Document:

ex_159492.htm

Exhibit 10.1

 

 

EXECUTION COPY

 

 

 

 

 

SECOND AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

dated as of September 27, 2019

 

by and among

 

SUPERIOR GROUP OF COMPANIES, INC.

(formerly known as Superior Uniform Group, Inc.), 

as Borrower,

 

FASHION SEAL CORPORATION,     

as a Guarantor,

 

THE OFFICE GURUS, LLC, 

as a Guarantor,

 

BAMKO, LLC, 

as a Guarantor,

 

SUPERIOR UNIFORM ARKANSAS LLC,

as a Guarantor,

 

SUPERIOR UNIFORM GROUP, LLC,

(formerly known as Superior Group of Companies, LLC) 

as a Guarantor,

 

CID RESOURCES, INC., 

as a Guarantor,

 

SUPERIOR GROUP HOLDINGS, INC.,

as a Guarantor,

 

and

 

BRANCH BANKING AND TRUST COMPANY,

as Lender

 

 

 

 

THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of September 27, 2019 (the “Second Amendment Effective Date”), is by and among Superior Group of Companies, Inc. (formerly known as Superior Uniform Group, Inc.), a Florida corporation (the “Borrower”), CID Resources, Inc., a Delaware corporation (“CID”), Superior Uniform Group, LLC (formerly known as Superior Group of Companies, LLC), a Florida limited liability company (“SGC LLC”), Fashion Seal Corporation, a Nevada corporation (“Fashion Seal”), The Office Gurus, LLC, a Florida limited liability company (“TOG”), BAMKO, LLC, a Delaware limited liability company (“BAMKO, LLC”), Superior Uniform Arkansas LLC, an Arkansas limited liability company (“SU-ARK”), and Superior Group Holdings, Inc., a Texas corporation (“SGHI”), all having an address of 10055 Seminole Boulevard, Seminole, Florida 33772 (CID, SGC LLC, Fashion Seal, TOG, BAMKO, LLC, SU-ARK and SGHI are each individually sometimes referred to herein as a “Guarantor” and collectively as the “Guarantors”), and Branch Banking and Trust Company as the lender under the Credit Agreement (as hereinafter defined) (the “Lender”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement.

 

W I T N E S S E T H

 

WHEREAS, the Borrower, the Guarantors and the Lender are parties to that certain Amended and Restated Credit Agreement, dated as of May 2, 2018 (as amended by that certain First Amendment to Amended and Restated Credit Agreement and Loan Documents, dated as of January 22, 2019, and as further amended, modified, extended, restated, replaced or supplemented from time to time, the “Credit Agreement”);

 

WHEREAS, the Borrower and the Guarantors have requested that the Lender make certain amendments to the Credit Agreement, including: (a) modification of the maximum Funded Indebtedness to EBITDA Ratio, (b) modification of the Applicable Libor Margin and (c) certain other changes as described herein; and

 

WHEREAS, the Lender is willing to make such amendments to the Credit Agreement in accordance with and subject to the terms and conditions specified in this Amendment.

 

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

Article I     

AMENDMENTS TO CREDIT AGREEMENT

 

As of the Second Amendment Effective Date, the Credit Agreement is hereby amended in the following respects:

 

1.1     Amendments to Section 1.01. 

 

(a)      The definition of “Applicable Libor Margin” in Section 1.01 of the Credit Agreement is amended and restated to read in its entirety as follows:

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

“Applicable Libor Margin” means the following percentages per annum, determined quarterly based upon the Funded Indebtedness to EBITDA Ratio set forth in each Compliance Certificate received by the Lender pursuant to Section 6.01(c):

 

	
			Level

				
			Funded Indebtedness to EBITDA Ratio

				
			Applicable Libor Margin for Revolving Credit Facility, Letter of Credit Fees and 2017 Term Loan 

				
			Applicable Libor Margin for 2018 Term Loan

			
	
			I

				
			< 4.00:1

				
			0.68%

				
			0.85%

			
	
			II

				
			> 4.00:1 but < 4.25:1

				
			1.00%

				
			1.15%

			
	
			III

				
			> 4.25:1 but < 4.60:1

				
			1.25%

				
			1.40%

			
	
			IV

				
			> 4.60:1 but < 5.00:1

				
			1.50%

				
			1.65%

			

 

