--------------------------------------------------------------------------------

 
Exhibit
10.1                                                                                                                                Execution
Version

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of August 6, 2015
 
This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
is by and among DXP ENTERPRISES, INC., a Texas corporation (“US Borrower”), DXP
CANADA ENTERPRISES LTD., a corporation organized under the laws of British
Columbia, Canada (“Canadian Borrower” and together with US Borrower, the
“Borrowers”), the lenders who are party to this Amendment (the “Consenting
Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association, as administrative agent for the Lenders (in such capacity, the
“Administrative Agent”).
 
PRELIMINARY STATEMENTS
 
WHEREAS, the Borrowers, the lenders party thereto (the “Lenders”) and the
Administrative Agent entered into an Amended and Restated Credit Agreement dated
as of January 2, 2014 (as amended hereby and as further amended, restated,
amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”); and
 
WHEREAS, the Borrowers have requested that the Administrative Agent and the
Lenders agree to amend the Credit Agreement as specifically set forth herein
and, subject to the terms of this Amendment, the Administrative Agent and the
Consenting Lenders have agreed to grant such request of the Borrowers.
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:
 
Section 1. Capitalized Terms.  All capitalized terms not otherwise defined in
this Amendment (including without limitation in the introductory paragraph and
the Preliminary Statements hereto) shall have the meanings as specified in the
Credit Agreement.
 
Section 2. Amendments to Credit Agreement.  Subject to and in accordance with
the terms and conditions set forth herein the Administrative Agent and the
Lenders party hereto hereby agree as follows:
 
(a) Section 1.1 of the Credit Agreement is hereby amended by:
 
(i) amending the definition of “Applicable Rate” by amending and restating the
table therein in its entirety as follows:
 
Pricing Level
Consolidated Leverage Ratio
Commitment
Fee
LIBOR Rate and CDOR Rate +
Base Rate and Canadian Base Rate +
I
Less than 1.50 to 1.00
0.20%
1.25%
0.25%
II
Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00
0.25%
1.50%
0.50%
III
Greater than or equal to 2.00 to 1.00 but less than 2.50 to 1.00
0.30%
1.75%
0.75%
IV
Greater than or equal to 2.50 to 1.00 but less than 3.00 to 1.00
0.35%
2.00%
1.00%
V
Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00
0.40%
2.25%
1.25%
VI
Greater than or equal to 3.50 to 1.00 but less than 4.00 to 1.00
0.45%
2.50%
1.50%
VII
Greater than or equal to 4.00 to 1.00
0.50%
2.75%
1.75%

 
(ii) amending and restating the definition of “LIBOR Rate” by adding the
following sentence at the end of such definition:
 
 
“Notwithstanding the foregoing, if the LIBOR Rate shall be less than zero, such
rate shall be deemed to be zero for purposes of this Agreement.”
 
(b) amending Section 9.12(a) of the Credit Agreement by amending and restating
the table therein in its entirety as follows:
 
Period
Maximum Ratio
June 30, 2015 through September 30, 2016
4.25 to 1.00
December 31, 2016
4.00 to 1.00
March 31, 2017 through June 30, 2017
3.75 to 1.00
September 30, 2017 through December 31, 2017
3.50 to 1.00
March 31, 2018 and thereafter
3.25 to 1.00
   

(c) amending Section 9.12(b) of the Credit Agreement by deleting such Section in
its entirety and replacing it with the following:
 
“(b)           Consolidated Fixed Charge Coverage Ratio.  As of the last day of
any fiscal quarter ending during the periods specified below, permit the
Consolidated Fixed Charge Ratio to be less than the corresponding ratio set
forth below:
 
Period
Minimum Ratio
June 30, 2015 through December 31, 2016
1.15 to 1.00
March 31, 2017 and thereafter
1.25 to 1.00
   

Section 3. Conditions of Effectiveness.  The effectiveness of this Amendment
shall be subject to the satisfaction of each of the following conditions
precedent:
 
(a) the Administrative Agent shall have received counterparts of this Amendment
executed by each Borrower, each other Credit Party, the Administrative Agent and
the Required Lenders;
 
(b) the representations and warranties of the Borrowers contained in Section 4
shall be true and correct;
 
(c) the Administrative Agent shall have received, for the account of each
Consenting Lender which delivered its executed signature page to this Amendment
by the deadline communicated by the Administrative Agent to the Lenders, a fee
in an amount equal to 0.10% times the principal amount of such Consenting
Lender’s Commitment as of the date of this Amendment; and
 
(d) all reasonable out-of-pocket costs and expenses incurred by the
Administrative Agent in connection with the preparation, negotiation, execution
and delivery of this Amendment and the other instruments and documents to be
delivered hereunder (including, without limitation, the reasonable fees, charges
and disbursements of legal counsel for the Administrative Agent in connection
with the preparation, negotiation, execution and delivery of this Amendment)
shall have been paid by the Borrowers.
 
