Document:

Exhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT AND CONFIRMATION AGREEMENT

 

This AMENDMENT AND CONFIRMATION AGREEMENT (this “Agreement”) is made and entered into as of September 16, 2011, by and among ATLANTIC TELE-NETWORK, INC., a Delaware corporation (“Borrower”), each of the subsidiaries of Borrower identified as guarantors on the signature pages hereto (individually, a “Guarantor” and, collectively, the “Guarantors”; and together with Borrower, individually a “Loan Party” and, collectively, the “Loan Parties”), COBANK, ACB, as Administrative Agent (“Administrative Agent”), and each of the financial institutions executing this Agreement and identified as a Lender on the signature pages hereto (the “Lenders”).

 

RECITALS

 

WHEREAS, Borrower, the Guarantors and the Lenders have entered into that certain Second Amended and Restated Credit Agreement, dated as of September 30, 2010 (as further amended, modified, supplemented, extended or restated from time to time, the “Credit Agreement”); and

 

WHEREAS, Borrower has requested and the Lenders have agreed, subject to the terms and conditions provided herein, to certain amendments with respect to the Loan Documents as more fully described herein.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements set forth in this Agreement, each of Borrower, the Guarantors and the Lenders hereby agrees as follows:

 

SECTION 1.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

SECTION 2.  Amendment to Credit Agreement.  In reliance on the representations and warranties of Borrower and the Guarantors contained in this Agreement and in connection with the request of Borrower for the amendments provided herein and subject to the effectiveness of this Agreement as described below, the Credit Agreement is hereby amended as set forth below.

 

(A)                                   Subsection 1.2(B).  Subsection 1.2(B) of the Credit Agreement is hereby amended by amending and restating the first paragraph and the “Pricing Table” of such Subsection 1.2(B) in its entirety, as follows:

 

(B)                                Applicable Margins.  From the date hereof, continuing through the day immediately preceding the first Adjustment Date after September 30, 2011 the applicable Base Rate Margin, LIBOR Margin, Commitment Fee Margin, and Swingline Base Rate Margin shall be 2.750%, 3.750%, 0.500%, and 2.250% per annum, respectively.  Thereafter, the applicable Base Rate Margin, LIBOR Margin, Commitment Fee Margin,

 

 

and Swingline Base Rate Margin shall be for each Calculation Period the applicable per annum percentage set forth in the pricing table below opposite the applicable Total Leverage Ratio of Borrower, determined on a consolidated basis for Borrower and its Subsidiaries; provided, that, in the event that Administrative Agent shall not receive the financial statements and Compliance Certificate required pursuant to Subsections 4.5(A), 4.5(B) and 4.5(C) when due, from such due date and until the fifth Business Day following Administrative Agent’s receipt of such overdue financial statements and Compliance Certificate (and in the event a decrease in the applicable margin is then warranted, receipt of Borrower’s written request to decrease such margin), the Base Rate Margin shall be 3.250% per annum, the LIBOR Margin shall be 4.250% per annum, the Commitment Fee Margin shall be 0.500%, and the Swingline Base Rate Margin shall be 2.750% per annum; provided, further, that effective upon the closing of any acquisition that will increase the Total Leverage Ratio on a pro forma basis, the Base Rate Margin, LIBOR Margin,  Commitment Fee Margin, and Swingline Base Rate Margin will immediately adjust to reflect such higher ratio.

 

PRICING TABLE

 

	
Total Leverage Ratio
    	
 
    	
Base Rate Margin
    	
 
    	
LIBOR Margin
    	
 
    	
Commitment
   Fee Margin
    	
 
    	
Swingline Base
   Rate Margin
    	
 
    
	
> 2.50x
    	
 
    	
3.250
    	
%
    	
4.250
    	
%
    	
0.500
    	
%
    	
2.750
    	
%
    
	
> 2.00x and < 2.50x
    	
 
    	
2.750
    	
%
    	
3.750
    	
%
    	
0.500
    	
%
    	
2.250
    	
%
    
	
> 1.50x and < 2.00x
    	
 
    	
