Document:

Exhibit 10.1

 

SECOND AMENDMENT, ASSUMPTION,

CONSENT AND RATIFICATION AGREEMENT

 

THIS SECOND AMENDMENT, ASSUMPTION, CONSENT AND RATIFICATION AGREEMENT (this “Agreement”), dated effective as of March 1, 2018, is among HELEN OF TROY LIMITED, a Bermuda company (“Limited”), HELEN OF TROY TEXAS CORPORATION, a Texas corporation (“HOT-TX”), HELEN OF TROY L.P., a limited partnership duly organized under the laws of the State of Texas (the “Borrower”), the Guarantors, the banks listed on the signature pages hereof (“Lenders”) and BANK OF AMERICA, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender (in said capacity as Administrative Agent, the “Administrative Agent”).

 

BACKGROUND

 

A.                                    Borrower, Limited, the Lenders, and Bank of America, as the Administrative Agent, Swing Line Lender and L/C Issuer, are parties to that certain Amended and Restated Credit Agreement, dated as of January 16, 2015, as amended by that certain First Amendment to Amended and Restated Credit Agreement, dated as of December 7, 2016  (such agreement, as amended prior to the effectiveness of this Agreement, the “Credit Agreement”).  The terms defined in the Credit Agreement and not otherwise defined herein shall be used herein as defined in the Credit Agreement.  Borrower is an indirect wholly-owned Subsidiary of HOT-TX.  HOT-TX has guaranteed all obligations of Borrower pursuant to the Credit Agreement.

 

B.                                    Borrower and HOT-TX have requested that Lenders and Administrative Agent (i) consent to the assignment by Borrower to HOT-TX of all of Borrower’s rights and, subject to Section 2, all of Borrower’s obligations under the Credit Agreement and the other Loan Documents and the assumption by HOT-TX of all of Borrower’s rights and, subject to Section 2, all of Borrower’s obligations under the Credit Agreement and the other Loan Documents (upon the effectiveness of this Agreement and subject to Section 2, Borrower will cease to be, and HOT-TX will become, the “Borrower” under the Credit Agreement), and (ii) make certain other amendments thereto, as more fully set forth herein.

 

C.                                    Lenders and Administrative Agent are willing to agree to such assignment, assumption and amendments on the terms and conditions, and in reliance upon all of the representations and warranties of the Loan Parties, set forth herein.

 

D.                                    In order to induce Lenders and Administrative Agent to consent to the assignment by Borrower to HOT-TX of all of Borrower’s rights and, subject to Section 2, all of Borrower’s obligations under the Credit Agreement and the other Loan Documents, the assumption by HOT-TX of all of Borrower’s rights and, subject to Section 2, all of Borrower’s obligations under the Credit Agreement and the other Loan Documents, and the amendments provided in this Agreement, each Loan Party has agreed to execute this Agreement to confirm and evidence such Loan Party’s continuing liability and obligations under the Credit Agreement and other Loan Documents.

 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Limited, Borrower, HOT-TX, each other Loan Party, the Lenders, and the Administrative Agent covenant and agree as follows:

 

1.                                      Assumption.  HOT-TX hereby irrevocably and unconditionally (a) covenants, promises, agrees, accepts and assumes each and all obligations (subject to Section 2) of Borrower pursuant to the Credit Agreement, each Note, each outstanding Letter of Credit set forth on Schedule 1 hereto (each, an “Outstanding Letter of Credit” and collectively, the “Outstanding Letters of Credit”) and each other Loan Document and (b) agrees that it will perform and discharge all obligations (subject to Section 2) of Borrower under the Credit Agreement, each Note, each Outstanding Letter of Credit and each other Loan Document as though it were an original signatory thereto.  Borrower hereby irrevocably and unconditionally assigns to HOT-TX all of Borrower’s rights and obligations (subject to Section 2) pursuant to the Credit Agreement, the Notes, the Outstanding Letters of Credit and the other Loan Documents.  From and after the effectiveness of this Agreement, (i) each reference in the Loan Documents to “Borrower” shall only refer to HOT-TX (subject to Section 2) and (ii) all Outstanding Letters of Credit shall be deemed to be issued for the account of HOT-TX.

 

2.                                      Matters Not Assumed.  Notwithstanding any provision of this Agreement, (a) this Agreement is not intended as, and shall not be deemed to be a release, impairment or modification of any representation or warranty made by or deemed made by Borrower under any Loan Document prior to the effectiveness of this Agreement and (b) Borrower and HOT-TX shall be liable, jointly and severally, for any obligation of Borrower under Section 10.04 of the Credit Agreement that arose prior to the effectiveness of this Agreement.

 

3.                                      Ratification.  HOT-TX hereby confirms and ratifies the terms of the Credit Agreement, each Note, each Outstanding Letter of Credit and each other Loan Document, and acknowledges that the Credit Agreement, each Note, each Outstanding Letter of Credit and each other Loan Document are each in full force and effect, that it has no defense, counterclaim, set-off or any other claim to diminish its liability under such documents, and that its consent is not required to the effectiveness of any Loan Document.

