Document:

Exhibit 10.38

 

AMENDMENT AND REAFFIRMATION OF LOAN DOCUMENTS, dated as of December 12, 2013 (this “Amendment”), by and among Vitamin Cottage Natural Food Markets, Inc., a Colorado corporation (the “Borrower”), each of the other entities listed as a “Grantor” on the signature pages hereof (together with the Borrower, the “Grantors”), and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, together with its successors and permitted assigns, the “Administrative Agent”) for the Lenders and each other Secured Party under the Amended Credit Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into that certain Credit Agreement dated as of September 29, 2006 (as amended, supplemented or otherwise modified from time to time, the “Existing Credit Agreement”);

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent have agreed to amend and restate the Existing Credit Agreement in its entirety pursuant to that certain Amended and Restated Credit Agreement, dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Amended Credit Agreement”);

 

WHEREAS, the Borrower and the other Grantors are members of a group of related entities, the success of any of which is dependent in part on the success of the other members of such group;

 

WHEREAS, in connection with the Existing Credit Agreement, the Borrower executed and delivered to JPMorgan Chase Bank, N.A., as Lender, that certain Third Amended and Restated Promissory Note, dated October 31, 2012, in the maximum principal amount of $15,000,000 (the “Exisiting Note”);

 

WHEREAS, the Borrower, the other Grantors, the Lenders and the Administrative Agent are parties to the Collateral Documents (as defined in the Existing Credit Agreement, and together with the Existing Note, collectively, the “Reaffirmed Documents”), as applicable; and

 

WHEREAS, it is a condition precedent to the effectiveness of the Amended Credit Agreement that each of the Grantors enter into this Amendment amending and reaffirming the terms of the Reaffirmed Documents to which such Grantor is a party.

 

NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantors hereby agree as follows:

 

1.             Credit Agreement References.  The Grantors acknowledge and agree that each reference to the Existing Credit Agreement, however so defined, in the Reaffirmed Documents from and after the date hereof shall mean the Existing Credit Agreement as amended and restated pursuant to the Amended Credit Agreement and each of the Reaffirmed Documents is hereby amended by (a) substituting a reference to the Amended

 

 

Credit Agreement as herein defined in place of each reference to the Existing Credit Agreement (whether referred to by the full name of the Existing Credit Agreement or by any other name which refers thereto by definition); (b) substituting a reference to “September 29, 2006” in place of each reference to the “Effective Date”; (c) substituting for the definition of each capitalized term defined by reference to the Existing Credit Agreement the definition of such capitalized term set forth in the Amended Credit Agreement, including without limitation the definition of the term “Obligations”; (d) amending the reference to “Section 2.16 of the Credit Agreement” set forth in Section 14(i) of each of the Parent Guaranty (as defined in the Amended Credit Agreement), the VC Two Guaranty (as defined in the Amended Credit Agreement) and the Natural Systems Guaranty (as defined in the Amened Credit Agreement) to refer to “Section 2.17 of the Credit Agreement”; (e) amending the Borrower Pledge and Security Agreement (as defined in the Amended Credit Agreement) to delete in its entirety (i) the definition of “Boulder VC” in Section 1(a) thereof and substituting therefor “Intentionally Omitted”, (ii) each reference to “Boulder VC” in Sections 4(k), 6(m) and 14 thereof, (iii) the definition of “Guaranty” in Section 1(g) thereof and substituting therefor “Intentionally Omitted”, (iv) each reference to “Guaranty” in Sections 8(a), 10(a)(xiv) and 20 thereof, (v) (A) the “(1)” appearing immediately prior to the phrase “capital stock” and (B) the phrase “, and (2) the limited liability company membership interests of Boulder VC pledged by Debtor hereunder and described in Schedule C hereto (the “BVC Interests”)”, in each case in the first sentence of Section 1(c)(ii)(A) thereof, (vi) each reference to “BVC Interests” in Sections 1(f), 1(k), 4(i), 10(d), 10(e), 11(e), 12(a) and 12(b) thereof, (vii) the first two sentences of Section 4(i) thereof and (viii) the text of Schedule C attached thereto and substituting therefor “Intentionally Omitted”; and (f) amending the reference to “Section 6.03(a)(i)(F) of the Credit Agreement” set forth in Section 6(i) of the Trademark Security Agreement (as defined in the Amended Credit Agreement) to refer to “Section 6.03(a)(i) of the Credit Agreement”.

