Document:

AMENDMENT NO.17
             TO REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT
             -----------------------------------------------------

     THIS  AMENDMENT NO. 17 (this "Agreement") is entered into as of January 31,
2011,  by and among BEST ENERGY SERVICES, INC (f/k/a HYBROOK RESOURCES CORP.), a
corporation organized under the laws of the State of Nevada ("Best"), BOB BEEMAN
DRILLING  COMPANY,  a  corporation organized under the laws of the State of Utah
("BBD")  and  BEST WELL SERVICE, INC., a corporation organized under the laws of
the  State  of  Kansas  ("BWS")  (Best,  BBD  and  BWS,  each  a "Borrower", and
collectively  "Borrowers"),  the  financial  institutions  party  hereto
(collectively, the "Lenders" and individually a "Lender") and PNC BANK, NATIONAL
ASSOCIATION  ("PNC"), as agent for Lenders (PNC, in such capacity, the "Agent").

                                   BACKGROUND
                                   ----------

Borrowers,  Lenders and Agent are parties to that certain Revolving Credit, Term
Loan and Security Agreement dated as of February 14, 2008 (as amended, restated,
supplemented  or  otherwise  modified  from  time to time, the "Loan Agreement")
pursuant  to  which  Agent  and Lenders provide Borrowers with certain financial
accommodations.

Borrowers  have requested that Agent and Lenders amend certain provisions of the
Loan Agreement as hereafter provided, and Agent and Lenders are willing to do so
on  the  terms  and  conditions  hereafter  set  forth.

NOW,  THEREFORE,  in  consideration  of  any  loan or advance or grant of credit
heretofore  or  hereafter  made  to  or for the account of Borrowers by Agent or
Lenders,  and  for  other  good  and  valuable  consideration,  the  receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

1.     Definitions.  All  capitalized  terms  not  otherwise  defined or amended
       -----------
herein  shall  have  the  meanings  given  to  them  in  the  Loan  Agreement.

2.     Reservation  of  Rights: Borrowers acknowledge that the Events of Default
       -----------------------
set  forth  on Schedule I hereto (the "Existing Defaults") have occurred and are
               ----------
continuing  under  the  Loan  Agreement.

(a)     As  a  result of the Existing Defaults, Agent has the immediate right to
exercise  its  rights and remedies under the Loan Agreement, the Other Documents
or  at  law.

(b)     To the extent Agent makes any additional Advances after the date hereof,
such  Advances shall not constitute either a waiver of, nor agreement to forbear
by  Agent with respect to the Existing Defaults or any future violation or Event
of  Default  under the Loan Agreement or the Other Documents, including, without
limitation,  the  Existing Default.  No such additional Advances by Agent shall,
directly  or  indirectly,  in any way whatsoever, impair, prejudice or otherwise
adversely  effect  Agent's  right  at  any  time  and  from  time  to  time  to

<PAGE>
exercise any right, privilege or remedy in connection with the Loan Agreement or
related documents or amend or alter the provisions of the Loan Agreement or the
Other Documents or constitute a course of dealing or other basis for altering
any Obligation of Borrowers or any other Person or any right, privilege or
remedy of Agent under the Loan Agreement or the Other Documents.

(c)     Although Agent is not presently taking any immediate action with respect
to  the  Existing  Defaults except as set forth above, Agent hereby reserves all
its  rights  and  remedies  under  the  Loan  Agreement, the Other Documents and
applicable law, and its election not to exercise any such right or remedy at the
present  time  shall  not  (a)  preclude  Agent from ceasing at any time to make
Advances,  (b)  limit  in  any manner whatsoever Borrowers' obligation to comply
with,  and Agent's right to insist on Borrowers' compliance with, each and every
term of the Loan Agreement and the Other Documents or (c) constitute a waiver of
any  Event  of  Default or any right or remedy available to Agent under the Loan
Agreement,  the  Other  Documents  or applicable law, and Agent hereby expressly
reserves  its  rights  with  respect  to  the  same.

(d)     No  failure  or  delay  on  the part of Agent in exercising any right or
remedy  under  the Loan Agreement and no course of dealing between Borrowers and
Agent shall operate as a waiver of any such right or remedy nor shall any single
or partial exercise of any right or remedy under the Loan Agreement preclude any
other  or  further exercise thereof or the exercise of any other right or remedy
under  the  Loan  Agreement.  Agent  expressly  reserves  all  of its rights and
remedies  under  the  Loan  Agreement.

