Document:

ex_162508.htm

Exhibit 10.1

 

FORBEARANCE AGREEMENT

 

THIS FORBEARANCE AGREEMENT, dated as of October 31, 2019 (this “Agreement”), is entered into by and among STANLEY FURNITURE COMPANY LLC, a Delaware limited liability company (the “Borrower”), STANLEY INTERMEDIATE HOLDINGS LLC, a Delaware limited liability company (“Stanley Intermediate”), STANLEY FURNITURE COMPANY 2.0, LLC, a Virginia limited liability company (“SFC 2.0”), and CHURCHILL DOWNS HOLDINGS LTD., a British Virgin Islands business company (“Holdings” and, together with the Borrower, Stanley Intermediate and SFC 2.0, the “Loan Parties”), and HG HOLDINGS, INC., a Delaware corporation (the “Lender”). Capitalized terms used but not defined herein shall have the meanings ascribed to such term in the Secured Promissory Note (as defined below).

 

RECITALS

 

WHEREAS, the Borrower has issued to the Lender that certain Second Amended and Restated Subordinated Secured Promissory Note, dated as of February 7, 2019 in the original principal amount of $3,201,536.81 (as amended, supplemented or otherwise modified from time to time, the “Secured Promissory Note”).

 

WHEREAS, the Acknowledged Events of Default (as identified on Schedule 1 hereto) have occurred and are continuing.

 

WHEREAS, the Loan Parties have requested that the Lender agree to forbear from exercising their rights and remedies arising under the Secured Promissory Note and each of the other agreements, instruments and documents executed or delivered by any Loan Party in relation thereto or in connection therewith (collectively, with the Secured Promissory Note, the “Loan Documents”) and applicable law as a result of the Acknowledged Events of Default during the Forbearance Period (as defined below).

 

WHEREAS, the Lender has agreed to do so, but only pursuant to the terms and conditions set forth herein.

 

AGREEMENT

 

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

 

1.     Estoppel. Each of the Loan Parties hereby acknowledges and agrees that (a) as of October 30, 2019, the outstanding principal balance of the Secured Promissory Note was not less than $3,129,492.75, and (b) all obligations under the Secured Promissory Note and the other Loan Documents, including the Obligations, are immediately due and payable as a result of the Lender’s acceleration of the Obligations. All obligations under the Loan Documents, including the Obligations, constitute valid and subsisting obligations of the Loan Parties to the Lender that are not subject to any credits, offsets, defenses, claims, counterclaims, reductions or adjustments of any kind.

 

2.     Acknowledgment, Consent, Reaffirmation and Ratification. Each of the Loan Parties hereby: (a) acknowledges and consents to this Agreement and the terms and provisions hereof; (b) reaffirms the covenants and agreements contained in each Loan Document to which such Person is party, including, in each case, as such covenants and agreements may be modified by this Agreement and the transactions contemplated hereby; (c) reaffirms that each of the liens created and granted in or pursuant to the Loan Documents in favor of the Lender is valid and subsisting; (d) acknowledges and agrees that this Agreement shall in no manner impair or otherwise adversely affect such liens, except as explicitly set forth herein; and (e) confirms that each Loan Document to which such Person is a party is and shall continue to be in full force and effect and the same are hereby ratified and confirmed in all respects.

 

 

 

 

3.     Forbearance.

 

(a)     Subject to the terms and conditions set forth herein, the Lender shall, during the Forbearance Period (as defined below), forbear from exercising any and all of the rights and remedies available to it under the Loan Documents and applicable law, but only to the extent that such rights and remedies arise exclusively as a result of the existence of the Acknowledged Events of Defaults; provided, however, that the Lender shall be free to exercise any or all of its rights and remedies arising on account of the Acknowledged Events of Default at any time upon or after the occurrence of a Forbearance Termination Event (as defined below).

 

(b)     Nothing set forth herein or contemplated hereby is intended to constitute an agreement by the Lender to forbear from exercising any of the rights or remedies available to it under the Loan Documents or applicable law (all of which rights and remedies are hereby expressly reserved by the Lender) upon or after the occurrence of a Forbearance Termination Event. As used herein, a “Forbearance Termination Event” shall mean the occurrence of any of the following: (i) any default or event of default under the Secured Promissory Note or any other Loan Document other than the Acknowledged Events of Default; (ii) the breach by any Loan Party of any obligation or covenant under this Agreement and (iii) February 24, 2020. The period from the Effective Date (as defined below) to (but excluding) the earliest date that a Forbearance Termination Event occurs shall be referred to as the “Forbearance Period”. For the avoidance of doubt, during the Forbearance Period, the only payment due under the Note, other than the Forbearance Period Payments, is the interest payment due on December 31, 2019, which may be paid at the non-default rate, without waiver of the right to charge default rate interest after the occurrence of a Forbearance Termination Event.

