Document:

Exhibit 10.28

 

[*] Indicates that certain information in this exhibit has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

IVECO TECHNOLOGY LICENCE AGREEMENT

 

This Agreement is made and signed by and between:

 

Nikola Iveco Europe B.V. (hereinafter referred to as the “JVC”), a company duly incorporated and existing under the laws of Netherlands and having its legal address at Wanraaij 9, 6673DM Andelst,

 

and

 

IVECO S. p. A. (hereinafter referred to as “IVECO”), a company duly incorporated and existing under the laws of Italy and having its legal address at 35, Via Puglia, 10156 Turin, Italy,

 

Nikola Corporation, a corporation duly organized and validly existing under the laws of Delaware, having its principal place of business at Phoenix, Arizona (“Nikola”) (solely with respect to Sections 4.3, 4.4, 4.5, and 4.6)

 

Whereas, JVC is a company established by Nikola Corporation and Iveco based on the Master Industrial Agreement dated as of September 3, 2019 (the “Master Agreement”) and European Alliance Agreement dated as of September 30, 2019 (the “EAA”) for the purposes of designing, development, engineering and manufacturing of battery-electric heavy-duty trucks (“BEV”) and hydrogen heavy-duty trucks (“FCEV”) in the Territory;

 

Whereas, pursuant to Section 2.3 c), subsection (v) of the EEA Iveco shall grant to JVC a non-exclusive, royalty-free, non-sublicensable, non-assignable, irrevocable (solely until the termination or expiration of the EAA final term) license to Deploy BEVs and FCEVs in the Territory in accordance with the terms of the EAA;

 

Whereas, Iveco and JVC wish this Agreement to record and confirm their intention to stipulate terms and conditions of the Iveco IP License, as defined in the EAA;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

 

1.                                      Definitions

 

In this Agreement the following words and expression shall have the meaning ascribed to them herein below:

 

1.1                               “Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with such specified Person, and any other Person specifically identified and mutually agreed upon by the Parties;

 

 

1.2                               “Ancillary Agreements” have the meaning given to it in Article I (Definitions) of the Master Agreement;

 

1.3                               “Control” means, with respect to the Person, the direct or indirect ownership of more than fifty percent (50%) of the stock or other equity interests having voting or other rights to direct the management of such entity;

 

1.4                               “Currently Existing” shall mean in use in products sold or under development to the extent included as an IVECO product as of the execution hereof;

 

1.5                               “Deploy” and “Deployment” mean to use design, develop, engineer, manufacture, have manufactured, assemble, service and sell, including with respect to spare parts and components;

 

1.6                               “Europe” means the following countries:  Albania, Andorra, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Gibraltar (UK), Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, the Netherlands, Norway, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Tajikistan, Turkey, Turkmenistan, Ukraine, United Kingdom, Uzbekistan, Vatican City State;

 

1.7                               “First Category of Parts and Components” shall mean the parts and components developed by and the industrial property which is vested with IVECO and manufactured by IVECO itself and/or by third parties stated in Annex D hereto.

 

1.8                               “Improvement” means collectively any upgrades, modifications and enhancements to the Licensed Iveco Technology made during the term of this Agreement (which typically involve: (1) product cost reduction initiatives, (2) improvements designed to optimize product performance, or (3) non-material adaptation work for new supplier items). Improvement specifically excludes Intellectual Property created from more significant investments such as new platforms or platform versions.

 

1.9                               “Intellectual Property” or “IP” means (i) inventions, discoveries and ideas, and all patents, registrations and applications therefor, including without limitation divisionals, continuations, continuations-in-part and renewal applications, and applications claiming priority thereto (including US provisional applications and US utility applications that claim priority to US provisional applications), and including without limitations renewals, extensions, re-examinations and reissues (collectively “Patents”); (ii) confidential and proprietary information, trade secrets and know-how, including without limitation processes, schematics, databases, formulae, drawings, prototypes, models and designs (collectively “Trade Secrets”); and (iii) published and unpublished works of authorship including without limitation computer software (source code and object code to the extent owned by IVECO or JVC, as the case may be), copyrights therein and thereto, and registrations and applications therefor, and all renewals, extensions, restorations and reversions thereof  (collectively “Copyrights”);

 

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1.10                        “IVECO Standards” means the quality standards and procedures adopted by IVECO to meet S-Way missions;

 

1.11                        “Parties” means the JVC and IVECO (and for the named clauses hereof, Nikola), while “Party” shall mean either the JVC or IVECO (or for the named clauses hereof, Nikola).

 

1.12                        “Person” means an individual, corporation, limited liability company, partnership, limited partnership, syndicate, person, trust, association or entity or government, political subdivision, agency or instrumentality of a government;

 

1.13                        “Second Category of Parts and Components” means the parts and components designed by third parties and manufactured by third parties stated in Annex D hereto.

 

1.14                        “Start(ing) of Production” means the starting of the production of vehicles or products for sale or transfer to third parties, as jointly certified by the Parties, provided that once such product or vehicle has received all the internal authorizations and met all the internal controls before its industrial production and such product has received any prescribed homologation, permit or administrative license. For the avoidance of doubt, sale or transfer (even against consideration) of prototypes or pre-series vehicles or products do not constitute Start of Production.

 

1.15                        “Sub-supplier” of a Party means a third party that such Party has sub-contracted to manufacture parts and components described under this Agreement.

 

1.16                        “S-Way Platform and Product” means IVECO’s S-Way platform, including further product portfolio development currently envisaged by IVECO in the framework of the Deployment of the S-Way family of heavy truck vehicles in the Territory only which (i) does not include any powertrain related component (e.g. engine, clutch, transmission, after treatment systems and components), and (ii) includes the semi-articulated versions of the heavy duty truck sold by IVECO under S-Way name and its variants (4x2, 6x2, 6x4, including all cab versions), but not all wheel drive variants).

 

1.17                        “Territory” means Europe;

 

1.18                        “Third Category of Parts and Components” means the parts and components designed by IVECO in co-design with third parties and manufactured by third parties stated in Annex D hereto.

 

2.                                      Scope of the Agreement

 

2.1                               Technology and Product Sharing

 

2.1.1                     IVECO shall make available to JVC information and other materials described in Annex C (hereinafter referred to as “Technical Documentation”) related to:

 

(a)                                 The Currently Existing Iveco S-Way Platform and Product;

 

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(b)                                 The Currently Existing vehicle models: S-Way and its variants (4x2, 6x2, 6x4, including all cab versions) excluding any powertrain or related components, in each case, as described in Annex A and all-wheel drive variants (items sub (a) and (b) collectively referred to as the “Key Technology”);

 

(c)                                  Currently Existing technology in substitution or replacement of Key Technology in the event that any program associated with the development of Key Technology is cancelled or modified, but only to the extent that substitution or replacement occurs prior to the time of incurring material cancellation costs (i.e. obligations for production tooling) with respect to the original program; and

 

(d)                                 A listing of all Patents as defined in clause 1.9 existing as of March 31, 2020 and owned by IVECO relating to the S-Way Platform and Product, provided in Annex B (items sub (a) — (d) collectively, “Disclosed Technology”).  IVECO shall update Annex B periodically.

 

The Parties declare that all above stated Technical Documentation was provided by IVECO to JVC as of execution hereof.

