Document:

ex10-7.htm

EXHIBIT 10. 7

 

 

February 13, 2015

 

AMENDMENT NO.1 TO TERM LOAN AND SECURITY AGREEMENT

 

THIS AMENDMENT NO.1 TO TERM LOAN AND SECURITY AGREEMENT (this "Amendment") is made as of February 13, 2015 (the "Effective Date'') between AeroGrow International, Inc., a Nevada corporation (the "Borrower"), and SMG Growing Media, Inc., an Ohio corporation (the "Lender''). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Loan Agreement (defined below).

WHEREAS, the Borrower and the Lender are parties to that certain Term Loan and Security Agreement dated as of July 10, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement");

 

WHEREAS, the Borrower has requested that the Lender agree to amend the Loan Agreement to extend the Maturity Date to April 15,2015, and the Lender has agreed to such extension subject to implementation of the default rate of interest; and

 

WHEREAS, the Borrower and the Lender have agreed to amend the Loan Agreement on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and the Lender hereby agree to enter into this Amendment.

 

1.              Amendments to the Loan Agreement. Effective as of the date of satisfaction of  the conditions precedent set forth in Section 2 below, the parties hereto agree that the Loan Agreement is hereby amended as follows:

 

(a)              The definition of "Maturity Date" is hereby amended and restated in its entirety as follows:

 

"Maturity Date" means April 15, 2015.

 

(b)              The first sentence of Section 4(a) of the Loan Agreement is hereby amended and restated as follows:

 

"The unpaid principal balance of the Term Loan shall bear interest at a rate equal to (i) 10% per annum (the "Interest Rate") until February 15, 2015 and (ii) 20% per annum from February 16, 2015 through and including the Interest Payment Trigger Date (reflecting implementation of the default rate of interest under Section 4{b) below)."

 

2.              Conditions of Effectiveness. The effectiveness of this Amendment is subject to the conditions precedent that the Lender shall have received (i) counterparts of this Amendment duly executed by the Borrower and the Lender and (ii) payment and/or reimbursement of the Lender's reasonable out-of-pocket fees and expenses (to the extent invoiced) in connection with this Amendment.

 

3.              Representations and Warranties of the Borrower. The Borrower hereby represents and warrants as follows:

 

  

  

  

 

(a)              This Amendment and the Loan Agreement (as modified hereby), as applicable, each constitute legal, valid and binding obligations of the Borrower and are enforceable against the Borrower in accordance with their terms, except as such enforceability (i) may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws affecting the enforcement of creditors' rights and remedies generally and (ii) is subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

 

(b)              As of the date hereof and after giving effect to the terms of this Amendment, (i) no Default or Event of Default has occurred and is continuing and (ii) the representations and warranties of the Borrower set forth in the Loan Agreement, as amended hereby, are true and correct in all material respects, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date.

 

4.    Reference to and Effect on the Loan Agreement.

 

(a)              Upon the effectiveness hereof, each reference to the Loan Agreement in the Loan Agreement or any other Loan Document shall mean and be a reference to the Loan Agreement as amended hereby.

 

(b)              Each Loan Document and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

 

(c)              Except with respect to the subject matter hereof, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Lender, nor constitute a waiver of any provision of the Loan Agreement, the Loan Documents or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

5.              GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF OHIO.

 

6.              Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

7.              Counterparts. This Amendment may be executed by one or more of 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. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging shall be effective as delivery of a manually executed counterpart of 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 Effective Date.

 

AEROGROW INTERNATIONAL, INC.,

as the borrower

 

By:                                                                   

 

Name:

 

Title:

 

 

SMG GROWING MEDIA, INC.,

as the lender

 

By:                                                                   

 

Name:

 

Title:

 

 

 

 

 

 

 

 

 