 

2.             Continued Validity of Collateral Documents.  Each of the Grantors agrees that except as specifically amended by this Amendment, each Reaffirmed Document (as amended hereby) to which such Grantor is a party shall remain in full force and effect, and each of the Grantors listed as signatories hereto reaffirms the continued validity of each such Reaffirmed Document (as amended hereby) to which it is a party and agrees and confirms that the Obligations are secured under and in accordance with the Collateral Documents to which such Grantor is a party.  Each of the Reaffirmed Documents (as amended hereby) and this Amendment shall be read and construed as a single agreement.  All references in each of the Reaffirmed Documents or any related agreement or instrument to the Reaffirmed Documents shall hereafter refer to each of the Reaffirmed Documents as amended hereby.  Each of the Grantors acknowledges and agrees that it has no defenses or set-offs against the Administrative Agent, any Lender, or any of their respective officers, directors, employees, agents or attorneys with respect to any of the Loan Documents (as defined in the Amended Credit Agreement), including, without limitation, the Amended Credit Agreement and the Reaffirmed Documents.

 

3.             Representations and Warranties.  Each of the Grantors represents and warrants that, except as otherwise set forth in the Amended Credit Agreement, (a) all the representations and warranties of such Grantor set forth in any Reaffirmed Document (as amended hereby) to which it is a party are true and correct in all material respects on and as

 

2

 

of the date hereof (except to the extent of changes resulting from transactions contemplated or permitted by the Existing Credit Agreement, the Amended Credit Agreement or such Reaffirmed Document, and to the extent that such representations and warranties relate expressly to an earlier date); and (b) all such representations and warranties are hereby ratified, affirmed and incorporated herein by reference, with the same force and effect as though set forth herein in their entirety.  In furtherance of the foregoing, (i) Schedule E to the Borrower Pledge and Security Agreement (as defined in the Amended Credit Agreement), (ii) Schedule D to each of (A) the Parent Pledge and Security Agreement (as defined in the Amended Credit Agreement), (B) the VC Two Pledge and Security Agreement (as defined in the Amended Credit Agreement) and (C) the Natural Systems Pledge and Security Agreement (as defined in the Amended Credit Agreement) and (iii) Schedule A to the Trademark Security Agreement (as defined in the Amended Credit Agreement), are in each case hereby amended and restated in the respective forms of such Schedules attached to this Amendment.

 

4.             Definitions.  Each capitalized term used herein without specific definition shall have the same meaning herein as in the Amended Credit Agreement.

 

5.             No Waiver.  Nothing contained herein shall constitute a waiver of, impair or otherwise affect any Obligations or any other obligation of any Grantor.

 

6.             Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument.

 

7.             Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO.

 

8.             Severability.  The invalidity or unenforceability of any one or more phrases, sentences, clauses, paragraphs or sections contained in this Amendment shall not affect the validity or enforceability of the remaining portions of this Amendment, or any part thereof.

 

9.             Effectiveness of Amendment.  This Amendment shall become effective as of the date hereof upon (a) receipt by the Administrative Agent of counterparts of this Amendment duly executed by each of the Grantors and (b) the occurrence of the Effective Date under the Amended Credit Agreement.

 

[remainder of page intentionally left blank; signature pages follow]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment and Reaffirmation of Loan Documents to be executed by their duly authorized representatives as a sealed instrument as of the date first set forth above.

