Document:

EXHIBIT 10.1

SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Amendment”), dated as of June 14, 2013, is by and among PRIMO WATER CORPORATION, a corporation organized under the laws of the State of Delaware (“Parent”), PRIMO PRODUCTS, LLC, a limited liability company organized under the laws of the State of North Carolina (“Products”), PRIMO DIRECT, LLC, a limited liability company organized under the laws of the State of North Carolina (“Direct”), PRIMO REFILL, LLC, a limited liability company organized under the laws of the State of North Carolina (“Refill”), PRIMO ICE, LLC, a limited liability company organized under the laws of the State of North Carolina (“Ice”; and together with Parent, Products, Direct, Refill and any other Person that at any time after the date hereof becomes a Borrower, each a “Borrower” and collectively, the “Borrowers”), PRIMO REFILL CANADA CORPORATION, a corporation organized under the laws of the Province of British Columbia, Canada (“Canadian Guarantor”; and together with any other Person that at any time after the date hereof becomes a Guarantor, each a “Guarantor” and collectively, the “Guarantors”), and COMVEST CAPITAL II, L.P., a Delaware limited partnership (in its individual capacity, “Comvest”), in its capacity as lender (in such capacity, the “Lender” and collectively with any other lender which may hereafter become a party hereto, the “Lenders”).

W I T N E S S E T H

WHEREAS, the Borrowers, the Guarantors and the Lenders are parties to that certain Credit and Security Agreement dated as of April 30, 2012, as amended by the First Amendment to Credit and Security Agreement dated as of November 6, 2012 (the “Credit Agreement”); and

WHEREAS, the Borrowers have requested that the Lenders agree to amend certain provisions of the Credit Agreement to, among other things, provide for an additional $3,000,000 term loan to fund fees and expenses related to this Amendment and for other general corporate purposes and, subject to the satisfaction of the conditions set forth herein, the Lenders are willing to do so on the terms set forth herein.

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 THE CREDIT AGREEMENT

1.1            Amendment to Section 1.2.  Upon the Second Amendment Effective Date (as defined below), Section 1.2 of the Credit Agreement shall be amended as follows:

 

(a) The definition of Business Reduction Event set forth therein shall be deleted in its entirety.

(b)  The defiition of “Term Loan” shall be deleted in its entirety and replaced with the

following:

““Term Loan(s)” shall mean, collectively, the Closing Date Term Loan and the Add-On Term Loan.”

(c)  The definition of “Term Note” shall be deleted in its entirey and replaced with the following:

““Term Note(s)” shall mean, collectively, the Closing Date Term Note and the Add-On Term Note.”

1.2            Additional Definitions.   Upon the Second Amendment Effective Date, the following definitions shall be added to Section 1.2 of the Credit Agreement in their entirety in proper alphabetical order and shall read as follows:

 

““Add-On Term Loan” shall have the meaning provided in Section 2.1.”

 

““Add-On Term Note” shall mean the promissory note of Borrowers issued to Lender on the Second Amendment Effective Date as described in Section 2.1(c) below.”

 

““Closing Date Term Loan” shall have the meaning provided in Section 2.1.”

 

““Closing Date Term Note” shall mean the promissory note of Borrowers issued to Lender on the Closing Date as described in Section 2.1(c) below.”

 

““Second Amendment” shall mean the Second Amendment to Credit and Security Agreement dated as of June 14, 2013 by and among the Borrowers, the Guarantors and the Lenders.”

 

““Second Amendment Effective Date” shall have the meaning provided in the Second Amendment.”

 

1.3            Amendment to Sections 2.1(a) and 2.1(c).  Sections 2.1(a) and 2.1(c) of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

“(a)  Subject at all times to all of the terms and conditions of this Agreement, (i) on the Closing Date in a single borrowing, the Lender extended to the Borrowers a term loan in the principal amount of $15,150,000 (the “Closing Date Term Loan”) and (ii) subject to all the terms and conditions of the Second Amendment (including, without limitation, Section 2.2 therein), on the Second Amendment Effective Date, the Lender will extend to the Borrowers a term loan in the principal amount of $3,000,000 (the “Add-On Term Loan”).  The Add-On Term Loan shall be borrowed in a single borrowing on the Second Amendment Effective Date, and any principal amounts repaid in respect of the Closing Date Term Loan or the Add-On Term Loan may not be reborrowed.  The Closing Date Term Loan and the Add-On Term Loan shall be due and payable in full on the Termination Date, subject to earlier prepayment as herein provided.”