Signature Page to Amendment No. 1 to

Term Loan and Security Agreement dated as of July 10, 2014

AeroGrow International, Inc.Exhibit 10.28

EXECUTION VERSION

TECHNICAL AMENDMENT TO CREDIT AGREEMENT AND TO 
SECURITY AGREEMENT
This TECHNICAL AMENDMENT TO CREDIT AGREEMENT AND TO SECURITY AGREEMENT, dated as of December 10, 2014 (this “Technical Amendment”), by and among COLFAX CORPORATION, a Delaware corporation (the “US Borrower” or “Parent”), COLFAX UK HOLDINGS LTD, a company organized under the laws of England and Wales (the “European Borrower” and, together with the US Borrower, the “Borrowers”), the other Subsidiaries of Parent party hereto, and DEUTSCHE BANK AG NEW YORK BRANCH, as administrative agent (in such capacity, the “Administrative Agent”) and as collateral agent (in such capacity, the “Collateral Agent”).  All capitalized terms used herein and not otherwise defined herein shall have the respective meanings provided to such terms in the Credit Agreement (as defined below) or Security Agreement (as defined below), as applicable.
W I T N E S S E T H:
WHEREAS, the Borrowers, certain Subsidiaries of the Parent, the Lenders (as defined therein) and the Administrative Agent have entered into that certain Credit Agreement, dated as of September 12, 2011 (as amended as of January 13, 2012, as further amended on February 22, 2013, as further amended on November 7, 2013 and as further  amended, restated, supplemented and/or otherwise modified from time to time, the “Credit Agreement”); 
WHEREAS, the Parent, certain Subsidiaries of the Parent, and the Collateral Agent have entered into that certain Security Agreement, dated as of January 13, 2012 (as amended, restated, supplemented and/or otherwise modified from time to time, the “Security Agreement”); 
WHEREAS, the Parent and certain Subsidiaries of the Parent wish to enter into a receivables financing facility as contemplated by Sections 7.02(o) and 7.01(k) of the Credit Agreement;
WHEREAS, the Administrative Agent, the Borrowers, and the Subsidiaries of Parent party hereto have jointly identified inconsistencies in the definition of Receivables Facility and related definitions and an ambiguity in Section 6.14 of the Credit Agreement and, as a consequence thereof, the Administrative Agent, the Borrowers, and the Subsidiaries of Parent party hereto wish to amend such definitions and Section as provided in Section 2 hereof, as permitted pursuant to the provisions of the antepenultimate paragraph of Section 11.01 of the Credit Agreement; and
WHEREAS, the Collateral Agent, the Administrative Agent, the Borrowers, and the Subsidiaries of Parent party hereto have jointly identified an omission in the definition of “Excluded Accounts” in Section 34 of the Security Agreement and, as a consequence thereof, the Collateral Agent, the Administrative Agent, the Borrowers, and the Subsidiaries of Parent party hereto wish to amend such Section as provided in Section 3 hereof, as permitted by Section 24 of the Security Agreement. 

	
			
	 
	 
	 

NOW, THEREFORE, in consideration of the foregoing, the Administrative Agent, the Collateral Agent, the Borrowers, and the other Subsidiaries of Parent party hereto hereby agree as follows:
SECTION 1.      Rules of Construction.  The rules of construction specified in Section 1.02 of the Credit Agreement shall apply to this Technical Amendment, including the terms defined in the preamble and recitals hereto.

SECTION 2.    Technical Amendment to Credit Agreement.  
a.The definition of “Receivables Assets” appearing in Section 1.01 of the Credit Agreement is hereby amended by (i) inserting the text “or in which a security interest is granted” immediately before the text “by Parent or a Subsidiary of Parent” appearing therein, and (ii) inserting the text “, conveys, assigns, grants a security interest in or otherwise transfers” immediately before the text “such Receivables Assets to a Person that is not a Subsidiary of Parent” appearing therein.
b.The definition of “Receivables Facility” appearing in Section 1.01 of the Credit Agreement is hereby amended by inserting the text “, conveys, assigns, grants a security interest in or otherwise transfers” immediately before the text “such Receivables Assets to a Person that is not a Subsidiary of Parent” appearing therein.
c.The definition of “Receivables Subsidiary” appearing in Section 1.01 of the Credit Agreement is hereby amended by inserting the text “, convey, assign, grant a security interest in or otherwise transfer” before the text “such Receivables Assets to a Person that is not a Subsidiary of Parent” appearing therein.
d.Section 6.14 of the Credit Agreement is hereby amended by (i) inserting the text, “(other than a Receivables Subsidiary)” immediately after the first and the second references to “US Subsidiaries” therein, and (ii) inserting the text “(in addition to accounts used in connection with a Receivables Facility and in which only Receivables Assets are held)” immediately prior to the text “outside of the control of the Administrative Agent” appearing therein. 
SECTION 3.    Technical Amendment to Security Agreement.  The definition of “Excluded Accounts” in Section 34 of the Security Agreement is hereby amended by (a) deleting the word “and” immediately prior to clause (ii) therein and (b) inserting the text “, and (iii) accounts in connection with a Receivables Facility” immediately prior to the period at the end of the sentence therein.
SECTION 4.    Miscellaneous Provisions. 

