as follows:

“(n) Restricted Payments. Within ten (10) Business Days (i) after the end of each calendar quarter, so long as a Restricted Payment pursuant to Section 8.5 was made during such calendar quarter, a written report which sets forth the aggregate amount of the Restricted Payments made pursuant to Section 8.5(e) for such calendar quarter and (ii) after a request by any Agent, such other information with respect to clause (i) above as such Agent may reasonably request from time to time.”

 

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(d) Section 8.5 of the Credit Agreement is hereby amended by deleting “and” where it appears at the end of clause (d) thereof, by renumbering clause (e) as clause (f) and by adding new clause (e) following clause (d) thereof as follows:

“(e) for the period commencing on the Third Amendment Effective Date and ending on December 31, 2009, the redemption, purchase or other acquisition or retirement for value by Borrower of its common Stock from any Person (which is not an Affiliate of any Credit Party) for aggregate cash consideration in an amount not to exceed $1,000,000; provided, however, that no Default or Event of Default is then continuing or would result therefrom; and”

(e) Schedule I of the Credit Agreement is hereby amended by deleting such Schedule I in its entirety and substituting in lieu thereof new Schedule I attached hereto as Exhibit A.

4. Remedies. This Amendment shall constitute a Loan Document. The breach by any Loan Party of any covenant or agreement in this Amendment (including Section 2 hereof) shall constitute an immediate Event of Default hereunder and under the other applicable Loan Documents.

5. Representations and Warranties. To induce Agents and Required Lenders to enter into this Amendment, the Borrower (and, to the extent set forth in any other Loan Document, each other Loan Party) hereby jointly and severally represents and warrants that:

(a) The execution, delivery and performance by each Loan Party of this Amendment and the performance of the Credit Agreement as amended by this Amendment (the “Amended Credit Agreement”) (i) are within such Loan Party’s corporate or similar powers and, at the time of execution thereof, have been duly authorized by all necessary corporate and similar action (including, if applicable, consent of the holders of its Securities), (ii) do not (A) contravene such Loan Party’s Constituent Documents, (B) violate any material Requirement of Law in any material respect, (C) in any material respect, conflict with, contravene, constitute a default or breach under any material Contractual Obligation of any Loan Party or any of its Subsidiaries, or result in or permit the termination or acceleration of any such material Contractual Obligation, or (D) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of its Subsidiaries and (iii) do not require any Permit of, or filing with, any Governmental Authority or any consent of, or notice to, any Person.

(b) From and after its delivery to the Administrative Agent, this Amendment has been duly executed and delivered to the other parties hereto by each Loan Party party hereto and this Amendment and the Amended Credit Agreement is the legal, valid and binding obligation of such Loan Party and is enforceable against such Loan Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally or by general equitable principles relating to enforceability.

(c) No Default or Event of Default has occurred and is continuing after giving effect to this Amendment.

 

3


(d) No action, claim or proceeding is now pending or, to the knowledge of any Loan Party, threatened against any Loan Party, at law, in equity or otherwise, before any court, board, commission, agency or instrumentality of any federal, state, or local government or of any agency or subdivision thereof, or before any arbitrator or panel of arbitrators, which (i) challenges any Loan Party’s right, power, or competence to enter into this Amendment or perform any of its obligations under this Amendment, the Amended Credit Agreement or any other Loan Document, or the validity or enforceability of this Amendment, the Amended Credit Agreement or any other Loan Document or any action taken under this Amendment, the Amended Credit Agreement or any other Loan Document or (ii) if determined adversely, is reasonably likely to have or result in a Material Adverse Effect.

(e) After giving effect to this Amendment, the representations and warranties of Borrower and the other Loan Parties contained in the Amended Credit Agreement and each other Loan Document are true and correct in all material respects (provided, that if any representation or warranty is by its terms qualified by concepts of materiality, such representation shall be true and correct in all respects) on and as of the Third Amendment Effective Date hereof with the same effect as if such representations and warranties had been made on and as of such date, except that any such representation or warranty which is expressly made only as of a specified date need be true only as of such date.