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“(c) The Closing Date Term Loan shall be evidenced by the Closing Date Term Note and the Add-On Term Loan shall be evidenced by the Add-On Term Note, each a secured Term Note, as applicable, of the Borrowers payable, jointly and severally, to the Lender or its registered assigns substantially in the form of Exhibit A attached hereto.  The terms of the Term Notes are incorporated into this Agreement by this reference.

1.4            Amendment to Section 2.2(b).  Section 2.2(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(b)  In the event of any prepayment of all or any portion of the Term Loan for any reason whatsoever (including, without limitation, as a result of any acceleration of the Term Loan resulting from an Event of Default, any mandatory prepayment or any voluntary prepayment), in addition to the payment of the subject principal amount and all unpaid accrued interest thereon, the Borrowers, jointly and severally, shall be required to pay to the Lender a prepayment premium in an amount equal to (i) five percent (5%) of the principal amount being prepaid if such prepayment is made or required to be made after the Second Amendment Effective Date but on or before the twelfth (12th) month following the Second Amendment Effective Date, or (ii) three percent (3%) of the principal amount being prepaid if such prepayment is made or required to be made after the twelfth (12th) month  following the Second Amendment Effective Date but on or before the twenty fourth (24th) month following the Second Amendment Effective Date or (iii) one percent (1%) of the principal amount being prepaid if such prepayment is made or required to be made after the twenty fourth (24th) month  following the Second Amendment Effective Date but on or before the Termination Date.”

1.5            Amendment to Section 7.6.  Section 7.6 of the Credit Agreement is amended by deleting Section 7.6(d) in its entirety and replacing it with the following:

“(d)            Reserved.”

1.6            Amendment to Section 10.  Section 10 of the Credit Agreement is amended by deleting Section 10.17 in its entirety and replacing it with the following:

“10.17 Reserved.”

1.7            Limitations; No Other Amendment.  Except for the amendments expressly set forth herein, the text of the Credit Agreement and all Other Documents shall remain unchanged and in full force and effect, and Lender expressly reserves the right to require strict compliance with the terms of the Credit Agreement and the Other Documents.  The amendments contained herein are limited to the precise terms hereof, and Lender is not obligated to consider or consent to any additional request by any Borrower for any other amendment with respect to the Credit Agreement or any Other Document.

1.8             Amendment Fee; Funding Fee.  In consideration of the agreements of the Lender set forth herein, Borrowers, jointly and severally, shall pay the Lenders (i) an amendment fee in the aggregate amount of $350,000 (the “Amendment Fee”), which Amendment Fee shall be fully earned and shall be payable as of the Second Amendment Effective Date and (ii) a funding fee in the aggregate amount of $75,000 (the “Funding Fee”), which Funding Fee shall be fully earned and shall be payable on the date of funding of the Add-On Term Loan.  The Borrowers shall pay the Amendment Fee to the Lender upon execution of this Amendment and the Funding Fee upon the funding of the Add-On Term Loan.

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1.9            Amendment of Exhibit A.  Exhibit A to the Credit Agreement shall be deleted in its entirety and replaced with Exhibit A attached hereto.

ARTICLE II

REPRESENTATIONS, WARRANTIES AND COVENANTS; CONDITIONS PRECEDENT.

2.1            Representations, Warranties and Covenants.  Borrowers and Guarantors hereby represent, warrant, covenant and agree to and in favor of Lender the following (which shall survive the execution and delivery of this Amendment), the truth and accuracy of which are a continuing condition of the making of the Term Loans to Borrowers:

 

(a)    This Amendment and each other agreement or instrument to be executed and delivered by Borrowers and Guarantor in connection herewith (the “Amendment Documents”) have been duly authorized, executed and delivered by all necessary action on the part of each Borrower and Canadian Guarantor which is party hereto and thereto, as the case may be, and the agreements and obligations of each Borrower and Guarantor contained herein and therein constitute the legal, valid and binding obligations of such Borrower and Canadian Guarantor, enforceable against them in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefore may be brought;

 

(b)    The execution, delivery and performance of the Amendment Documents (a) are all within each Borrower’s and Canadian Guarantor’s respective powers and (b) are not in contravention of law or the terms of any Borrower’s or Guarantor’s certificate or articles of incorporation or formation, operating agreement, partnership agreement or other organizational documentation, or any indenture, agreement or undertaking to which any Borrower or Canadian Guarantor is a party or by which any Borrower or Canadian Guarantor or its property are bound;

 

