Document:

Exhibit 10.6

 

SUBSIDIARY BORROWER JOINDER AGREEMENT

(MEMORIAL PET CARE, INC.)

 

THIS SUBSIDIARY BORROWER JOINDER AGREEMENT (this “Joinder
Agreement”) is made and entered into as of December 15, 2004 by MEMORIAL
PET CARE, INC., an Idaho corporation (“Subsidiary”), and BANK OF
AMERICA, N.A., as agent under the Credit Agreement (as hereinafter defined)
(the “Agent”).  Capitalized terms
used herein without definition shall have the meanings assigned to those terms
in the Credit Agreement.

 

W  I
T  N  E  S  S  E  T  H

 

WHEREAS, MWI Veterinary Supply Co., an Idaho
corporation (the “Borrower”), the financial institutions from time to
time party thereto (together with their respective successors and assigns, the “Lenders”)
and the Agent have entered into that certain Credit Agreement, dated as of June 18,
2002 (as the same has heretofore been or may hereafter be amended,
supplemented, restated, amended and restated or otherwise modified from time to
time, the “Credit Agreement”), providing for extensions of credit to be made by
the Lenders to the Borrower and the issuance of Letters of Credit for the
account of the Borrower and, upon satisfaction of the conditions set forth in
the Credit Agreement, to Subsidiaries of the Borrower which become Subsidiary
Borrowers thereunder;

 

WHEREAS, pursuant to Section 7.28(c) of the
Credit Agreement, Subsidiary has been designated as a Subsidiary Borrower under
the Credit Agreement and is required to enter into such other Credit Documents
as are executed by the Borrower; and

 

WHEREAS, the Borrower and Subsidiary desire that
Subsidiary become a “Subsidiary Borrower” under the Credit Agreement in
accordance with the terms thereof and enter into such other Loan Documents as
are necessary or desirable to grant to the Agent, for the benefit of the
Lenders, Liens on and security interests in the assets of Subsidiary;

 

NOW THEREFORE, in consideration of the foregoing and
to induce the Agent and the Lenders to allow Subsidiary to become a “Subsidiary
Borrower” under the Credit Agreement and the other Loan Documents, Subsidiary
agrees as follows:

 

AGREEMENT

 

1.                                       Joinder
to Credit Agreement and other Loan Documents.  Subsidiary hereby agrees that by its
execution and delivery to the Agent of this Joinder Agreement, it shall become
a “Subsidiary Borrower” under the Credit Agreement and the other Loan Documents
listed on Schedule I hereto and hereby expressly and unconditionally
assumes and agrees to pay, perform and discharge all of the obligations and
liabilities as a “Subsidiary Borrower” thereunder, with the same effect as if
the Credit Agreement and such other Loan Documents had been executed and
delivered initially by

 

 

Subsidiary to the
Agent.  Without limiting the generality
of the foregoing, attached hereto as Schedule II, are all such schedules,
exhibits, annexes, appendices or other attachments to the Credit Agreement and
such other Loan Documents as are required to be delivered thereunder or
required to make the representations, warranties and covenants of the Borrower
true, complete and correct.  This Joinder
Agreement shall constitute a Loan Document.

 

2.                                       Grant
of Security Interest; Guaranty. 
Without limiting the provisions of Section 1 above, Subsidiary
acknowledges that by its execution and delivery of this Joinder Agreement, it
shall become a “Pledgor” under the Pledge Agreement, and a “Grantor” under the
Security Agreement executed by Borrower, each dated as of June 18, 2002,
as such agreements have been amended, supplemented, amended and restated or
otherwise modified prior to the date hereof. 
In furtherance thereof, Subsidiary hereby grants to the Agent for its
benefit and the ratable benefit of the Lenders a security interest in and Lien
upon all of its right, title and interest in the assets, now owned or hereafter
acquired, which are “Pledged Collateral” under such Pledge Agreement and “Collateral”
under such Security Agreement, with the same effect as if such Loan Documents
had been initially executed and delivered by it to the Agent.