 

4.                                      Consent.  Subject to the satisfaction of the conditions of effectiveness set forth in Section 7 hereof, each of the Administrative Agent and the Lenders hereby consents to (a) the assignment by Borrower to HOT-TX of all of Borrower’s rights and, subject to Section 2, all of Borrower’s obligations under the Credit Agreement and the other Loan Documents and (b) the assumption by HOT-TX of all of Borrower’s rights and, subject to Section 2, all of Borrower’s obligations under the Credit Agreement and the other Loan Documents.

 

5.                                      Amendment to Credit Agreement.

 

(a)                                 Subject to Section 2, each reference in each Loan Document to “Borrower” shall be deemed to mean Helen of Troy Texas Corporation, a Texas corporation, from and after the effectiveness of this Agreement in accordance with Section 7.

 

(b)                                 Section 1.01 of the Credit Agreement is hereby amended by adding the following defined terms thereto in proper alphabetical order:

 

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“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.

 

“CFC” means a controlled foreign corporation within the meaning of Section 957 of the Code.

 

“LIBOR Screen Rate” means the LIBOR quote on the applicable screen page the Administrative Agent designates to determine LIBOR (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time).

 

“LIBOR Successor Rate” has the meaning specified in Section 3.08.

 

“LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other administrative matters as may be appropriate, in the discretion of the Administrative Agent, to reflect the adoption of such LIBOR Successor Rate and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent determines in consultation with the Borrower).

 

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

 

“Scheduled Unavailability Date” has the meaning specified in Section 3.08(b).

 

“Second Amendment” means that certain Second Amendment, Assumption, Consent and Ratification Agreement, dated as of March 1, 2018, among Helen of Troy L.P., a Texas limited partnership, Helen of Troy Texas Corporation, a Texas corporation, Limited, the Lenders, the Administrative Agent, the Swing Line Lender and the L/C Issuer.

 

“Second Amendment Effective Date” means the date that all conditions of effectiveness set forth in Section 7 of the Second Amendment have been satisfied.

 

(c)                                  The definition of “ERISA” set forth in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“ERISA” means the Employee Retirement Income Security Act of 1974,

 

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as amended, and the rules and regulations promulgated thereunder.

 

(d)                                 The definition of “Guarantors” set forth in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Guarantors” means, collectively, Limited, HOT-Barbados, HOT-Nevada, HOT Nevada, Inc., a Nevada corporation, Helen of Troy L.P., a Texas limited partnership, Idelle Labs, Ltd., a Texas limited partnership, OXO International, Ltd., a Texas limited partnership, Helen of Troy Macao Commercial Offshore Limited, a Macau company, Kaz, Inc., a New York corporation, Kaz USA, Inc., a Massachusetts corporation, Kaz Canada, Inc., a Massachusetts corporation, Pur Water Purification Products, Inc., a Nevada corporation, Steel Technology, LLC, an Oregon limited liability company, HD Holding Inc., a Nevada corporation, and each other Subsidiary that executes a Guaranty pursuant to Section 7.02(i)(v).

 

(e)                                  Article III of the Credit Agreement is hereby amended by adding the following new Section 3.08 thereto to read as follows:

 

3.08                                                LIBOR Successor Rate.  Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Borrower or Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to Borrower) that the Borrower or Required Lenders (as applicable) have determined, that:

 

(a)         adequate and reasonable means do not exist for ascertaining LIBOR for any requested Interest Period, including, without limitation, because the LIBOR Screen Rate is not available or published on a current basis and such circumstances are unlikely to be temporary; or

 

(b)         the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which LIBOR or the LIBOR Screen Rate shall no longer be made available, or used for determining the interest rate of loans (such specific date, the “Scheduled Unavailability Date”), or

 

(c)          syndicated loans currently being executed, or that include language similar to that contained in this Section, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR,

 

then, reasonably promptly after such determination by the Administrative Agent or receipt by the Administrative Agent of such notice, as applicable,  the Administrative Agent and the Borrower shall endeavor to amend this Agreement to replace LIBOR with an alternate benchmark rate (including any mathematical or other adjustments to the benchmark (if any) incorporated therein) (any such proposed rate, a “LIBOR Successor Rate”), together with any proposed LIBOR Successor Rate Conforming Changes and any such amendment shall become

 

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effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders do not accept such amendment.

 

If no LIBOR Successor Rate has been determined and the circumstances under clause (a) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended, (to the extent of the affected Eurodollar Rate Loans or Interest Periods), and (y) the Eurodollar Rate component shall no longer be utilized in determining the Base Rate.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) without any obligation to pay any loss, cost or expense of any Lender pursuant to Section 3.05 or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans (subject to the foregoing clause (y)) in the amount specified therein.

 

Notwithstanding anything else herein, any definition of LIBOR Successor Rate shall provide that in no event shall such LIBOR Successor Rate be less than zero for purposes of this Agreement.

 

(f)                                   Section 5.19 of the Credit Agreement is hereby amended to read as follows:

 

5.19                        Taxpayer Identification Number.  As of the Second Amendment Effective Date, the Borrower’s true and correct U.S. taxpayer identification number is set forth on Schedule 10.02.