 

2.2                               Technology/IP Licence

 

2.2.1                     IVECO on behalf of itself and its Affiliates will grant and hereby grants to JVC a non-exclusive, royalty-free, non-sublicensable (except as set forth in Section 3), non-transferable and non-assignable licence in and to the Disclosed Technology and all IP related to the Iveco S-Way Platform and Product, to the extent owned and controlled by IVECO or its Affiliates, to be utilized by JVC solely for use in the Territory, solely for the Deployment of a FCEV or BEV, in each case, to the extent IVECO has the right to grant such rights without further payment or obligation to any third party (the “Licensed Iveco Technology”) subject to termination in accordance with this Agreement and termination of the Master Agreement (the “Licence”).

 

For avoidance of doubt, the License includes the following rights:

 

(a)                                 the non-exclusive use of the Key Technology to manufacture and assemble only in Europe the FCEV or BEV;

 

(b)                                 the non-exclusive use of the Key Technology to manufacture and assemble only in Europe the First Category of Parts and Components;

 

(c)                                  the ability to grant sub-licenses to JVC’s Sub-suppliers in the Territory, subject to and as further described in Section 3, for the use of the Key Technology for the sole purpose of manufacturing the First Category of Parts and Components to be supplied to JVC; and the non-exclusive distribution, sale (including offering for sale) and service in the Territory of the FCEVs or BEVs derived from the Key Technology provided by IVECO subject to JVC’s obligation to sell such trucks exclusively to IVECO or its Affiliates .

 

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For avoidance of doubt, the Licensed Iveco Technology includes but is not limited to all Intellectual Property owned by IVECO covering the S-Way Platform and Product, as detailed in Annex D (for illustrative purposes only), with reference to the First Category of Parts and Components.

 

2.2.2                     Upon IVECO’s request, JVC shall grant IVECO full transparency about price and terms and conditions of the Sub-suppliers. In the event that IVECO needs to purchase the parts and components derived from the Key Technology, IVECO shall buy them directly from JVC unless otherwise agreed in writing by the Parties. JVC will supply such parts and components to IVECO [*].

 

2.2.3                     The Licensed Iveco Technology does not include any IP owned by third parties (other than other CNH Industrial N.V. group companies with respect to parts and components of the S-Way Platform and Product), as detailed in Annex D, with reference to the Second and Third Category of Parts and Components. The Second and Third Category of Parts and Components will be sourced by JVC from the Iveco suppliers.

 

3.                                      Sublicensing

 

3.1                               Subject to IVECO’s written consent (which will not be unreasonably withheld) and appropriate confidentiality obligations to implement rights granted under this Agreement and the other Ancillary Agreements, JVC shall have the right to sublicense the Licensed Iveco Technology solely to JVC’s wholly owned subsidiaries, Sub-suppliers and third party engineering services providers (wherever located), in each case, solely for the purpose of providing services or components to JVC in connection with the development of the FCEVs or BEVs. JVC will be responsible for any uses of the Licensed Iveco Technology by any of its sub-licensees in a manner that would contitute a breach of this Agreement. For the avoidance of doubt, IVECO’s refusal to grant permission to JVC to sublicense to other OEMs will not be deemed “unreasonable” for the purposes of this Agreement.

 

3.2                               IVECO will grant the right to JVC to use the excess of capacity of the vendor tooling (i.e. tools owned by IVECO and placed in the Sub—supplier’s premises used for production of components) on a free of charge basis and the tooling will remain exclusive property of IVECO and assigned to a Sub-supplier under the sole discretion of Iveco. This will be regulated with a written authorization to the Sub-suppliers operating the concerned tooling. IVECO will be entitled to call back the authorization on the usage of excess capacity at its own discretion if needed to satisfy IVECO volume requirements; provided, however, that Iveco shall provide the JVC with at least six (6) months’ notice of such call back.

 

In the event that the sourcing of a component includes a vendor tooling owned by IVECO with excess capacity that require any modification due to a design change according to article 4 below, IVECO will retain the right at its sole discretion to authorize the modification of the tooling and [*].

 

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4.                                      Improvements and New Technology

 

4.1                               The Parties will each have full access to any Improvements to any Licensed Iveco Technology under the terms set out below.

 

4.2                               JVC’s licence to and right in the Licensed Iveco Technology automatically extends (at no cost) to any Improvements to the Licensed Iveco Technology developed during the term of this Agreement.

 

4.3                               JVC will own all Intellectual Property rights in and to each Improvement that it makes or has made on its behalf in respect of the Licensed Iveco Technology. In respect of such Improvements JVC hereby grants, A)  to IVECO and its Affiliates and B) to Nikola and its Affiliates an assignable, sublicensable, worldwide, fully paid up, royalty free perpetual and irrevocable right and licence under any and all Improvements made with respect to Licensed Iveco Technology to Deploy any products and services of IVECO or any of its current Affiliates and Nikola or any of its current Affiliates.

 

4.4                               IVECO and JVC will own jointly and independently, with no duty of accounting to each other, any Improvement for which IVECO and JVC jointly share development costs. IVECO, JVC and Nikola will own jointly and independently, with no duty of accounting to each other, any Improvement for which IVECO, JVC and Nikola jointly share development costs. Each Party’s rights and obligations under such jointly owned Intellectual Property shall be agreed upon prior to putting such Improvement into production.  IVECO, JVC and NIKOLA each assigns to each other an undivided joint ownership interest in and to such jointly owned Improvements under this Section 4.4.

 

4.5                               JVC shall use commercially reasonable efforts to require that any Sub-supplier that is sub-licenced to use any Licensed Iveco Technology expressly assign to JVC any Intellectual Property developed that would constitute Improvements. If and to the extent any such Intellectual Property rights in or to any Improvements belong to Sub-suppliers, JVC shall use commercially reasonable efforts to cause the applicable Sub-suppliers to grant to IVECO/CNH Industrial and Nikola a worldwide, royalty free, assignable and perpetual licence for use of such Improvements for any purpose. Without impacting the project timeline, JVC shall work in good faith with IVECO and Nikola to jointly define the terms and conditions by which IVECO and Nikola will be permitted to exploit and use Improvements before starting any discussion with the Sub-suppliers.

 

4.6                               With respect to any technology developed for or by JVC that relates to the Licensed Iveco Technology and does not qualify as an Improvement (hereinafter referred to as a “New Technology”), the Parties may agree to jointly and independently own such New Technology JVC by agreeing to share in the development costs of such New Technology either through (i) an upfront contribution of development costs, or (ii) a market-based royalty. Determination of development costs sharing percentage and market royalty rates will be subject to mutual agreement. The Parties shall further agree on reasonable procedures to facilitate each Party’s ability to exercise its rights to any Improvements and New Technology created during the term of this Agreement.

 

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4.7                               Except as otherwise expressly set forth in this Agreement, investments and expenditures that are necessary or advisable in order for the JVC to exploit the Licensed Iveco Technology shall be borne by the JVC.

 

5.                                      Technical and Manufacturing Information Sharing

 

5.1                               The Parties will share all technical, manufacturing and service-related information reasonably needed to exercise any rights granted hereunder including any material updates or amendments to such information which are implemented in such Party’s corresponding production, subject to the confidentiality provisions of this Agreement. The Parties shall agree to reasonably support timely mutual access to appropriate technical or business personnel of the other party or its suppliers.

 

6.                                      Homologation

 

6.1                               Any activity related to (or necessary because of) the homologation of BEVs and FCEVs incorporating Licensed Iveco Technology or arising from the S-Way Platform and Product in the Territory will be the sole responsibility of IVECO and solely IVECO will bear all related costs and expenditures. JVC shall provide all necessary support to IVECO in relation to the homologation procedures.

 

7.                                      Quality

 

7.1                               Minimum requirements of each vehicle manufactured by the JVC under this Agreement will meet at least the then existing IVECO Standards; provided that in the event local legislation or law or applicable best practice will require higher quality standards, JVC will meet such higher standards and any additional requirement associated cost will be the responsibility of the JVC.