3.     Amendments  to  Loan Agreement.  Subject to the satisfaction of Section 4
       ------------------------------
below,  the  Loan  Agreement  is  hereby  amended  as  follows:

(a)     The definition of Special Advance Amount set forth in Section 1.1 of the
Loan  Agreement  is  hereby  amended to read in its entirety as set forth below:

"Special  Advance Amount" shall mean (w) $1,750,000, prior to December 21, 2010,
 -----------------------
(x)  $1,856,250  from December 21, 2010 through and including February 28, 2011,
(y)  $1,750,000  from March 1, 2011 through and including March 30, 2011 and (z)
$0  on  and  after  March  31,  2011.
     (b)     The  Borrowers covenant and agree that the incremental availability
created  by  the  increase  in  the  Special  Advance  Amount  for  the  period
contemplated by this Agreement will be used solely for the purpose of mobilizing
to  rigs  to the Eagle Ford in South Texas and, if requested by Agent, Borrowers
will provide a certification to Agent that the incremental availability is being
used  for such purpose.  For the avoidance of doubt, it is understood and agreed
that  (x)  the  terms and conditions of any issuance of convertible subordinated
notes  issued by Best shall be satisfactory to Agent in all respects and (y) all
proceeds  received by Borrowers from an issuance of any convertible subordinated
notes  shall be utilized to repay Revolving Advances with a concurrent reduction
of  the  Special  Advance  Amount.

<PAGE>
4.     Conditions  of Effectiveness.  This Agreement shall become effective when
       ----------------------------
Agent  shall  have  received:

(a)     four  (4)  copies of this Agreement executed by the Required Lenders and
each  Borrower;

(b)     a  common  stock  purchase warrant for 250,000 shares of common stock of
Best  at an exercise price of $0.10 per share in form and substance satisfactory
to  Agent  and  its  counsel;

(c)     such other certificates, instruments, documents, agreements and opinions
of counsel as may be required by Agent or its counsel, each of which shall be in
form  and  substance  satisfactory  to  Agent  and  its  counsel.

5.     Representations,  Warranties  and  Covenants.  Each  Borrower  hereby
       --------------------------------------------
represents,  warrants  and  covenants  as  follows:

(a)     This  Agreement  and  the  Loan  Agreement  constitute  legal, valid and
binding  obligations  of such Borrower and are enforceable against such Borrower
in  accordance  with  their  respective  terms.

(b)     Upon the effectiveness of this Agreement, each Borrower hereby reaffirms
all  covenants, representations and warranties made in the Loan Agreement to the
extent  the  same  are  not  amended  or  waived hereby and agrees that all such
covenants, representations and warranties shall be deemed to have been remade as
of  the  effective  date  of  this  Agreement.

(c)     The  execution, delivery and performance of this Agreement and all other
documents  in  connection  therewith  has  been duly authorized by all necessary
corporate  action,  and  does not contravene, violate or cause the breach of any
agreement,  judgment,  order,  law  or  regulation  applicable  to any Borrower.

(d)     No  Event  of Default or Default has occurred and is continuing or would
exist  after  giving effect to this Agreement (other than the Existing Default).

(e)     No  Borrower has any defense, counterclaim or offset with respect to the
Loan  Agreement  or  the  Obligations.

6.     Effect  on  the  Loan  Agreement.
       --------------------------------

(a)     Upon  the  effectiveness  of  this Agreement, each reference in the Loan
Agreement  to "this Agreement," "hereunder," "hereof," "herein" or words of like
import  shall  mean  and be a reference to the Loan Agreement as amended hereby.
Except  as  specifically  amended  herein,  the  Loan  Agreement,  and all other
documents,  instruments  and  agreements executed and/or delivered in connection
therewith,  shall  remain  in full force and effect, and are hereby ratified and
confirmed.  This Agreement shall constitute an "Other Document" for all purposes
under  the  Loan  Agreement.

<PAGE>

     (b)     Except  as  expressly  provided herein, the execution, delivery and
effectiveness  of  this  Agreement  shall  not operate as a waiver of any right,
power or remedy of Agent or any Lender, nor constitute a waiver of any provision
of  the  Loan  Agreement,  or  any  other  documents,  instruments or agreements
executed  and/or  delivered  under  or  in  connection  therewith.