 

(g)                                  Clause (v) of Section 7.02(i) of the Credit Agreement is hereby amended to read as follows:

 

(v) if the Acquisition results in a Domestic Subsidiary (other than a CFC or a Subsidiary considered to be a “disregarded entity” for United States federal income tax purposes and owned by a CFC) being acquired having a net worth at the time of such Acquisition of more than $25,000,000, such Subsidiary shall execute and deliver to the Administrative Agent (x) a Guaranty, (y) such documents of the types referred to in clauses (iv) and (v) of Section 4.01(a) and (z) a favorable opinion of counsel to such Person located in the jurisdiction of organization of such Person, in form, content and scope reasonably satisfactory to the Administrative Agent;

 

(h)                                 Article IX of the Credit Agreement is hereby amended by adding the following new Section 9.11 thereto to read as follows:

 

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9.11                        ERISA Plan Assets.

 

(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:

 

(i) such Lender is not using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments,

 

(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,

 

(iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

 

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

 

(b) In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y)

 

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covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that:

 

(i) none of the Administrative Agent or any Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related to hereto or thereto),

 

(ii) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is independent (within the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a broker-dealer or other person that holds, or has under management or control, total assets of at least $50 million, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E),

 

(iii) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the Obligations),

 

(iv) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Letters of Credit, the Commitments and this Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder, and

 

(v) no fee or other compensation is being paid directly to the Administrative Agent or any Arranger or any of their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Letters of Credit, the Commitments or this Agreement.

 

(c) The Administrative Agent and each Arranger hereby informs the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments and this Agreement, (ii) may recognize a gain if it

 

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extended the Loans, the Letters of Credit or the Commitments for an amount less than the amount being paid for an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.

 

(i)                                     Schedule 10.02 is hereby amended to be in the form of Schedule 10.02 to this Agreement.

 

6.                                      REPRESENTATIONS AND WARRANTIES.  By its execution and delivery hereof, each of Borrower, HOT-TX, Limited and the Guarantors represents and warrants as follows:

 

(a)                                 (i) Borrower, HOT-TX, Limited and each Guarantor have all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to execute, deliver and perform their respective obligations under this Agreement, (ii) HOT-TX has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to execute, deliver and perform its obligations under each amended and restated Revolving Loan Note (the “Replacement Revolving Loan Notes”) and (iii) each of the Guarantors has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to execute, deliver and perform their respective obligations under the Amended and Restated Guaranty (as defined below).

 

(b)                                 (i) The execution, delivery and performance by Borrower, HOT-TX, Limited and each Guarantor of this Agreement, (ii) the execution, delivery and performance by HOT-TX of the Replacement Revolving Loan Notes and (iii) the execution, delivery and performance by each Guarantor of the Amended and Restated Guaranty (as defined below) has been duly authorized by all necessary corporate or other organizational action, and do not and will not (x) contravene the terms of either of such Person’s Organization Documents; (y) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any Contractual Obligation to which either Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which either Person or its property is subject; or (z) violate any Law.  Limited and each of its Subsidiaries is in compliance with all Contractual Obligations referred to in clause (y)(A) above except to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect.

 

(c)                                  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against (i) Limited, HOT-TX, Borrower and each Guarantor of this Agreement, (ii) HOT-TX of the Replacement

 

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Revolving Loan Notes, and (iii) each Guarantor of the Amended and Restated Guaranty (as defined below).

 

(d)                                 (i) (x) This Agreement has been duly executed and delivered by Limited, HOT-TX and Borrower and each Guarantor, (y) the Replacement Revolving Loan Notes have been duly executed and delivered by HOT-TX and (z) the Amended and Restated Guaranty (as defined below) has been duly executed and delivered by each Guarantor.

 

(ii) (x) This Agreement constitutes a legal, valid and binding obligation of Limited, HOT-TX, Borrower and each Guarantor, enforceable against each such Person in accordance with its terms, subject as to enforcement to any Debtor Relief Laws and general equitable principles.  (y) The Replacement Revolving Loan Notes constitute a legal, valid and binding obligation of HOT-TX, enforceable against HOT-TX in accordance with their terms, subject as to enforcement to any Debtor Relief Laws and general equitable principles. (z) The Amended and Restated Guaranty (as defined below) constitutes a legal, valid and binding obligation of each Guarantor, enforceable against each such Guarantor in accordance with its terms, subject as to enforcement of remedies to any Debtor Relief Laws and general equitable principles.