(c)    Lender has and shall continue to have valid, enforceable and perfected liens upon and security interests in the assets and properties of Borrowers and Guarantors heretofore granted to Lender pursuant to the Other Documents or otherwise granted to or held by Lender, except as permitted by the Other Documents or consented to by Lender;

 

(d)    All of the representations and warranties set forth in the Credit Agreement and the Other Documents are true and correct in all material respects on and as of the date hereof, as if made on the date hereof, except to the extent any such representation or warranty is made as of a specified date, in which case such representation or warranty shall have been true and correct in all material respects as of such date;

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(e)    After giving effect to this Amendment, no Default or Event of Default under the Credit Agreement has occurred and is continuing or would result from the execution or effectiveness of this Amendment, and each Borrower and Guarantor is in full compliance with all covenants and agreements contained therein;

 

(f)    This Amendment was reviewed by each Borrower and Guarantor, which acknowledges and agrees that it (i) understands fully the terms of this Amendment and the consequences of the issuance hereof, (ii) has been afforded an opportunity to have this Amendment  reviewed by, and to discuss this Amendment with, such attorneys and other persons as it may wish, (iii) has entered into this Amendment of its own free will and accord and without threat or duress, and (iv) this Amendment and all information furnished to Lender is made and furnished in good faith, for value and valuable consideration.

 

2.2            Conditions to Effectiveness of this Amendment.  Article I of this Amendment shall become effective when, and only when, the following conditions have been satisfied as reasonably determined by Lender in its sole discretion (the “Second Amendment Effective Date”):

 

(a)            Lender shall have received a duly authorized and executed copy of this Amendment from each of the Borrowers and the Guarantors.

 

(b)            The Lender shall have received the amended and restated Closing Date Term Note (capitalizing accrued and unpaid interest through June 13, 2013) and the Add-On Term Note each duly executed and delivered by an authorized officer of the Borrowers in favor of the Lender.

 

(c)            Lender shall have received the consent of the Revolving Loan Agent, on behalf of the lenders under the Revolving Loan Agreement, evidencing their consent and approval of the transactions contemplated by this Amendment including, without limitation, amending the Intercreditor Agreement to reflect the same.

 

(d)            Lender shall have received a copy of the resolutions of the board of directors (or equivalent authority) of each Loan Party authorizing the execution, delivery and performance of this Amendment and the other Amendment Documents to which it is a party as certified by the Secretary or an Assistant Secretary of each Loan Party as of the Second Amendment Effective Date; and, such certificate shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded as of the date of such certificate.

 

(e)            Lender shall have received good standing certificates or certificates of status or certificates of compliance, as applicable, for each Loan Party dated as of a recent date prior to the Second Amendment Effective Date, issued by the Secretary of State or other appropriate official of each such Loan Party’s jurisdiction of incorporation or formation.

 

(f)            The representations and warranties set forth in Section 2.1 of this Amendment shall be true and correct.

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(g)            Borrowers shall have paid the Amendment Fee and, upon funding of the Add-On Term Loan, the Funding Fee to Lender in immediately available funds.

 

(h)            Borrowers shall have paid all reasonable out-of-pocket fees, costs and expenses incurred by Lender in connection with this Amendment and each Other Document (including, without limitation, reasonable legal fees and expenses of counsel to Lender).

ARTICLE III

MISCELLANEOUS

3.1            Ratification of Obligations and Canadian Guaranty.  Each Borrower and Guarantor hereby acknowledges and consents to all of the terms and conditions of this Amendment and the other Amendment Documents executed and delivered in connection herewith or pursuant hereto.  Canadian Guarantor hereby ratifies and confirms the Guarantee and each Other Document to which it is a party.  Each Borrower and Guarantor hereby ratifies and confirms the Credit Agreement, as amended hereby, each Other Document to which such Borrower or Guarantor is a party, and the Obligations owing under or pursuant to the Credit Agreement.  Each Borrower and Guarantor agrees that nothing contained in this Amendment or the other Amendment Documents shall adversely affect any right or remedy of  Lender under the Guarantee.  Canadian Guarantor hereby agrees that all references in the Guarantee to the “Obligations” shall include, without limitation, the obligations of the Borrowers to the Lender under the Credit Agreement previously amended or as amended hereby.  Canadian Guarantor hereby represents and acknowledges that the execution and delivery of this Amendment and the other Amendment Documents executed in connection herewith shall in no way reduce or adversely affect its obligations as a guarantor, debtor, pledgor, assignor, obligor and/or grantor under the Guarantee and each Other Document to which it is a party and shall not constitute a waiver by Lender of any rights against Canadian Guarantor.