(f) Set forth on Schedule 1 attached hereto is a complete and accurate list of all bank, deposit, securities, commodities or other accounts maintained by any Loan Party as of the Third Amendment Effective Date, and such Schedule correctly identifies the name, address and telephone number of each depository, the name in which the account is held, a description of the purpose of the account, and the complete account number therefore.

(g) Except as otherwise set forth on Schedule 2 attached hereto, the name changes contemplated by Section 2 of this Amendment, and the contemplated mergers of the Subsidiaries of Hands On with and into Hands On and the contemplated mergers of the Subsidiaries of GoAmerica Communications with and into GoAmerica Communications, do not (A) violate any material Requirement of Law in any material respect, (B) in any material respect, conflict with, contravene, constitute a default or breach under any material Contractual Obligation of any Loan Party or any of its Subsidiaries, or result in or permit the termination or acceleration of any such material Contractual Obligation, (C) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of its Subsidiaries or (D) require any Permit of, or filing with, any Governmental Authority or any consent of, or notice to, any Person.

6. Covenants. To induce Agents and Required Lenders to enter into this Amendment, the Borrower (and, to the extent set forth in any other Loan Document, each other Loan Party) hereby jointly and severally covenant and agree that:

(a) Within five (5) Business Days after Borrower’s receipt of file-stamped copies of any filings related to the legal name change of Borrower, Hands On and GoAmerica Communications, Borrower shall deliver to the Agents copies of all documents (including, without limitation, any amendments to the Constituent Documents of Borrower, Hands On and GoAmerica Communications).

 

4


(b) No later than December 12, 2008, each Loan Party shall deliver to the Agents Control Agreements for each of the accounts set forth on clause (b) of Schedule 1 attached hereto (other than Control Agreements for employee wage and benefit payment accounts for the benefit of the Group Members’ salaried employees and withholding taxes and other fiduciary accounts), each duly executed by, in addition to the applicable Loan Party, Bank of America, N.A. (or an Affiliate).

(c) No later than June 30, 2009, the Group Members shall cause the bank, deposit, securities, commodities or other accounts set forth on clause (c) of Schedule 1 to be closed and shall deliver to the Agents evidence of the same in form and substance reasonably satisfactory to the Agents.

(d) The Group Members shall use commercially reasonable efforts to obtain the amendments or consents, or provide the notices, in each case, required by each applicable Requirement of Law, Contractual Obligation or Permit set forth on Schedule 2 attached hereto in connection with the name changes contemplated by Section 2 of this Amendment or the contemplated mergers of the Subsidiaries of Hands On with and into Hands On and the contemplated mergers of the Subsidiaries of GoAmerica Communications with and into GoAmerica Communications upon the earlier of (i) the date expressly required by such Requirement of Law, Contractual Obligation or Permit and (ii) March 31, 2009.

7. No Amendments/Waivers. The Credit Agreement and the other Loan Documents shall continue to be in full force and effect in accordance with their respective terms and, except as expressly provided herein, shall be unmodified. In addition, except as expressly provided herein, this Amendment shall not be deemed an amendment, consent or waiver of any term or condition of any Loan Document or a forbearance by Agents or Lenders with respect to any right or remedy which Agents or Lenders may now or in the future have under the Loan Documents, at law or in equity or otherwise or be deemed to prejudice any rights or remedies which Agents or Lenders may now have or may have in the future under or in connection with any Loan Document or under or in connection with any Default or Event of Default which may now exist or which may occur after the date hereof.

8. Outstanding Indebtedness; Waiver of Claims. The Borrower and the other Loan Parties hereby acknowledge and agree that as of the date first written above (i) the aggregate amount of Revolving Loan is $0.00 and (ii) the aggregate amount of Term Loans is $39,700,000, and that, as of the Third Amendment Effective Date, such principal amounts are payable pursuant to the Credit Agreement without defense, offset, withholding, counterclaim or deduction of any kind.