 

7.                                      CONDITIONS TO EFFECTIVENESS.  This Agreement shall be effective upon satisfaction or completion of the following:

 

(a)                                 the Administrative Agent shall have received counterparts of this Agreement executed by the Lenders;

 

(b)                                 the Administrative Agent shall have received counterparts of this Agreement executed by Borrower, HOT-TX and Limited and acknowledged by each Guarantor;

 

(c)                                  the Administrative Agent shall have received executed Replacement Revolving Loan Notes for each Lender;

 

(d)                                 the Administrative Agent shall have received an executed amended and restated Guaranty (the “Amended and Restated Guaranty”), executed by each Guarantor;

 

(e)                                  each of the conditions in Section 4.02(a) and (b) of the Credit Agreement shall have been satisfied (as if HOT-TX were Borrowing as of the date of this Agreement);

 

(f)                                   the Administrative Agent shall have received a (i) Secretary’s Certificate of HOT-TX, containing Exhibit A, Articles of Incorporation of HOT-TX, certified by the Texas Secretary of State, Exhibit B, Bylaws of HOT-TX, Exhibit C, Unanimous Written Consent of the Board of Directors of HOT-TX approving the execution, delivery and performance of this Agreement and the Replacement Revolving Loan Notes, and Exhibit D, Incumbency; (ii) Secretary’s Certificate of Borrower, containing Exhibit A, Certificate of Limited Partnership of Borrower, Exhibit B, Agreement of Limited Partnership of Borrower, Exhibit C, Unanimous Written Consent of General Partner of Borrower approving the execution, delivery and performance of this Agreement and the Amended and Restated Guaranty, and Exhibit D, Incumbency; (iii) Certificates of Fact, certified by the Texas Secretary of State for HOT-TX and the Borrower; (iv) a print out of the franchise tax details page from the Texas comptroller for HOT-TX and

 

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Borrower and (v) certified resolutions of Limited and each other Guarantor approving the execution, delivery and performance of this Agreement and the Amended and Restated Guaranty;

 

(g)                                  the Administrative Agent shall have received an opinion of legal counsel to the Borrower and HOT-TX covering the matters set forth in Sections 6(a), (b)(i), (ii) and (iii), (c) and (d) of this Agreement;

 

(h)                                 the legal fees and expenses of Winstead PC, counsel for the Administrative Agent, shall have been paid in immediately available funds; and

 

(i)                                     the Administrative Agent shall have received, in form and substance satisfactory to the Administrative Agent and its counsel, such other documents, certificates and instruments as the Administrative Agent shall reasonably require.

 

8.                                      CONDITION SUBSEQUENT.  HOT-TX and the Borrower shall execute and deliver all documentation solely required by each counterparty to a Guarantied Swap Contract (as defined in each Guaranty) reflecting the replacement of Helen of Troy L.P., as Borrower within forty-five (45) days from the date such documentation is provided to the Borrower and HOT-TX (or such later date as the Administrative Agent may agree).  The parties hereto agree that the Borrower and/or HOT-TX’s failure to execute and deliver such documentation will be an Event of Default under the Credit Agreement.

 

9.                                      REFERENCE TO THE CREDIT AGREEMENT.

 

(a)                                 Upon the effectiveness of this Agreement, each reference in the Credit Agreement to “this Agreement”, “hereunder”, or words of like import shall mean and be a reference to the Credit Agreement, as affected and amended hereby.

 

(b)                                 The Credit Agreement, as amended by the amendments referred to above, shall remain in full force and effect and is hereby ratified and confirmed.

 

10.                               COSTS, EXPENSES AND TAXES.  The Borrower agrees to pay on demand all reasonable costs and expenses of the Administrative Agent in connection with the preparation, reproduction, execution and delivery of this Agreement and the other instruments and documents to be delivered hereunder (including the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto).

 

11.                               GUARANTOR’S ACKNOWLEDGMENT.  By signing below, each Guarantor (a) acknowledges, consents and agrees to the execution, delivery and performance by HOT-TX, Borrower and Limited of this Agreement, (b) acknowledges and agrees that its obligations in respect of its Guaranty are not released, diminished, waived, modified, impaired or affected in any manner by this Agreement or any of the provisions contemplated herein, (c) ratifies and confirms its obligations under its Guaranty, and (d) acknowledges and agrees that it has no claims or offsets against, or defenses or counterclaims to, its Guaranty.

 

12.                               EXECUTION IN COUNTERPARTS.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which

 

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when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  For purposes of this Agreement, a counterpart hereof (or signature page thereto) signed and transmitted by any Person party hereto to the Administrative Agent (or its counsel) by facsimile machine or other electronic imaging means (e.g. “pdf” or “tif”) is to be treated as an original.  The signature of such Person thereon, for purposes hereof, is to be considered as an original signature, and the counterpart (or signature page thereto) so transmitted is to be considered to have the same binding effect as an original signature on an original document.

 

13.                               GOVERNING LAW; BINDING EFFECT.  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas applicable to agreements made and to be performed entirely within such state, provided that each party shall retain all rights arising under federal law, and shall be binding upon the parties hereto and their respective successors and assigns.  This Agreement is a Loan Document.

 

14.                               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.

 

15.                               ENTIRE AGREEMENT.  THE CREDIT AGREEMENT, AS AMENDED BY THIS AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL  AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL  AGREEMENTS BETWEEN THE PARTIES.

 

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

 

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IN WITNESS WHEREOF, this Agreement is executed as of the date first set forth above.