 

7.2                               JVC will be responsible for any cost related to managing such quality standards on its uniquely tooled components or assembly process/equipment. The Parties will establish a process and appropriate quality systems interfaces to share pre-build and post-build quality data on an on-going basis to minimize resolution time in addressing quality issues and to minimize impact to customers.

 

7.3                               Each Party will provide to the other Party all reasonably requested quality information regarding the applicable vehicle or component.

 

8.                                      Ownership, Warranties and Infringment

 

8.1                               IVECO guarantees that it is the legal owner of the Licensed Iveco Technology and it is entitled to licence it to JVC.

 

8.2                               In the event a claim is presented by a third party against JVC, alleging that the use by JVC of any part of the Licensed Iveco Technology licensed hereunder by IVECO to JVC is infringing property rights belonging to such third party, JVC shall immediately notify IVECO and IVECO shall bear all the economic and legal responsibility thereof.

 

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8.3                               In the event a claim is presented by any customer of JVC against JVC, alleging that a defect has caused losses to him, once it is proved that such losses are caused by defect(s) of the Licensed Iveco Technology, other than defects that arise from modifications to the design made by JVC or related to the different applications, fully validated mission, systems or components affecting Licensed Iveco Technology, licensed herein by IVECO to JVC, IVECO then shall compensate JVC for any proven cost borne by JVC thereof.

 

8.4                               Upon notification (including reasonable evidence on the reason of the claim) by JVC, IVECO shall determine whether IVECO will take legal action against the potential unauthorized infringement by any third party of the Licensed Iveco Technology, Patents or Trademarks.  IVECO has sole responsibility for enforcing its intellectual property rights in Licensed Iveco Technology against third party infringers. JVC shall provide necessary support and information to IVECO to properly defend IVECO IP rights.

 

9.                                      Vehicle Warranty, Recalls and Service Campaigns

 

9.1                               JVC will be solely responsible for, and shall indemnify IVECO and its Affiliates for any claims and losses resulting from, any warranty claims (“Warranty Claims”). Both Parties will discuss in good faith and set a procedure to compensate the other Party for Warranty Claims arising from defects in the design of the licensed platform/component, other than defects that arise from modifications to the design made by JVC or related to the different applications, fully validated mission, systems or components affecting Licensed Iveco Technology.

 

9.2                               JVC will have sole discretion to initiate recalls or service campaigns. IVECO may also request JVC to conduct recalls and service campaigns and JVC may not unreasonably withhold or delay its consent, provided, however, that such requests refer to Licensed Iveco Technology as implemented into JVC vehicles.

 

9.3                               The Parties shall promptly provide each other with information and reasonable cooperation in relation to any safety, or compliance related issues.

 

9.4                               JVC will be responsible for all costs resulting from recalls, service campaigns, regulatory compliance and reporting (“Recall Costs”) in respect of such vehicle, except for Recall Costs arising from defects in design of the S-Way Platform and Product. For avoidance of doubt JVC will be responsible for Recall Costs arising from modifications to the design made by JVC.

 

9.5                               The Parties will agree on procedures for determining allocation of responsibility for recalls and service campaigns, and for assuring compliance with all regulatory requirements. Concurrently with the initiation of any recall or service campaign, the experts from both Parties shall cooperate in good faith in order to determine the appropriate allocation of responsibility and associated cost.

 

9.6                               The Parties shall jointly secure the availability of insurance coverage for Recall Costs. To the extent such insurance coverage is available on commercially reasonable terms, the Parties will determine a reasonable method to obtain any available insurance coverage (i.e. joint or separate coverage) and will mutually agree on the allocation of costs of coverage.

 

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10.                               Product Liability, Class Actions, Vehicle Repurchases

 

10.1                        JVC will have sole responsibility for all costs resulting from product liability claims, class actions and vehicle repurchases in respect of vehicles manufactured under this Agreement, except for claims arising from defects in the design of the S-Way Platform and Product, other than defects that arise from modifications to the design made by JVC, or related to the different applications, fully validated mission systems or components affecting the S-Way platform design.

 

10.2                        JVC shall indemnify and hold harmless IVECO from claims, class actions, vehicle repurchases and other third-party claims in respect of the which the JVC has responsibility pursuant to clause 10.1 hereof.

 

10.3                        IVECO shall indemnify and hold harmless JVC from claims, class actions, vehicle repurchases and other third-party claims, class actions, vehicle repurchases and other third party claims in respect of the which IVECO has responsibility pursuant to clause 10.1 hereof.

 

10.4                        The Parties shall promptly provide each other with information and reasonable cooperation in relation to any product liability related issues. The Parties agree to develop a strategy and oversight process as to product related litigation, including which Party will control the defense claims.

 

10.5                        The Parties will agree on procedures for determining allocation of responsibility for product liability, class actions, vehicle repurchases and other litigation.

 

10.6                        The Parties will investigate insurance coverages for product liability, class actions, vehicle repurchases and other litigation, including coverages for common policies for shared vehicles, and will agree on an equitable allocation of the relevant costs for shared coverage.

 

11.                               Confidentiality and Data

 

11.1                        Any information disclosed or made available to JVC under this Agreement, including without limitation any Disclosed Technology (other than Patents as defined in 1.9 and other information that is already publicly available as of the time such information is disclosed or made available), will be considered “Confidential Information” of IVECO and its Affiliates, and unless otherwise agreed in writing between the Parties after the date hereof, and without limiting any other agreement between the Parties, the terms of Article VIII of the Master Agreement shall apply to all such information (including any Disclosed Technology), provided that the term of confidentiality and non-disclosure as applied to certain of such information may extend beyond three years as reasonably determined by IVECO.

 

The Parties agree that provisions of Article VIII of the Master Agreement apply to this Agreement, provided that any information provided or made available by IVECO or any of its Affiliates that IVECO reasonably considers to be Trade Secrets shall be subject to perpetual confidentiality obligations.

 

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12.                               Force Majeure

 

12.1                        Force Majeure Events means war, acts of god or any causes beyond the reasonable control of the Parties, including but not limited to strikes, lock-outs, supplier stoppages and shortages or other industrial action, to the extent actually adversely affecting the applicable Party’s performance, provided that the affected Party has taken all reasonable and customary measures to avoid the occurrence of such Force Majeure Event. Upon occurrence of a Force Majeure Event, the Party that is unable to perform shall promptly notify the other Party that a Force Majeure Event has occurred and shall use its commercially reasonable efforts on a continuous basis to cure, correct or minimize the impact of the Force Majeure Event that is reasonably capable of being cured within a reasonable period of time. If the Force Majeure Event has not ended within forty-eight (48) hours after its occurrence, the Parties will promptly confer in an effort to remedy the cause and mitigate the effect of such Force Majeure Event.

 

12.2                        TO THE MAXIMUM EXTENT PERMITTED BY LAW, AND OTHER THAN WITH RESPECT TO AN INFRINGEMENT OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS OR A BREACH OF ARTICLE 11 (CONFIDENTIAL INFORMATION), EACH PARTY’S MAXIMUM AGGREGATE LIABILITY FOR ANY LIABILITY OR CLAIM UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL NOT EXCEED IN AGGREGATE USD [*].

 

13.                               Duration of this Agreement and Termination

 

13.1                        This Agreement will remain in effect for the duration of the EAA.

 

13.2                        This Agreement may be terminated by:

 

(a)                                 mutual agreement of the Parties, or subject to any applicable notice and cure periods, the election of any of the Parties to terminate the Agreement because of material breach by the other Party of this Agreement, or

 

(b)                                 any other Ancillary Agreement

 

Notwithstanding anything herein to the contrary, any license granted hereunder is irrevocable and will survive any such termination (solely until termination or expiration of the final term of the EAA).