 

3.                                       Additional
Loan Documents.  On or prior to the date
hereof, Subsidiary shall have executed and delivered to the Agent a Revolving
Note and a CapEx Note for each Lender and such financing statements,
intellectual property security agreements or assignments, mortgages, deeds of
trust, bank account control agreements and other documents as are necessary or
which the Agent deems desirable to grant to the Agent a perfected first
priority security interest in Subsidiary’s assets, and the Borrower shall have
executed and delivered to the Agent a Pledge Amendment to the Pledge Agreement,
together with stock certificates or other certificated securities, accompanied
by stock powers duly endorsed in blank, evidencing all of the issued and
outstanding capital stock or other equity interests of Subsidiary which are certificated
(or a control agreement, in form satisfactory to the Agent with respect to
uncertificated interests), and Subsidiary shall have delivered to the Agent all
promissory notes and other instruments in favor of Subsidiary, with all
endorsements deemed necessary or advisable by the Agent, evidencing each of the
notes and other instruments pledged by Subsidiary under the Loan Documents In
addition, on or prior to the date hereof, the Borrower or Subsidiary shall
have, or caused to be, provided to the Agent, the acquisition documents,
certificates, lien search results and other documents required to be provided
to the Agent under the Loan Documents including, without limitation, under Section 7.28
of the Credit Agreement, in connection with a Permitted Acquisition. .

 

4.                                       Unconditional
Joinder.  Subsidiary acknowledges
that Subsidiary’s obligations as a party to this Joinder Agreement are
unconditional and are not subject to the execution of one or more Joinder
Agreements or any other Loan Documents by other Subsidiaries of the Borrower or
any other Person.

 

5.                                       Reliance.  The Agent and the Lenders shall be entitled
to rely on this Joinder Agreement as evidence that Subsidiary has joined (i) as
a “Subsidiary Borrower” and a “Loan Party” under the Credit Agreement and the
other Loan

 

 

Documents listed
on Schedule I hereto and is fully obligated thereunder as a Subsidiary
Borrower and a Loan Party, (ii) as “Grantor” under the Security Agreement and
(iii) as a “Pledgor” under the Pledge Agreement, and is fully obligated in each
such capacity under each of such Loan Documents.

 

6.                                       Representations
and Warranties.  Subsidiary hereby
represents and warrants that it has reviewed the terms of the Credit Agreement
and the other Loan Documents.  Subsidiary
also represents and warrants that, after giving effect to the schedules set
forth on Schedule II hereto, all representations and warranties of the
Borrower set forth in the Loan Documents are true, correct and complete with
respect to Subsidiary.  Subsidiary
further represents and warrants that Subsidiary was in compliance with, and
upon delivery of this Joinder Agreement shall be in compliance with, all
agreements, affirmative covenants and negative covenants contained in the Loan
Documents applicable to Subsidiary as a Subsidiary Borrower or a Loan Party or
a Subsidiary of the Borrower, including without limitation in the Credit
Agreement and each of the Loan Documents listed on Schedule I hereto.  Subsidiary shall execute and deliver all
other documents, agreements and instruments required to be executed by a
Subsidiary Borrower under the terms of the Credit Agreement and the other Loan
Documents.

 

7.                                       Consent.  Upon satisfaction of the conditions set forth
in Section 7.28(c) of the Credit Agreement, Subsidiary shall have all of
the rights and interests of a Subsidiary Borrower or a Loan Party under the
Credit Agreement and the other Loan Documents with the same effect as if the
Credit Agreement and such other Loan Documents had been initially entered into
by Subsidiary with, or for the benefit of, the Agent and the Lenders.

 

8.                                       Incorporation
by Reference.  All terms and
conditions of the Credit Agreement and the other Loan Documents applicable to
any Subsidiary Borrower, any Loan Party or any Subsidiary of the Borrower under
the Credit Agreement and the other Loan Documents including, without
limitation, all applicable representations, warranties, covenants, indemnities,
guaranties and other obligations thereunder, are hereby incorporated by
reference in this Joinder Agreement as if set forth in full.