7.     Release.  The  Borrowers  hereby acknowledge and agree that:  (a) neither
       -------
they nor any of their Affiliates have any claim or cause of action against Agent
or  any  Lender  (or  any  of  Agent's  or  any  Lender's  Affiliates, officers,
directors,  employees,  attorneys, consultants or agents) and (b) Agent and each
Lender  have  heretofore properly performed and satisfied in a timely manner all
of  their  respective  obligations to the Borrowers under the Loan Agreement and
the  Other Documents.  Notwithstanding the foregoing, Agent and each Lender wish
(and the Borrowers agree) to eliminate any possibility that any past conditions,
acts,  omissions,  events  or  circumstances would impair or otherwise adversely
affect  any  of  Agent's  or  such  Lender's  rights, interests, security and/or
remedies under the Loan Agreement and the Other Documents.  Accordingly, for and
in  consideration  of  the agreements contained in this Agreement and other good
and valuable consideration, each Borrower (for itself and its Affiliates and the
successors, assigns, heirs and representatives of each of the foregoing) (each a
"Releasor"  and  collectively,  the  "Releasors")  does  hereby  fully, finally,
unconditionally and irrevocably release and forever discharge Agent, each Lender
and  each  of  their  respective  Affiliates,  officers,  directors,  employees,
attorneys, consultants and agents (each a "Released Party" and collectively, the
"Released Parties") from any and all debts, claims, obligations, damages, costs,
attorneys' fees, suits, demands, liabilities, actions, proceedings and causes of
action,  in  each case, whether known or unknown, contingent or fixed, direct or
indirect,  and  of  whatever  nature  or  description,  and whether in law or in
equity,  under  contract,  tort,  statute  or  otherwise, which any Releasor has
heretofore  had  or now or hereafter can, shall or may have against any Released
Party  by  reason of any act, omission or thing whatsoever done or omitted to be
done on or prior to the date hereof arising out of, connected with or related in
any way to this Agreement, the Loan Agreement or any Other Document, or any act,
event  or  transaction  related or attendant thereto, or Agent's or any Lender's
agreements  contained  therein,  or the possession, use, operation or control of
any  of  the  assets  of  agreements  contained therein, or the possession, use,
operation or control of any of the assets of the Borrowers, or the making of any
advance,  or  the  management  of  such  advance  or  the  Collateral.

8.     Governing  Law.  This  Agreement  shall  be binding upon and inure to the
       --------------
benefit  of  the  parties hereto and their respective successors and assigns and
shall  be  governed by and construed in accordance with the laws of the State of
New  York  (other  than  those  conflict  of  law  rules that would defer to the
substantive  law  of  another  jurisdiction).

9.     Cost  and Expenses.   Borrowers hereby agree to pay the Agent, on demand,
       ------------------
all  costs  and  reasonable  expenses  (including reasonable attorneys' fees and
legal  expenses)  incurred in connection with this Agreement and any instruments
or  documents  contemplated  hereunder.

<PAGE>
10.     Headings.  Section  headings  in  this Agreement are included herein for
        --------
convenience  of reference only and shall not constitute a part of this Agreement
for  any  other  purpose.

11.     Counterparts;  Facsimile  Signatures.  This Agreement may be executed by
        ------------------------------------
the  parties hereto in one or more counterparts of the entire document or of the
signature  pages  hereto,  each  of which shall be deemed an original and all of
which taken together shall constitute one and the same agreement.  Any signature
received  by  facsimile  or  electronic transmission shall be deemed an original
signature  hereto.

                  [Remainder of page intentionally left blank]

<PAGE>
     IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and
year  first  written  above.

                              PNC BANK, NATIONAL ASSOCIATION,
                              as Lender and as Agent

                              By:__________________________
                              Name:
                              Title:

                              BEST ENERGY SERVICES, INC.

                              By:__________________________
                              Name:
                              Title:

                              BOB BEEMAN DRILLING COMPANY

                              By:__________________________
                              Name:
                              Title:

                              BEST WELL SERVICE, INC.

                              By:__________________________
                              Name:
                              Title:

                      [Signature Page to Amendment No. 17]

<PAGE>
Schedule I to Amendment No. 17

                                   SCHEDULE I

                                Existing Default

     1.     An  Event  of  Default  as a result of the Borrowers' failure to pay
certain  taxes  as  required  pursuant  to  Section  4.13 of the Loan Agreement.

     2.     An Event of Default as a result of the imposition of tax Liens as
evidenced by (i) that certain Tax Warrant of the Kansas Department of Revenue
and (ii) the Notices of Federal Tax Lien received from the Internal Revenue
Service and attached hereto as Exhibit A.
                               ---------
     3.     Events of Default as a result of Borrowers' failure to comply with
the financial covenants set forth in Section 6.5(a) the Loan Agreement for the
fiscal quarter ended September 30, 2010.ex4-1.htm

Exhibit 4.1

 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of January 18, 2011, among UNIFI, INC., a New York corporation (the “Parent”), the subsidiaries of the Parent from time to time party to the Credit Agreement referred to below (the “Subsidiaries”; and together with the Parent, the “Borrowers”), each lender from time to time party to the Credit Agreement referred to below (the “Lenders”), and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Agent”).