 

14.                               Consequences of Termination

 

14.1                        Consequences of termination of this Agreement are set forth in the EAA.

 

14.2                        On termination of this Agreement howsoever occasioned:

 

(a)                                 at IVECO’s option the JVC shall either forthwith return to IVECO or destroy all technical and promotional material in its possession relating to the Licensed Iveco Technology, and all copies of such material.  In the case of destruction the JVC

 

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shall promptly provide to IVECO a certificate in a form acceptable to IVECO certifying that destruction has taken place;

 

(b)                                 JVC shall give all assistance as may be necessary for the transfer of all licences and authorities if any held by JVC in relation to the Licensed Iveco Technology and/or otherwise to this Agreement whether or not the same have been issued in the name of JVC by virtue of the functions it performs under this Agreement and JVC shall execute any documents which may become necessary to effect any such transfers;

 

(c)                                  call unfulfilled orders for parts or raw materials whether or not received by JVC at the termination date are deemed to be cancelled with immediate effect;

 

(d)                                 if either party has a claim against the other there shall (in the absence of express written agreement between the parties in respect thereof) be no right of set-off against any monies due from the other party.

 

15.                               Miscellaneous

 

15.1                        Disputes

 

(a)                                 All material disputes arising between the Parties concerning validity, construction or effect of this Agreement or the rights and obligations created hereunder shall be promptly brought to the attention of the account managers first. The account managers shall then discuss the disputes and attempt to reach resolution thereof. If the account managers shall have reached a resolution upon any such dispute, then they shall submit their instructions to the Parties for implementation thereof. If the account managers are unable to reach any resolution within two (2) weeks, or such additional time as they may determine, then the matter shall be referred to each of the respective top management officers of JVC and Iveco, consisting of President of JVC and the CEO of Iveco (each, the “Top Management”) who then shall discuss the matter and attempt to reach a resolution upon such matter. If the Top Management shall have reached a resolution, then they shall submit their instructions to the Parties for implementation. If the Top Management are unable to reach any resolution within two (2) weeks, or such additional time as they may determine, the matter shall be resolved in accordance with Section 15.1 b) hereof.

 

(b)                                 If a dispute is not resolved pursuant to Section 15.1 a) within the period provided therein, any party or Party may demand arbitration administered by the LCIA under its rules presently in force (the “Rules”).

 

The decision of the arbitration panel shall be final and binding on the Parties, and it will not be subject to any appeal or proceedings to vacate.  The arbitration award may be enforced in any court of competent jurisdiction.

 

The situs of the arbitration and any evidentiary proceedings shall be London and all proceedings and submissions shall be in the English language.  The panel may conduct proceedings in other locations if necessary for the taking of evidence or as otherwise agreed by the Parties involved in such arbitration.

 

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The arbitration panel shall consist of three members, one to be appointed by IVECO, one to be appointed by JVC, and the third arbitrator, who shall preside over the arbitration panel, to be chosen by the two Party-appointed arbitrators.  If either IVECO or JVC fails to appoint an arbitrator or the two Party-appointed arbitrators fail to appoint the third within the time periods prescribed below, then the appointments shall be made by the Secretariat of the LCIA pursuant to the Rules.

 

Arbitration may be commenced by any Party by giving written notice setting out the nature of the dispute to each other Party and to the LCIA pursuant to the Rules.  Within 5 calendar days of such notice, the party demanding arbitration shall appoint its arbitrator.  Within 15 calendar days of that appointment, the other party shall appoint its arbitrator.  Within 30 calendar days after the appointment of both Party-appointed arbitrators, those two Party-appointed arbitrators shall appoint the third arbitrator.

 

Except as required by applicable law, none of IVECO, JVC or the arbitration panel may disclose the existence, content or results of the arbitration unless and to the extent that disclosure is required by applicable law or is necessary for permitted court proceedings.

 

The arbitration panel shall be authorized to award monetary damages and to grant injunctive relief, including interim relief pending the final award.  Any interim or provisional measure in the form of conservatory or injunctive relief ordered by the arbitration panel shall, to the extent permitted by applicable law, be deemed a final arbitration award for purposes of enforceability.  For the avoidance of doubt, nothing in this Section should be interpreted to preclude any party from seeking interim relief from a court of competent jurisdiction prior to the formation of the arbitration panel.  Any monetary award may include interest and shall be stated and payable in U.S. currency.  The arbitration panel is not authorized to award punitive or exemplary damages.

 

15.2                        Governing Law

 

This Agreement and the rights and obligations of the Parties under this Agreement shall be governed by and construed in accordance with the Laws of England and Wales, without giving effect to the principles thereof relating to the conflicts of Laws.

 

15.3                        Severability

 

If any provision of this Agreement (or any portion thereof) or the application of any such provision (or portion thereof) to any person, entity or circumstance is held to be invalid, illegal or otherwise unenforceable in any respect by a final judgment, order of a court of competent jurisdiction, such provision shall be deemed to be void and unenforceable. Notwithstanding the preceding sentence, the remaining provisions of this Agreement, if capable of substantial performance, shall remain in full force and effect.

 

15.4                        Survival

 

Any provision of this Agreement or an Ancillary Agreement which contemplates performance or observance subsequent to any termination or expiration of this Agreement shall survive any termination or expiration of this Agreement and continue in full force and

 

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effect. Specifically, Articles 11, 14 and 15 shall survive any termination or expiration of this Agreement.

 

15.5                        No Waiver

 

A delay or omission by either Party hereto to exercise any right or power under this Agreement shall not be construed to be a waiver thereof. A waiver by either of the Parties hereto of any of the covenants to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach thereof or any other covenant herein contained. All waivers must be in writing and signed by the Party waiving its rights.

 

15.6                        Disclaimer of Agency

 

Neither Party shall act on behalf of the other Party, which can only become bound by the signature of its own authorized representatives. In all circumstances, JVC shall act in its own name and shall not be considered as the agent of IVECO and vice versa.

 

15.7                        Entire agreement; Amendment

 

This Agreement, including the Ancillary Agreements, any annexes and attachments referred to herein or attached hereto, each of which is incorporated herein for all purposes, constitutes the entire agreement between the Parties with respect to the subject matter hereof. No amendment, modification, change, waiver, or discharge hereof shall be valid unless in writing and signed by an authorized representative of the other Party against which such amendment, modification, change, waiver or discharge is sought to be enforced.

 

15.8                        Notice

 

In any case, where any notice or other communication is required or permitted to be given under this Agreement, such notice or communication shall be in writing to the following address or/and shall be (i) personally delivered or (ii) sent by email, postage prepaid registered airmail or internationally recognized courier service.

 

If to the JVC: Wanraaij 9, 6673DM Andelst (Netherlands);

 

If to IVECO: Via Puglia 35, Turin (Italy);

 

provided however, that if either Party shall have designated a different address by notice to the other, the notice shall be delivered to the last address so designated.

 

All such notices or other communications shall be deemed to have been given or received (i) upon receipt if personally delivered or (ii) on the fifteenth (15) business day following the date on the receipt held by the sending Party if by postage prepaid registered airmail or of fifteen (15) business days after delivery to internationally recognized courier service. All the notices shall be in English language.

 

13

 

15.9                        Headings

 

The titles and headings herein are used for convenience of reference only and shall not be deemed part of this Agreement for purpose of interpretation.