 

	
 
    	
THE   GRANTORS:
    
	
 
    	
 
    
	
 
    	
VITAMIN   COTTAGE NATURAL FOOD MARKETS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kemper Isely
    
	
 
    	
Name:
    	
Kemper   Isely
    
	
 
    	
Title:
    	
Co-President
    
	
 
    	
 
    	
 
    
	
 
    	
NATURAL   GROCERS BY VITAMIN COTTAGE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kemper Isely
    
	
 
    	
Name:
    	
Kemper   Isely
    
	
 
    	
Title:
    	
Co-President
    
	
 
    	
 
    	
 
    
	
 
    	
NATURAL   SYSTEMS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zephyr Isely
    
	
 
    	
Name:
    	
Zephyr   Isely
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
VITAMIN   COTTAGE TWO LTD. LIABILITY COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zephyr Isely
    
	
 
    	
Name:
    	
Zephyr   Isely
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
THE   ADMINISTRATIVE AGENT:
    
	
 
    	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nancy J. Broome
    
	
 
    	
 
    	
Name: 
    	
Nancy J.   Broome
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signature Page to Amendment and Reaffirmation of Loan Documents]

 

 

SCHEDULE E

TO

 BORROWER PLEDGE AND SECURITY AGREEMENT

 

INTELLECTUAL PROPERTY

 

Domain names:

 

www.naturalgrocers.com

www.vitamincottage.com

 

Registered United States Patents:

 

None.

 

Registered United States Trademarks or Service Marks:

 

Vitamin Cottage, Natural Grocers and Natural Grocers®

Natural Grocers by Vitamin Cottage®

Vitamin Cottage Natural Grocers®

Vitamin Cottage®

Health Hotline®

 

Pending United States Patent Applications:

 

None.

 

Pending United States Trademark or Service Mark Applications:

 

EDAP — Every Day Affordable Price SM

 

Licenses to Intellectual Property:

 

Rights to use trademarks, trade names, service marks and goodwill granted by VC Two to Borrower and Parent.

 

 

SCHEDULE D

TO

 PARENT PLEDGE AND SECURITY AGREEMENT

 

INTELLECTUAL PROPERTY

 

Domain names:

 

www.naturalgrocers.com

www.vitamincottage.com

 

Registered United States Patents:

 

None.

 

Registered United States Trademarks or Service Marks:

 

Vitamin Cottage, Natural Grocers and Natural Grocers®

Natural Grocers by Vitamin Cottage®

Vitamin Cottage Natural Grocers®

Vitamin Cottage®

Health Hotline®

 

Pending United States Patent Applications:

 

None.

 

Pending United States Trademark or Service Mark Applications:

 

EDAP — Every Day Affordable Price SM

 

Licenses to Intellectual Property:

 

Rights to use trademarks, trade names, service marks and goodwill granted by VC Two to Borrower and Parent.

 

 

SCHEDULE D

TO

VC TWO PLEDGE AND SECURITY AGREEMENT

 

INTELLECTUAL PROPERTY

 

Domain names:

 

None.

 

Registered United States Patents:

 

None.

 

Registered United States Trademarks or Service Marks:

 

Vitamin Cottage, Natural Grocers and Natural Grocers®

Natural Grocers by Vitamin Cottage®

Vitamin Cottage Natural Grocers®

Vitamin Cottage®

 

Pending United States Patent Applications:

 

None.

 

Pending United States Trademark or Service Mark Applications:

 

None.

 

Licenses to Intellectual Property:

 

None.

 

 

SCHEDULE D

TO

 NATURAL SYSTEMS PLEDGE AND SECURITY AGREEMENT

 

INTELLECTUAL PROPERTY

 

Domain names:

 

None.

 

Registered United States Patents:

 

None.

 

Registered United States Trademarks or Service Marks:

 

None.

 

Pending United States Patent Applications:

 

None.

 

Pending United States Trademark or Service Mark Applications:

 

None.

 

Licenses to Intellectual Property:

 

None.

 

 

SCHEDULE A

TO

TRADEMARK SECURITY AGREEMENT

 

Federal Trademark Registrations for the Marks

 

United States Trademarks:

 

	
Registration Number
    	
 
    	
Registration Date
    	
 
    	
Mark
    
	
3770003
    	
 
    	
April 6,   2010
    	
 
    	
VITAMIN   COTTAGE, NATURAL GROCERS AND NATURAL GROCERS
    
	
3766174
    	
 
    	
March 30,   2010
    	
 
    	
NATURAL   GROCERS BY VITAMIN COTTAGE
    
	
2697734
    	
 
    	
March 18,   2003
    	
 
    	
VITAMIN   COTTAGE NATURAL GROCERS
    
	
1795426
    	
 
    	
September 28,   1993
    	
 
    	