9. Expenses. Each of Borrower and each other Loan Party hereby reconfirms its respective obligations pursuant to Section 11.3 of the Credit Agreement and to pay and reimburse Agents, for all reasonable costs and expenses (including, without limitation, reasonable fees of one legal counsel) incurred in connection with the negotiation, preparation, execution and delivery of this Amendment and all other documents and instruments delivered in connection herewith.

 

5


10. Affirmation of Existing Loan Documents. After giving effect to this Amendment, each Loan Party (a) confirms and agrees that its obligations under each of the Loan Documents to which it is a party shall continue without any diminution thereof and shall remain in full force and effect on and after the date hereof, and (b) confirms and agrees that the Liens granted pursuant to the Collateral documents to which it is a party shall continue without any diminution thereof and shall remain in full force and effect on and after the date hereof.

11. Effectiveness. This Amendment shall become effective as of December 3, 2008 (the “Third Amendment Effective Date”) only upon satisfaction in full in the judgment of Agents of each of the following conditions on or prior to the date hereof.

(a) Amendment. Agents shall have received four (4) copies of this Amendment duly executed and delivered by Agents, the Required Lenders and Borrower.

(b) Payment of Fees and Expenses. Borrower shall have paid all costs, fees and expenses owing in connection with this Amendment and the other Loan Documents and due to Agents (including, without limitation, reasonable legal fees and expenses of one legal counsel).

12. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

13. Counterparts. This Amendment may be executed by the parties hereto on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

[Signature pages follow]

 

6


IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

GOAMERICA, INC., as Borrower
By:    
Name: Daniel R. Luis
Title: Chief Executive Officer

 

7


AGENTS AND LENDERS:
CHURCHILL FINANCIAL LLC, as Administrative Agent
By:    
Name:
Title:
CHURCHILL FINANCIAL CAYMAN LTD., as Lender
By: Churchill Financial LLC, as its Collateral Manager
By:    
Name:
Title:

 

8


ABLECO FINANCE LLC, as Collateral Agent and Lender
By:    
Name:
Title:

 

9

EX-10.2 3 dex102.htm THIRD AMENDMENT AND CONSENT TO SECOND LIEN CREDIT AGREEMENT Third Amendment and Consent to Second Lien Credit Agreement

Exhibit 10.2

THIRD AMENDMENT AND CONSENT TO SECOND LIEN CREDIT AGREEMENT

This THIRD AMENDMENT AND CONSENT TO SECOND LIEN CREDIT AGREEMENT, dated as of December 8, 2008 (this “Amendment”), to the Second Lien Credit Agreement referred to below, by and among the lenders identified on the signature pages hereof (such lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), GoAmerica, Inc., a Delaware corporation (“Borrower”) and Clearlake Capital Group, L.P., as administrative agent for the Lenders (in such capacity, and together with its successors and permitted assigns, the “Administrative Agent”).

W I T N E S S E T H

WHEREAS, Borrower, Administrative Agent and the Lenders are parties to that certain Second Lien Credit Agreement, dated as of January 10, 2008 (as amended, restated, supplemented or otherwise modified from time to time, the “Second Lien Credit Agreement”);

WHEREAS, Borrower has requested that Administrative Agent and Lenders consent to certain actions to be taken by the Loan Parties that would otherwise be in violation of the Second Lien Credit Agreement;

WHEREAS, Administrative Agent and Required Lenders have agreed to provide such consents in the manner, and on the terms and conditions, provided for herein; and

WHEREAS, Borrower has requested, and Administrative Agent and Required Lenders have agreed, to amend the Second Lien Credit Agreement in the manner, and on the terms and conditions, provided for herein.

NOW THEREFORE, in consideration of the promises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Loan Parties, Administrative Agent and Lenders hereby agree as follows:

1. Definitions. Capitalized terms not otherwise defined herein (including in the Recitals hereto) shall have the meanings ascribed to them in the Second Lien Credit Agreement.