 

15.10                 Binding Effect; Assignment

 

This Agreement binds and inures to the benefit of the parties hereto and their respective successors and assigns. This Agreement and the rights, obligations and remedies hereunder (including any amounts to be paid or received hereunder) shall not be assignable or transferable by either Party (including by operation of Law) without the prior written consent of the other Party (to be given in its sole discretion), except that either Party may assign, delegate or transfer this Agreement to any Affiliate of such Party, or in connection with a merger, acquisition, change of control or sale of substantially all of the assets of such Party related to this Agreement and the Ancillary Agreements.

 

15.11                 No Third Party Beneficiaries

 

Except for applicable Affiliates of the Parties, this Agreement is entered into solely between, and may be enforced only by, JVC, on the one hand, and IVECO, on the other hand, and shall not be deemed to create any rights or causes of action in or on behalf of any third parties, including employees, suppliers and customers of a Party, or to create any obligations of a Party to any such third parties, unless expressly agreed in writing by the Parties.

 

15.12                 Further Assurances

 

Each Party covenants and agrees that, subsequent to execution and delivery of this Agreement and without any additional consideration, each Party shall execute and deliver any further legal instruments and perform any acts that are or may become reasonably necessary to effectuate the purposes of this Agreement.

 

15.13                 Annexes

 

The annexes of this Contract shall be the following:

 

Annex A Key Technology

 

Annex B Patents; IVECO shall update Annex B periodically.

 

Annex C Technical Documentation

 

Annex D List of Parts and Components in the First, Second and Third Category of Parts and Components

 

14

 

15.14                 Non-circumvention

 

None of the Parties will directly or indirectly circumvent the intention of this Agreement to provide the technology and IP rights provided herein, including without limitation by terminating or amending, in any manner that adversely affects in any way, any license or other agreement with any third party with respect to any technology or IP rights intended to be covered hereby.

 

IN WITNESS, this Agreement is signed in two (2) English originals by the duly authorized representatives of the Parties.

 

 

	
IVECO S.p.A. 
    	
 
    	
Nikola Iveco Europe B.V. 
    
	
 
    	
 
    	
 
    
	
/s/   Gerrit Marx 
    	
 
    	
/s/   Damiano Cretarola  
    
	
 
    	
 
    	
 
    
	
Name:   Gerrit Marx 
    	
 
    	
Name:   Damiano Cretarola 
    
	
 
    	
 
    	
 
    
	
Position   President, Commercial and Specialty Vehicles, CNH Industrial N.V. 
    	
 
    	
Position:   Director A 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
Date:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Nikola Corporation 
    	
 
    	
/s/   Mark Russell  
    
	
 
    	
 
    	
 
    
	
/s/   Trevor Milton  
    	
 
    	
Name:   Mark Russell 
    
	
 
    	
 
    	
 
    
	
Name:   Trevor Milton 
    	
 
    	
Position:   Director B 
    
	
 
    	
 
    	
 
    
	
Position:   CEO 
    	
 
    	
Date:   4/9/2020
    
	
 
    	
 
    	
 
    
	
Date:   4/9/2020
    	
 
    	
 
    

 

Signature Page for Iveco Technology License Agreement

 

15ex_181140.htm

Exhibit 10.1

 

EXECUTION VERSION

 

FOURTH AMENDMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

FOURTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of April 14, 2020 by and among

 

CALERES, INC. a New York corporation (the “Lead Borrower”),

 

the Borrowers party hereto (together with the Lead Borrower, the “Borrowers”),

 

the Lenders party hereto, and

 

BANK OF AMERICA, N.A., as Administrative Agent and Collateral Agent;

 

in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

 

 

W I T N E S S E T H:

 

WHEREAS, the Borrowers, the Lenders, the Administrative Agent and the Collateral Agent, among others, have entered into a certain Fourth Amended and Restated Credit Agreement dated as of December 18, 2014 (as amended, supplemented or otherwise modified from time to time prior to the effectiveness of this Amendment, the “Existing Credit Agreement”); and

 

WHEREAS, the Borrowers have requested, among other amendments, an increase in the Total Commitments in an amount equal to $100,000,000 pursuant to Section 2.2 of the Existing Credit Agreement (the “Commitment Increase”), and the Lenders named on Schedule 1.1 hereto (such Lenders being collectively referred to as the “Increasing Lenders”) have agreed to provide Commitments in respect of the Commitment Increase, subject to the terms and conditions set forth herein; and

 

WHEREAS, the Borrowers, the Lenders and the Administrative Agent have agreed to amend certain terms and conditions of the Existing Credit Agreement and to provide for the Commitment Increase as provided herein.

 

NOW THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto hereby agree as follows:

 

	
			1.

				
			Incorporation of Terms and Conditions of Existing Credit Agreement. All of the terms and conditions of the Existing Credit Agreement (including, without limitation, all definitions set forth therein) are specifically incorporated herein by reference. All capitalized terms not otherwise defined herein shall have the same meaning as in the Existing Credit Agreement, as amended by this Amendment (the “Amended Credit Agreement”).

			

 

 

 

 

	
			2.

				
			Representations and Warranties. Each Loan Party hereby represents and warrants that after giving effect to this Amendment, (i) no Default or Event of Default exists under the Amended Credit Agreement or under any other Loan Document, and (ii) all representations and warranties contained in the Amended Credit Agreement and in the other Loan Documents are true and correct in all material respects (except in the case of any representation and warranty qualified by “materiality” or “Material Adverse Effect”, which is true and correct in all respects) as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (except in the case of any representation and warranty qualified by “materiality” or “Material Adverse Effect”, which is true and correct in all respects) as of such earlier date, provided that, as of the date hereof, the temporary closure of the Loan Parties’ store locations and other operational disruptions affecting the Loan Parties, in each case as a direct result of the COVID-19 pandemic, shall not be deemed (i) to be a Default or Event of Default, or (ii) to have caused a violation of any representation or warranty set forth in the Credit Agreement or the other Loan Documents.

			

 

	
			3.

				
			Amendments to Existing Credit Agreement.

			

 

	 	
			a.

				
			Amendments to Article 1. The provisions of Section 1.1 of the Existing Credit Agreement are hereby amended as follows:

			

 

	 	
			i.

				
			The table in the definition of “Applicable Margin” is hereby deleted in its entirety and the following substituted in its stead:

			

 

	
			 

			Level

				
			 

			Average Excess

			Availability

				
			 

			Prime Rate

			Loans

				
			 

			LIBO Loans

			
	
			I

				
			Greater than 50% of the Loan Cap

				
			1.00%

				
			2.00%

			
	
			II

				
			Less than or equal to 50% of the Loan Cap

			 

				
			1.25%

				
			2.25%

			

 

All other provisions of the definition of “Applicable Margin” remain in effect as written.

 

	 	
			ii.

				
			The definition of “Cash Dominion Event” is hereby amended by deleting “40,000,000” where it appears therein, and by substituting “$48,000,000” in its stead.

			

 

	 	
			iii.

				
			The definition of “Federal Funds Effective Rate” is hereby amended by deleting such definition in its entirety and substituting the following in its stead:

			

 

-2-

 

 

“Federal Funds Effective Rate” means, for any day, the rate per annum calculated by the Federal Reserve Bank of New York based on such day’s federal funds transactions by depository institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the federal funds effective rate; provided that if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

	 	
			iv.

				
			The definition of “Fee Letter” is hereby amended by deleting such definition in its entirety and substituting the following in its stead:

			

 

“Fee Letter” means, collectively, (i) the letter entitled “Fee Letter” among the Borrowers and the Administrative Agent dated as of December 19, 2018 and (ii) the Fourth Amendment Fee Letter, as may be amended, supplemented or replaced and in effect from time to time.