Section 4. Representations and Warranties of the Borrowers.  Each Borrower
represents and warrants as follows:
 
(a) The execution, delivery and performance by such Borrower of its obligations
in connection with this Amendment are within its corporate (or other
organizational) powers, have been duly authorized by all necessary corporate (or
other organizational) action and do not and will not (i) violate any provision
of its articles or certificate of incorporation or bylaws or similar organizing
or governing documents of such Borrower, (ii) contravene any Applicable Law
which is applicable to such Borrower, (iii) conflict with, result in a breach of
or constitute (with notice, lapse of time or both) a default under any material
indenture or instrument or other material agreement to which such Borrower is a
party, by which it or any of its properties is bound or to which it is subject,
or (iv) except for the Liens granted in favor of the Administrative Agent
pursuant to the Security Documents, result in or require the creation or
imposition of any Lien upon any of its properties or assets, except, in the case
of clauses (ii) and (iii) above, to the extent such contraventions, conflicts,
breaches or defaults could not reasonably be expected to have a Material Adverse
Effect.
 
(b) Such Borrower has taken all necessary corporate (or other organizational)
action to execute, deliver and perform this Amendment and has validly executed
and delivered each of this Amendment.  This Amendment constitutes the legal,
valid and binding obligation of such Borrower enforceable against such Borrower
in accordance with its terms, except to the extent that enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors’ rights generally, by general equitable principles or
by principles of good faith and fair dealing.
 
(c) No material consent, approval, authorization or other action by, notice to,
or registration or filing with, any Governmental Authority or other Person is or
will be required as a condition to or otherwise in connection with the due
execution, delivery and performance by such Borrower of this Amendment except
such as have been obtained or made and are in full force and effect and except
filings necessary to perfect Liens created under the Loan Documents.
 
(d) After giving effect to this Amendment, the representations and warranties
contained in each of the Loan Documents are true and correct in all material
respects on and as of the date hereof as though made on and as of such date
(other than any such representations or warranties that, by their terms, refer
to a specific date, in which case as of such specific date).
 
(e) No Default or Event of Default shall exist immediately prior to and after
giving effect to this Amendment.
 
Section 5. Reference to and Effect on the Loan Documents.  On and after the
effectiveness of this Amendment, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the Notes and each of the other Loan
Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement, as amended by this Amendment and this Amendment shall
constitute a Loan Document.
 
(a) The Credit Agreement, the Notes and each of the other Loan Documents, as
specifically amended by this Amendment, are and shall continue to be in full
force and effect and are hereby in all respects ratified and confirmed.  Without
limiting the generality of the foregoing, the Security Documents and all of the
Collateral described therein do and shall continue to secure the payment of all
Obligations of the Credit Parties under the Loan Documents, in each case as
amended or converted by this Amendment.
 
(b) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender or the Administrative Agent under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan
Documents.
 
Section 6. Reaffirmations.  Each Credit Party (a) consents to this Amendment and
agrees that the transactions contemplated by this Amendment shall not limit or
diminish the obligations of such Person, or release such Person from any
obligations, under any of the Loan Documents to which it is a party, (b)
confirms and reaffirms its obligations under each of the Loan Documents to which
it is a party and (c) agrees that each of the Loan Documents to which it is a
party remain in full force and effect and are hereby ratified and confirmed.
 
Section 7. Execution in Counterparts.  This Amendment may be executed in
counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  Delivery of an executed counterpart of a
signature page of this Amendment by facsimile or in electronic (i.e., “pdf” or
“tif”) format shall be effective as delivery of a manually executed counterpart
of this Amendment.
 
Section 8. Governing Law.  This Amendment and any claim, controversy, dispute or
cause of action (whether in contract or tort or otherwise) based upon, arising
out of or relating to this Amendment and the transactions contemplated hereby
and thereby shall be governed by, and construed in accordance with, the law of
the State of New York.
 
Section 9. Entire Agreement.  This Amendment and the other Loan Documents, and
any separate letter agreements with respect to fees payable to the
Administrative Agent, the Issuing Lender, each Swingline Lender and/or the
Arranger, constitute the entire agreement among the parties relating to the
subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof.
 
[Signature Pages Follow]

69196380_4
 
 

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.
 