2.250
    	
%
    	
3.250
    	
%
    	
0.375
    	
%
    	
1.750
    	
%
    
	
< 1.50x
    	
 
    	
1.750
    	
%
    	
2.750
    	
%
    	
0.375
    	
%
    	
1.250
    	
%
    

 

SECTION 3.  This Agreement shall not constitute a novation of the Credit Agreement or any other Loan Document.  Except as expressly provided in this Agreement, the execution and delivery of this Agreement does not and will not amend, modify or supplement any provision of, or constitute a consent to or a waiver of any noncompliance with the provisions of, the Loan Documents, and the Loan Documents shall remain in full force and effect.

 

SECTION 4.  Each of the Loan Parties hereby represents and warrants to the Lenders as follows:

 

(A)                             Such Loan Party has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform this Agreement in accordance with its terms.  This Agreement has been duly executed and delivered by such Loan Party and is a legal, valid and binding obligation of it, enforceable against it in accordance with its terms.

 

(B)                             The execution, delivery and performance of this Agreement in accordance with its terms do not and will not, by the passage of time, the giving of notice or otherwise,

 

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(1)                                   require any Governmental Approval (except as previously obtained) or violate any Applicable Law relating to such Loan Party;

 

(2)                                   conflict with, result in a breach of or constitute a default under the organizational documents of such Loan Party, any material provision of any indenture, agreement or other instrument to which it is a party or by which it or any of its properties may be bound or any Governmental Approval relating to it; or

 

(3)                                   result in or require the creation or imposition of any Lien (except as permitted by the Loan Documents) upon or with respect to any property now owned or hereafter acquired by such Loan Party.

 

(C)                               The representations and warranties of such Loan Party set forth in the Loan Documents are true and correct in all material respects as of the date hereof as if made on the date hereof (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date, in which case such representations or warranty shall be true and correct as of such specified date).

 

(D)                               No Event of Default under the Loan Documents has occurred and is continuing as of this date.

 

(E)                                 On July 27, 2011, Allied Wireless Communications Corporation (“AWCC”) ceased utilizing services provided by Cellco Partnership under the Transition Services Agreement between AWCC and Cellco Partnership (the “Verizon TSA”), as all material transition services thereunder were completed.  AWCC incurred a total of approximately $4,000,000.00 in expenses under the Verizon TSA from June 30, 2011 through August 31, 2011. The Borrower and AWCC expect that additional expenses under the Verizon TSA, if any, will be immaterial.

 

SECTION 5.  Borrower hereby confirms and agrees that (a), other than as expressly provided herein, each Security Document is and shall continue to be in full force and effect, and (b) the obligations secured by each such document include any and all obligations of the Loan Parties to the Secured Parties under the Credit Agreement.

 

SECTION 6.  Each of the Guarantors hereby confirms and agrees that (a) its guarantee contained in the Credit Agreement and each Security Document to which it is a party is and shall continue to be in full force and effect, and (b) the obligations guaranteed or secured by each such applicable document include any and all obligations of the Loan Parties to the Secured Parties under the Credit Agreement.

 

SECTION 7.  This Agreement shall become effective as of the date of, and shall bind all parties only upon, the satisfaction by Borrower or waiver by Administrative Agent of the following conditions precedent (such date, the “Effective Date”):

 

(A)                                   Amendment Agreement.  Administrative Agent shall have received this Agreement duly executed by Borrower, each Loan Party, and each Lender;

 

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(B)                                   Representations and Warranties.  The representations and warranties of each Loan Party contained in this Agreement or any other Loan Document to which it is a party shall be true and correct in all material respects on and as of the date hereof, as though made on and as of the date hereof (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date, in which case such representations or warranty shall be true and correct as of such specified date).

 

(C)                                   Material Adverse Change.  Since December 31, 2010, there shall not have occurred any event or condition affecting the Loan Parties, which individually or in the aggregate has had or could reasonably be expected to have a Material Adverse Effect.