The Applicable Libor Margin shall be effective as of the first day of the Fiscal Quarter (each, a “Rate Determination Date”) immediately following the Fiscal Quarter for which the Lender receives a Compliance Certificate pursuant to Section 6.01(c), and the Applicable Libor Margin so determined shall remain effective from such Rate Determination Date until the date which is the first day of the next Fiscal Quarter immediately following the Fiscal Quarter for which the Lender receives a Compliance Certificate pursuant to Section 6.01(c) (which latter date shall be a new Rate Determination Date); provided that (a) for the fiscal quarter ending September 30, 2019, the Applicable Libor Margin shall be Level I; and (b) if the Borrower fails to deliver to the Lender any Compliance Certificate required to be delivered pursuant to Section 6.01(c) with respect to any Fiscal Quarter, then for the period beginning on the first day of the Fiscal Quarter immediately following such Fiscal Quarter and ending on the date on which the Borrower delivers to the Lender the Compliance Certificate required to be delivered pursuant to Section 6.01(c) with respect to such Fiscal Quarter, the Advances shall bear interest, and fees with respect to Letters of Credit shall be determined, at a rate per annum determined at Level IV; provided that, at the election of the Lender, the principal amount of the Advances shall bear interest at the Default Rate upon the failure by the Borrower to deliver any Compliance Certificate as required by Section 6.01(c). Any change in the Applicable Libor Margin as of any Rate Determination Date shall result in a corresponding change, effective on and as of such Rate Determination Date, in the interest rate applicable to the Advances and in the fees applicable to each Letter of Credit outstanding on such Rate Determination Date; provided that no Applicable Libor Margin shall be decreased if a Default Condition is in existence on the Rate Determination Date.

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

Notwithstanding the foregoing, in the event that any financial statement or Compliance Certificate delivered pursuant to Section 6.01(c) with respect to any Fiscal Quarter is shown to be inaccurate (regardless of whether (x) this Agreement is in effect, (y) the commitments in respect of the Revolving Credit Facility are in effect, or (z) any Advance is outstanding when such inaccuracy is discovered or such financial statement or Compliance Certificate was delivered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Libor Margin for any period (an “Applicable Period”) than the Applicable Libor Margin applied for such Applicable Period, then (A) the Borrower shall immediately deliver to the Lender a corrected Compliance Certificate for such Applicable Period, (B) the Applicable Libor Margin for such Applicable Period shall be determined as if the Funded Indebtedness to EBITDA Ratio in the corrected Compliance Certificate were applicable for such Applicable Period, and (C) the Borrower shall immediately and retroactively be obligated to pay to the Lender the accrued additional interest and fees owing as a result of such increased Applicable Libor Margin for such Applicable Period, which payment shall be promptly applied by the Lender in accordance with Section 3.08. Nothing in this paragraph shall limit the rights of the Lender with respect to Section 3.01(c) or Article 8, or any of its other rights under this Agreement or any other Loan Document. The Borrower’s obligations under this paragraph shall survive the termination of the Credit Facilities and the repayment of all other Obligations hereunder.

 

(b)     The definition of “LIBOR Rate” in Section 1.01 of the Credit Agreement is amended by deleting the clause “, which shall be adjusted monthly on the first day of each LIBOR Interest Period” therefrom.

 

(c)     A new definition, “Second Amendment Effective Date”, shall be added to Section 1.01 of the Credit Agreement to read as follows:

 

“Second Amendment Effective Date” means September 27, 2019.

 

1.2     Addition of Section 1.04. A new Section 1.04 shall be added to Article 1 of the Credit Agreement to read as follows:

 

1.04     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.

 

1.3     Amendment to Section 3.06(b). Section 3.06(b) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

(b)     [Reserved.]

 

1.4     Amendment to Section 6.18. Section 6.18 of the Credit Agreement is hereby amended by replacing the value “4.00” with the value “5.00” therein.

 

1.5     Amendments to Schedules. Schedules 5.03, 5.16(a), 5.16(b), 5.21(b) and 5.21(c) to the Credit Agreement are amended and restated in their entirety as set forth on Schedule 1 attached hereto.

 

Article II     

Confirmation of security interests in foreign capital stock

 

2.1     Confirmation of Share Charge. BAMKO, LLC hereby confirms that the security constituted by that certain Share Charge by and between BAMKO, LLC, as Chargor, and the Lender, dated as of May 2, 2018, remains in full force and effect notwithstanding the amendments and modifications to the Credit Agreement made by this Amendment, and continues to secure the Borrower’s obligations under the Credit Agreement as it has been amended by this Amendment.