 

RECITALS

 

A.           The Borrowers, the Lenders, and the Agent are party to an Amended and Restated Credit Agreement dated as of May 26, 2006 (as amended by that certain First Amendment to Amended and Restated Credit Agreement, Amended and Restated Security Agreement and Pledge Agreement dated as of September 9, 2010, and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Agent and the Lenders have extended certain credit facilities to the Borrowers.

 

B.           The Borrowers have requested that the Agent and the Lenders agree to certain amendments with respect to the Credit Agreement, and subject to the terms and conditions set forth herein, the Agent and each of the Lenders have agreed to grant such requests of the Borrowers.

 

NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.           Defined Terms.  Unless otherwise defined herein, capitalized terms used herein (including, without limitation, in the introductory paragraph and the statement of purpose hereto) shall have the meanings, if any, assigned to such terms in the Credit Agreement (as amended by this Agreement).

 

2.           Interpretation.  The rules of interpretation set forth in Section 14.22 of the Credit Agreement shall be applicable to this Amendment and are incorporated herein by this reference.

 

3.           Credit Agreement Amendments.  Subject to and in accordance with the terms and conditions set forth herein, and effective on and after the Effective Date (as defined in Section 4 below), the Credit Agreement is hereby amended in accordance with this Section 3.  Except as so amended, the Credit Agreement and all other Loan Documents shall continue in full force and effect.

 

(a)           Amendment to Section 7.12.  Section 7.12(iii) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(iii) Guaranties of the Senior Secured Notes and any Refinancing Indebtedness in respect thereof”.

 

  

 

  

 

(b)           Amendment to Section 7.29.  Section 7.29(a) of the Credit Agreement is hereby amended by adding the following new clause after the phrase “Senior Secured Notes Indenture” as it appears in such clause (a):

 

“or any indenture relating to any Refinancing Indebtedness of the Senior Secured Notes,”

 

4.           Conditions to Effectiveness.  Upon the satisfaction of each of the following conditions, this Agreement shall be deemed to be effective (the date such conditions are satisfied, the “Effective Date”):

 

(a)           the Agent shall have received counterparts of this Amendment executed by the Agent, the Lenders and the Borrowers and the Borrowers shall have performed and complied with all covenants, agreements and conditions contained in this Amendment, the Credit Agreement and the other Loan Documents which are required to be performed or complied with by the Borrowers before or on such Effective Date;

 

(b)           the Borrowers shall have paid all fees and expenses of the Agent and the Attorney Costs incurred in connection with this Amendment or any of the Loan Documents and the transactions contemplated hereby or thereby; and

 

(c)           the Borrowers shall have notified the Senior Secured Notes Collateral Agent and the Senior Secured Notes Trustee that the parties hereto are entering into this Amendment.

 

Execution and delivery to the Agent by a Lender of a counterpart of this Amendment shall be deemed confirmation by such Lender that (i) all conditions precedent herein have been fulfilled to the satisfaction of such Lender, (ii) the decision of such Lender to execute and deliver to the Agent an executed counterpart of this Amendment was made by such Lender independently and without reliance on the Agent or any other Lender as to the satisfaction of any condition precedent set forth herein, and (iii) all documents sent to such Lender for approval consent, or satisfaction were acceptable to such Lender.

 

5.           Effect of the Agreement.  Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall remain unmodified and in full force and effect.  Except as expressly set forth herein, this Amendment shall not be deemed (a) to be a waiver of, or consent to, a modification or amendment of, any other term or condition of the Credit Agreement or any other Loan Document, (b) to prejudice any other right or rights which the Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement, or the other Loan Documents or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or otherwise modified from time to time, (c) to be a commitment or any other undertaking or expression of any willingness to engage in any further discussion with the Borrowers or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or any rights or remedies arising in favor of the Lenders or the Agent, or any of them, under or with respect to any such documents or (d) to be a waiver of, or consent to or a modification or amendment of, any other term or condition of any other agreement by and among the Borrowers, on the one hand, and the Agent or any other Lender, on the other hand.

  

2

  

 

6.           Representations and Warranties.  Each Borrower hereby represents and warrants to the Agent and the Lenders as follows:

 

(a)           After giving effect to this Amendment, no Default has occurred and is continuing.