VITAMIN   COTTAGE
    

 

United States Trademarks (Pending):

 

None.Exhibit 10.1

 

THIRD AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT

 

THIS THIRD AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT (this “Amendment”), dated as of December 10, 2013, is entered into by and among the Lenders signatory hereto, PNC BANK, NATIONAL ASSOCIATION, in its capacity as agent for the Lenders (in such capacity “Agent”), ENERGY SERVICES LP, a Delaware limited partnership (“Parent Guarantor”), EMERGE ENERGY SERVICES OPERATING LLC, a Delaware limited liability company (“Emerge”), SUPERIOR SILICA SANDS LLC, a Texas limited liability company (“SSS”), DIRECT FUELS LLC, a Delaware limited liability company formerly known as Insight Equity Acquisition Partners, LP (“Direct Fuels”), ALLIED ENERGY COMPANY LLC, an Alabama limited liability company (“AEC”), ALLIED RENEWABLE ENERGY, LLC, a Delaware limited liability company (“ARE”), EMERGE ENERGY DISTRIBUTORS INC., a Delaware corporation (“EED” and together with Emerge, SSS, Direct Fuels, AEC, ARE and each Person joined hereto as a borrower from time to time, collectively, the “Borrowers”, and each individually a “Borrower”).  Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement defined below.

 

RECITALS

 

A.                                    The Lenders, Agent, Parent Guarantor and Borrowers have previously entered into that certain Revolving Credit and Security Agreement, dated as of May 14, 2013, as amended by that certain First Amendment to Revolving Credit and Security Agreement, dated as of May 23, 2013 and that certain Second Amendment to Revolving Credit and Security Agreement, dated as of December 3, 2013 (as amended, and as further amended, modified and supplemented from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain loans and financial accommodations available to Borrowers.

 

B.                                    The Lenders, Agent, Parent Guarantor and Borrowers now wish to further amend the Credit Agreement on the terms and conditions set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.                                      Amendments to Credit Agreement.

 

(a)                                 The following defined term is hereby added to Section 1.2 of the Credit Agreement in its proper alphabetical order:

 

“ “Third Amendment” shall mean that certain Third Amendment to Revolving Credit and Security Agreement, dated December 10, 2013, by and among Parent Guarantor, the Borrowers signatory thereto, Agent and the Lenders signatory thereto.”

 

(b)                                 The defined term “Commitment Amount” set forth in Section 1.2 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

 

“ “Commitment Amount” shall mean, as to each Lender, the Commitment Amount (if any) set forth below such Lender’s name on its signature page to the Third Amendment (or, in the case of any Lender that became party to this Agreement after the date of the Third Amendment pursuant to Section 16.3(c) or (d) hereof, the Commitment Amount (if any) of such Lender as set forth in the applicable Commitment Transfer Supplement), in each case as the same may be adjusted upon any assignment by or to such Lender pursuant to Section 16.3(c) or (d) hereof.”

 

(c)                                  The defined term “Commitment Percentage” set forth in Section 1.2 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

“ “Commitment Percentage” shall mean, as to each Lender, the Commitment Percentage (if any) set forth below such Lender’s name on its signature page to the Third Amendment (or, in the case of any Lender that became party to this Agreement after the date of the Third Amendment pursuant to Section 16.3(c) or (d) hereof, the Commitment Percentage (if any) of such Lender as set forth in the applicable Commitment Transfer Supplement), in each case as the same may be adjusted upon any assignment by or to such Lender pursuant to Section 16.3(c) or (d) hereof.”

 

(d)                                 The defined term “Maximum Revolving Advance Amount” set forth in Section 1.2 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

“ “Maximum Revolving Advance Amount” shall mean $200,000,000, as such amount may, as of any date of determination, be decreased pursuant to Section 2.21 hereof.”

 

(e)                                  Section 6.12 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

6.12                        Post-Closing Deliveries.

 

(a)                                 Borrowers shall satisfy the requirements set forth on Schedule 6.12 on or before the applicable date therefor (or such later date as Agent may agree).