 

2.2     Confirmation of Share Mortgage. The Borrower hereby confirms that the security constituted by that certain Share Mortgage by and between the Borrower, as Mortgagor, and the Lender, as Mortgagee, dated as of February 28, 2017, remains in full force and effect notwithstanding the amendments and modifications to the Credit Agreement made by this Amendment, and continues to secure the Borrower’s obligations under the Credit Agreement as it has been amended by this Amendment.

 

Article III     

CONDITIONS TO EFFECTIVENESS

 

3.1     Closing Conditions. The effectiveness of this Amendment is subject to the satisfaction of each of the following conditions:

 

(a)     Executed Amendment. The Lender shall have received a copy of this Amendment duly executed by each of the Borrower, the Guarantors, and the Lender.

 

(b)     Closing Certificates; Etc. The Lender shall have received each of the following in form and substance reasonably satisfactory to the Lender:

 

(i)     The Lender shall have received all fees and other amounts due and payable on or prior to the Second Amendment Effective Date, including without limitation the fee set forth in the letter agreement of even date herewith between the Borrower and the Lender and reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel to the Lender) required to be reimbursed or paid by the Borrower hereunder and under any other Loan Document.

 

(ii)     The Lender (or its counsel) shall have received the following:

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	
			(A)

				
			a certificate of the Secretary, Assistant Secretary or other authorized officer, general partner, member or manager of each Loan Party in form and substance acceptable to the Lender, attaching and certifying copies of its articles or certificate of incorporation, articles of organization, certificate of limited partnership, bylaws, partnership agreement, limited liability company agreement or operating agreement, or comparable organizational documents and authorizations of each such Person’s board of directors, general partners, members or managers, authorizing the execution, delivery and performance of the Loan Documents to which it is a party and certifying the name, title and true signature of each officer, general partner, member or manager of each Loan Party executing the Loan Documents to which it is a party;

			

 

	 	
			(B)

				
			certificates of good standing, status or existence, as may be available from the Secretary of State or other issuing agency of the jurisdiction of organization of such Loan Party and each other jurisdiction where such Loan Party is required to be qualified to do business as a foreign corporation, partnership, or limited liability company;

			

 

	 	
			(C)

				
			favorable written opinions of Hill Ward Henderson, counsel to the Loan Parties, and certain other local counsel to the Borrower, each addressed to the Lender, and covering such matters relating to the Loan Parties, the Loan Documents and the transactions contemplated therein as the Lender shall reasonably request;

			

 

	 	
			(D)

				
			a certificate, in form and substance acceptable to the Lender, dated as of the Second Amendment Effective Date and signed by a Responsible Officer, certifying that (x) no Default Condition or Event of Default exists, (y) all representations and warranties of the Loan Parties set forth in the Loan Documents are true and correct in all material respects and (z) since the date of the most recent audited financial statements of the Loan Parties delivered to the Lender pursuant to Section 6.01 of the Credit Agreement, there shall have been no change which has had or would reasonably be expected to have a Material Adverse Effect; and

			

 

	 	
			(E)

				
			certified copies of all consents, approvals, authorizations, registrations and filings and orders required or advisable to be made or obtained under any Requirement of Law, or by any Contractual Obligation of the Loan Parties, in connection with the execution, delivery, performance, validity and enforceability of the Loan Documents, and such consents, approvals, authorizations, registrations, filings and orders shall be in full force and effect and all applicable waiting periods shall have expired, and no investigation or inquiry by any Governmental Authority regarding the Credit Facilities, any Letters of Credit, or any transaction being financed with the proceeds thereof shall be ongoing.

			

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

(iii)     UCC Searches. Satisfactory reports of UCC, tax lien, judgment and litigation searches conducted by a search firm reasonably acceptable to the Lender with respect to the Borrower and the Guarantors, such searches to be conducted by a search firm in each of the locations specified by the Lender.

 

(iv)     Other Documents. Such other documents or items that the Lender or its counsel may reasonably request.

 

Article IV     

MISCELLANEOUS

 

4.1     Amended Terms. On and after the Second Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, the Credit Agreement and the other Loan Documents are hereby ratified and confirmed and shall each remain in full force and effect according to its terms.

 

4.2     Representations and Warranties of Borrower and Guarantors. Each of the Borrower and the Guarantors, as applicable, represents and warrants as follows:

 

(a)     The Borrower and the Guarantors have the power and authority to enter into this Amendment and to do all acts and things as are required or contemplated hereunder or thereunder to be done, observed and performed by them.