 

	
 
    	
HOT-TX (upon   effectiveness of this Agreement, HOT-TX will become Borrower):
    
	
 
    	
 
    
	
 
    	
HELEN OF TROY TEXAS CORPORATION,
    
	
 
    	
a Texas corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian Grass
    
	
 
    	
 
    	
Brian Grass
    
	
 
    	
 
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
BORROWER   (upon effectiveness of this Agreement, Borrower will become a Guarantor):
    
	
 
    	
 
    
	
 
    	
HELEN OF TROY L.P.,   a Texas limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
HELEN OF TROY NEVADA   CORPORATION, a Nevada corporation, General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian Grass
    
	
 
    	
 
    	
Brian Grass
    
	
 
    	
 
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LIMITED:
    
	
 
    	
 
    
	
 
    	
HELEN OF TROY LIMITED,   a Bermuda corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian Grass
    
	
 
    	
 
    	
Brian Grass
    
	
 
    	
 
    	
Chief Financial Officer
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
BANK OF AMERICA, N.A., as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Priscilla Ruffin
    
	
 
    	
Name:
    	
Priscilla Ruffin
    
	
 
    	
Title:
    	
AVP
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
BANK OF AMERICA, N.A., as   a Lender, L/C Issuer and Swing Line Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
Name:
    	
Illegible
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
JPMORGAN CHASE BANK,   N.A. as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Blakely Engel
    
	
 
    	
Name:
    	
Blakely Engel
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
BRANCH BANKING AND   TRUST COMPANY, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Allen K. King
    
	
 
    	
Name:
    	
Allen K. King
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
HSBC BANK USA, N.A., as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
Name:
    	
Illegible
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
SUNTRUST BANK, as a   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Justin Lien
    
	
 
    	
Name:
    	
Justin Lien
    
	
 
    	
Title:
    	
Director
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
COMERICA BANK, as a   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gerald R.   Finney, Jr.
    
	
 
    	
Name:
    	
Gerald R.   Finney, Jr.
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
FIFTH THIRD BANK, an   Ohio Banking Corporation, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
Name:
    	
Illegible
    
	
 
    	
Title:
    	
Director, Vice   President
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
CITIBANK, N.A., as a   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timicka C. Anderson
    
	
 
    	
Name:
    	
Timicka C. Anderson
    
	
 
    	
Title:
    	
Vice President and   Director
    

 

Signature Page to Second Amendment, Assumption, Consent and Ratification Agreement

 

 

	
 
    	
WELLS FARGO BANK,   NATIONAL ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
Name:
    	
Illegible
    
	
 
    	
Title:
    	
Vice President
    

 

 

	
 
    	
U.S. BANK NATIONAL   ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kara P. Van Duzee
    
	
 
    	
Name:
    	
Kara P. Van Duzee
    
	
 
    	
Title:
    	
Vice President
    

 

 

	
 
    	
BMO HARRIS BANK N.A.,   as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
Name:
    	
Illegible
    
	
 
    	
Title:
    	
Vice President
    

 

 

ACKNOWLEDGED AND AGREED PURSUANT TO SECTION 11 ABOVE:

 

	
GUARANTORS:
    
	
 
    
	
HELEN OF TROY L.P.,
    
	
a Texas limited   partnership
    
	
 
    
	
By: 
    	
HELEN OF TROY NEVADA   CORPORATION,
    
	
 
    	
a Nevada corporation,   General Partner
    
	
 
    
	
HELEN OF TROY LIMITED,
    
	
a Bermuda company
    
	
 
    
	
HELEN OF TROY LIMITED,
    
	
a Barbados corporation
    
	
 
    
	
HOT NEVADA, INC.,
    
	
a Nevada corporation
    
	
 
    
	
HELEN OF TROY NEVADA   CORPORATION,
    
	
a Nevada corporation
    
	
 
    
	
HELEN OF TROY TEXAS   CORPORATION,
    
	
a Texas corporation
    
	
 
    
	
IDELLE LABS LTD.,
    
	
a Texas limited   partnership
    
	
 
    
	
By:
    	
HELEN OF TROY NEVADA   CORPORATION,
    
	
 
    	
a Nevada corporation,   General Partner
    
	
 
    
	
OXO INTERNATIONAL LTD.,
    
	
a Texas limited   partnership
    
	
 
    
	
By:
    	
HELEN OF TROY NEVADA   CORPORATION,
    
	
 
    	
a Nevada corporation,   General Partner
    
	
 
    
	
PUR WATER PURIFICATION   PRODUCTS, INC.,
    
	
a Nevada corporation
    
	
 
    
	
KAZ, INC.,
    
	
a New York corporation
    
	
 
    
	
KAZ USA, INC.,
    
	
a Massachusetts   corporation
    
	
 
    
	
KAZ CANADA, INC.,
    
	
a Massachusetts   corporation
    
	
 
    
	
STEEL TECHNOLOGY, LLC,
    
	
an Oregon limited   liability company
    
	
 
    
	
HD HOLDING INC.
    
	
a Nevada corporation
    
	
 
    
	
By:
    	
/s/ Brian Grass
    	
 
    
	
 
    	
Brian L. Grass
    
	
 