 

4.     Forbearance Period Payments. In addition to, and not in lieu of, the payments required under the Loan Documents, the Borrower shall make the following payments to the Lender during the Forbearance Period (each, a “Forbearance Period Payment”), which shall be applied to the outstanding principal balance of the Secured Promissory Note:

 

(a)     On the Effective Date, $220,000 (the “Effective Date Payment”);

 

(b)     On or before the thirtieth (30th) day following the Effective Date, $200,000;

 

(c)     On or before the sixtieth (60th) day following the Effective Date, $150,000; and

 

(d)     On or before the ninetieth (90th) day following the Effective Date, $130,000.

 

5.     Minimum Collateral Value.

 

(a)     Covenant. During the Forbearance Period, the Borrower shall maintain a Minimum Collateral Value (as defined below) of not less than $2,000,000 (the “Required MCV”) as of the end of each calendar week. As used herein “Minimum Collateral Value” means an amount equal to the sum of: (a) accounts receivable of the Borrower that are less than ninety (90) days old; and (b) the cost value of domestic inventory of the Borrower, minus the value of (i) inventory in transit, (ii) inventory outside of the United States, (iii) showroom and sample inventory, (iv) inventory reserves in accordance with generally accepted accounting principles and (v) the cost value of any inventory over twelve months old; and (c) cash on hand.

 

2

 

 

(b)     Cure Right. Notwithstanding Section 5(a) hereof, in the event Minimum Collateral Value falls below the Required MCV as of the end of any calendar week, Borrower shall have the right to cure such Forbearance Termination Event by paying to the Lender an amount equal to the difference between the Required MCV and the Minimum Collateral Value for such calendar week (such payment, a “Cure Payment”). Cure Payments shall be made within 7 calendar days of the date of delivery to the Lender of the Minimum Collateral Value Report reflecting the Minimum Collateral Value for such calendar week and shall be applied to the outstanding principal balance of the Secured Promissory Note; provided that, if within such 7 day calendar period, inventory from the Borrower’s Vietnam affiliate, which was excluded from such Minimum Collateral Value Report because it was in transit, is physically received at Borrower’s United States warehouse then such amounts shall be credited against the shortfall for purposes of calculating the appropriate cure.

 

6.     Minimum Collateral Value Reports. Each Friday, commencing with the first Friday following the Effective Date, the Borrower shall deliver to Lender a report, in the form previously agreed, detailing the Minimum Collateral Value of the Borrower as of the end of the preceding calendar week’s end, certified by a responsible officer of the Borrower as true and correct (each such report, a “Minimum Collateral Value Report”). Each of the Loan Parties hereby agrees to grant Lender, upon reasonable notice, access to their inventory and reporting systems in order to verify the Minimum Collateral Value Reports.

 

7.     Discounted Payoff. So long as the Forbearance Period is not then terminated, the Lender agrees to accept, in full satisfaction of all Obligations (other than contingent indemnification obligations in respect of which no claim has been asserted):

 

(a)     on or before the ninetieth (90th) day following the Effective Date, an amount equal to: (i) $2,230,000, less (ii) the sum of all Forbearance Period Payments and Cure Payments made through the date of such payoff transaction; and

 

(b)     after the ninetieth (90th) day following the Effective Date, an amount equal to: (i) $2,530,000, less (ii) the sum of all Forbearance Period Payments and Cure Payments made through the date of such payoff transaction.

 

8.     Stone & Leigh Collections. Promptly, and in any event within three (3) Business Days of any Loan Party’s receipt thereof, the Loan Parties shall pay to Stone & Leigh LLC (“Stone & Leigh”) all Stone & Leigh collections.

 

9.     Fees and Expenses. Without modifying the obligations of the Borrower under the Note, each party shall pay its own fees and expenses associated with the specific transactions contemplated hereby.