 

(D)                                   Payment of Costs and Expenses.  Borrower shall have paid to Administrative Agent, all invoiced and reasonable out-of-pocket costs and expenses incurred by Administrative Agent, including, without limitation, the reasonable fees and expenses of counsel retained by Administrative Agent, in connection with the negotiation, preparation, execution and delivery of this Agreement and all other instruments and documents contemplated hereby.

 

SECTION 8.  This Agreement may be executed in any number of counterparts and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original and shall be binding upon all parties and their respective permitted successors and assigns, and all of which taken together shall constitute one and the same agreement.

 

SECTION 9.  This Agreement shall be governed by and shall be construed and enforced in accordance with all provisions of the Credit Agreement, including the governing law provisions thereof.

 

[Signatures Follow on Next Page.]

 

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Witness the due execution hereof by the respective duly authorized officers of the undersigned as of the date first written above.

 

	
BORROWER:
    	
 
    
	
 
    	
ATLANTIC   TELE-NETWORK, INC.
    
	
 
    	
 
    
	
 
    	
/s/   Justin D. Benincasa
    
	
 
    	
Justin   D. Benincasa, Chief Financial Officer
    
	
GUARANTORS:
    	
 
    
	
 
    	
COMMNET   WIRELESS, LLC
    
	
 
    	
COMMNET   FOUR CORNERS, LLC
    
	
 
    	
COMMNET   MIDWEST, LLC
    
	
 
    	
COMMNET   OF ARIZONA, L.L.C.
    
	
 
    	
GILA   COUNTY WIRELESS, LLC
    
	
 
    	
EXCOMM,   L.L.C
    
	
 
    	
SOVERNET   HOLDING CORPORATION
    
	
 
    	
COMMNET   OF NEVADA, LLC
    
	
 
    	
TISDALE   TELEPHONE COMPANY, LLC
    
	
 
    	
COMMNET   OF GEORGIA, LLC
    
	
 
    	
CHOICE   COMMUNICATIONS, LLC
    
	
 
    	
ALLIED   WIRELESS COMMUNICATIONS CORPORATION
    
	
 
    	
ALLIED   WIRELESS COMMUNICATIONS (GA), LLC
    
	
 
    	
ALLIED   WIRELESS COMMUNICATIONS (ID), LLC
    
	
 
    	
ALLIED   WIRELESS COMMUNICATIONS (IL), LLC
    
	
 
    	
ALLIED   WIRELESS COMMUNICATIONS (NC), LLC
    
	
 
    	
ALLIED   WIRELESS COMMUNICATIONS (OH), LLC
    
	
 
    	
ALLIED   WIRELESS COMMUNICATIONS (SC), LLC
    
	
 
    	
COMMNET   NEWCO, LLC
    
	
 
    	
 
    
	
 
    	
/s/   Justin D. Benincasa
    
	
 
    	
Justin   D. Benincasa, Treasurer
    
	
 
    	
 
    
	
 
    	
SOVERNET, INC.
    
	
 
    	
NATIONAL   MOBILE COMMUNICATIONS CORPORATION
    
	
 
    	
 
    
	
 
    	
/s/   Justin D. Benincasa
    
	
 
    	
Justin   D. Benincasa, Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
SAL   SPECTRUM LLC
    
	
 
    	
By:   Atlantic Tele-Network, Inc., its Sole Member
    
	
 
    	
 
    
	
 
    	
/s/   Justin D. Benincasa
    
	
 
    	
Justin   D. Benincasa, Chief Financial Officer
    

 

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COBANK,   ACB, as Administrative Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Cole
    
	
 
    	
 
    	
John   Cole
    
	
 
    	
 
    	
Vice   President
    

 

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BANCO   POPULAR DE PUERTO RICO, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ian S. Smith
    
	
 
    	
 
    	
Ian   S. Smith
    
	
 
    	
 
    	
Senior   Vice President & Region Manager,
    
	
 
    	
 
    	
Loans   and Credit Administration
    

 