    	
Title for all: Chief   Financial Officer
    

 

 

	
HELEN OF TROY MACAO   COMMERCIAL OFFSHORE LIMITED,
    
	
a Macau corporation
    
	
 
    
	
By:
    	
/s/ Vincent D. Carson
    	
 
    
	
 
    	
Name:
    	
Vincent D. Carson
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    

 

NOTARIAL CERTIFICATE OF Brian L. Grass

 

NOTARY PUBLIC DO HEREBY CERTIFY AND ATTEST that on the day of the date hereof personally came and appeared before me Brian L. Grass, the duly authorized Chief Financial Officer of Helen of Troy Limited, a Barbados corporation, one of the executing parties to the within written document and did in my presence sign and deliver the same as and for his free and voluntary act and deed.

 

IN FAITH AND TESTIMONY WHEREOF I the said Rosemary Vasquez have hereunto set and subscribed my name and caused my Seal of Office to be hereunto put and affixed this 27 day of February , 2018.Exhibit

Execution Version

THIRD AMENDMENT TO TERM LOAN AGREEMENT
THIS THIRD AMENDMENT TO TERM LOAN AGREEMENT (this “Amendment”) is effective as of March 6, 2018 among PNM RESOURCES, INC., a New Mexico corporation (the “Borrower”), the Lenders party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”).  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement (as defined below).
R E C I T A L S
WHEREAS, the Borrower, the Lenders party thereto and the Administrative Agent are parties to that certain Term Loan Agreement, dated as of March 9, 2015, as amended by the First Amendment to Term Loan Agreement, dated as of September 9, 2015 and as amended by the Second Amendment to Term Loan Agreement, dated as of November 2, 2016 (as so amended and as otherwise amended or modified from time to time, the “Loan Agreement”);
WHEREAS, the Borrower has requested a modification to the Loan Agreement as described below; and
WHEREAS, the Lenders party hereto are willing to agree to such modification, subject to the terms set forth herein as more fully set forth below.
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
A G R E E M E N T
1.    Amendments to Loan Agreement.
(a)The following definitions in Section 1.1 of the Loan Agreement are hereby amended to read as follows:
“Maturity Date” means June 8, 2018.
“Sanctioned Country” means, at any time, a country, region or territory which is itself subject to or the target of comprehensive country-wide Sanctions (at the time of this Loan Agreement, the Crimea region of Ukraine, Cuba, Iran, North Korea, Sudan, and Syria and Crimea).
“Sanctioned Person” means, at any time, (a) any Person listed in any publicly-available list of Persons designated as being subject to Sanctions, which lists are maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state, (b) any Person organized or resident in a Sanctioned Country or (c) any Person known by the Borrower or its Subsidiaries to be owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).
     (b)    The following definitions are hereby added to Section 1.1 of the Loan Agreement in appropriate alphabetical order to read as follows:

 

“Anti-Corruption Laws” means all laws, rules and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.
“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union, or any European Union member state.
“Third Amendment Effective Date” means March 9, 2018.
(c)    Section 2.1(a) of the Loan Agreement is hereby amended to read as follows:
(a)    Loan.  Subject to the terms and conditions of this Loan Agreement, the Lenders agree to make a term loan in Dollars to the Borrower on the Funding Date in an aggregate principal amount of $150,000,000 (the “Loans”).  The Lenders shall make the Loans to the Borrower by (i) advancing additional borrowings on the Third Amendment Effective Date and/or (ii) continuing portions of the Loans outstanding immediately prior to the Third Amendment Effective Date.  Amounts repaid or prepaid in respect of the Loans may not be reborrowed.  The Commitments of the Lenders shall terminate upon the making of the Loans on the Third Amendment Effective Date pursuant to this Section 2.1.
(d)    Section 6.7 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
(a)    Since December 31, 2017, except as disclosed in the Borrower’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2017, there has been no development or event relating to or affecting the Borrower or any of its Subsidiaries which would have or would reasonably be expected to have a Material Adverse Effect.
(b)    Since December 31, 2017, there has been no sale, transfer or other disposition by the Borrower or any of its Subsidiaries of any material part of its business or property, and no purchase or other acquisition by the Borrower or any of its Subsidiaries of any business or property (including the Capital Stock of any other Person) material in relating to the financial condition of the Borrower or any of its Subsidiaries, in each case which is not (i) reflected in the most recent financial statements delivered to the Lenders pursuant to Section 4.1(d) or 7.1 or in the notes thereto or (ii) otherwise permitted by the terms of this Loan Agreement and communicated to the Lenders.
(e)    Section 6.9 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
6.9    Litigation
Except as disclosed in the Borrower’s Annual Report on Form 10-K for the Fiscal year ended December 31, 2017, there are no actions, suits, investigations or legal, equitable, arbitration or administrative proceedings, pending or, to the knowledge of the Borrower, threatened against the Borrower or any of its Subsidiaries which would have or would reasonably be expected to have a Material Adverse Effect.