 

10.     Conditions Precedent. This Agreement shall be effective on the date (the “Effective Date”) that each of the following conditions have been satisfied or waived by the Lender, in each case as determined by the Lender in its sole discretion:

 

(a)     The Lender shall have received counterparts of this Agreement duly executed by each of the Loan Parties and the Lender.

 

3

 

 

(b)     The Lender shall have received the Effective Date Payment.

 

(c)     The Lender shall have received evidence, satisfactory to the Lender in its sole discretion, that the Loan Parties have paid to Stone & Leigh an amount equal to all Stone & Leigh collections that have not been remitted by the Loan Parties to Stone & Leigh through the Effective Date.

 

(d)     The Lender shall have received certificates of resolutions or other action, incumbency certificates and/or other certificates of a responsible officer for each Loan Party evidencing the identity, authority and capacity of each responsible officer thereof authorized to act as a responsible officer in connection with this Agreement and the transactions contemplated hereby.

 

11.     Representations and Warranties of the Loan Parties. Each Loan Party represents to the Lender as follows:

 

(a)     The Acknowledged Events of Default have occurred and are continuing, and the Obligations under the Secured Promissory Note were properly accelerated by the Lender.

 

(b)     After giving effect to this Agreement, no default or event of default exists under any Loan Document other than the Acknowledged Events of Default.

 

(c)     After giving effect to this Agreement, the representations and warranties of each Loan Party set forth in the Loan Documents (other than those representations and warranties that solely relate the existence of defaults or events of default, but only to the extent such defaults or events of default are the Acknowledged Events of Default) are true, correct and complete on and as of the Effective Date to the same extent as though made on and as of such date, except to the extent such representations and warranties specifically relate to an earlier date.

 

(d)     Each Loan Party has all requisite right and power and is duly authorized and empowered to enter into, execute, deliver and perform this Agreement.

 

(e)     This Agreement and the other Loan Documents have been duly authorized, executed and delivered by each Loan Party and constitute legal, valid and binding obligations of the Loan Parties, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

(f)     No material consent or approval of, registration or filing with, or any other action by, any governmental authority is required in connection with the execution, delivery or performance by any Loan Party of this Agreement.

 

(g)     The execution and delivery by such Loan Party of this Agreement does not violate any applicable law, policy or regulation or the organizational documents of such Loan Party or any order of any governmental authority such as to cause a material adverse effect with respect to such Loan Party.

 

4

 

 

12.     Release. In consideration of the agreements of the Lender set forth in this Agreement, each of the Loan Parties hereby release and forever discharge the Lender, Stone & Leigh and each of the Lender’s and Stone & Leigh’s predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Releasee Group”) from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which any of the Loan Parties ever had or claimed to have had, now has or claims to have or, 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, may have after the date hereof against any member of the Releasee Group, for, upon or by reason of any matter, cause or thing whatsoever through the date hereof. Each of the Loan Parties represents, warrants, acknowledges and confirms that, as of the date hereof, such Person has no knowledge of any action, cause of action, claim, demand, damage or liability of whatever kind or nature, in law or in equity, against any member of the Releasee Group arising from any action by any such Person, or failure of any such Person to act, under or in connection with any of the Loan Documents.

 

13.     Incorporation of Agreement. Except as specifically modified herein, the terms of the Loan Documents shall remain in full force and effect. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the Lender under the Loan Documents or constitute a waiver or amendment of any provision of the Loan Documents, except as expressly set forth herein. The breach of any provision or representation under this Agreement shall constitute an immediate Event of Default under the Secured Promissory Note, and this Agreement shall constitute a Loan Document.

 

14.     No Third Party Beneficiaries. This Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and their respective successors and assigns, and the obligations hereof shall be binding upon the Loan Parties. No other Person (other than any member of the Releasee Group with respect to the provisions of Section 12 hereof, which Persons are intended to be third party beneficiaries of this Agreement) shall have or be entitled to assert rights or benefits under this Agreement.

 

15.     Entirety. This Agreement and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof. This Agreement and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.

 

16.     Counterparts/Telecopy. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of executed counterparts of this Agreement by telecopy or other secure electronic format (.pdf) shall be effective as an original.

 

17.     Governing Law. The provisions of Section 9(j) of the Secured Promissory Note are hereby incorporated by reference mutatis mutandis.