 

3.2            Ratification of Liens.  Each Borrower and Guarantor hereby acknowledges and agrees that the Liens that it granted pursuant to the Credit Agreement and the Other Documents are valid, subsisting, perfected, and enforceable Liens and are superior to all Liens, other than Permitted Encumbrances permitted under the Credit Agreement or any other exceptions approved by the Lender in writing.

 

3.3            Effect on the Loan Documents.  Upon the Second Amendment Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement, and each reference in the Other Documents to “the Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended from time to time.

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3.4            Release.  Each Borrower and Guarantor does, for itself and its successors and assigns, remise, release and discharge Lender and its respective predecessors, successors and assigns and each of its respective officers, directors, agents, employees, attorneys and financial and other advisors harmless from all claims, demands, debts, sums of money, accounts, damages, judgments, financial obligations, actions, causes of action, suits at law or in equity, of any kind or nature whatsoever, whether or not now existing or known, which any Borrower or Guarantor or its successors or assigns has had or may now or hereafter claim to have against Lender or any of its predecessors, successors and assigns or any of its officers, directors, agents, employees, attorneys and financial and other advisors in any way arising from or connected with the Credit Agreement or any Other Document or the arrangements set forth therein or transactions thereunder up to and including the Second Amendment Effective Date, or the transactions contemplated thereby.  This release and discharge may be pleaded as a defense, counterclaim or cross-claim and shall be admissible into evidence without any foundation testimony whatsoever.

 

3.5            Terms.  All capitalized terms used herein shall have the meaning assigned thereto in the Credit Agreement, unless otherwise defined herein.

 

3.6            Governing Law.  The validity, interpretation and enforcement of this Amendment and any dispute arising hereunder, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

 

3.7            Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

 

3.8            Entire Agreement.  This Amendment is intended by the parties hereto as a final expression of their agreement and constitutes the entire agreement of the parties with respect to the subject matter of this Amendment and all prior and contemporaneous agreements of the parties hereto with respect to the subject matter hereof (whether written or oral) are hereby superseded by and merged into this Amendment.

 

3.9            Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall have the same force and effect as the delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

	
BORROWERS:

	
PRIMO WATER CORPORATION,

	
	
 

	
a Delaware corporation

	
	
 

	
 

	
 

	
	
 

	
By:

	
/s/ Mark Castaneda

	
	
 

	
Name:

	
Mark Castaneda

	
	
 

	
Title:

	
Chief Financial Officer

	
	
 

	
 

	
 

	
	
 

	
PRIMO PRODUCTS, LLC,

	
	
 

	
a North Carolina limited liability company

	
	
 

	
 

	
 

	
	
 

	
By:

	
/s/ Mark Castaneda

	
	
 

	
Name:

	
Mark Castaneda

	
	
 

	
Title:

	
Chief Financial Officer

	
	
 

	
 

	
 

	
	
 

	
PRIMO DIRECT, LLC,

	
	
 

	
a North Carolina limited liability company

	
	
 

	
 

	
 

	
	
 

	
By:

	
/s/ Mark Castaneda

	
	
 

	
Name:

	
Mark Castaneda

	
	
 

	
Title:

	
Chief Financial Officer

	
	
 

	
 

	
 

	
	
 

	
PRIMO REFILL, LLC,

	
	
 

	
a North Carolina limited liability company

	
	
 

	
 

	
 

	
	
 

	
By:

	
/s/ Mark Castaneda

	
	
 

	
Name:

	
Mark Castaneda

	
	
 

	
Title:

	
Chief Financial Officer

	
	
 

	
 

	
 

	
	
 

	
PRIMO ICE, LLC,

	
	
 

	
a North Carolina limited liability company

	
	
 

	
 

	
 

	
	
 

	
By:

	
/s/ Mark Castaneda

	
	
 

	
Name:

	
Mark Castaneda

	
	
 

	
Title:

	
Chief Financial Officer

	

[SIGNATURES CONTINUED ON NEXT PAGE]

 

 

	
GUARANTOR:

	
PRIMO REFILL CANADA CORPORATION

	
	
 

	
 

	
 

	
	
 

	
By:

	
/s/ Mark Castaneda

	
	
 

	
Name:

	
Mark Castaneda

	
	
 

	
Title:

	
Chief Financial Officer

	

[SIGNATURES CONTINUED ON NEXT PAGE]

	
LENDER:

	
COMVEST CAPITAL II, L.P.,

	
	