 

(b)                                 Within thirty (30) days or such longer period, not to exceed ninety (90) days in the aggregate after the date of the Third Amendment, as the Agent may agree to, Borrowers shall deliver to Agent with respect to each Mortgage (a) duly executed mortgage modification agreements, and (b) either (i) an endorsement to the final title insurance policy previously issued by First American Title Insurance Company (the “Title Company”) in favor of Agent, or (ii) a new title policy issued by the Title Company in favor of Agent insuring Agent’s first priority fee or leasehold (as applicable) mortgage lien.

 

(c)                                  Within thirty (30) days or such longer period, not to exceed ninety (90) days in the aggregate after the date of the Third Amendment, as the Agent may agree to, Agent shall have received the executed legal opinions, each in form and substance satisfactory to Agent of each of Jones Walker LLP, Balch &

 

2

 

Bingham and Hinshaw & Culbertson which shall cover such matters incident to the transactions contemplated by the Third Amendment as Agent may reasonably require, and the Credit Parties hereby authorize and direct such counsel to deliver such opinions to Agent and Lenders.

 

2.                                      Joinder of New Lenders.

 

(a)                                 Each person signatory hereto as a New Lender agrees that, upon the effectiveness of this Amendment, from and after the date hereof, it shall become, and shall be deemed to be, a Lender under the Credit Agreement and each of the Other Documents and agrees that from the date hereof and so long as the New Lender remains a party to the Credit Agreement, such New Lender shall assume the obligations of a Lender under and perform, comply with and be bound by each of the provisions of the Credit Agreement which are stated to apply to a Lender and shall be entitled to the benefits, rights and remedies set forth therein and in each of the Other Documents.  Each New Lender hereby acknowledges that it has heretofore received a true and correct copy of the Credit Agreement (including all amendments thereto) as in effect on the date hereof and the executed original of its Revolving Credit Note dated the date hereof issued by the Borrowers under the Agreement in a face amount equal to its Commitment Amount as set forth on its signature page hereto.  The Commitment Amount and Commitment Percentage of each New Lender are as set forth on its signature page hereto.  Each New Lender confirms that it has delivered all documents required by Section 3.10 of the Credit Agreement.

 

(b)                                 Agent and each Borrower, by its signature hereto, hereby consents to each New Lender’s joinder to the Credit Agreement and the Other Documents as a Lender.

 

3.                                      Effectiveness of this Amendment.  The following conditions shall have been satisfied, as determined by Agent, before this Amendment is effective:

 

(a)                                 Agent shall have received this Amendment, fully executed by each Credit Party, each New Lender and Lenders constituting Required Lenders;

 

(b)                                 Agent shall have received, in form and substance satisfactory to Agent a Revolving Credit Note for each New Lender, duly executed by the Borrowers;

 

(c)                                  Agent shall have received, in form and substance satisfactory to Agent: (i) that certain Fee Letter among Borrowers, Agent and Santander Bank, National Association dated as of the date hereof, duly executed by the parties thereto, (ii) that certain Fee Letter among Borrowers, Agent and Branch Banking and Trust Company dated as of the date hereof duly executed by the parties thereto (the fee letters described in the foregoing clauses (i) and (ii), collectively, the “ New Lender Fee Letters”), and (iii) payment of all fees described in the New Lender Fee Letters;

 

(d)                                 Each of the representations and warranties made by any Credit Party in or pursuant to this Amendment, the Credit Agreement and the Other Documents shall be true and correct in all material respects (or, if such representation and warranty is, by its terms, limited by materiality (including a Material Adverse Effect), then such representation and warranty shall be true in all respects) on and as of the date hereof as if made on and as of the date hereof (except to the extent any such representation or warranty specifically relates to a certain prior date);

 

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(e)                                  Agent shall have received (i) a copy of the resolutions in form and substance reasonably satisfactory to Agent, of the board of directors, management committee, managing member, manager or general partner, as applicable, of each Credit Party authorizing (as applicable) the execution, delivery and performance of this Amendment and the Other Documents contemplated to be delivered by such Credit Party in connection herewith, certified by an Authorized Officer of each Credit Party as of the date hereof, 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 and (ii) a certificate of an Authorized Officer of each Credit Party, dated the date hereof, as to the incumbency and signature of the officers of each Credit Party, as applicable, executing this Amendment and the Other Documents contemplated to be delivered by such Credit Party in connection herewith, together with evidence of the incumbency of such Authorized Officer, in each case certified by an Authorized Officer of each Credit Party as of the date hereof;