 

18.     Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

5

 

 

19.     Savings Clause. If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

[SIGNATURE PAGES FOLLOW]

 

6

 

 

 

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

 

	
			BORROWER:

				
			STANLEY FURNITURE COMPANY LLC,

			
	 	
			a Delaware limited liability company

			 

			By:/s/ Richard Ledger                              

			Name: Richard Ledger

			Title: Chief Executive Officer

			
	 	 
	 	 
	GUARANTORS:  	STANLEY INTERMEDIATE HOLDINGS LLC,
	 	
			a Delaware limited liability company

			 

			By:/s/ Richard Ledger                            

			Name: Richard Ledger

			Title: Chief Executive Officer

			
	 	 
	 	 
	 	
			STANLEY FURNITURE COMPANY 2.0, LLC,

			a Virginia limited liability company

			 

			By:/s/ Richard Ledger                              

			Name: Richard Ledger

			Title: Chief Executive Officer

			 

			
	 	 
	 	
			CHURCHILL DOWNS HOLDINGS LTD.,

			a British Virgin Islands business company

			 

			By:/s/ Bernhard Weber​​​​​​​​​​​​​​                             

			Name: Bernhard Weber

			Title: Director, on behalf of Dextra Partners PTE. LTD.

			

 

 

 

 

 

Signature Page

Stanley Furniture Forbearance

 

 

 

	LENDER:	HG HOLDINGS, INC.,
	 	a Delaware corporation
	 	 
	 	
			By: /s/ Steven A. Hale II                                                                           

			Name: Steven A. Hale II

			Title: Chairman & CEO

			
	 	 

     

 

 

 

 

 

Signature Page

Stanley Furniture Forbearance

 

 

 

SCHEDULE 1

 

Acknowledged Events of Default

 

The “Acknowledged Events of Default” means, collectively, the Events of Default (i) identified in those certain letters that the Lender sent to the Borrower on August 21, 2019 and August 30, 2019; and (ii) arising from the Borrower’s failure to pay all Obligations under the Secured Promissory Note immediately upon the Lender’s acceleration of the Secured Promissory Note on August 30, 2019.nbr_EX10_4

		
			Exhibit 10.4
		

		
			 
		

		
			AMENDMENT NO. 1 TO CREDIT AGREEMENT
		

		
			 
		

		
			This AMENDMENT NO. 1 TO CREDIT AGREEMENT (this “Amendment”) is dated as of October 25, 2019 (the “Amendment No. 1 Effective Date”), among NABORS INDUSTRIES, INC., a Delaware corporation (the “US Borrower”), the US Lenders party hereto, BANK OF AMERICA, N.A., as an Issuing Bank, MIZUHO BANK, LTD., as an Issuing Bank, WELLS FARGO BANK, N.A., as an Issuing Bank and CITIBANK, N.A., as an Issuing Bank and as administrative agent solely for the US Lenders under the Credit Agreement (in such capacity, the “Administrative Agent”).  
		

		
			 
		

		
			RECITALS:
		

		
			 
		

		
			WHEREAS, the US Borrower, the Canadian Borrower, Holdings, the Canadian Lender, the US Lenders, the Issuing Banks and the Administrative Agent are parties to that certain Credit Agreement dated as of October 11, 2018 (as amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”);
		

		
			 
		

		
			WHEREAS, the US Borrower has requested that the Administrative Agent, the US Lenders and the Issuing Banks amend certain terms of the Credit Agreement as set forth herein; and
		

		
			 
		

		
			WHEREAS, the US Required Lenders, the Administrative Agent and the Issuing Banks are willing to enter into this Amendment on the terms and conditions contained herein.
		

		
			 
		

		
			NOW, THEREFORE, the parties hereto agree as follows:
		

		
			 
		

			
	
			
				 Section 1.1
			Defined Terms.  Capitalized terms used but not otherwise defined in this Amendment shall have the meaning given to such terms in the Credit Agreement, as amended hereby.

		
			 
		

			
	
			
				 Section 1.2
			Amendments.  In reliance on the representations, warranties, covenants and agreements contained in this Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 1.3 hereof, the Credit Agreement is hereby amended as follows effective as of the Amendment No. 1 Effective Date: 

		
			 
		

			
	
			
				 a.
			

			
	
			
			The following definitions shall be added to Section 1.01 of the Credit Agreement, in alphabetical order:

		
			 
		

		
			“Accepted Currency” shall mean, (a) US Dollars, (b) Pounds Sterling, (c) Euros, (d) Yen and (e) Canadian Dollars.
		

		
			 
		

		
			“Covered Party” has the meaning assigned to such term in Section 14.19. 
		