 

(b)     This Amendment has been duly authorized, validly executed and delivered by one or more authorized officers of the Borrower and the Guarantors and constitutes the legal, valid and binding obligations of the Borrower and the Guarantors enforceable against them in accordance with its terms.

 

(c)     The execution and delivery of this Amendment and the performance by the Borrower and the Guarantors hereunder do not and will not require the consent or approval of any regulatory authority or governmental authority or agency having jurisdiction over the Borrower and the Guarantors, nor be in contravention of or in conflict with the articles and certificates of incorporation, articles of organization, certificate of limited partnership, bylaws, partnership agreement, limited liability company agreement or operating agreement or comparable organizational documents of the Borrower and the Guarantors or the provision of any statute, or any judgment, order or indenture, instrument, agreement or undertaking, to which the Borrower or any Guarantor is party, or by which the assets or properties of the Borrower or any Guarantor are or may become bound.

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

(d)     No material consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment, other than those that have already been obtained and are in full force and effect.

 

(e)     The representations and warranties set forth in the Loan Documents are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date).

 

(f)     No Default Condition or Event of Default under the Credit Agreement or any other Loan Document has occurred and is continuing unwaived by the Lender on the date hereof, or shall result from this Amendment.

 

(g)     The Security Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Lender, which security interests and Liens are perfected to the extent required by the terms of the Security Documents and, to the extent so perfected, prior to all other Liens.

 

(h)     Except as specifically provided in this Amendment, the Obligations of the Borrower and the Guarantors are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

 

4.3     Reaffirmation of Obligations. Each of the Borrower and the Guarantors hereby ratifies the Credit Agreement and each other Loan Document to which it is a party and acknowledges and reaffirms that it is (a) bound by all terms of the Credit Agreement and each other Loan Document to which it is a party applicable to it and (b) responsible for the observance and full performance of its respective Obligations.

 

4.4     Loan Document. This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

 

4.5     Expenses. The Borrower agrees to pay all reasonable and documented out-of-pocket costs and expenses of the Lender in connection with the preparation, execution and delivery of this Amendment.

 

4.6     Further Assurances.  The Borrower and the Guarantors agree to promptly take such action, upon the reasonable request of the Lender, as is necessary to carry out the intent of this Amendment.

 

4.7     Entirety. This Amendment 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.

 

4.8     Counterparts; Telecopy. This Amendment 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 an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

4.9     No Other Amendment. Except for the amendments set forth above, the text of the Credit Agreement and the other Loan Documents shall remain unchanged and in full force and effect. This Amendment is not intended to effect, nor shall it be construed as, a novation. The Credit Agreement and this Amendment shall be construed together as a single agreement. Nothing herein contained shall waive, annul, vary or affect any provision, condition, covenant or agreement contained in the Credit Agreement or any other Loan Document, except as herein amended, nor affect nor impair any rights, powers or remedies under the Credit Agreement or any other Loan Document as hereby amended. The Lender does hereby reserve all of its rights and remedies against all parties who may be or may hereafter become secondarily liable for the repayment of the Notes. The Borrower and the Guarantors promise and agree to perform all of the requirements, conditions, agreements and obligations under the terms of the Credit Agreement, as hereby amended, and the other Loan Documents being hereby ratified and affirmed.

 

4.10     GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF FLORIDA.

 

4.11     Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

4.12     Consent to Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction, services of process and waiver of jury trial provisions set forth in Sections 9.05 and 9.06 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

4.13     Severability. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

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SUPERIOR GROUP OF COMPANIES, INC.

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

 

	
			 

				
			Borrower:

				
			 

			
	 	 	 
	 	SUPERIOR GROUP OF COMPANIES, INC.,

			(formerly known as SUPERIOR UNIFORM GROUP, INC.), a Florida corporation	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			  /s/ Michael J. Attinella

				
			 

			
	
			 

				
			 

				
			Michael J. Attinella,

				
			 

			
	
			 

				
			 

				
			Chief Financial Officer and Treasurer

				
			 

			

 

	
			 

				
			Fashion Seal:

				
			 

			
	 	 	 
	 	
			FASHION SEAL CORPORATION,

			a Nevada corporation

				 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			  /s/ Andrew D. Demott, Jr.