 

9.                                       GOVERNING
LAW.  THIS AGREEMENT SHALL BE
INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN
ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICT OF LAWS
PROVISIONS PROVIDED THAT PERFECTION ISSUES WITH RESPECT TO ARTICLE 9 OF
THE UCC MAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH
IN ARTICLE 9 OF THE UCC) OF THE STATE OF NEW YORK; PROVIDED THAT THE AGENT
AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

10.                                 Address
for Notices.  All notices, requests
and other communications to Subsidiary hereunder or under any other Loan
Document shall be in

 

 

writing, addressed
to the Borrower at the address set forth in, and shall be deemed delivered in
accordance with, the Credit Agreement.

 

11.                                 Counterparts.  This Joinder Agreement may be executed in any
number of counterparts, and by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but
all of which counterparts together shall constitute but one and the same
instrument.

 

12.                                 Severability.  The provisions of this Joinder Agreement are
severable, and if any clause or provision shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof,
in such jurisdiction and shall not in any manner affect such clause or
provision in any other jurisdiction, or any other clause or provision of this
Joinder Agreement in any jurisdiction.

 

13.                                 Headings.  The headings in this Joinder Agreement are
for purposes of reference only and shall not otherwise affect the meaning or
construction of any provision of this Joinder Agreement.

 

14.                                 Final
Expression.  This Joinder Agreement,
together with the Credit Agreement and the other Loan Documents, constitute the
final, entire agreement among the parties hereto and thereto and supersede any
and all prior commitments, agreements, representations and understandings,
whether written or oral, relating to the subject matter hereof and thereof and
may not be contradicted or varied by evidence of prior, contemporaneous, or
subsequent oral agreements or discussions of the parties hereto.  There are no oral agreements among the
parties hereto.

 

15.                                 Binding
Effect.  This Joinder Agreement shall
be binding on and inure to the benefit of the heirs, executors, administrators,
legal representatives, successors and assigns of the parties; provided,
however that Subsidiary may not assign or transfer its interest under this
Joinder Agreement, the Credit Agreement or any of the other Loan Documents
without the prior written consent of the Agent and the Lenders in accordance
with the Credit Agreement.

 

 

IN WITNESS WHEREOF, each of the undersigned has caused
this Joinder Agreement to be duly executed and delivered by it as of the day
and year first above written.

 

 

	
   

  	
  MEMORIAL
  PET CARE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  	
  Mary Pat Thompson

  	
   

  
	
   

  	
  Name:

  	
  Mary Pat Thompson

  
	
   

  	
  Title:

  	
  VP
  and CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, N.A., as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Steven W. Sharp

  	
   

  
	
   

  	
  Name:

  	
  Steven W. Sharp

  
	
   

  	
  Title:

  	
  Vice
  President

  
						

 

 

CONSENT OF BORROWER AND
GUARANTOR

 

Each of the undersigned, as a Borrower under the
Credit Agreement and the other Loan Documents referred to in the foregoing
Joinder Agreement, or as a guarantor under the Guaranty, hereby acknowledges
that by the execution, delivery and performance of the Joinder Agreement by
Subsidiary and the Agent, Subsidiary has become a Subsidiary Borrower and a
Loan Party under the Loan Documents. The execution and delivery of the Joinder
Agreement shall not impair the Obligations and liabilities of the undersigned
to the Agent and the Lenders, and each of the undersigned acknowledges that the
Credit Agreement and the other Loan Documents executed by it remain in full
force and effect, enforceable against the undersigned in accordance with their
respective terms.

 

	
   

  	
  MWI
  VETERINARY SUPPLY CO.,

  
	
   

  	
  an
  Idaho corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Mary
  Pat Thompson

  	
   

  
	
   

  	
  Name:

  	
  Mary
  Pat Thompson

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MWI
  HOLDINGS, INC., a Delaware

  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Mary
  Pat Thompson

  	
   

  
	
   

  	
  Name:

  	
  Mary
  Pat Thompson

  
	
   

  	
  Title:

  
							

 

 

ACKNOWLEDGMENT

 

The undersigned hereby acknowledges receipt of a copy
of that certain Pledge Agreement, dated June 18, 2002 by and among MWI
Veterinary Supply Co. in favor of Bank of America, N.A., as Agent (the “Pledge
Agreement”) and agrees as follows:

 

1.                                       The
undersigned will promptly note on its books and records the Liens granted under
the Pledge Agreement, and waives any rights or requirements at any time
hereafter to receive a copy of such Pledge Agreement in connection with the
registration of the Pledged Collateral (as defined in the Pledge Agreement) in
the name of the Agent or the exercise of voting rights by the Agent.