		
			 
		

		
			“Discretionary Foreign Currency” shall mean each Foreign Currency that is not an Accepted Currency.
		

		
			 
		

		
			“Dollar Equivalent” shall mean, as to any amount denominated in a currency other than US Dollars as of any date of determination, the amount of US Dollars that would be required to purchase the amount of such other currency based upon the Spot Rate.  All calculations of Dollar Equivalents shall be made by the Person that determines the Spot Rate in accordance with the definition of “Spot Rate”. 
		

		
			 
		

		
			“Foreign Currency” shall mean, with respect to Letters of Credit, (a) Pounds Sterling, (b) Euros, (c) Yen, (d) Canadian Dollars and (e) any other lawful Currency that is freely transferable and freely convertible into US Dollars and is acceptable to the Administrative Agent and the applicable Issuing Bank(s).
		

		
			 
		

		
			

		 

		

		
			“QFC Credit Support” has the meaning assigned to such term in Section 14.19. 
		

		
			 
		

		
			“Revaluation Date” shall mean, with respect to any Letter of Credit denominated in a Foreign Currency, each of the following: (a) the date on which such Letter of Credit is issued, (b) the first Business Day of each calendar month and (c) the date of any amendment of such Letter of Credit that has the effect of increasing the face amount thereof.
		

		
			 
		

		
			“Spot Rate” shall mean, with respect to any currency, the rate determined by either (a) the Administrative Agent (for all purposes under Section 2.05 and Section 2.22 when the applicable Issuing Bank is a US Lender other than Citibank, N.A. and for all purposes under Section 14.16) or (b) the applicable Issuing Bank (when the applicable Issuing Bank is Citibank, N.A.), as applicable, to be the rate quoted by the person acting in such capacity as the spot rate for the purchase by such person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m., Local Time on the date two Business Days prior to the date as of which the foreign exchange computation is made or if such rate cannot be computed as of such date such other date as the Administrative Agent or such Issuing Bank, as applicable, shall reasonably determine is appropriate under the circumstances; provided, that the Administrative Agent or such Issuing Bank, as applicable, may obtain such spot rate from an Affiliate thereof or another financial institution designated by the Administrative Agent or such Issuing Bank, as applicable, if the person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency.  
		

		
			 
		

		
			“Supported QFC” has the meaning assigned to such term in Section 14.19. 
		

		
			 
		

		
			“U.S. Special Resolution Regimes” has the meaning assigned to such term in Section 14.19. 
		

		
			 
		

			
	
			
				 b.
			

			
	
			
			A new Section 1.06 is added to the Credit Agreement that reads as follows:

		
			 
		

		
			Section 1.06. Divisions. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.
		

		
			 
		

			
	
			
				 c.
			

			
	
			
			Section 2.05(c) of the Credit Agreement is hereby amended by (1) deleting the reference in the first sentence of such Section to “in Dollars” and inserting in lieu thereof a reference to “in US Dollars (or, if relating to a Letter of Credit denominated in a Foreign Currency, in the Dollar Equivalent thereof)” and (2) deleting the reference in the second sentence of such Section to “in Dollars” and inserting in lieu thereof a reference to “in the applicable Accepted Currency in which such Letter(s) of Credit is/are denominated (or, if relating to a Letter of Credit denominated in a Discretionary Foreign Currency, in the Dollar Equivalent thereof)”.

		
			 
		

			
	
			
				 d.
			

			
	
			
			Section 2.22(a) of the Credit Agreement is hereby amended by (x) adding “(i)” immediately following the Section heading at the beginning of such Section and (y) adding a new clause (ii) at the end of such Section, which new clause (ii) shall read in full as follows:

		
			 
		

		
			(ii)US Borrower may from time to time request that Letters of Credit be issued in a Foreign Currency in accordance with this Section 2.22(a)(ii) and, in the event that any provision of this Section 2.22(a)(ii) 

