Exhibit 10.6


 


SECOND
AMENDMENT TO CREDIT AGREEMENT


 


 


second
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of August 28, 2014, by and among


 


WELLS FARGO
BANK, NATIONAL ASSOCIATION, successor by merger to WELLS FARGO RETAIL FINANCE, LLC (“Lender”),


 


GREAT AMERICAN
GROUP WF, LLC, a California limited liability company (“Original Borrower”), and


 


any other affiliate
of Original Borrower party hereto (such affiliates, together with Original Borrower, each a “Borrower” and collectively
“Borrowers” and Borrower, together with GAG Inc. (defined below), Great American (defined below), and/or any
Subsidiary of any of the foregoing which is or which becomes a party to any Loan Document from time to time, the “Credit
Parties”).


 


WHEREAS:


 


A.Borrowers and
Lender are party to that certain Second Amended & Restated Credit Agreement dated as of July 15, 2013 (as amended by that certain
First Amendment to Credit Agreement and Limited Consent and Waiver, dated May 28, 2014, and as may be further amended, restated,
supplemented or otherwise modified, renewed or replaced from time to time, the “Credit Agreement”), pursuant
to which Lender agreed, subject to the terms and conditions thereof, to extend credit and make certain other financial accommodations
available to Borrowers;


 


B.Great American
Group, Inc., a Delaware corporation (“GAG Inc.”) and Great American Group, LLC, a California limited liability
company (“Great American”) are parties to that certain Third Amended and Restated Guaranty dated as of July
15, 2013 (as may be amended, restated, supplemented or otherwise modified, renewed or replaced from time to time, the “Guaranty”),
pursuant to which GAG Inc. and Great American jointly and severally guaranteed to Lender payment of (among other things) obligations
under the Credit Agreement and other Loan Documents upon the terms set forth the Guaranty;


 


C.Credit Parties
have informed Lender that the composition of the Board of Directors of GAG Inc. will change as a result of Harvey Yellen’s
resignation therefrom (the “Resignation”);


 


D.Credit Parties
have requested that Lender agree to effect an amendment to the Credit Agreement in connection with the Resignation, all as more
specifically set forth herein, and Lender is willing to effect such amendment on the terms and conditions hereinafter set forth.


 


NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties signatory hereto agree as follows:


 


1.              
Definitions. Capitalized terms not otherwise defined herein shall have the respective meanings given such terms in
the Credit Agreement.


 


2.              
Amendments to Credit Agreement. Effective as of the Effective Date, the Credit Agreement shall be amended as follows:


 






    	 



    	 



    

  


                 Change
of Control. Clause (e) of the definition of “Change of Control” is hereby deleted in its entirety and the following
is substituted in its stead:


 


(e)       
(i) either of Harvey Yellen or Andrew Gumaer ceases to be actively engaged in the management and day-to-day operations and administration
of Great American or any Borrower, (ii) Andrew Gumaer ceases to be a Continuing Director of GAG Inc. or (iii) either of Harvey
Yellen or Andrew Gumaer ceases to be a Continuing Director of Great American.


 


3.            
Representations and Warranties. Borrowers represent and warrant to Lender that:


 


(a)              the representations and warranties set forth in the Credit Agreement and in each of the other Loan Documents are true and
correct on and as of the date hereof, as though made on such date, and as if each reference
therein to “this Agreement” or the “Credit Agreement” or the like includes reference to this Amendment
and the Credit Agreement as amended hereby (except to the extent that such representations and warranties expressly relate to an
earlier date, in which case they are true and correct as of such earlier date);


 


(b)          
the execution, delivery and performance of this Amendment by each Credit Party (i) are all within such Credit Party’s
corporate powers, (ii) are not in contravention of any Laws or the terms of such Credit Party’s Organization Documents, or
any indenture, agreement or undertaking to which such Credit Party is a party or by which such Credit Party or its property is
bound, and (iii) shall not result in the creation or imposition of any lien, claim, charge or encumbrance upon any of the Collateral,
except in favor of Lender pursuant to the Credit Agreement and the other Loan Documents as amended hereby;


 


(c)           
this Amendment and each other agreement or instrument to be executed and delivered by Credit Parties in connection herewith
have been duly authorized, executed and delivered by all necessary action on the part of such Credit Party and, if necessary, its
stockholders, as the case may be, and the agreements and obligations of each Credit Party contained herein and therein constitute
the legal, valid and binding obligations of such Credit Party, enforceable against it in accordance with their terms, except as
enforceability is limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws affecting creditor’s
rights generally and by general principles of equity;


 


(d)          
after giving effect to this Amendment, no Default or Event of Default exists as of the date hereof; and


 


(e)           
no action of, or filing with, or consent of any Governmental Authority, and no approval or consent of any other party (other
than, in each case, actions, filings or consents that have already been taken, made or obtained) is required to authorize, or is
otherwise required in connection with, the execution, delivery and performance of this Amendment.