 

	
as Lender

	
	
 

	
 

	
 

	
	
 

	
By:

	
ComVest Capital II Partners, L.P., its General Partner

	
	
 

	
 

	
 

	
	
 

	
By:

	
ComVest Capital II Partners UGP, LLC, its General Partner

	

	
 

	
By:

	
/s/ Greg Reynolds

	
	
 

	
Name:

	
Greg Reynolds

	
	
 

	
Title:

	
Managing DirectorEXHIBIT 10.2

 

	
$3,000,000

	
June 14, 2013

ADD-ON TERM NOTE

 

FOR VALUE RECEIVED, each of the undersigned, Primo Water Corporation, a Delaware corporation, Primo Products, LLC, a North Carolina limited liability company, Primo Direct, LLC, a North Carolina limited liability company, Primo Refill, LLC, a North Carolina limited liability company, and Primo Ice, LLC, a North Carolina limited liability company  (collectively, the “Maker”), hereby, jointly and severally, promises to pay to Comvest Capital II, L.P., a Delaware limited partnership (“Comvest”), or its registered assigns (hereinafter, collectively with Comvest, the “Payee”), the sum of Three Million ($3,000,000) Dollars (the “Principal”), with interest thereon, on the terms and conditions set forth herein and in the Credit and Security Agreement dated as of April 30, 2012 by and among the Maker and Comvest (as the same may be amended, modified, supplemented and/or restated from time to time, the “Credit Agreement”).  Terms defined in the Credit Agreement and not otherwise defined herein shall have the meanings assigned thereto in the Credit Agreement.

 

Payments of principal of, interest on and any other amounts with respect to this Term Note (this “Note”) are to be made in lawful money of the United States of America.

 

1.    Payments.

 

(a) Interest.  This Note shall bear interest (“Interest”) on Principal amounts outstanding from time to time from the date hereof at a per annum interest rate equal to twelve and one-half percent (12.5%).

 

(b)  Computation and Payment of Interest.  All Interest shall be computed on the daily unpaid Principal balance of this Note based on a three hundred sixty (360) day year.  Accrued Interest hereunder shall be payable monthly in arrears on or before the fifth day of each calendar month commencing on July 5, 2013. All Interest shall be paid in cash.

 

(c)  Default Rate.  Following the occurrence and during the continuation of any Event of Default, (i) the outstanding Principal balance of this Note and all other Obligations shall bear Interest at the applicable rate as set forth in clause (a) above plus five percent (5%) per annum (the “Default Rate”) to be paid in cash.

 

(d)  Maturity.  The outstanding balance of this Note shall be due and payable in a single installment on or before April 30, 2016, in an amount equal to the entire outstanding Principal balance of this Note and all accrued and unpaid Interest.

 

2.    Prepayment.

 

(a)    Optional Prepayment of Principal.  Subject to the terms of the Credit Agreement, including, without limitation, Section 2.2(b) of the Credit Agreement, all or any portion of the unpaid Principal balance of this Note, together with all accrued and unpaid Interest on the Principal amount being prepaid, may at the Maker's option be prepaid in whole or in part, at any time or from time to time, upon five (5) Business Days' prior written notice to the Payee.

 

(b)    Mandatory Prepayments of Principal.  The Principal balance of this Note, and all accrued and unpaid Interest hereunder, may be required to be prepaid during the existence of any Event of Default.  In addition, all or a portion of the Principal balance of this Note shall be required to be prepaid as and to the extent provided in Section 2.5 of the Credit Agreement.  Any prepayment made pursuant to this clause (b) shall be subject to the terms of the Credit Agreement, including, without limitation, Section 2.2(b) of the Credit Agreement

 

(c)    Application of Prepayments.  Any and all prepayments hereunder shall be applied in accordance with Section 2.8 of the Credit Agreement.

 

3.    Events of Default.  The existence of an Event of Default shall constitute a default under this Note and shall entitle the Payee to accelerate the entire indebtedness hereunder and take such other action as may be provided for in the Credit Agreement and/or in any and all Other Documents, or as may be provided under the law.

 

4.    Assignment.  This Note shall be binding upon and shall inure to the benefit of the respective successors and permitted assigns of the parties hereto, provided that the Maker may not assign any of its rights or obligations hereunder without the prior written consent of the Payee.