		 

conflicts with Section 2.22(b), the provisions of this Section 2.22(a)(ii) shall control. In the case of any such request with respect to the issuance of Letters of Credit in a Discretionary Foreign Currency, such request shall be subject to the approval of the Administrative Agent and the applicable Issuing Bank. Any such request shall be made to the Administrative Agent and the applicable Issuing Bank not later than 11:00 a.m., New York time, at least three (3) Business Days prior to the date of the desired Letter of Credit issuance (or such other time or date as may be agreed to by the Administrative Agent and the applicable Issuing Bank in their sole discretion). In the case of any such request, the Administrative Agent shall promptly advise each applicable Issuing Bank thereof. Each Issuing Bank shall notify the Administrative Agent, not later than Noon, New York time, two (2) Business Days (or such other period of time as may be agreed by the Administrative Agent in its sole discretion) after receipt of such request, whether it consents, in its sole discretion, to the issuance of Letters of Credit in such requested Discretionary Foreign Currency. Any failure by any Issuing Bank, as the case may be, to respond to such request within the time period specified in the preceding sentence shall be deemed to be a refusal by such Issuing Bank to permit Letters of Credit to be issued in such requested Discretionary Foreign Currency. If the Administrative Agent and an Issuing Bank consent to the issuance of Letters of Credit in such requested Discretionary Foreign Currency, the Administrative Agent shall so notify US Borrower. Notwithstanding the foregoing, any refusal or deemed refusal by an Issuing Bank to issue a Letter of Credit in a Discretionary Foreign Currency pursuant to any such request shall be specific to each such request and not a prospective refusal to agree to any such request at a later date.
		

			
	
			
				 e.
			

			
	
			
			Section 2.22(c)(i) of the Credit Agreement is hereby amended by inserting a reference to “in the applicable Accepted Currency in which the applicable Letter of Credit is denominated (or, if relating to a Letter of Credit denominated in a Discretionary Foreign Currency, in the Dollar Equivalent thereof)” immediately following the phrase “reimburse each Issuing Bank” contained therein.

		
			 
		

			
	
			
				 f.
			

			
	
			
			Section 2.22(d) of the Credit Agreement is hereby amended by deleting the reference to “in Dollars” contained therein and inserting in lieu thereof a reference to “in US Dollars (or, if relating to a Letter of Credit denominated in a Foreign Currency, in the Dollar Equivalent thereof)”.

		
			 
		

			
	
			
				 g.
			

			
	
			
			Section 2.22(e) of the Credit Agreement is hereby amended and restated in its entirety as follows:

		
			 
		

		
			

		 

		

		
			(e)Letter of Credit Amounts and Foreign Currency. (i) Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided,  however, that with respect to any Letter of Credit that, by its terms or the terms of any Application related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time. For purposes of calculations of amounts payable under this Agreement and the other Loan Documents, including Reimbursement Obligations and fees and for comparisons, measurements or other determinations of such amounts hereunder and thereunder, in any case, with respect to Letters of Credit denominated in any Discretionary Foreign Currency in accordance with Section 2.22(a)(ii), such amounts shall be converted to the Dollar Equivalent thereof on the Revaluation Date in accordance with the immediately following sentence.  Without in any way limiting the foregoing provisions, all calculations of Dollar Equivalents shall be made in accordance with the definition of “Dollar Equivalent” and such calculations shall be conclusive absent manifest error.
		

		
			(ii)US Borrower shall, and shall cause the other US Loan Parties to, make payment relative to any US Obligation with respect to Letters of Credit in the applicable Accepted Currency in which the applicable Letter of Credit is denominated (or, if relating to a Letter of Credit denominated in a Discretionary Foreign Currency, in the Dollar Equivalent thereof) (the “Agreed Currency”).  If any payment is received on account of any such US Obligation in any currency other than the Agreed Currency (the “Other Currency”) (whether voluntarily or pursuant to an order or judgment or the enforcement thereof or the realization of any collateral, if any, or the liquidation of a US Loan Party or otherwise), such payment shall constitute a discharge of the liability of the US Loan Parties hereunder and under the other Loan Documents in respect of such obligation only to the extent of the amount of the Agreed Currency which the relevant Issuing Bank is able to purchase with the amount of the Other Currency received by it on the Business Day next following such receipt in accordance with its normal banking procedures in the relevant jurisdiction and applicable law after deducting any costs of exchange.  To the fullest extent permitted by applicable law, if the amount of the Other Currency received is insufficient to satisfy the obligation in the Agreed Currency in full, then the US Borrower does hereby agree to indemnify the Issuing Banks from and against any loss or cost arising out of or in connection with such deficiency; provided that if the amount of the Agreed Currency so purchased is greater than the amount of the Agreed Currency due in respect of such liability immediately prior to such judgment or order, voluntary prepayment, realization of collateral, if any, liquidation of a US Loan Party or otherwise, then the Administrative Agent, the applicable Issuing Bank or the US Lenders, as the case may be, agree to return the amount of any excess to US Borrower (or to any other Person who may be entitled thereto under applicable law).  To the fullest extent permitted by applicable law, the foregoing indemnity and agreement by US Borrower shall constitute an obligation separate and independent from all other obligations contained in this Agreement and shall give rise to a separate and independent cause of action.
		