 

(b)           The execution, delivery and performance by each Borrower of this Amendment has been duly authorized by all necessary corporate and other action and does not and will not require any registration with, consent or approval of, or notice to or action by, any Person (including any Governmental Authority) in order to be effective and enforceable.

 

(c)           The Amendment, together with the other Loan Documents and the Credit Agreement constitute the legal, valid and binding obligations of each Borrower, as applicable, and are enforceable against each such Person in accordance with their respective terms, without defense, counterclaim or offset.

 

(d)           All representations and warranties of the Borrowers contained in Article 6 of the Credit Agreement are true and correct on and as of the Effective Date, except to the extent that any such representation and warranty specifically relates to an earlier date.

 

(e)           Each Borrower is entering into this Amendment on the basis of its own investigation and for its own reasons, without reliance upon the Agent, the Lenders or any other Person.

 

7.           Miscellaneous.

 

(a)           This Amendment shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns.  No third party beneficiaries are intended in connection with this Amendment.

 

(b)           THIS AMENDMENT IS SUBJECT TO THE PROVISIONS OF SECTIONS 14.3 AND 14.4 OF THE CREDIT AGREEMENT RELATING TO GOVERNING LAW, VENUE AND WAIVER OF RIGHT TO TRIAL BY JURY, THE PROVISIONS OF WHICH ARE BY THIS REFERENCE INCORPORATED HEREIN IN FULL.

 

(c)           This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.  Transmission of signatures of any party by facsimile shall for all purposes be deemed the delivery of original, executed counterparts thereof and the Agent is hereby authorized to make sufficient photocopies thereof to assemble complete counterparty documents.

 

(d)           This Amendment, together with the other Loan Documents and the Credit Agreement, contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed herein and therein.  This Amendment supersedes all prior drafts and communications with respect thereto.  This Amendment may not be amended except in accordance with the provisions of Section 11.1 of the Credit Agreement.

 

  

3

  

 

(e)           If any term or provision of this Amendment shall be deemed prohibited by or invalid under any applicable law, such provision shall be invalidated without affecting the remaining provisions of this Amendment or the Credit Agreement, respectively.

 

(f)           Each Borrower covenants to pay to or reimburse the Agent, upon demand, for all reasonable out-of-pocket costs and expenses incurred in connection with the development, preparation, negotiation, execution and delivery of this Amendment.

 

(g)           This Amendment shall constitute a “Loan Document” under and as defined in the Credit Agreement.

 

[Signature Pages Follow]

 

  

4

  

 

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

 

UNIFI, INC., a New York corporation

 

By: /s/   Charles F. McCoy

Name: Charles F. McCoy

Title: V.P., Secretary and General Counsel

 

UNIFI MANUFACTURING, INC.,

a North Carolina corporation

 

By: /s/   Charles F. McCoy

Name: Charles F. McCoy

Title: V.P., Secretary and General Counsel

 

UNIFI TEXTURED POLYESTER, LLC,

a North Carolina limited liability company

 

By: /s/   Charles F. McCoy

Name: Charles F. McCoy

Title: V.P., Secretary and General Counsel

 

UNIMATRIX AMERICAS, LLC,

a North Carolina limited liability company

 

By: /s/   Charles F. McCoy

Name: Charles F. McCoy

Title: V.P., Secretary and General Counsel

 

UNIFI SALES & DISTRIBUTION, INC.,

a North Carolina corporation

 

By: /s/   Charles F. McCoy

Name: Charles F. McCoy

Title: V.P., Secretary and General Counsel

 

 [Signature Pages Continue]

 

  

  

  

 

SPANCO INTERNATIONAL, INC.,

a North Carolina corporation

 

By: /s/   Charles F. McCoy

Name: Charles F. McCoy

Title: V.P., Secretary and General Counsel

 

UNIFI EQUIPMENT LEASING, LLC,

a North Carolina limited liability company

 

By: /s/   Charles F. McCoy

Name: Charles F. McCoy

Title: V.P., Secretary and General Counsel

 

  

  

  

 

BANK OF AMERICA, N.A., as Administrative Agent

 

By: /s/   Andrew A. Doherty

Name:  Andrew A. Doherty

Title:  Senior Vice President

 

BANK OF AMERICA, N.A., as a Lender

 

By: /s/   Andrew A. Doherty

Name:  Andrew A. Doherty

Title:  Senior Vice President

 

  

  

  

 

WELLS FARGO CAPITAL FINANCE, INC., as a Lender

 

By:  /s/  John Williammee, Jr.

Name:  John Williammee, Jr.

Title:  Vice President

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