				
			 

			
	
			 

				
			 

				
			Andrew D. Demott, Jr.,

				
			 

			
	
			 

				
			 

				
			President

				
			 

			

 

	
			 

				
			TOG:

				
			 

			
	 	 	 
	 	THE OFFICE GURUS, LLC	 
	 	a Florida limited liability company	 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	
			SUPERIOR GROUP OF COMPANIES, INC. (formerly known as SUPERIOR UNIFORM GROUP, INC.), a Florida corporation, its Sole Member

			 

				 
	 	 	 	 
	 	By:	  /s/ Michael J. Attinella,	 
	 	 	Michael J. Attinella,	 
	
			 

				
			 

				
			Chief Financial Officer and Treasurer

				
			 

			

 

 

 

Signature Page to Second Amendment to Amended and Restated Credit Agreement

 

 

 

 

	
			 

				
			BAMKO, LLC:

				
			 

			
	 	 	 
	 	
			BAMKO, LLC,

			a Delaware limited liability company

				 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	
			SUPERIOR GROUP OF COMPANIES, INC. (formerly known as SUPERIOR UNIFORM GROUP, INC.), a Florida corporation, its Sole Member

				 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	  /s/ Michael J. Attinella,	 
	 	 	Michael J. Attinella,	 
	 	 	Chief Financial Officer and Treasurer	 

 

	
			 

				
			SU-ARK:

				
			 

			
	 	 	 
	 	
			SUPERIOR UNIFORM ARKANSAS LLC,

			an Arkansas limited liability company

				 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	
			SUPERIOR GROUP OF COMPANIES, INC. (formerly known as SUPERIOR UNIFORM GROUP, INC.), a Florida corporation, its Sole Member

				 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	  /s/ Michael J. Attinella,	 
	 	 	Michael J. Attinella,	 
	 	 	Chief Financial Officer and Treasurer	 

 

 

	
			 

				
			SGC LLC:

				
			 

			
	 	 	 
	 	
			SUPERIOR UNIFORM GROUP, LLC (formerly known as SUPERIOR GROUP OF COMPANIES, LLC), a Florida limited liability company

				 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	
			SUPERIOR GROUP OF COMPANIES, INC. (formerly known as SUPERIOR UNIFORM GROUP, INC.), a Florida corporation, its Sole Member

				 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	  /s/ Michael J. Attinella,	 
	 	 	Michael J. Attinella,	 
	 	 	Chief Financial Officer and Treasurer	 

 

 

Signature Page to Second Amendment to Amended and Restated Credit Agreement

 

 

 

 

	
			 

				
			CID:

				
			 

			
	 	 	 
	 	
			CID RESOURCES, INC.,

			a Delaware corporation

				 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			  /s/ Andrew D. Demott, Jr.,

				
			 

			
	
			 

				
			 

				
			Andrew D. Demott, Jr.,

				
			 

			
	
			 

				
			 

				
			Vice President

				
			 

			

 

 

	
			 

				
			SGHI:

				
			 

			
	 	 	 
	 	
			SUPERIOR GROUP HOLDINGS, INC.,

			a Texas corporation

				 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			  /s/ Michael J. Attinella

				
			 

			
	
			 

				
			 

				
			Michael J. Attinella

				
			 

			
	
			 

				
			 

				
			Vice President

				
			 

			

 

 

Signature Page to Second Amendment to Amended and Restated Credit Agreement

 

 

 

 

	
			LENDER:

				
			BRANCH BANKING AND TRUST COMPANY

				
			 

			
	 	a North Carolina banking corporation	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			         /s/ Thomas M. Lambert

				
			 

			
	
			 

				
			 

				
			Name: Thomas M. Lambert

				
			 

			
	
			 

				
			 