2

(f)    Section 6.20 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
6.20    Anti-Corruption Laws and Sanctions.
The Borrower has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance by the Borrower, any Subsidiary and their respective directors, officers and employees with the Anti-Corruption Laws and applicable Sanctions.  The Borrower, any Subsidiary and to the knowledge of the Borrower or such Subsidiary their respective officers, directors and employees, are in compliance with the Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any third party that will act in any capacity on behalf of or at the direction of the Borrower or any Subsidiary in connection with or will benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing, use of proceeds or other transactions by the Borrower or any Subsidiary contemplated by this Loan Agreement will knowingly violate any Anti-Corruption Law or applicable Sanctions.
(g)    Section 6.21 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
6.21    [Reserved].
(h)    Section 7.5 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
7.5    Compliance with Law.
(a)    The Borrower will comply (and will cause each of its Subsidiaries to comply) with all laws (including, without limitation, all Environmental Laws and ERISA laws), rules, regulations and orders, and all applicable restrictions imposed by all Governmental Authorities, applicable to it and its properties, if the failure to comply would have or would reasonably be expected to have a Material Adverse Effect.
(b)    Without limiting clause (a) above, the Borrower will, and will cause each of its Subsidiaries to, ensure that no person who owns a controlling interest in or otherwise controls the Borrower or any Subsidiary is or shall be a Sanctioned Person.
(c)    The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers and employees with the Anti-Corruption Laws and applicable Sanctions.
(d)    The Borrower shall, and shall cause each of its Subsidiaries to, provide such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in maintaining compliance with the PATRIOT Act.
(i)    The following sentence is hereby added at the end of Section 7.9 of the Loan Agreement to read as follows:
The Borrower will not request any Borrowing, and the Borrower shall not use, and shall use commercially-reasonable efforts to ensure that any Subsidiary and its or their respective 

3

directors, officers and employees shall not use, the proceeds of any Borrowing directly or, to the knowledge of the Borrower, indirectly (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person in violation of applicable Sanctions, or in any Sanctioned Country in violation of applicable Sanctions.
(j)    Schedule 1.1(a) to the Loan Agreement are hereby deleted in its entirety and replaced with Schedule 1.1(a) attached hereto.
2.    Effectiveness.

This Amendment shall be effective as of March 9, 2018 (the “Third Amendment Effective Date”)upon satisfaction of the following conditions precedent:

(a)    Receipt by the Administrative Agent of copies of this Amendment duly executed by the Borrower and each Lender.

(b)    Receipt by the Administrative Agent of the following:

(i)    Copies of the articles of incorporation of the Borrower certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its formation and copies of the bylaws of the Borrower certified by a secretary or assistant secretary (or the equivalent) of the Borrower to be true and correct as of March 6, 2018.

(ii)    Copies of resolutions of the board of directors of the Borrower approving and adopting this Amendment, the transactions contemplated herein and authorizing execution and delivery hereof, certified by a secretary or assistant secretary (or the equivalent) of the Borrower to be true and correct and in full force and effect as of March 6, 2018.

(iii)    An incumbency certificate of the Borrower certified by a secretary or assistant secretary (or the equivalent) of the Borrower to be true and correct as of March 6, 2018.

(c)    Receipt by the Administrative Agent of opinions of counsel from counsel to the Borrower (which may include in-house counsel with respect to matters of New Mexico law), in form and substance acceptable to the Administrative Agent, addressed to the Administrative Agent and the Lenders and dated as of March 6, 2018.

3.    Ratification of Loan Agreement.  The term “Loan Agreement” as used in each of the Loan  Documents  shall  hereafter  mean  the  Loan  Agreement  as  amended  and  modified  by  this Amendment.  Except as herein specifically agreed, the Loan Agreement, as amended by this Amendment, is hereby ratified and confirmed and shall remain in full force and effect according to its terms.  Each party hereto acknowledges and consents to the modifications set forth herein and agrees that, other than as explicitly set forth in Section 1 above, this Amendment does not impair, reduce or limit any of its obligations under the Loan Documents (including, without limitation, the indemnity obligations set forth therein)  and  that,  after  the  date  hereof,  this  Amendment  shall  constitute  a  Loan  Document.   The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided here

4

in, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents or constitute a waiver of any provision of any of the Loan Documents.

4.    Authority/Enforceability.  The Borrower represents and warrants as follows:
(a)    It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.
(b)    This Amendment has been duly executed and delivered by the Borrower and constitutes the Borrower’s legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).
(c)    No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by the Borrower of this Amendment, or, if required, any such consent, approval, authorization, order, filing, registration or qualification has been previously obtained or made.
5.    Representations and Warranties.  The Borrower represents and warrants to the Lenders that (a) the representations and warranties of the Borrower set forth in Section 6 of the Loan Agreement are true and correct as of the date hereof, unless they specifically refer to an earlier date, (b) no event has occurred and is continuing which constitutes a Default or an Event of Default, and (c) it has no claims, counterclaims, offsets, credits or defenses to its obligations under the Loan Documents, or to the extent it has any, they are hereby released in consideration of the Lenders party hereto entering into this Amendment.
6.    New Lender.