 

	 	
			v.

				The definition of “Lead Arrangers” is hereby amended by deleting such definition in its entirety and substituting the following in its stead:

 

“Lead Arrangers” means Bank of America and Wells Fargo Bank, National Association, in their capacities as lead arrangers and bookrunners hereunder. For purposes of the Fourth Amendment, the Lead Arranger is Bank of America, in its capacity as sole lead arranger and bookrunner thereunder.”

 

	 	
			vi.

				
			The definition of “LIBO Rate” is hereby amended by deleting such definition in its entirety and substituting the following in its stead:

			

 

“LIBO Rate” means the higher of:

 

(i) the LIBOR Floor, and

 

(ii) (a) for any Interest Period with respect to a LIBO Rate Loan, the rate per annum equal to the London Interbank Offered Rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for U.S. Dollars) for a period equal in length to such Interest Period as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; and

 

(b) for any interest calculation with respect to a Prime Rate Loan on any date, the rate per annum equal to LIBO Rate, at or about 11:00 a.m., London time determined two London Banking Days prior to such date for U.S. Dollar deposits with a term of one month commencing that day.”

 

-3-

 

 

	 	
			vii.

				
			The definition of “LIBOR Successor Rate Conforming Changes” is hereby amended by deleting such definition in its entirety and substituting the following in its stead:

			

 

“LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Prime Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other technical, administrative or operational matters as may be appropriate, in the reasonable discretion of the Administrative Agent in consultation with the Lead Borrower, to reflect the adoption and implementation 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 is reasonably necessary in connection with the administration of this Agreement in consultation with the Lead Borrower).

 

	 	
			viii.

				
			The definition of “Payment Conditions” is hereby amended by deleting such definition in its entirety and substituting the following in its stead:

			

 

“Payment Conditions” means, at the time of determination with respect to a specified transaction or payment, that (a) no Default or Event of Default then exists or would arise as a result of the entering into such transaction or the making of such payment and (b) after giving pro forma effect to such transaction or payment and for each day of the sixty (60) day period immediately preceding such transaction or payment, Excess Availability shall exceed (i) with respect to any Restricted Payments subject to the Payment Conditions, the greater of (x) fifteen percent (15%) of the Loan Cap and (y) $70,000,000, and (ii) with respect to any other transactions or payments subject to the Payment Conditions, the greater of (x) twelve and one-half percent (12.5%) of the Loan Cap and (y) $60,000,000; (c) the Adjusted Fixed Charge Coverage Ratio, on a pro-forma basis (in each case, after giving effect to such transaction or payment) shall be equal to or greater than 1.0:1.0, provided that, in the event that after giving pro forma effect to such transaction or payment and for each day of the sixty (60) day period immediately preceding such transaction or payment, Excess Availability shall exceed (i) with respect to any Restricted Payments subject to Payment Conditions, the greater of (x) twenty percent (20%) of the Loan Cap and (y) $90,000,000, and (ii) with respect to any other transactions or payments subject to the Payment Conditions, the greater of (x) seventeen and one-half percent (17.5%) of the Loan Cap and (y) $80,000,000, then the provisions of this clause (c) shall not apply; and (d) the Loan Parties shall have provided the Administrative Agent with a certificate from a Financial Officer demonstrating to the reasonable satisfaction of the Administrative Agent that, on a pro forma basis (after giving effect to such transaction or payment), the Loan Parties, taken as a whole, are, and will be, Solvent.

 

-4-

 

 

	 	
			ix.

				
			The definition of “Prime Rate” is hereby amended by deleting such definition in its entirety and substituting the following in its stead:

			

 

“Prime Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the LIBO Rate plus 1.00%. The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such prime rate announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change. If the Prime Rate is being used as an alternate rate of interest pursuant to Section 2.32 hereof, then the Prime Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.”

 

	 	
			x.

				
			The definitions of “LIBO Rate Loan” and “Type” are hereby amended by deleting each reference to “Adjusted LIBO Rate” and substituting “LIBO Rate” in its stead.

			

 

	 	
			xi.

				
			The definitions of “Adjusted LIBO Rate” and Statutory Reserve Rate” in Section 1.1 of the Existing Credit Agreement are hereby deleted in their entirety.

			

 

	 	
			xii.

				
			The following new definitions are hereby added to Section 1.1 of the Existing Credit Agreement in their appropriate alphabetical order:

			

 

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

 

“Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Covered Party” has the meaning set forth in Section 9.26.

 

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

 

“Fourth Amendment” means that certain Fourth Amendment to Fourth Amended and Restated Credit Agreement by and among, the Borrowers, the Administrative Agent, and the Lenders party thereto dated as of the Fourth Amendment Effective Date.

 

“Fourth Amendment Effective Date” means April 14, 2020.

 

-5-

 

 

“Fourth Amendment Fee Letter” means the letter entitled “Fourth Amendment Fee Letter” among the Borrowers and the Administrative Agent dated as of April 14, 2020.

 

“LIBOR Floor” means 1.00% per annum.

 

“London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar market.

 

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with 12 U.S.C. 5390(c)(8)(D).

 

“QFC Credit Support” has the meaning set forth in Section 9.26.

 

“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York for the purpose of recommending a benchmark rate to replace LIBO Rate in loan agreements similar to this Agreement.

 

“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York’s website (or any successor source) and, in each case, that has been selected or recommended by the Relevant Governmental Body.

 

“SOFR-Based Rate” means SOFR or Term SOFR.

 

“Supported QFC” has the meaning set forth in Section 9.26.

 

“Term SOFR” means the forward-looking term rate for any period that is approximately (as determined by the Administrative Agent) as long as any of the Interest Period options set forth in the definition of “Interest Period” and that is based on SOFR and that has been selected or recommended by the Relevant Governmental Body, in each case as published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion.

 

“U.S. Special Resolution Regimes” has the meaning set forth in Section 9.26.

 

-6-

 

 

	 	
			b.

				
			The provisions of Section 1.1 of the Existing Credit Agreement are hereby amended by adding the following new Section 1.6:

			

 

“1.6      Interest Rates. The Administrative Agent does not warrant, nor accept responsibility, nor shall the Administrative Agent have any liability with respect to the administration, submission or any other matter related to the rates in the definition of “LIBO Rate” or with respect to any rate that is an alternative or replacement for or successor to any of such rate (including, without limitation, any LIBOR Successor Rate) or the effect of any of the foregoing, or of any LIBOR Successor Rate Conforming Changes.”

 

	
			4.

				
			Amendments to Article 2. The provisions of Article 2 are hereby amended as follows:

			

 

	 	
			a.

				
			Section 2.1 of the Existing Credit Agreement is hereby amended by deleting the reference in subclause (a)(i)(i)(x) in such Section to “$500,000,000” and substituting “$600,000,000” in its stead.

			

 

	 	
			b.

				
			Section 2.2 of the Existing Credit Agreement is hereby amended by deleting subsection (a) thereof in its entirety and by substituting the following in its stead:

			

 

“From and after the Fourth Amendment Effective Date, so long as no Default or Event of Default exists or would arise therefrom, the Lead Borrower shall have the right, from time to time, to request an increase of the Total Commitments by an aggregate amount (for all such requests) not exceeding (i) the greater of (a) $150,000,000 and (b) the excess of the Borrowing Base at such time over the sum of the then-effective Total Commitments at such time, plus (ii) an amount equal to the amount of the Commitment of any Defaulting Lender whose Commitment has been terminated but who was not replaced by another Lender or other financial institution at the time of such termination, as adjusted to reflect any pro rata decrease in the Total Commitments pursuant to Section 2.17 hereof which occurred after such termination (the foregoing, individually, an “Increase Option”, and collectively, the “Increase Options”). Any such request with respect to an Increase Option shall be first made to all existing Lenders on a pro rata basis. At the time of sending such request, the Lead Borrower (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Lenders).”