2. Consent to Second Lien Credit Agreement. Notwithstanding anything to the contrary contained in the Second Lien Credit Agreement or in any other Loan Document, including Section 8.11 of the Second Lien Credit Agreement, as of the Third Amendment Effective Date (as defined below), Administrative Agent and Required Lenders hereby consent to the amendment of each of Borrower’s, Hands On’s and GoAmerica Communications Corp.’s (“GoAmerica Communications”) Constituent Documents to provide for the change of each of their legal names to Purple Communications, Inc., Purple Language Services Co. and Purple Relay Services Co., respectively; provided, that Borrower gives Administrative Agent 15 days prior written notice of such legal name change and delivers to the Administrative Agent all documents reasonably requested by the Administrative Agent to maintain the validity, perfection and priority of the security interests granted to the Collateral Agent pursuant to the Loan Documents. Upon the effective time of all such legal name changes referred to in this

 

1


paragraph 2 all references in the Second Lien Credit Agreement and any other Loan Document to (a) GoAmerica, Inc. shall thereafter be “Purple Communications, Inc.”, (b) Hands On Video Relay Services, Inc. shall thereafter be “Purple Language Services Co.” and (c) GoAmerica Communications shall thereafter be “Purple Relay Services Co.”.

3. Amendments to Second Lien Credit Agreement. The Second Lien Credit Agreement is hereby amended as of the Third Amendment Effective Date as follows:

(a) Section 1.1 of the Second Lien Credit Agreement is hereby amended by adding the following new definition in the appropriate alphabetical order:

“‘Third Amendment Effective Date’ means December 8, 2008.”

(b) Section 6.1 of the Second Lien Credit Agreement is hereby amended by adding a new clause (n) following clause (m) therein as follows:

“(n) Within ten (10) Business Days (i) after the end of each calendar quarter, so long as a Restricted Payment pursuant to Section 8.5 was made during such calendar quarter, a written report which sets forth the aggregate amount of the Restricted Payments made pursuant to Section 8.5(e) for such calendar quarter and (ii) after a request by the Administrative Agent, such other information with respect to clause (i) as Administrative Agent may reasonably request from time to time.”

(c) Section 8.5 of the Second Lien Credit Agreement is hereby amended by deleting “and” where it appears at the end of clause (d) thereof, by renumbering clause (e) as clause (f) and by adding new clause (e) following clause (d) thereof as follows:

“(e) for the period commencing on the Third Amendment Effective Date and ending on December 31, 2009, the redemption, purchase or other acquisition or retirement for value by Borrower of its common Stock from any Person (which is not an Affiliate of any Secured Party) for aggregate cash consideration in an amount not to exceed $1,000,000; provided, however, that no Default or Event of Default is then continuing or would result therefrom; and”

4. Remedies. This Amendment shall constitute a Loan Document. The breach by any Loan Party of any covenant or agreement in this Amendment (including Section 2 hereof) shall constitute an immediate Event of Default hereunder and under the other applicable Loan Documents.

5. Representations and Warranties. To induce Administrative Agent and Required Lenders to enter into this Amendment, the Borrower (and, to the extent set forth in any other Loan Document, each other Loan Party) hereby jointly and severally represents and warrants that:

(a) The execution, delivery and performance by each Loan Party of this Amendment and the performance of the Second Lien Credit Agreement as amended by this Amendment (the “Amended Second Lien Credit Agreement”) (i) are within such Loan Party’s

 

2


corporate or similar powers and, at the time of execution thereof, have been duly authorized by all necessary corporate and similar action (including, if applicable, consent of the holders of its Securities), (ii) do not (A) contravene such Loan Party’s Constituent Documents, (B) violate any material Requirement of Law in any material respect, (C) in any material respect, conflict with, contravene, constitute a default or breach under any material Contractual Obligation of any Loan Party or any of its Subsidiaries, or result in or permit the termination or acceleration of any such material Contractual Obligation, or (D) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of its Subsidiaries and (iii) do not require any Permit of, or filing with, any Governmental Authority or any consent of, or notice to, any Person.