(a)    On the Third Amendment Effective Date, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (the “New Lender”) hereby agrees to provide a Commitment in the amount set forth on Schedule 1.1(a) attached hereto and the initial Pro Rata Share of the New Lender shall be as set forth therein. 

(b)    The New Lender (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Amendment and to consummate the transactions contemplated hereby and to become a Lender under the Loan Agreement, (ii) it meets all requirements of an Eligible Assignee under the Loan Agreement, (iii) from and after the Third Amendment Effective Date, it shall be bound by the provisions of the Loan Agreement as a Lender thereunder and, to the extent of its Commitment, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Loan Agreement, together with copies of the most recent financial statements delivered pursuant to Section 7.1 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment and to provide its Commitment on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a foreign lender, it has delivered to the Administrative Agent and the Borrower any documentation required to be delivered by it pursuant to the terms of the Loan Agreement, duly completed and executed by the New Lender; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent 

5

or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

(c)    The Borrower and the Administrative Agent agree that, as of the Third Amendment Effective Date, the New Lender shall (i) be a party to the Loan Agreement and the other Loan Documents, (ii) be a “Lender” for all purposes of the Loan Agreement and the other Loan Documents, and (iii) have the rights and obligations of a Lender under the Loan Agreement and the other Loan Documents.

(d)    The applicable address, facsimile number and electronic mail address of the New Lender for purposes of Section 11.1 of the Loan Agreement are as set forth in the New Lender’s Administrative Questionnaire delivered by the New Lender to the Administrative Agent on or before the date hereof or to such other address, facsimile number and electronic mail address as shall be designated by the New Lender in a notice to the Administrative Agent.

7.    Exiting Lenders.  The Commitments and outstanding Loans of Royal Bank of Canada, SunTrust Bank and U.S. Bank National Association (each, an “Exiting Lender”) under the Loan Agreement are hereby assigned and reallocated among the other Lenders in the manner provided in Schedule 1.1(a) attached hereto.  After giving effect to this Amendment, the Exiting Lenders shall no longer have any Commitments or outstanding Loans under the Loan Agreement.  Each Exiting Lender joins in the execution of this Amendment solely for purposes of acknowledging and consenting to the assignment and reallocation of its Commitments and Loans under the Loan Agreement.  Concurrently with the effectiveness of this Amendment, each Exiting Lender shall have received payment in full for all outstanding Obligations owing to it under the Loan Agreement.  Notwithstanding anything in the Loan Agreement or any other Loan Document to the contrary, all assignments and reallocations of Loans and Commitments pursuant to this Section 7 shall be deemed to be assignments made subject to and in compliance with Section 11.3 of the Loan Agreement (including, without limitation, the ‘Standard Terms and Conditions’ applicable to Assignments and Assumptions).
8.    No Conflicts.  The Borrower represents and warrants that the execution and delivery of this Amendment, the consummation of the transactions contemplated herein and in the Loan Agreement (before and after giving effect to this Amendment), and the performance of and compliance with the terms and provisions hereof by the Borrower will not (a) violate, contravene or conflict with any provision of its articles or certificate of incorporation, bylaws or other organizational or governing document, (b) violate, contravene or conflict with any law, rule, regulation (including, without limitation, Regulation U and Regulation X), order, writ, judgment, injunction, decree or permit applicable to the Borrower, (c) violate, contravene or conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which the Borrower is a party or by which it or its properties may be bound, the violation of which would have or would reasonably be expected to have a Material Adverse Effect or (d) result in or require the creation of any Lien upon or with respect to the Borrower’s properties.
9.    Counterparts/Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of executed counterparts by telecopy or by electronic format (pdf) shall be effective as an original.

6

10.    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
[remainder of page intentionally left blank]

Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.
BORROWER:

PNM RESOURCES, INC.,
a New Mexico corporation
By: /s/ Elisabeth Eden                
Name: Elisabeth Eden
Title: Vice President and Treasurer

ADMINISTRATIVE AGENT:

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and a Lender
By: /s/ Gregory R. Gredvig            
Name: Gregory R. Gredvig
Title:   Director

NEW LENDERS:
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
as a New Lender

By: /s/ Eric Otieno                
Name: Eric Otieno
Title:   Vice President

EXITING LENDERS:
ROYAL BANK OF CANADA,
as an Exiting Lender

By: /s/ Frank Lambrinos                
Name: Frank Lambrinos
Title:   Authorized Signatory

SUNTRUST BANK,
as an Exiting Lender

By: /s/ Yann Pirio                
Name: Yann Pirio
Title:   Managing Director

U.S. BANK NATIONAL ASSOCIATION,
as an Exiting Lender

By: /s/ Holland H. Williams            
Name: Holland H. Williams
Title:   Vice President

SCHEDULE 1.1(a)
PRO RATA SHARES

	
			
	Lender
	Commitment
	Pro Rata Share

	Wells Fargo Bank, National Association
	$75,000,000.00
	50.000000000%

	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	$75,000,000.00
	50.000000000%

	TOTAL
	$150,000,000.00
	100.000000000%

7

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