		
			 
		

		
			

		 

		

			
	
			
				 h.
			

			
	
			
			Section 14.16 of the Credit Agreement is hereby amended by (i) deleting the reference to “(as defined below)” in Section 14.16(a) and (ii) deleting Section 14.16(c) in its entirety.

		
			 
		

			
	
			
				 i.
			

			
	
			
			A new Section 14.19 is added to the Credit Agreement that reads as follows:

		
			 
		

		
			Section 14.19.  Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):
		

		
			 
		

		
			(a)the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support. 
		

		
			 
		

		
			(b)As used in this Section 14.19, the following terms have the following meanings:
		

		
			 
		

		
			“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
		

		
			 
		

		
			“Covered Entity” means any of the following:  (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
		

		
			 
		

		
			“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
		

		
			 
		

		
			“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
		

			
	
			
				 Section 1.3
			Conditions Precedent.  This Amendment shall become effective upon receipt by the Administrative Agent of counterparts of this Amendment duly executed by the US Borrower, US Lenders constituting US Required Lenders and each Issuing Bank.

		
			 
		

		
			

		 

		

			
	
			
				 Section 1.4
			Representations and Warranties.  The US Borrower represents and warrants to the Administrative Agent that, as of the date hereof (a) all of its representations and warranties set forth in the Loan Documents are true and correct in all respects, except that any representation or warranty which by its terms is made as of a specified date shall be true and correct only as of such specified dates, (b) the execution, delivery and performance of this Amendment by it are within its corporate power and authority and has been duly authorized by appropriate corporate action, (c) this Amendment constitutes the legal, valid and binding obligation of it enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and general principles of equity, and (d) other than those already obtained in connection herewith, there are no governmental or other third party consents, licenses and approvals required in connection with the execution, delivery, performance validity and enforceability of this Amendment. 

		
			 
		

			
	
			
				 Section 1.5
			Reaffirmation.  The US Borrower hereby ratifies, confirms, acknowledges and agrees that its obligations under the Credit Agreement are and remain in full force and effect, including its obligations under Section 14.03.

		
			 
		

			
	
			
				 Section 1.6
			

			
	
			
			Confirmation and Effect; No Waiver.

		
			 
		

			
	
			
				 a.
			

			
	
			
			The provisions of the Credit Agreement shall remain in full force and effect in accordance with its terms following the Amendment No. 1 Effective Date, and this Amendment shall not constitute a waiver of any provision of the Credit Agreement or any other Loan Document, except as expressly provided for herein. Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference to the Credit Agreement in any other document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby. 

		
			 
		

			
	
			
				 b.
			

			
	
			
			Neither the execution by the Administrative Agent, the US Lenders or the Issuing Bank of this Amendment, nor any other act or omission by the Administrative Agent, the US Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent, the US Lenders or the Issuing Banks of any Defaults or Events of Default which may exist, which may have occurred prior to the date of the effectiveness of this Amendment or which may occur in the future under the Credit Agreement and/or the other Loan Documents. Similarly, nothing contained in this Amendment shall directly or indirectly in any way whatsoever either: (i) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default, (ii) except as expressly provided herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument, or (iii) constitute any course of dealing or other basis for altering any obligation of the Loan Parties or any right, privilege or remedy of the Beneficiaries under the Credit Agreement, the other Loan Documents, or any other contract or instrument.

		
			 
		

			
	
			
				 Section 1.7
			

			
	
			
			Miscellaneous.  

		
			 
		

			
	
			
				 a.
			

			
	
			
			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 email (in .pdf or similar format) or fax shall be effective as delivery of a manually executed counterpart of this Amendment. Headings, 

		 

	subheadings and captions used herein are for the convenience of the parties only and shall not be used to construe the meaning or intent of any provision hereof.

		
			 
		

			
	
			
				 b.
			

			
	
			
			Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

		
			 
		

			
	
			
				 c.
			