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BROWN   BROTHERS HARRIMAN & CO., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/_Scott   C. Meves
    
	
 
    	
 
    	
Scott   C. Meves
    
	
 
    	
 
    	
Senior   Vice President
    

 

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FIFTH   THIRD BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Valerie Schanzer
    
	
 
    	
 
    	
Valerie   Schanzer
    
	
 
    	
 
    	
Vice   President
    

 

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RAYMOND   JAMES BANK, FSB, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph A. Ciccolini
    
	
 
    	
 
    	
Joseph   A. Ciccolini
    
	
 
    	
 
    	
Vice   President — Senior Corporate Banker
    

 

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TD   BANK, N.A.,  as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alan Garson
    
	
 
    	
 
    	
Alan   Garson
    
	
 
    	
 
    	
Senior   Vice President
    

 

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UNION   BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Edward Khaymenis
    
	
 
    	
 
    	
Edward   Khaymenis
    
	
 
    	
 
    	
Vice   President
    

 

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AGCHOICE   FARM CREDIT, FLCA, as a voting participant pursuant to Subsection 8.1(D) of   the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark F. Kerstetter
    
	
 
    	
Name:   Mark F. Kerstetter
    
	
 
    	
Title:   Vice President
    

 

 

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Farm   Credit Services of America, FLCA, as a voting participant   pursuant to Subsection 8.1(D) of the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Zhang
    
	
 
    	
Name:   John Zhang
    
	
 
    	
Title:   Vice President
    

 

 

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AgFirst   Farm Credit Bank, as a voting participant pursuant to   Subsection 8.1(D) of the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steven J. O’Shea
    
	
 
    	
Name:   Steven J. O’Shea
    
	
 
    	
Title:   Vice President
    

 

 

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AgStar   Financial Services, FLCA, as a voting participant pursuant to Subsection   8.1(D) of the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Troy Mostaert
    
	
 
    	
Name:   Troy Mostaert
    
	
 
    	
Title:   Vice President
    

 

 

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Farm   Credit Bank of Texas, as a voting participant   pursuant to Subsection 8.1(D) of the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nicholas King
    
	
 
    	
Name:   Nicholas King
    
	
 
    	
Title:   Vice President
    

 

 

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UNITED   FCS, FLCA (d/b/a FCS COMMERICAL FINANCE GROUP), as a voting participant   pursuant to Subsection 8.1(D) of the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeremy Voigts
    
	
 
    	
Name:   Jeremy Voigts
    
	
 
    	
Title:   Vice President
    

 

 

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GreenStone   Farm Credit Services, ACA/FLCA, as a voting participant   pursuant to Subsection 8.1(D) of the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeff Pavlik
    
	
 
    	
Name:   Jeff Pavlik
    
	
 
    	
Title:   Vice President
    

 

 

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U.S.   AgBank, FCB, as a voting participant   pursuant to Subsection 8.1(D) of the Credit Agreement
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul Burdick
    
	
 
    	
Name:   Paul Burdick
    
	
 
    	
Title:   Assistant Vice Presidentex10_1.htm

EXHIBIT 10.1

 

CONSENT AND FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS CONSENT AND FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered into as of September 16, 2011, by and among WELLS FARGO CAPITAL FINANCE, LLC, a Delaware limited liability company, as administrative agent ("Agent") for the Lenders (as defined in the Credit Agreement referred to below), the Lenders party hereto, and PATRICK INDUSTRIES, INC., an Indiana corporation ("Borrower").

