Hooper Holmes Inc. (fka HPHWQ)

[Myth]

Item 1.01

Entry into a Material Definitive Agreement.
On June 1, 2018, Hooper Holmes, Inc. (the “Company”) entered into a Fifth Amendment (together with related agreements and documents, the “Fifth Amendment”) to the Amended and Restated Credit Agreement dated as of May 11, 2017 (as amended, the “Credit Agreement”), by and between the Company and SWK Funding LLC (“SWK”).
The Fifth Amendment provides the Company a forbearance period that runs through August 31, 2018 with respect to the Company’s outstanding payment and covenant defaults under the Credit Agreement. SWK’s forbearance agreement is conditioned on the Company’s compliance with the following covenants:

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The Company must provide periodic cash flow forecasts to SWK.

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The Company’s actual expenses must not exceed budgeted amounts by more than 15%.

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The Company must use reasonable best efforts to identify potential acquirers or investors and to effectuate a transaction that results in a merger, acquisition, or similar material investment in the Company as imminently as reasonably possible (the “Transaction”).

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The Company must continue to engage Raymond James as its financial adviser to advise and represent the Company with respect to the Transaction and must meet or exceed the milestones and deadlines established by Raymond James from time to time with respect to the Transaction.
Pursuant to the Fifth Amendment, SWK has agreed to lend an additional $5,017,000 (the “Fifth Amendment Term Loan”) to the Company. All principal and accrued interest on the Fifth Amendment Term Loan, the August 2017 Term Loan with a principal balance of $1.75 million, and the May 2018 Term Loan with a principal balance of $1.5 million will be due and payable on September 4, 2018. The other terms and conditions of the Fifth Amendment Term Loan, the May 2018 Term Loan, and the August 2017 Term Loan are the same as those applicable to the primary term loan advanced by SWK to the Company under the Credit Agreement.
On June 1, 2018, the Company entered into a Forbearance Agreement and Amendment to Credit and Security Agreement (the “CNH Forbearance Agreement”) with CNH Finance Fund I, L.P. f/k/a SCM Specialty Finance Opportunities Fund, L.P. (“CNH”). Pursuant to the CNH Forbearance Agreement, CNH has provided a forbearance agreement through August 31, 2018, with respect to the Company’s outstanding covenant defaults under the 2016 Credit and Security Agreement dated as of April 29, 2016 with CNH (the “CNH Credit Agreement”) subject to the same covenants as set forth above with respect to the Fifth Amendment. CNH has also agreed to allow the Company to continue to use an existing $250,000 overadvance under the CNH Credit Agreement until August 28, 2018.

https://backend.otcmarkets.com/otcapi/company/sec-filings/12795419/content/html