(b) From and after its delivery to the Administrative Agent, this Amendment has been duly executed and delivered to the other parties hereto by each Loan Party party hereto and this Amendment and the Amended Second Lien Credit Agreement is the legal, valid and binding obligation of such Loan Party and is enforceable against such Loan Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally or by general equitable principles relating to enforceability.

(c) No Default or Event of Default has occurred and is continuing after giving effect to this Amendment.

(d) No action, claim or proceeding is now pending or, to the knowledge of any Loan Party, threatened against any Loan Party, at law, in equity or otherwise, before any court, board, commission, agency or instrumentality of any federal, state, or local government or of any agency or subdivision thereof, or before any arbitrator or panel of arbitrators, which (i) challenges any Loan Party’s right, power, or competence to enter into this Amendment or perform any of its obligations under this Amendment, the Amended Second Lien Credit Agreement or any other Loan Document, or the validity or enforceability of this Amendment, the Amended Second Lien Credit Agreement or any other Loan Document or any action taken under this Amendment, the Amended Second Lien Credit Agreement or any other Loan Document or (ii) if determined adversely, is reasonably likely to have or result in a Material Adverse Effect.

(e) After giving effect to this Amendment, the representations and warranties of Borrower and the other Loan Parties contained in the Amended Second Lien Credit Agreement and each other Loan Document are true and correct in all material respects (provided, that if any representation or warranty is by its terms qualified by concepts of materiality, such representation shall be true and correct in all respects) on and as of the Third Amendment Effective Date hereof with the same effect as if such representations and warranties had been made on and as of such date, except that any such representation or warranty which is expressly made only as of a specified date need be true only as of such date.

(f) Set forth on Schedule 1 attached hereto is a complete and accurate list of all bank, deposit, securities, commodities or other accounts maintained by any Loan Party as of the Third Amendment Effective Date, and such Schedule correctly identifies the name, address and telephone number of each depository, the name in which the account is held, a description of the purpose of the account, and the complete account number therefore.

 

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(g) Except as otherwise set forth on Schedule 2 attached hereto, the name changes contemplated by Section 2 of this Amendment, and the contemplated mergers of the Subsidiaries of Hands On with and into Hands On and the contemplated mergers of the Subsidiaries of GoAmerica Communications with and into GoAmerica Communications, do not (A) violate any material Requirement of Law in any material respect, (B) in any material respect, conflict with, contravene, constitute a default or breach under any material Contractual Obligation of any Loan Party or any of its Subsidiaries, or result in or permit the termination or acceleration of any such material Contractual Obligation, (C) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of its Subsidiaries or (D) require any Permit of, or filing with, any Governmental Authority or any consent of, or notice to, any Person.

6. Covenants. To induce Administrative Agent and Required Lenders to enter into this Amendment, the Borrower (and, to the extent set forth in any other Loan Document, each other Loan Party) hereby jointly and severally covenant and agree that:

(a) Within five (5) Business Days after the Borrower’s receipt of file-stamped copies of any filings related to the legal name change of Borrower, Hands On or GoAmerica Communications, the Borrower shall deliver to the Administrative Agent copies of all documents (including, without limitation, any amendments to the Constituent Documents of Borrower, Hands On and GoAmerica Communications).

(b) No later than December 12, 2008, each Loan Party shall deliver to the Administrative Agent copies of all Control Agreements for each of the accounts set forth on clause (b) of Schedule 1 attached hereto (other than Control Agreements for employee wage and benefit payment accounts for the benefit of the Group Members’ salaried employees and withholding taxes and other fiduciary accounts), each duly executed by, in addition to the applicable Loan Party, [Bank of America] (or an Affiliate) delivered to the First Lien Collateral Agent that are required for the Loan Parties to comply with the First Lien Loan Documents.

(c) No later than June 30, 2009, the Group Members shall cause the bank, deposit, securities, commodities or other accounts set forth on clause (a) of Schedule 1 to be closed and shall deliver to the Administrative Agent copies of evidence of the same as delivered to the First Lien Collateral Agent that are required by the Group Members to comply with the First Lien Loan Documents.