 

	 	
			c.

				
			Sections 2.10, 2.18, 2.21 and 2.25 of the Existing Credit Agreement are hereby amended by deleting each reference in such Sections to “Adjusted LIBO Rate” and substituting “LIBO Rate” in its stead.

			

 

	 	
			d.

				
			Section 2.13 of the Existing Credit Agreement is hereby amended by deleting the reference in such Section to “0.20%” and substituting “0.25%” in its stead.

			

 

-7-

 

 

	 	
			e.

				
			Section 2.32 of the Existing Credit Agreement is hereby amended by deleting such Section 2.32 in its entirety and substituting a new Section 2.32 as set forth below:

			

 

“2.32.          LIBO Successor Rate. Notwithstanding the provisions of Sections 2.18, 2.25, 2.26 or anything else to the contrary in this Agreement or any other Loan Documents, if the Administrative Agent reasonably determines (which determination shall be conclusive absent manifest error), or the Lead Borrower or Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to Borrower) that the Lead Borrower or Required Lenders (as applicable) have determined, that:

 

(a)     adequate and reasonable means do not exist for ascertaining LIBO Rate 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 LIBO Rate or the LIBOR Screen Rate shall no longer be made available, or used for determining the interest rate of loans, provided that, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent, that will continue to provide LIBO Rate after such specific date (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 LIBO Rate.

 

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 Lead Borrower may amend this Agreement solely for the purpose of replacing LIBO Rate in accordance with this Section 2.32 with (x) one or more SOFR-Based Rates or (y) another alternate benchmark rate giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks and, in each case, including any mathematical or other adjustments to such benchmark giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such benchmarks, which adjustment or method for calculating such adjustment shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated (the “Adjustment;” and any such proposed rate, a “LIBOR Successor Rate”), and any such amendment shall become effective at 5:00 p.m. (New York time) on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Lead Borrower unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders (A) in the case of an amendment to replace LIBO Rate with a rate described in clause (x), object to the Adjustment; or (B) in the case of an amendment to replace LIBO Rate with a rate described in clause (y), object to such amendment; provided that for the avoidance of doubt, in the case of clause (A), the Required Lenders shall not be entitled to object to any SOFR-Based Rate contained in any such amendment. Such LIBOR Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent in consultation with the Lead Borrower.

 

-8-

 

 

If no LIBOR Successor Rate has been determined and the circumstances under clause (i) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Lead Borrower and each Lender. Thereafter, (x) the obligation of the Lenders to make or maintain LIBO Loans shall be suspended, (to the extent of the affected LIBO Loans or Interest Periods), and (y) the LIBO Rate component shall no longer be utilized in determining the Prime Rate. Upon receipt of such notice, the Lead Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of LIBO Loans (to the extent of the affected LIBO Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Prime 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.”

 

In connection with the implementation of a LIBOR Successor Rate, the Administrative Agent will have the right to make LIBOR Successor Rate Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such LIBOR Successor Rate Conforming Changes will become effective without any further action or consent of any other party to this Agreement; provided that, with respect to any such amendment effected, the Administrative Agent shall post each such amendment implementing such LIBOR Successor Conforming Changes to the Lenders reasonably promptly after such amendment becomes effective.”

 

	
			5.

				
			Amendments to Article 6. Section 6.13 (“Minimum Fixed Charge Coverage Ratio”) is hereby amended by deleting “40,000,000” where it appears therein, and by substituting “$48,000,000” in its stead.

			

 

	
			6.

				
			Amendments to Article 9. The provisions of Article 9 of the Existing Credit Agreement are hereby amended as follows:

			

 

	 	
			a.

				
			Section 9.2 of the Existing Credit Agreement is hereby amended by adding “Subject to Section 2.32” at the beginning of clause (b) of such Section.

			

 

-9-

 

 

	 	
			b.

				
			Article 9 of the Existing Credit Agreement is hereby amended by adding the following new Section 9.26 at the end thereof:

			

 

“9.26          Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

 

(a)     In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.”

 

	
			7.

				
			Amendments to Schedules and Exhibits.

			

 

	 	
			a.

				
			Schedule 1.1 (Lenders and Commitments) to the Existing Credit Agreement is hereby deleted in its entirety and as new Schedule 1.1 in the form annexed hereto substituted in its stead.

			

 

-10-

 

 

	 	
			b.

				
			Exhibit E (Form of Notice of Borrowing) to the Existing Credit Agreement is hereby deleted in its entirety and as new Exhibit E in the form annexed hereto substituted in its stead.

			

 

	 	
			c.

				
			Exhibit C (Form of Borrowing Base Certificate) to the Existing Credit Agreement is hereby deleted in its entirety and as new Exhibit C in the form annexed hereto substituted in its stead.

			

 

	
			8.

				
			Commitment Increase.

			

 

	 	
			a.

				
			Each Increasing Lender hereby agrees that, on, and subject to the occurrence of, the Fourth Amendment Effective Date, (i) such Increasing Lender shall increase its Commitment to an amount equal to the amount set forth opposite such Increasing Lender’s name on Schedule 1.1 to this Amendment; and (ii) such Increasing Lender shall continue to be a “Lender” for all purposes of, and subject to all the obligations of a “Lender” under the Amended Credit Agreement and the other Loan Documents. Each Loan Party and the Administrative Agent hereby agrees that, from and after the Fourth Amendment Effective Date, each Increasing Lender shall be deemed to be, and shall be a “Lender” for all purposes of, and with all the rights and remedies of a “Lender” under, the Amended Credit Agreement and the other Loan Documents. From and after the Fourth Amendment Effective Date, each reference in the Amended Credit Agreement to any existing Lender’s Commitments shall mean such Lender’s Commitment as set forth opposite its name on Schedule 1.1 to this Amendment under the heading “Commitment Amount”.

			

 

	 	
			b.

				
			The Administrative Agent and the Increasing Lenders hereby agree that this Amendment shall constitute the giving of the notice required by Section 2.2(a) of the Existing Credit Agreement with respect to the Commitment Increase, and that each Increasing Lender’s delivery of its executed signature page to this Amendment shall constitute its agreement to increase its Commitment to the extent set forth in Schedule 1.1 to this Amendment notwithstanding any provision of Section 2.2 of the Existing Credit Agreement to the contrary.

			

 

	
			9.

				
			Conditions to Effectiveness. This Amendment shall become effective on the date (the “Fourth Amendment Effective Date”) when each of the following conditions precedent has been fulfilled to the reasonable satisfaction of the Administrative Agent:

			

 

	 	
			a.

				
			Amendment. This Amendment shall have been duly executed and delivered by the Loan Parties, the Agents and the Lenders.

			

 

	 	
			b.

				
			Corporate Action. All action on the part of the Loan Parties necessary for the valid execution, delivery and performance by the Loan Parties of this Amendment shall have been duly and effectively taken. The Administrative Agent shall have received such customary corporate resolutions, certificates and other customary corporate documents as the Administrative Agent shall reasonably request.

			

 

-11-

 

 

	 	
			c.

				
			No Default. After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.

			

 

	 	
			d.