 

WHEREAS, Borrower, Agent, and Lenders are parties to that certain Credit Agreement dated as of March 31, 2011 (as amended, restated, modified or supplemented from time to time, the "Credit Agreement");

 

WHEREAS, Borrower has informed Agent and Lenders that Borrower desires to purchase all or substantially all of the assets of A.I.A. Countertops, LLC, an Indiana limited liability company ("AIA Seller"), pursuant to that certain Asset Purchase Agreement dated as of the date hereof, a copy of which is attached hereto as Exhibit A (the "AIA Acquisition Agreement") by and among Borrower, AIA Seller and the members of AIA Seller (such acquisition, the "AIA Acquisition") which purchase, absent requisite Lender consent, would otherwise be prohibited by Section 6.3(a) of the Credit Agreement;

 

WHEREAS, the AIA Acquisition will be financed in part through issuance by Borrower of a subordinated secured promissory note in the original principal amount of $2,000,000 (the "Secured AIA Seller Note"), which promissory note and related security interest, absent requisite Lender consent, would otherwise be prohibited by Section 6.1 and 6.2 of the Credit Agreement; and

 

WHEREAS, Borrower has requested that Agent and the Lenders consent to the AIA Acquisition without reduction of the aggregate dollar limit on Permitted Acquisitions in the definition thereof, consent to the issuance of the Secured AIA Seller Note and related grant of lien and amend the Credit Agreement in certain respects as set forth herein, and Agent and the Lenders have agreed to the foregoing, on the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto agree as follows:

 

1.           Defined Terms.  Unless otherwise defined herein, capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Credit Agreement.

 

2.           Consent.  In reliance upon the representations and warranties of Borrower set forth in Section 7 below, and subject to the satisfaction of the conditions to effectiveness set forth in Section 6 below, Agent and Lenders hereby (a) consent to the consummation of the AIA Acquisition in accordance with the terms of the AIA Acquisition Agreement; provided that the purchase consideration payable in respect of the AIA Acquisition (including deferred payment obligations) shall not exceed $7,700,000 in the aggregate, subject to working capital adjustments at closing in accordance with the terms of the AIA Acquisition Agreement, (b) agree that, notwithstanding anything to the contrary contained in the Credit Agreement or any other Loan Document, the AIA Acquisition shall be considered a "Permitted Acquisition" for all purposes 

 

  

  

  

 

thereunder (other than with respect to clause (k) of the definition of "Permitted Acquisitions" set forth on Schedule 1.1 to the Credit Agreement), and (c) agree that the Inventory purchased by Borrower pursuant to the AIA Acquisition Agreement and located at the new location of Borrower acquired in connection therewith may constitute Inventory so long as such Inventory is not excluded as ineligible by virtue of one or more of the excluding criteria set forth in the definition of "Eligible Inventory" set forth on Schedule 1.1 to the Credit Agreement and Agent has received a fully-executed Collateral Access Agreement with respect to the location of Borrower where such Inventory is located, but regardless of whether Agent has completed a field audit, examination report or appraisal with respect to such Inventory.  Except as expressly set forth in this Amendment, the foregoing consent shall not constitute (i) a modification or alteration of the terms, conditions or covenants of the Credit Agreement or any other Loan Document or (ii) a waiver, release or limitation upon the exercise by Agent and/or Lenders of any of their respective rights, legal or equitable thereunder.

 

3.           Amendments to Credit Agreement.  In reliance upon the representations and warranties of Borrower set forth in Section 7 below, and subject to the satisfaction of the conditions to effectiveness set forth in Section 6 below, the Credit Agreement is hereby amended as follows:

 

(a)         The defined terms "AIA Acquisition", "AIA Acquisition Agreement", "AIA Acquisition Documents", "AIA Seller", "AIA Subordinated Debt", "AIA Subordinated Debt Documents", "AIA Subordination Agreement", and "First Amendment Effective Date" are each hereby added to Schedule 1.1 to the Credit Agreement in their proper alphabetical order as follows:

 

"AIA Acquisition" means the purchase by Borrower of all or substantially all of the assets of AIA Seller on the First Amendment Effective Date pursuant to and in accordance with the AIA Acquisition Documents

 

"AIA Acquisition Agreement" means that certain Asset Purchase Agreement dated as of the First Amendment Effective Date by and among Borrower, AIA Seller and the members of AIA Seller.

 

"AIA Acquisition Documents" means the AIA Acquisition and all other agreements, instruments and documents relating thereto.