(d) The Group Members shall use commercially reasonable efforts to obtain the amendments or consents, or provide the notices, in each case, required by each applicable Requirement of Law, Contractual Obligation or Permit set forth on Schedule 2 attached hereto in connection with the name changes contemplated by Section 2 of this Amendment or the contemplated mergers of the Subsidiaries of Hands On with and into Hands On and the contemplated mergers of the Subsidiaries of GoAmerica Communications with and into GoAmerica Communications upon the earlier of (i) the date expressly required by such Requirement of Law, Contractual Obligation or Permit and (ii) March 31, 2009.

 

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7. No Amendments/Waivers. The Second Lien Credit Agreement and the other Loan Documents shall continue to be in full force and effect in accordance with their respective terms and, except as expressly provided herein, shall be unmodified. In addition, except as expressly provided herein, this Amendment shall not be deemed an amendment, consent or waiver of any term or condition of any Loan Document or a forbearance by Administrative Agent or Lenders with respect to any right or remedy which Administrative Agent or Lenders may now or in the future have under the Loan Documents, at law or in equity or otherwise or be deemed to prejudice any rights or remedies which Administrative Agent or Lenders may now have or may have in the future under or in connection with any Loan Document or under or in connection with any Default or Event of Default which may now exist or which may occur after the date hereof.

8. Outstanding Indebtedness; Waiver of Claims. The Borrower and the other Loan Parties hereby acknowledge and agree that as of the date first written above the aggregate amount of Loans is $30,000,000, and that such principal amounts are payable pursuant to the Second Lien Credit Agreement without defense, offset, withholding, counterclaim or deduction of any kind.

9. Expenses. Each of Borrower and each other Loan Party hereby reconfirms its respective obligations pursuant to Section 11.3 of the Second Lien Credit Agreement and to pay and reimburse Administrative Agent, for all reasonable costs and expenses (including, without limitation, reasonable fees of one legal counsel) incurred in connection with the negotiation, preparation, execution and delivery of this Amendment and all other documents and instruments delivered in connection herewith.

10. Affirmation of Existing Loan Documents. After giving effect to this Amendment, each Loan Party (a) confirms and agrees that its obligations under each of the Loan Documents to which it is a party shall continue without any diminution thereof and shall remain in full force and effect on and after the date hereof, and (b) confirms and agrees that the Liens granted pursuant to the Collateral documents to which it is a party shall continue without any diminution thereof and shall remain in full force and effect on and after the date hereof.

11. Effectiveness. This Amendment shall become effective as of December 8, 2008 (the “Third Amendment Effective Date”) only upon satisfaction in full in the judgment of Administrative Agent of each of the following conditions on or prior to the date hereof.

(a) Amendment. Administrative Agent shall have received four (4) copies of this Amendment duly executed and delivered by Administrative Agent, the Required Lenders and Borrower.

(b) Payment of Fees and Expenses. Borrower shall have paid all costs, fees and expenses owing in connection with this Amendment and the other Loan Documents and due to Administrative Agent (including, without limitation, reasonable legal fees and expenses of one legal counsel).

 

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12. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

13. Counterparts. This Amendment may be executed by the parties hereto on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

GOAMERICA, INC., as Borrower
By:    
Name:
Title:


ADMINISTRATIVE AGENT AND LENDERS:
CLEARLAKE CAPITAL GROUP, L.P., as Administrative Agent
By: CCG Operations, LLC, its general partner
By:    
Name:
Title:
RESERVOIR CAPITAL PARTNERS, L.P., as Lender
By: RCP GP, LLC, its general partner
By:    
Name:
Title:
RESERVOIR CAPITAL INVESTMENT PARTNERS, L.P., as Lender
By: RCIP GP, LLC, its general partner
By:    
Name:
Title:
RESERVOIR CAPITAL MASTER FUND II, L.P., as Lender
By: Reservoir Capital Group, L.L.C., its general partner
By:    
Name:
Title:
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