 

(f)                                   Agent shall have received the executed legal opinion, in form and substance satisfactory to Agent of Latham & Watkins, LLP, which shall cover such matters incident to the transactions contemplated by this Amendment as Agent may reasonably require, and the Credit Parties hereby authorize and direct such counsel to deliver such opinions to Agent and Lenders; and

 

(g)                                  All other documents and legal matters in connection with the transactions contemplated by this Amendment shall have been delivered or executed or recorded, as required by Agent.

 

4.                                      Representations and Warranties.  Each Credit Party represents and warrants as follows:

 

(a)                                 Authority.  Such Loan Party has the requisite corporate power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Other Documents (as amended or modified hereby) to which it is a party.  The execution, delivery and performance by such Loan Party of this Amendment have been duly approved by all necessary corporate action and no other corporate proceedings are necessary to consummate such transactions.

 

(b)                                 Enforceability.  This Amendment has been duly executed and delivered by each Loan Party.  This Amendment and each Other Document (as amended or modified hereby) is the legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its terms, and is in full force and effect.

 

(c)                                  Due Execution.  The execution, delivery and performance of this Amendment are within the power of each Loan Party, have been duly authorized by all necessary corporate action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual restrictions binding on any Loan Party.

 

(d)                                 No Default.  No Event of Default or Default has occurred and is continuing.

 

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5.                                      Choice of Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of New York applied to contracts to be performed wholly within the State of New York.

 

6.                                      Counterparts; Electronic Signatures.  This Amendment may be executed in any number of and by different parties hereto on separate counterparts, all of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement.  Any signature delivered by a party by facsimile or other similar method of electronic transmission shall be deemed to be an original signature hereto.

 

7.                                      Reference to and Effect on the Other Documents.

 

(a)                                 Upon and after the effectiveness of this Amendment, 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”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.

 

(b)                                 Except as specifically amended above, the Credit Agreement and all Other Documents, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of Borrowers to Agent and the Lenders.

 

(c)                                  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Agent and/or the Lenders under any of the Other Documents, nor constitute a waiver of any provision of any of the Other Documents.

 

(d)                                 To the extent that any terms and conditions in any of the Other Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.

 

8.                                      Estoppel.  To induce Agent and the Lenders to enter into this Amendment and to continue to make advances to Borrowers under the Credit Agreement, each Loan Party hereby acknowledges and agrees that, as of the date hereof, there exists no right of offset, defense, counterclaim or objection in favor of Borrower as against Agent or any Lender with respect to the Obligations.

 

9.                                      Integration.  This Amendment, together with the Credit Agreement and the Other Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.

 

10.                               Severability.  If any part of this Amendment is contrary to, prohibited by, or deemed invalid under Applicable Laws or regulations, such provision shall be inapplicable and

 

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deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall be given effect so far as possible.

 

11.                               Submission of Amendment.  The submission of this Amendment to the parties or their agents or attorneys for review or signature does not constitute a commitment by Agent or the Lenders to increase any of their Commitment Amounts, and this Amendment shall have no binding force or effect until all of the conditions to the effectiveness of this Amendment have been satisfied as set forth herein.

 

12.                               Guarantors’ Acknowledgment.  With respect to the amendments to the Credit Agreement effected by this Amendment, each Guarantor hereby acknowledges and agrees to this Amendment and confirms and agrees that its Guaranty (as modified and supplemented in connection with this Amendment) is and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that, upon the effectiveness of, and on and after the date of this Amendment, each reference in such Guaranty 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 or modified by this Amendment.  Although Agent and the Lenders have informed the Guarantors of the matters set forth above, and each Guarantor has acknowledged the same, each Guarantor understands and agrees that neither Agent nor any Lender has any duty under the Credit Agreement, the Guaranty or any other agreement with any Guarantor to so notify any Guarantor or to seek such an acknowledgement, and nothing contained herein is intended to or shall create such a duty as to any transaction hereafter.

 

[signature pages follow]

 

6

 

IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.