 

2.                                       The
undersigned will be bound by the terms of the Pledge Agreement and will comply
with such terms to the extent such terms are applicable to the undersigned.

 

	
   

  	
  MEMORIAL
  PET CARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Mary
  Pat Thompson

  	
   

  
	
   

  	
  Name:

  	
  Mary
  Pat Thompson

  
	
   

  	
  Title:

  	
  VP
  and CFOExhibit 10.7

 

CAPEX NOTE

 

	
  $1,637,931.00

  	
   

  	
  December 15,
  2004

  

 

FOR VALUE RECEIVED, the undersigned, MWI
VETERINARY SUPPLY CO., an Idaho corporation and MEMORIAL PET CARE, INC., an
Idaho corporation (the “Borrower”) jointly and severally promise to pay
to the order of BANK OF AMERICA, N.A. (the “Lender”) at the office of
Bank of America, N.A., at 55 South Lake Avenue, Suite 900, Pasadena,
California 91101, as Agent (in its capacity as agent, the “Agent”) for
the financial institutions from time to time parties to that certain Credit
Agreement (as defined below), in lawful money of the United States of America
and in immediately available funds, the principal amount of One Million, Six
Hundred Thirty-Seven Thousand, Nine Hundred Thirty-One Dollars ($1,637,931.00),
or such lesser amount as may then constitute the unpaid aggregate principal
amount on the Termination Date of the Loans made to the Borrowers.

 

The Borrowers further agree to pay interest
at said office, in like money, on the unpaid principal amount owing hereunder
from time to time from the date hereof on the dates and at the rate specified
in Article 2 of the Credit Agreement.

 

If any payment on this promissory note
becomes due and payable on a day other than a Business Day, the maturity
thereof shall be extended to the next succeeding Business Day, and with respect
to payments of principal, interest thereon shall be payable at the then
applicable rate during such extension.

 

This promissory note is one of the Notes
referred to in the Credit Agreement, dated as of June 18, 2002, by
and among MWI VETERINARY SUPPLY CO., an Idaho corporation, as the Borrower, the
Agent and the Lenders, as amended by that certain First Amendment to Credit
Agreement dated as of August 13, 2002 and by that certain Second Amendment
to Credit Agreement dated as of the date hereof (as so amended, and as may be
further amended supplemented, amended and restated or otherwise modified from
time to time, the “Credit Agreement”). 
Capitalized terms used herein without definition shall have the meanings
given to such terms in the Credit Agreement. 
The Credit Agreement, among other things, provides for the making of
Loans by the Lenders to the Borrowers from time to time in an amount not to
exceed such Lender’s Pro Rata Share of Availability.

 

Upon the occurrence of any one or more of the
Events of Default specified in the Credit Agreement, all amounts then remaining
unpaid on this promissory note shall become, or may be declared to be,
immediately due and payable, all as provided therein.

 

This promissory note is secured by security
agreements and other collateral documents pursuant to the Credit Agreement.

 

The Borrower hereby waives presentment,
demand, protest and notice of any kind. 
No failure to exercise, and no delay in exercising, any rights hereunder
on the part of the holder hereof shall operate as a waiver of such rights.

 

 

This Note is issued in replacement of, and
not in repayment of, one or more original notes dated September 28, 2004,
and issued pursuant to the Credit Agreement. 
This Note is not assignable or otherwise transferable except in
accordance with the Credit Agreement.

 

 

THE VALIDITY, INTERPRETATION AND ENFORCEMENT
OF THIS PROMISSORY NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

	
   

  	
  MWI VETERINARY SUPPLY, CO.,

  an Idaho Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Pat B. Thompson

  	
   

  
	
   

  	
  Name:

  	
  Mary Pat B. Thompson

  	
   

  
	
   

  	
  Title:

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEMORIAL PET CARE, INC.,

  an Idaho Corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Pat B. Thompson

  	
   

  
	
   

  	
  Name:

  	
  Mary Pat B. Thompson

  	
   

  
	
   

  	
  Title:

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  

 

[Note - Bank of America, N.A.]

 

S-1

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