				
			Title: Senior Vice PresidentEX-10.1

 Exhibit 10.1 

September 30, 2019 
 Ampco-Pitt Corporation,

 as Borrowing Agent 
 726 Bell Avenue, Suite 301 

Box 427 
 Carnegie, PA 15106 

Attention: Chief Financial Officer and General Counsel 
  

	 	Re:	 Credit facility provided to AIR & LIQUID SYSTEMS CORPORATION, a Pennsylvania corporation
(“ALS”), UNION ELECTRIC STEEL CORPORATION, a Pennsylvania corporation (“UES”), ALLOYS UNLIMITED AND PROCESSING, LLC, a Pennsylvania limited liability company (“Alloys”), AKERS NATIONAL ROLL COMPANY, a Delaware
corporation (“National Roll”), AKERS SWEDEN AB, a company duly incorporated and organized under the laws of Sweden with registration number 556031-8080 (“Akers Sweden”), AKERS AB, a company duly incorporated and organized under
the laws of Sweden with registration number 556153-4792 (“Akers AB”) (Akers Sweden and Akers AB are, each a “Swedish Borrower” and collectively, the “Swedish Borrowers”), UNION ELECTRIC STEEL UK LIMITED, a limited
liability company organized under the laws of England and Wales with registered company number 00162966 (the “UK Borrower”), and ASW Steel Inc., an Ontario corporation (“ASW”)(ALS, UES, Alloys, National Roll, the Swedish
Borrowers, the UK Borrower, ASW and each Person (as defined in the Credit Agreement (as hereinafter defined)) joined hereto as a borrower from time to time, are collectively, the “Borrowers”, and each a “Borrower”),
AMPCO-PITTSBURGH CORPORATION, a Pennsylvania corporation (“Ampco-Pitt Corp.”), AMPCO UES SUB, INC., a Delaware corporation (“Ampco UES”), the other Guarantors (as defined in the Credit Agreement) party thereto, the Lenders (as
defined in the Credit Agreement) party thereto, and PNC BANK, NATIONAL ASSOCIATION, in its capacity as agent for the Lenders (hereinafter referred to in such capacity as the “Agent”). 

Dear Sir/Madame: 
 Reference is made to that
certain Revolving Credit and Security Agreement, dated effective as of May 20, 2015, by and among the Borrowers (other than ASW), the Guarantors, the Lenders and the Agent, as amended by that certain: (i) First Amendment to Revolving
Credit and Security Agreement, dated October 31, 2016, by and among the Borrowers, the Guarantors, the Lenders and the Agent; (ii) Second Amendment to Revolving Credit and Security Agreement, dated March 2, 2017, by and among the
Borrowers, the Guarantors, the Lenders and the Agent; and (iii) Third Amendment to Revolving Credit and Security Agreement, dated September 28, 2018, by and among the Borrowers, the Guarantors, the Lenders and the Agent (as further
amended, modified, supplemented, extended, renewed or restated from time to time, the “Credit Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Credit Agreement. 

 Pursuant to Section 7.1(b) of the Credit Agreement, each Loan Party agreed that, among
other things, no Loan Party would sell, lease, transfer or otherwise dispose of any of its properties or assets, except (i) (a) the sale of Inventory in the Ordinary Course of Business and (b) the disposition or transfer of obsolete and worn-out equipment and equipment no longer used or useful in the reasonable judgment of the Loan Parties and in the Ordinary Course of Business during any fiscal year having an aggregate fair market value of not
more than Five Million and 00/100 Dollars ($5,000,000.00) and only to the extent that (x) the proceeds of any such disposition are used to acquire replacement equipment which is subject to Agent’s first priority security interest or
(y) the proceeds of which are remitted to Agent to be applied pursuant to Section 2.20, (ii) Equity Interests of any Excluded Subsidiary and (iii) any other sales or dispositions expressly permitted by this Agreement. 

The Loan Parties have informed the Agent that AMPCO UES has entered into that certain Share Purchase Agreement, dated as of September 30,
2019, by and among Valbruna Canada Ltd., a company organized and existing under the laws of the Province of New Brunswick, Canada (the “Purchaser”), ASW, Ampco-Pitt Corp., and AMPCO UES (the “Sale Agreement”) (a true and correct
copy of which (together with all schedules and exhibits thereto) is attached hereto as Exhibit “A”), whereby Purchaser has agreed, subject to the terms and provisions of the Sale Agreement, to purchase from AMPCO UES and AMPCO UES
has agreed to sell to Purchaser all of the issued and outstanding equity of ASW (the “Purchased Shares”), for an aggregate purchase price of Eight Million and 00/100 Dollars ($8,000,000.00) (the “Cash Purchase Price”), which Cash
Purchase Price will be subject to: (i) initial adjustment on the Closing Date (as defined in the Sale Agreement), as provided in Section 1.02 of the Sale Agreement (such initially adjusted payment amount (the “Closing Date
Payment”); and (ii) final adjustment, as promptly as practicable, but no later than sixty (60) days after the Closing Date, as provided in Section 1.07 of the Sale Agreement (the transactions contemplated under the Sale Agreement
with respect to the Purchased Shares are, collectively, the “Sale Transaction”). Consummation of the Sale Transaction would not be permitted under Section 7.1 of the Credit Agreement without the consent of the Required Lenders. 