DXP ENTERPRISES, INC., as US Borrower
 

By: /S/ Mac McConnell
Name:           Mac McConnell
 
Title:           Senior Vice President, Chief Financial
Officer                             and Secretary
 
DXP CANADA ENTERPRISES LTD., as Canadian Borrower
 

By:  /S/ Mac McConnell
Name: Mac McConnell
 
Title: Chief Financial Officer
 
DXP HOLDINGS, INC., as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name: Mac McConnell
Title: Vice President
 
PMI OPERATING COMPANY, LTD., as a US Subsidiary Guarantor
 
By:  PUMP-PMI, LLC, as General Partner
 
        By:  /S/ Mac McConnell
        Name: Mac McConnell
        Title: Secretary and Treasurer
 
PMI INVESTMENT, LLC, as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name: Mac McConnell
Title: Secretary and Treasurer
 
PUMP-PMI, LLC, as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name:           Mac McConnell
Title:           Secretary and Treasurer
 
VERTEX CORPORATE HOLDINGS, INC., as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name: Mac McConnell
Title: Vice President, Secretary and Treasurer
 
VERTEX-PFI, INC., as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name: Mac McConnell
Title: Vice President and Secretary
 
PFI, LLC, as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name:           Mac McConnell
Title: Vice President and Secretary
 
B27 HOLDINGS CORP., as Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name: Mac McConnell
Title: Vice President, Chief Financial Officer and Secretary
 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

B27, LLC, as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name: Mac McConnell
Title: Vice President and Chief Financial Officer
 
B27 RESOURCES, INC., as a US Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name:           Mac McConnell
Title: Vice President and Chief Financial Officer
 
BEST HOLDING, LLC, as Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name: Mac McConnell
Title:           Vice President and Chief Financial Officer
 
BEST EQUIPMENT SERVICE & SALES COMPANY, LLC, as Subsidiary Guarantor
 
By:  /S/ Kent Yee
Name:           Kent Yee
Title: Secretary
 
PUMPWORKS 610, LLC, as Subsidiary Guarantor
 
By:  /S/ Kent Yee
Name: Kent Yee
Title: Secretary
 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

INTEGRATED FLOW SOLUTIONS, LLC, as a US Subsidiary Guarantor
 
By:  /S/ Kent Yee
Name: Kent Yee
Title: Secretary
 
INDUSTRIAL PARAMEDIC SERVICES LTD., as a Canadian Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name:           Mac McConnell
Title:  Director
 
HSE INTEGRATED LTD., as a Canadian Subsidiary Guarantor
 

By:  /S/ Mac McConnell
Name:           Mac McConnell
Title:           Senior Vice President
 
NATIONAL PROCESS EQUIPMENT INC., as a Canadian Subsidiary Guarantor
 
By:  /S/ Mac McConnell
Name:           Mac McConnell
Title:           Chief Financial Officer
 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

ADMINISTRATIVE AGENT AND LENDERS:

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent, Swingline Lender, Issuing Lender and Lender

By:  /S/ Tom Caver
Name: Thomas F. Caver, III
Title: Senior Vice President

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

BANK OF AMERICA, N.A., as Lender
 

By:  /S/ Juan Trejo
Name: Juan Trejo
Title: Vice President

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

BANK OF AMERICA, N.A. (Canada Branch), as Lender
 

By: /S/ Juan Trejo
Name: Juan Trejo
Title: Vice President

 

 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

COMPASS BANK, as Lender
 

By:  /S/ Frank Carvelli
Name: Frank Carvelli
Title: Senior Vice President

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

REGIONS BANK, as Lender
 

By:  /S/ Joey Powell
Name: Joey Powell
Title: Sr. Vice President

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

BRANCH BANKING AND TRUST COMPANY, as Lender
 

By:  /S/ Benjamin Shields
Name: Benjamin Shields
Title: Banking Officer

 

 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

U.S. BANK NATIONAL ASSOCIATION, as Lender
 

By:  /S/ Jonathan F Lindvall
Name: Jonathan F. Lindvall
Title: Vice President

 

 

 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

JPMORGAN CHASE BANK, N.A., as Lender
 

By:  /S/ Jennifer Kalvaitis
Name: Jennifer Kalvaitis
Title: Executive Director

 
ACKNOWLEDGED BY:
 
JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as its Applicable Designee
 

By:  /S/ Michael N Tam
Name: Michael N. Tam
Title: Senior Vice President

 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

ROYAL BANK OF CANADA, as Lender
 

By:  /S/ Emile Marx
Name: Emile Marx
Title: Director, NCG Finance

 

By:  /S/ Nicole Bradshaw
Name: Nicole Bradshaw
Title: VP, NCG Finance

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

AMEGY BANK NATIONAL ASSOCIATION, as Lender
 

By:  /S/ Jeremy A Newsom
Name: Jeremy A. Newsom
Title: Senior Vice President

 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

BOKF, NA dba Bank of Texas, as Lender
 

By:  /S/ Marian Livingston
Name: Marian Livingston
Title: Senior Vice President

 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------

 

CADENCE BANK, as Lender
 

By: /S/ H Gale Smith
Name: H. Gale Smith, Jr.
Title: Executive Vice President

 

 

DXP Enterprises, Inc.
First Amendment to Amended and Restated Credit Agreement
Signature Page
 
 

--------------------------------------------------------------------------------