a.This Technical Amendment is limited as specified and shall not constitute a modification, acceptance or waiver of any other provision of the Credit Agreement, Security Agreement or any other Loan Document.
b.This Technical Amendment shall become effective when the Borrowers, the other Subsidiaries of Parent party hereto, the Administrative Agent and the Collateral Agent shall have signed a counterpart hereof without any further action so long as this Technical Amendment is not objected to in writing by the Required Lenders within five Business Days from the date that notice of this Technical Amendment is posted to the Lenders.  Upon receipt of duly executed counterparts hereof from the Borrowers, the other Subsidiaries of Parent party hereto, the Administrative Agent and the Collateral Agent, the Administrative Agent shall promptly provide notice hereof to the Lenders and shall confirm to the Borrowers the date on which such notice is posted.
c.This Technical Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  Delivery by facsimile or electronic transmission of an executed counterpart of a signature page to this Technical Amendment shall be effective as delivery of an original executed counterpart of this Technical Amendment.
d.THIS TECHNICAL AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
e.From and after the date hereof, (i) all references in the Credit Agreement and each of the other Loan Documents to the Credit Agreement shall be deemed to be references to the Credit Agreement, as modified hereby, (ii) all references in the Security Agreement and each of the other Loan Documents to the Security Agreement shall be deemed to be references to the Security Agreement, as modified hereby and (iii) this Technical Amendment shall be deemed to constitute a “Loan Document” for all purposes of the Credit Agreement.
[Remainder of page left intentionally blank.]

*          *          *

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Technical Amendment as of the date first above written.

	
		
	 
	COLFAX CORPORATION
as US Borrower and Parent, for itself and on behalf of the Foreign Guarantors (other than the European Borrower)

By:    /s/ C. Scott Brannan   
   Name:   C. Scott Brannan 
Title:   Senior Vice President,          Chief Financial Officer and Treasurer 

	 
	COLFAX UK HOLDINGS LIMITED
as European Borrower 

By:    /s/ C. Scott Brannan   
   Name:   C. Scott Brannan 
Title:   Director 

	 
	

ALCOTEC WIRE CORPORATION

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	ALLOY RODS GLOBAL, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

ANDERSON GROUP INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	
		
	 
	C&G SYSTEMS HOLDING, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

C&G MERGER CO.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

CLARUS FLUID INTELLIGENCE, LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

CLFX SUB HOLDING LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	COLFAX FLUID HANDLING LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	CONSTELLATION PUMPS CORPORATION

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

Signature Page to Technical Amendment to Colfax Credit Agreement and Security Agreement
	
			
	 
	 
	 

	
		
	 
	DISTRIBUTION MINING & EQUIPMENT COMPANY, LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

EMSA HOLDINGS, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

FAN GROUP INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President 

	 
	HOWDEN AMERICAN FAN COMPANY

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   Chief Financial Officer 

	 
	HOWDEN COMPRESSORS, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   Chief Financial Officer 

Signature Page to Technical Amendment to Colfax Credit Agreement and Security Agreement
	
			
	 
	 
	 

	
		
	 
	HOWDEN CONSTRUCTION SERVICES INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   Authorized Person 

	 
	HOWDEN NORTH AMERICA INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   Chief Financial Officer

	 
	IMO HOLDINGS, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	 

	 
	IMO INDUSTRIES INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	PORTLAND VALVE LLC 

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	PROMOTION CONTROLS, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

Signature Page to Technical Amendment to Colfax Credit Agreement and Security Agreement
	
			
	 
	 
	 

	
		
	 
	SHAWEBONE HOLDINGS INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

SOLDEX LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	SOLDEX HOLDING I LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

SOLDEX HOLDING II LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

STOODY COMPANY

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	 

	 
	THE ESAB GROUP, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

Signature Page to Technical Amendment to Colfax Credit Agreement and Security Agreement
	
			
	 
	 
	 

	
		
	 
	THERMADYNE CYLINDER CO.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	THERMAL DYNAMICS CORPORATION

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

TOTAL LUBRICATION MANAGEMENT COMPANY

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	VICTOR TECHNOLOGIES HOLDINGS, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	VICTOR TECHNOLOGIES GROUP, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	VICTOR TECHNOLOGIES INTERNATIONAL, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

Signature Page to Technical Amendment to Colfax Credit Agreement and Security Agreement
	
			
	 
	 
	 

	
		
	 
	VICTOR EQUIPMENT COMPANY

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	VICTOR TECHNOLOGIES FOREIGN INVESTMENTS CORP.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	VISOTEK, INC.

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

	 
	

WARREN PUMPS LLC

By:    /s/ C. Scott Brannan   
    Name:   C. Scott Brannan 
 Title:   President

Signature Page to Technical Amendment to Colfax Credit Agreement and Security Agreement
	
			
	 
	 
	 

DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent and as Collateral Agent
By: ___/s/ Peter Cucchiara_____
Name:    Peter Cucchiara
Title:    Vice President

By: ___/s/ Kirk Tashjian________
Name:    Kirk L. Tashjian
Title:    Vice President

Signature Page to Technical Amendment to Colfax Credit Agreement and Security Agreement

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