 


4.           
Conditions Precedent. The amendments set forth in this Amendment shall not be effective until each of the following
conditions precedent are satisfied in a manner satisfactory to Lender (the “Effective Date”):


 


(a)               
receipt by Lender of this Amendment, duly authorized and executed by each Credit Party;


 






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(b)              
to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses (including, without limitation,
reasonable fees and expenses of Choate, Hall & Stewart LLP, counsel to the Agent) required to be reimbursed or paid by Credit
Parties pursuant to the terms of the Credit Agreement;


 


(c)               
after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing, nor shall any
Default or Event of Default result from the consummation of the transactions contemplated herein; and


 


(d)              
all orders, permissions, consents, approvals, licenses, authorizations and validations of, and filings, recordings and registrations
with, and exemptions by, any Governmental Authority, or any other Person required to authorize or otherwise required in connection
with the execution, delivery and performance by each Credit Party of this Amendment and the transactions contemplated, shall have
been obtained and shall be in full force and effect.


 


5.            
Effect on Loan Documents. As amended hereby, the Credit Agreement and the other Loan Documents shall be and remain
in full force and effect in accordance with their terms and hereby are ratified and confirmed by each Credit Party in all respects.
The execution, delivery, and performance of this Amendment shall not operate as a waiver of any right, power, or remedy of Lender
under the Credit Agreement or the other Loan Documents. Each Credit Party hereby ratifies and confirms in all respects all of its
obligations and any prior grant of a security interest under the Credit Agreement and the other Loan Documents.


 


6.            
Further Assurances. Each Credit Party shall execute and deliver all agreements, documents and instruments, each in
form and substance satisfactory to Lender, and take all actions as Lender may reasonably request from time to time, to perfect
and maintain the perfection and priority of the security interest in the Collateral held by Lender and to fully consummate the
transactions contemplated under this Amendment and the Credit Agreement, as modified hereby.


 


7.            
Release. Each Credit Party hereby remises, releases, acquits, satisfies and forever discharges Lender, its agents,
employees, officers, directors, predecessors, attorneys and all others acting on behalf of or at the direction of Lender, of and
from any and all manner of actions, causes of action, suit, debts, accounts, covenants, contracts, controversies, agreements, variances,
damages, judgments, claims and demands whatsoever, in law or in equity, which any of such parties ever had, or now has, to the
extent arising from or in connection with any act, omission or state of facts taken or existing on or prior to the date hereof,
against Lender, its agents, employees, officers, directors, attorneys and all persons acting on behalf of or at the direction of
Lender (“Releasees”), for, upon or by reason of any matter, cause or thing whatsoever through the date hereof.
Without limiting the generality of the foregoing, each Credit Party waives and affirmatively agrees not to allege or otherwise
pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights they have or may have
as of the date hereof, including, but not limited to, the rights to contest any conduct of Lender or other Releasees on or prior
to the date hereof.


 


8.           
No Novation; Entire Agreement. This Amendment is not a novation or discharge of the terms and provisions of the obligations
of Credit Parties under the Credit Agreement and the other Loan Documents. There are no other understandings, express or implied,
among Credit Parties and Lender regarding the subject matter hereof or thereof.


 






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9.           
Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH
OF MASSACHUSETTS, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.


 


10.          
Counterparts; Electronic Execution. This Amendment may be executed in any number of counterparts and by different
parties and separate counterparts, each of which when so executed and delivered shall be deemed an original, and all of which,
when taken together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by facsimile or other electronic transmission shall be as effective as delivery of a manually executed counterpart of
this Amendment. Any party delivering an executed counterpart of this Amendment by facsimile or other electronic transmission also
shall deliver a manually executed counterpart of this Amendment but the failure to deliver a manually executed counterpart shall
not affect the validity, enforceability, and binding effect of this Amendment.


 


11.           Construction. This Amendment and the Credit Agreement shall be construed collectively and in the event that any term,
provision or condition of any of such documents is inconsistent with or contradictory to any term, provision or condition of any
other such document, the terms, provisions and conditions of this Amendment shall supersede and control the terms, provisions and
conditions of the Credit Agreement. Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement
to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring
to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”,
“therein”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference
to the Credit Agreement as modified hereby.


 


[Signature Pages Follow]


 






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IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed as of the date first above written.


 





 





		
	 	GREAT AMERICAN GROUP WF, LLC., a California limited 
	 	 liability company 
	 	 
	 	 
	 	By:	/s/ Phillip J. Ahn
	 	Name:	Phillip J. Ahn
	 	Title:	CFO & COO



 


 


 


 


 






    	 



    	 



    

 


 






	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 
	 	 
	 	 
	 	By:	/s/ Jennifer Cann
	 	Name:	Jennifer Cann
	 	Title:	Managing Director 



 











 


 


 


 






    	 



    	 



    

 


ACKNOWLEDGEMENT AND AGREEMENT


 


Each of the undersigned hereby acknowledges and agrees to the
provisions of the foregoing Amendment applicable to it, including but not limited to the releases set forth in Section 7.


 


 


	 	GREAT AMERICAN GROUP, INC., a Delaware corporation
	 	 
	 	 
	 	By:	/s/ Phillip J. Ahn
	 	Name:	Phillip J. Ahn
	 	Title:	CFO & COO



 


 


 


 


	 	GREAT AMERICAN GROUP, LLC, a California limited 
	 	 liability company 
	 	 
	 	 
	 	By:	/s/ Phillip J. Ahn
	 	Name:	Phillip J. Ahn
	 	Title:	CFO & COO