 

	
PARENT   GUARANTOR:
    	
EMERGE   ENERGY SERVICES LP, 
    
	
 
    	
a   Delaware limited partnership 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
EMERGE   ENERGY SERVICES GP LLC, 
    
	
 
    	
 
    	
 
    	
a   Delaware limited liability company 
    
	
 
    	
 
    	
Its:
    	
General   Partner 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
  /s/ Warren B. Bonham 
    
	
 
    	
 
    	
Name:
    	
Warren   B. Bonham 
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
BORROWERS:
    	
EMERGE   ENERGY SERVICES OPERATING LLC, 
    
	
 
    	
a   Delaware limited liability company 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
  /s/ Warren B. Bonham 
    
	
 
    	
 
    	
Name:
    	
Warren   B. Bonham 
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SUPERIOR   SILICA SANDS LLC, 
    
	
 
    	
a   Texas limited liability company 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
  /s/ Richard Shearer 
    
	
 
    	
 
    	
Name:
    	
Richard   Shearer 
    
	
 
    	
 
    	
Title:
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DIRECT   FUELS LLC, 
    
	
 
    	
a   Delaware limited liability company 
    
	
 
    	
 
    
	
 
    	
By:
    	
Emerge   Energy Services Operating LLC, 
    
	
 
    	
 
    	
its   sole member 
    
	
 
    	
 
    
	
 
    	
By:
    	
  /s/ Warren B. Bonham 
    
	
 
    	
 
    	
Name:
    	
Warren   B. Bonham 
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
							

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

 

 

	
 
    	
ALLIED   ENERGY COMPANY LLC,
   an Alabama limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard L. DeShazo
    
	
 
    	
 
    	
Name:
    	
Richard   L. DeShazo
    
	
 
    	
 
    	
Title:
    	
President   and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ALLIED   RENEWABLE ENERGY, LLC,
   an Alabama limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard L. DeShazo
    
	
 
    	
 
    	
Name:
    	
Richard   L. DeShazo
    
	
 
    	
 
    	
Title:
    	
President   and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMERGE   ENERGY DISTRIBUTORS INC.,
   a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Warren B. Bonham
    
	
 
    	
Name:
    	
Warren   B. Bonham
    
	
 
    	
Title:
    	
Vice   President
    
					

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

 

 

	
AGENT   AND A LENDER:
    	
PNC   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ron Eckhoff
    
	
 
    	
 
    	
Name:
    	
Ron   Eckhoff
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
Commitment   Percentage: 35%
    
	
 
    	
Commitment   Amount: $70,000,000
    

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

 

 

	
A   NEW LENDER:
    	
SANTANDER   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Aidan Lanigan
    
	
 
    	
 
    	
Name:
    	
Aidan   Lanigan
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Puiki Lok
    
	
 
    	
 
    	
Name:
    	
Puiki   Lok
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
Commitment   Percentage: 12.5%
    
	
 
    	
Commitment   Amount: $25,000,000
    

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

 

 

	
A   NEW LENDER:
    	
BRANCH   BANKING AND TRUST COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Larry Trussell
    
	
 
    	
 
    	
Name:
    	
Larry   Trussell
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
Commitment   Percentage: 12.5%
    
	
 
    	
Commitment   Amount: $25,000,000
    

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

 

 

	
A   LENDER:
    	
WELLS   FARGO BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kristen Brockman
    
	
 
    	
 
    	
Name:
    	
Kristen   Brockman
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
Commitment   Percentage: 17.5%
    
	
 
    	
Commitment   Amount: $35,000,000
    

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

 

 

	
A   LENDER:
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Julie Castano
    
	
 
    	
 
    	
Name:
    	
Julie   Castano
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
Commitment   Percentage: 15%
    
	
 
    	
Commitment   Amount: $30,000,000
    

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

 

 

	
A   LENDER:
    	
STIFEL   BANK & TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John H. Phillips
    
	
 
    	
 
    	
Name:
    	
John   H. Phillips
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
Commitment   Percentage: 7.5%
    
	
 
    	
Commitment   Amount: $15,000,000
    

 

Signature Page to Third Amendment to Revolving Credit and Security Agreement

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