The Loan Parties have requested that the Agent and Lenders consent to the Sale Transaction. Please be advised that the Agent and Required
Lenders hereby consent to the Sale Transaction; provided, however, that such consent is given subject to the satisfaction of the Conditions (as defined below). 

As used herein, “Conditions” shall mean the performance and/or delivery, in form and substance reasonably satisfactory to the Agent,
of the following items: 
 (a) this letter, duly executed by the Loan Parties and the Required Lenders; 

  
 -2- 

 (b) receipt by the Agent (for itself and the benefit of the Lenders), of an amount equal to
the greater of: (i) the Closing Date Payment; or (ii) Three Million Eleven Thousand Seven Hundred One and 25/100 Dollars ($3,011,701.25), by wire transfer of immediately available funds (such funds to be applied to the principal balance of
Revolving Advances outstanding and payable by ASW under the Canadian Sublimit and accrued and unpaid interest with respect thereto and the excess, if any, of the Closing Date Payment amount, if applicable, shall be released to the Borrowers); 

(c) receipt by the Agent (for itself and the benefit of the Lenders), of either (y), the: (i) original Letter of Credit (#38111524-00-000), in the amount of Eight Hundred Sixty-Nine Thousand Four Hundred Seven and 00/100 Canadian Dollars (CD$869,407.00), issued on behalf of ASW for the benefit
of TD Commercial Banking; and (ii) original Letter of Credit (#18130593), in the amount of One Hundred Eighty-Five Thousand and 00/100 Canadian Dollars (CD$185,000.00), issued on behalf of ASW for the benefit of Enbridge Gas Distribution, Inc.
(the foregoing, each an “ASW Letter of Credit”), or (z) written confirmation, in form and substance acceptable to the Agent, that the beneficiary of the applicable ASW Letter of Credit has received a replacement letter of credit
and/or is otherwise no longer relying upon the applicable ASW Letter of Credit and is returning the original of such ASW Letter of Credit to the Agent; 

(d) fully-executed copies of all agreements, documents and instruments executed and/or delivered in connection with the Sale Agreement; and

 (e) any other such documents, instruments or evidence as may be reasonably requested by the Agent. 

Agent hereby confirms that, upon satisfaction of each of Conditions (a), (b), (c) and (d) above: (i) ASW will be automatically released
from any and all of its obligations as a Borrower and will cease to be a “Borrower” or otherwise an obligated party under the Credit Agreement and all Other Documents; (ii) all Liens, security interests and other encumbrances under
the Credit Agreement or any Other Documents with respect to ASW or the assets of ASW will be automatically terminated and released without further action by any party; (iii) the Agent will release and deliver all stock certificates of ASW in
its possession and any other possessory collateral with respect to ASW in its possession to the Purchaser; and (iv) the Agent will promptly file or cause to be filed all necessary: (y) UCC-3
Financing Statement Terminations and/or Financing Statement Amendments and (z) Terminations and/or Discharges under the PPSA, in each case, in the forms set forth as attached in Exhibit “B” attached hereto. 

Further, in addition to the consent and releases set forth above, upon satisfaction of each of Conditions (a), (b), (c) and (d) above,
Section 1.2 of the Credit Agreement is hereby amended by deleting the following definition its entirety and in its stead inserting the following: 

“Canadian Sublimit” shall mean a Dollar Equivalent amount equal to Zero and 00/100 Dollars ($0.00). 

  
 -3- 

 The consent, releases and amendment contained herein shall be limited to the specific
consent, releases and amendment made herein. Except as set forth herein, the Agent and the Lenders hereby expressly reserve all rights, remedies, powers and privileges they have or may have under the Credit Agreement, any of the Other Documents, and
applicable law or equity. Except as otherwise modified herein, all other terms and conditions of the Credit Agreement and the Other Documents continue in full force and effect and are unmodified by this letter. 

[INTENTIONALLY LEFT BLANK] 

  
 -4- 

 If the foregoing terms and conditions are acceptable to you, please indicate your acceptance
by signing in the spaces indicated below. This letter agreement shall constitute a rider to and form a part of the Credit Agreement, as the same may be further amended, modified or supplemented from time to time. 