 

"AIA Members" means Richard Hicks, Roger Korenstra, Sam Korenstra and Bruce Korenstra.

 

"AIA Seller" means A.I.A. Countertops, LLC, an Indiana limited liability company and, upon the dissolution of A.I.A. Countertops, LLC after the consummation of the AIA Acquisition, the AIA Members.

 

"AIA Subordinated Debt" means the Indebtedness in the original principal amount of $2,000,000 issued by Borrower to AIA Seller, constituting a portion of the purchase price of the AIA Acquisition, evidenced by the AIA Subordinated Debt Documents and subject to the AIA Subordination Agreement.

 

  

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"AIA Subordinated Debt Documents" means that certain Subordinated Secured Promissory Note dated as of the First Amendment Effective Date made by the Borrower in favor of AIA Seller and all other agreements, instruments and documents relating thereto.

 

"AIA Subordination Agreement" means that certain Subordination and Intercreditor Agreement dated as of the First Amendment Effective Date among Agent, AIA Seller and Loan Parties.

 

"First Amendment Effective Date" means September 16, 2011.

 

(b)         The definition of "Permitted Indebtedness" set forth on Schedule 1.1 to the Credit Agreement is hereby amended by (i) deleting the word "and" at the end of clause (o), (ii) deleting the "." at the end of clause (p) and inserting ", and" in lieu thereof, and (iii) inserting a new clause (q) immediately after clause (p) as follows:

 

(q)         the AIA Subordinated Debt.

 

(c)         The definition of "Permitted Liens" set forth in Schedule 1.1 to the Credit Agreement is hereby amended by (i) deleting the word "and' at the end of clause (t), (ii) amending and restating clause (u) as follows, and (iii) inserting a new clause (v) immediately after clause (u) as follows:

 

(u)         Liens on (i) Accounts, (ii) Inventory and (iii) all additions and accessions to, substitutions for, and replacements, products and proceeds of such Accounts and Inventory, including without limitation, all of the Company's books and records relating to such Accounts and Inventory, securing the AIA Subordinated Debt and subject to the AIA Subordination Agreement, and

 

(v)         other Liens which do not secure Indebtedness for borrowed money or letters of credit and as to which the aggregate amount of the obligations secured thereby does not exceed $250,000.

 

(d)         The defined term "Subordinated Debt" set forth on Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety as follows:

 

"Subordinated Debt" means (i) the Indebtedness in the original principal amount of $5,000,000 (plus payment-in-kind interest) issued by Borrower to Subordinated Lenders on the Closing Date, evidenced by the Subordinated Debt Documents and subject to the Subordination Agreement, (ii) the Indebtedness in the original principal amount of $2,700,000 (plus payment-in-kind interest) issued by Borrower to Subordinated Lenders on the First Amendment Effective Date, evidenced by the Subordinated Debt Documents and subject to the Subordination Agreement, and (iii) additional Indebtedness of up to an original aggregate principal amount of $300,000 (plus payment-in-kind interest) issued by Borrower to one or more Subordinated Lenders, evidenced by the Subordinated Debt Documents and subject to the Subordination Agreement, and at the same or lower rate of cash and total interest, with the same maturity date as the Subordinated 

 

  

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Debt issued on the First Amendment Effective Date, with no scheduled amortization, and otherwise on the same terms and conditions, as the Subordinated Debt issued on the First Amendment Effective Date.

 

(e)         The defined term "Subordinated Debt Documents" set forth on Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety as follows:

 

"Subordinated Debt Documents" means that certain Secured Senior Subordinated Note and Warrant Purchase Agreement dated as of the Closing Date between Subordinated Lenders and Borrower, as amended on the First Amendment Effective Date by that certain First Amendment to Secured Senior Subordinated Note and Warrant Purchase Agreement, and all other agreements, instruments and documents relating thereto.