			
	
			
			This Amendment is a “Loan Document” as defined in and under the Credit Agreement and the provisions of Section 14.03 of the Credit Agreement, including as amended hereby shall apply with like force to this Amendment and the transactions contemplated hereby, including as may arise after the date hereof.

		
			 
		

			
	
			
				 d.
			

			
	
			
			This Amendment and the transactions contemplated hereby, and all disputes between the parties under or relating to this Amendment or the facts or circumstances leading to its execution, whether in contract, tort or otherwise, shall be construed in accordance with and governed by the laws (including statutes of limitation) of the State of New York, without regard to conflicts of law principles that would require the application of the laws of another jurisdiction.  Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non‐exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Amendment.  

		
			 
		

			
	
			
				 e.
			

			
	
			
			EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT.

		
			 
		

		
			 
		

		
			[Signature Pages Follow]
		

		
			 
		

		
			 
		

		
			

		 

		

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

		
			 
		

		
			NABORS INDUSTRIES, INC.
		

		
			 
		

		
			 
		

		
			By:/s/R. Clark Wood
		

		
			Name:Clark Wood
		

		
			Title:Controller
		

		
			 
		

		
			

		 

CITIBANK N.A., as Administrative Agent
		

		
			 
		

		
			 
		

		
			By:/s/Maureen Maroney 
		

		
			Name:Maureen Maroney
		

		
			Title:Vice President
		

		
			 
		

		
			

		 

		

		
			CITIBANK N.A., as a US Lender and an Issuing Bank
		

		
			 
		

		
			 
		

		
			By:/s/Maureen Maroney
		

		
			Name:Maureen Maroney
		

		
			Title:Vice President
		

		
			 
		

		
			
		

		
			

		 

		

		
			BANK OF AMERICA, N.A., as a US Lender and an Issuing Bank 
		

		
			 
		

		
			 
		

		
			By:/s/Tyler D. Levings
		

		
			Name:Tyler D. Levings
		

		
			Title:Director
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

		
			MIZUHO BANK, LTD., as a US Lender and an Issuing Bank 
		

		
			 
		

		
			 
		

		
			By:/s/Edward Sacks
		

		
			Name:Edward Sacks
		

		
			Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

		
			 
		

		
			WELLS FARGO BANK, N.A., as a US Lender and an Issuing Bank
		

		
			 
		

		
			 
		

		
			By:/s/Shannon Cunningham
		

		
			Name:Shannon Cunningham
		

		
			Title:Director
		

		
			 
		

		
			
		

		
			 
		

		
			

		 

		

		
			
		

		
			HSBC BANK USA, N.A., as a US Lender
		

		
			 
		

		
			 
		

		
			By:/s/Michael Bustios
		

		
			Name:Michael Bustios
		

		
			Title:Senior Vice President
		

		
			
		

		
			 
		

		
			

		 

		

		
			MORGAN STANLEY BANK, N.A., as a US Lender
		

		
			 
		

		
			 
		

		
			By:/s/Megan Kushner
		

		
			Name:Megan Kushner
		

		
			Title:Authorized Signatory
		

		
			
		

		
			 
		

		
			

		 

		

		
			GOLDMAN SACHS BANK USA, as a US Lender
		

		
			 
		

		
			 
		

		
			By:/s/David K. Gaskell
		

		
			Name:David K. Gaskell
		

		
			Title:Authorized Signer
		

		
			 
		

		
			

		 

		

		
			RIYAD BANK, HOUSTON AGENCY, as a US Lender
		

		
			 
		

		
			 
		

		
			By:/s/Michael Meiss
		

		
			Name:Michael Meiss
		

		
			Title:General Manager
		

		
			 
		

		
			 
		

		
			By:/s/Roxanne Crawford
		

		
			Name:Roxanne Crawford
		

		
			Title:Vice President, Administrative Officer
		

		
			 
		

		
			 
		

		
			

		 

		

		
			MUFG BANK, LTD. (f/k/a BANK OF TOKYO-MITSUBISHI UFJ, LTD.), as a US Lender
		

		
			 
		

		
			 
		

		
			By:/s/Stephen W. Warfel
		

		
			Name:Stephen W. Warfel
		

		
			Title:Managing Director
		

		
			 
		

		
			

		 

		

		
			SUMITOMO MITSUI BANKING CORPORATION, as a US Lender
		

		
			 
		

		
			 
		

		
			By:/s/Michael Maguire
		

		
			Name:Michael Maguire
		

		
			Title:Executive Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}]]