 

5.    Waiver and Amendment.  No waiver of a right in any instance shall constitute a continuing waiver of successive rights, and any one waiver shall govern only the particular matters waived.  Neither any provision of this Note nor any performance hereunder may be amended or waived except pursuant to an agreement in writing signed by the Maker and the Payee.  Except as otherwise expressly provided in this Note, the Maker hereby waives, to the extent not prohibited by applicable law, diligence, demand, presentment for payment, protest, dishonor, nonpayment, default, notice of any and all of the foregoing, and any other notice or action otherwise required to be given or taken under all applicable laws in connection with the delivery, acceptance, performance, default, enforcement or collection of this Note, and expressly agrees that this Note, or any payment hereunder, may be extended, modified or subordinated (by forbearance or otherwise) from time to time, without in any way affecting the liability of the Maker.  The Maker further waives, to the extent not prohibited by applicable law, the benefit of any exemption under the homestead exemption laws, if any, or any other exemption, appraisal or insolvency laws, and consents that the Payee may release or surrender, exchange or substitute any personal property or other collateral security now held or which may hereafter be held as security for the payment of this Note.

 

6.    GOVERNING LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

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7.    CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.  THE MAKER HEREBY CONSENTS TO THE JURISDICTION OF ALL COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AS WELL AS TO THE JURISDICTION OF ALL COURTS FROM WHICH AN APPEAL MAY BE TAKEN FROM SUCH COURTS, FOR THE PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR WITH RESPECT TO THIS NOTE, ANY OTHER AGREEMENTS, INSTRUMENTS, CERTIFICATES OR OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH OR THEREWITH, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR ANY OF THE MAKER'S OBLIGATIONS HEREUNDER OR THEREUNDER.  THE MAKER HEREBY WAIVES THE RIGHT TO INTERPOSE ANY COUNTERCLAIMS (OTHER THAN COMPULSORY COUNTERCLAIMS) IN ANY ACTION BROUGHT BY THE PAYEE HEREUNDER OR IN RESPECT OF ANY OTHER DOCUMENT, PROVIDED THAT THIS WAIVER SHALL NOT PRECLUDE THE MAKER FROM PURSUING ANY SUCH CLAIMS BY MEANS OF SEPARATE PROCEEDINGS.  THE MAKER HEREBY EXPRESSLY WAIVES ANY AND ALL OBJECTIONS WHICH IT MAY HAVE AS TO VENUE IN ANY OF SUCH COURTS, AND ALSO WAIVES TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING.  THE MAKER MAY FILE A COPY OF THIS AGREEMENT AS EVIDENCE OF THE FOREGOING WAIVER OF RIGHT TO JURY TRIAL.

 

8.    Usury Savings Clause.  Section 2.7 of the Credit Agreement is hereby incorporated into this Note by this reference.

 

9.    Collection Costs.  In the event that the Payee shall place this Note in the hands of an attorney for collection during the continuance of any Event of Default, the Maker shall further be liable to the Payee for all reasonable out-of-pocket costs and expenses (including reasonable attorneys' fees) which may be incurred by the Payee in enforcing this Note, all of which costs and expenses shall be obligations under and part of this Note; and the Payee may take judgment for all such amounts in addition to all other sums due hereunder.

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IN WITNESS WHEREOF, the Maker has executed this Note on the date first above written.

 

		
PRIMO WATER CORPORATION

	
	
 

		
	
 

	
By:

	 /s/ Mark Castaneda	
	
 

	
Name:

	Mark Castaneda          	
	
 

	
Title:

	Chief Financial Officer	
	
 

	
 

	
 

	
	
 

	
PRIMO PRODUCTS, LLC

	
	
 

		
	
 

	
By:

	  /s/ Mark Castaneda	
	
 

	
Name:

	Mark Castaneda     	
	
 

	
Title:

	Chief Financial Officer	
	
 

	
 

	
 

	
	
 

	
PRIMO DIRECT, LLC

	
	
 

	
 

	
 

	
	
 

	
By:

	 /s/ Mark Castaneda	
	
 

	
Name:

	Mark Castaneda          	
	
 

	
Title:

	Chief Financial Officer	
	
 

	
 

	
 

	
	
 

	
PRIMO REFILL, LLC

	
	
 

		
	
 

	
By:

	 /s/ Mark Castaneda	
	
 

	
Name:

	Mark Castaneda	
	
 

	
Title:

	Chief Financial Officer	
	
 

	
 

	
 

	
	
 

	
PRIMO ICE, LLC

	
	
 

		
	
 

	
By:

	 /s/ Mark Castaneda	
	
 

	
Name:

	Mark Castaneda	
	
 

	
Title:

	Chief Financial Officer

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