 

(f)          Schedule E-1 to the Credit Agreement is amended by adding the following locations:

 

  1.  1515 Leninger, Elkhart, Indiana  46517

 

  2.  502 West Railroad Avenue, Syracuse, Indiana  46567

 

4.           Continuing Effect.  Except as expressly set forth in Section 2 of this Amendment, nothing in this Amendment shall constitute a modification or alteration of the terms, conditions or covenants of the Credit Agreement or any other Loan Document, or a waiver of any other terms or provisions thereof, and the Credit Agreement and the other Loan Documents shall remain unchanged and shall continue in full force and effect, in each case as amended hereby.

 

5.           Reaffirmation and Confirmation.  Borrower hereby ratifies, affirms, acknowledges and agrees that the Credit Agreement and the other Loan Documents to which it is a party represent the valid, enforceable and collectible obligations of Borrower, and further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to the Credit Agreement or any other Loan Document.  Borrower hereby agrees that this Amendment in no way acts as a release or relinquishment of the Liens and rights securing payments of the Obligations.  The Liens and rights securing payment of the Obligations are hereby ratified and confirmed by Borrower in all respects.

 

6.           Conditions to Effectiveness.  This Amendment shall become effective upon the satisfaction of each of the following conditions precedent:

 

(a)         Agent shall have received a copy of this Amendment executed and delivered by Agent, the Lenders and the Loan Parties, together with each of the additional documents, instruments and agreements listed on the closing checklist attached hereto as Exhibit B; and

 

(b)         no Default or Event of Default shall have occurred and be continuing on the date hereof or as of the date of the effectiveness of this Amendment.

 

  

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7.           Representations and Warranties.  In order to induce Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Agent and Lenders that:

 

(a)         after giving effect to this Amendment, all representations and warranties contained in the Loan Documents to which Borrower is a party are true, correct and complete in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of this Amendment, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true, correct and complete in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of such earlier date);

 

(b)         no Default or Event of Default has occurred and is continuing; and

 

(c)         this Amendment and the Loan Documents, as amended hereby, constitute legal, valid and binding obligations of Borrower and are enforceable against Borrower in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors' rights generally.

 

8.           Miscellaneous.

 

(a)         Expenses.  Borrower agrees to pay on demand all reasonable costs and expenses of Agent and the Lenders (including reasonable attorneys fees) incurred in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and all other instruments or documents provided for herein or delivered or to be delivered hereunder or in connection herewith.  All obligations provided herein shall survive any termination of this Amendment and the Credit Agreement as amended hereby.

 

(b)         Choice of Law and Venue; Jury Trial Waiver; Reference Provision.  Without limiting the applicability of any other provision of the Credit Agreement or any other Loan Document, the terms and provisions set forth in Section 12 of the Credit Agreement are expressly incorporated herein by reference.

 

(c)         Counterparts.  This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment.

 

9.           Release.

 

(a)         In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower by its execution and delivery of the Consent and Reaffirmation attached hereto, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges 

 

  

-5-

  

 

Agent and Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, controversies, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which Borrower or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment for or on account of, or in relation to, or in any way in connection with any of the Credit Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.

 

(b)         Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

 

(c)         Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

 

[Signature Page Follows]

 

  

-6-

  

 

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

 

	 	
PATRICK INDUSTRIES, INC.,

	 	
an Indiana corporation

	 	 
	 	 
	
 

	
By: 

	/s/ Andy L. Nemeth
	 	Title:	Executive Vice President of Finance, Chief
	 	 	Financial Officer, Secretary & Treasurer

 

 

	 	
WELLS FARGO CAPITAL FINANCE, LLC,

	 	
a Delaware limited liability company, as Agent and as a Lender

	 	 
	 	 
	 	
By: 

	/s/ Lauren Dixon
	 	Name: 	Lauren Dixon
	 	Title:	Vice President

 

Signature Page to Consent and First Amendment to Credit Agreement

 

  

  

  

 

	 	
FIFTH THIRD BANK,

	 	
as a Lender

	 	 
	 	 
	 	
By: 

	/s/ Craig Ellis
	 	Name: 	Craig Ellis
	 	Title:	Vice President

 

Signature Page to Consent and First Amendment to Credit Agreement

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