 

			
	PNC Bank, National Association, as Agent and as a Lender
		
	By:	 	/s/ David Thayer
	Name:	 	David Thayer
	Title:	 	Vice President
	
	First National Bank of Pennsylvania, as a Lender
		
	By:	 	/s/ Angéle Stobener
	Name:	 	Angéle Stobener
	Title:	 	Vice President
	
	Citizens Bank of Pennsylvania, as a Lender
		
	By:	 	/s/ Donald P. Haddad
	Name:	 	Donald P. Haddad
	Title:	 	Senior Vice President

 Acknowledged and accepted this 

30th day of September, 2019. 
  

							
		  	                            	  	BORROWERS:
			
	WITNESS/ATTEST:	  		  	AIR & LIQUID SYSTEMS CORPORATION, a Pennsylvania corporation
				
	 /s/ Sharon Connolly
	  		  	By:	  	 /s/ Rose Hoover

		  		  	Name: Rose Hoover
		  		  	Title: Executive Vice President
			
	WITNESS/ATTEST:	  		  	UNION ELECTRIC STEEL CORPORATION, a Pennsylvania corporation
				
	 /s/ Sharon Connolly
	  		  	By:	  	 /s/ Rose Hoover

		  		  	Name: Rose Hoover
		  		  	Title: Vice President
			
	WITNESS/ATTEST:	  		  	ALLOYS UNLIMITED AND PROCESSING, LLC, a Pennsylvania limited liability company
				
	 /s/ Sharon Connolly
	  		  	By:	  	 /s/ Rose Hoover

		  		  	Name: Rose Hoover
		  		  	Title: Vice President
			
	WITNESS/ATTEST:	  		  	AKERS NATIONAL ROLL COMPANY, a Delaware corporation
				
	 /s/ Sharon Connolly
	  		  	By:	  	 /s/ Rose Hoover

		  		  	Name: Rose Hoover
		  		  	Title: Vice President
			
	WITNESS/ATTEST:	  		  	AKERS SWEDEN AB, a company duly incorporated and organized under the laws of Sweden
				
	 /s/ Monica Önnestig
	  		  	By:	  	 /s/ Guido Jeifetz

		  		  	Name: Guido Jeifetz
		  		  	Title: Director

							
		 	                        	 	BORROWERS (continued):
			
	WITNESS/ATTEST:	 		 	AKERS AB, a company duly incorporated and organized under the laws of Sweden
				
	 /s/ Monica Önnestig
	 		 	By:	  	 /s/ Guido Jeifetz

		 		 	Name: Guido Jeifetz
		 		 	Title: Director
			
	WITNESS/ATTEST:	 		 	UNION ELECTRIC STEEL UK LIMITED, a limited liability company organized under the laws of England and Wales
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Samuel C. Lyon

		 		 	Name: Samuel C. Lyon
		 		 	Title: President
			
	WITNESS/ATTEST:	 		 	ASW STEEL INC., an Ontario corporation
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name: Rose Hoover
		 		 	Title: Vice President
			
		 		 	GUARANTORS:
			
	WITNESS/ATTEST:	 		 	AMPCO-PITTSBURGH CORPORATION, a Pennsylvania corporation
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name: Rose Hoover
		 		 	Title: President, Chief Administrative Officer and Assistant Secretary
			
	WITNESS/ATTEST:	 		 	AMPCO-PITTSBURGH SECURITIES V LLC, a Delaware limited liability company
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name: Rose Hoover
		 		 	Title: President

							
		 		 	GUARANTORS (continued):
			
	WITNESS/ATTEST:	 		 	AMPCO-PITTSBURGH SECURITIES V INVESTMENT CORPORATION, a Delaware corporation
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name:	  	Rose Hoover
		 		 	Title:	  	President
			
	WITNESS/ATTEST:	 		 	AMPCO UES SUB, INC., a Delaware corporation
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name:	  	Rose Hoover
		 		 	Title:	  	President
			
	WITNESS/ATTEST:	 	                                	 	FCEP DELAWARE LLC, a Delaware limited liability company
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name:	  	Rose Hoover
		 		 	Title:	  	Executive Vice President
			
	WITNESS/ATTEST:	 		 	THE DAVY ROLL COMPANY LIMITED, a limited liability company organized under the laws of England and Wales
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name:	  	Rose Hoover
		 		 	Title:	  	Director
			
	WITNESS/ATTEST:	 		 	ROLLS TECHNOLOGY INC., a Delaware corporation
				
	 /s/ Sharon Connolly
	 		 	By:	  	 /s/ Rose Hoover

		 		 	Name:	  	Rose Hoover
		 		 	Title:	  	Vice President

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