				
			Borrowing Base Certificate; Availability. The Agents shall have received a Borrowing Base Certificate dated the Fourth Amendment Effective Date, executed by a Financial Officer of the Lead Borrower. The Excess Availability under the Amended Credit Agreement on the Fourth Amendment Effective Date, after giving effect to any funding under the Amended Credit Agreement, shall be equal to or greater than $150,000,000 based on a Borrowing Base Certificate dated as of the Fourth Amendment Effective Date.

			

 

	 	
			e.

				
			Fees and Expenses. (i) The Administrative Agent and the Lenders shall have received all applicable fees and other amounts due and payable on or prior to the Fourth Amendment Effective Date, including without limitation, reasonable and documented attorneys’ fees of one counsel, in connection with or relating to this Amendment shall have been reimbursed or paid, and (ii) all fees payable pursuant to the Fourth Amendment Fee Letter that are due and payable on the date hereof shall have been paid in full by the Borrowers in accordance with the terms thereof.

			

 

	 	
			f.

				
			Documents. The Administrative Agent shall have received the following executed Loan Documents:

			

 

	 	
			1.

				
			a Note, or amended and restated Note, as applicable, executed by the Borrowers in favor of each Lender requesting a Note and reflecting the Commitment of such Lender after giving effect to this Amendment; and

			

 

	 	
			2.

				
			the Fourth Amendment Fee Letter, duly executed by the Borrowers and the Administrative Agent.

			

 

Without limiting the generality of the provisions of the last paragraph of Section 8.5 of the Amended Credit Agreement, for purposes of determining compliance with the conditions specified in this Section 9, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Fourth Amendment Effective Date specifying its objection thereto.

 

	
			10.

				
			Ratification and Reaffirmation. Each of the Loan Parties hereby ratifies and confirms all of its Obligations to the Agents, the Issuing Bank and the Lenders under the Amended Credit Agreement, including, without limitation, the Revolving Loans, Swingline Loans and other Credit Extensions, and each of the Loan Parties hereby affirms its absolute and unconditional promise to pay to the Lenders, the Issuing Bank and the Agents, as applicable, the Revolving Loans, other Credit Extensions, reimbursement obligations and all other amounts due or to become due and payable to the Lenders, the Issuing Bank and the Agents, as applicable, under the Amended Credit Agreement and it is the intent of the parties hereto that nothing contained herein shall constitute a novation or accord and satisfaction. Except as expressly amended hereby, the Existing Credit Agreement shall continue in full force and effect.

			

 

-12-

 

 

	
			11.

				
			Binding Effect; Integration, Etc. The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their heirs, representatives, successors and assigns. This Amendment and the Amended Credit Agreement shall hereafter be read and construed together as a single document, and all references in the Existing Credit Agreement, any other Loan Document or any agreement or instrument related to the Existing Credit Agreement shall hereafter refer to the Amended Credit Agreement. This Amendment shall constitute a Loan Document.

			

 

	
			12.

				
			Multiple Counterparts. This Amendment may be executed in multiple counterparts, each of which shall constitute an original and together which shall constitute but one and the same instrument. Delivery of any executed counterpart of a signature page of this Amendment by telecopy or e-mail shall be effective as delivery of a manually executed counterpart of this Amendment.

			

 

	
			13.

				
			Governing Law; Waiver of Jury Trial. EACH PARTY HERETO HEREBY AGREES THAT THE PROVISIONS OF SECTION 9.10 AND SECTION 9.11 OF THE EXISTING CREDIT AGREEMENT SHALL APPLY TO THIS AMENDMENT.

			

 

[Signature Pages Follow]

 

-13-

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by each of the parties hereto as of the date first above written.

 

	
			 

				
			CALERES, INC.

			SIDNEY RICH ASSOCIATES, INC.

			BG RETAIL, LLC

			ALLEN EDMONDS LLC

			VIONIC GROUP LLC

			VIONIC INTERNATIONAL LL 

				
			 

			
	 	 	 
	 	as to each of the foregoing	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Kenneth H. Hannah

				
			 

			
	
			 

				
			Name: Kenneth H. Hannah

				
			 

			
	
			 

				
			Title: Senior Vice President and Chief Financial Officer

				
			 

			

 

 

[Caleres – Signature Page to Fourth Amendment]

 

 

 

 

	
			 

				
			BANK OF AMERICA, N.A.,

			as Agent and as a Lender 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Peter M. Walther

				
			 

			
	
			 

				
			Name: Peter M. Walther

				
			 

			
	
			 

				
			Title: Senior Vice President

				
			 

			

 

 

[Caleres – Signature Page to Fourth Amendment]

  

 

 

 

	
			 

				
			WELLS FARGO BANK, N.A.,

			as a Lender 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Tamar Scoville

				
			 

			
	
			 

				
			Name: Tamar Scoville

				
			 

			
	
			 

				
			Title: Vice President

				
			 

			

 

 

[Caleres – Signature Page to Fourth Amendment]

 

 

 

 

	
			 

				
			TRUIST BANK, as a Lender 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Michael Dembski

				
			 

			
	
			 

				
			Name: Michael Dembski

				
			 

			
	
			 

				
			Title: Director

				
			 

			

 

 

[Caleres – Signature Page to Fourth Amendment]

 

 

 

 

	
			 

				
			FIFTH THIRD BANK, NATIONAL ASSOCIATION,

			as a Lender 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Mark Pienkos

				
			 

			
	
			 

				
			Name: Mark Pienkos

				
			 

			
	
			 

				
			Title: Managing Director

				
			 

			

 

 

[Caleres – Signature Page to Fourth Amendment]

 

 

 

 

	
			 

				
			U.S. Bank National Association,

			as a Lender 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Nicole C. Manies

				
			 

			
	
			 

				
			Name: Nicole C. Manies

				
			 

			
	
			 

				
			Title: Vice President

				
			 

			

 

 

[Caleres – Signature Page to Fourth Amendment]

 

 

 

 

	
			 

				
			BMO HARRIS BANK, N.A., as a Lender 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Jason Hoefler

				
			 

			
	
			 

				
			Name: Jason Hoefler

				
			 

			
	
			 

				
			Title: Managing Director

				
			 

			

 

 

[Caleres – Signature Page to Fourth Amendment]

 

 

 

 

	
			 

				
			JPMorgan Chase Bank, N.A., as a

			Lender 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Devin Roccisano

				
			 

			
	
			 

				
			Name: Devin Roccisano

				
			 

			
	
			 

				
			Title: Executive Director

				
			 

			

 

 

 

[Caleres – Signature Page to Fourth Amendment]

 

 

 

 

Updated Schedule 1.1 to Credit Agreement

 

(Lenders and Commitments)

 

 

	
			 

			Lender

				
			Commitment Amount

				
			 

			Commitment 

			Percentage

			
	
			Bank of America, N.A.

				
			$156,000,000.00

				
			26.00000000%

			
	
			Wells Fargo Bank, National Association

				
			$130,000,000.00

				
			21.666666667%

			
	
			Truist Bank

				
			$108,000,000.00

				
			18.000000000%

			
	
			Fifth Third Bank

				
			$60,000,000.00

				
			10.000000000%

			
	
			U.S. Bank National Association

				
			$60,000,000.00

				
			10.000000000%

			
	
			BMO Harris Bank N.A.

				
			$50,000,000.00

				
			8.333333333%

			
	
			JPMorgan Chase Bank, N.A.

				
			$36,000,000.00

				
			6.000000000%

			
	
			TOTAL

				
			$600,000,000.00

				
			100.0000000000%

			

 

 

[Schedule 1.1 to Fourth Amendment]

 

 

 

 

Updated Exhibit E to Credit Agreement

 

Form of Notice of Borrowing

 

[See Attached]

 

 

[Exhibit E to Fourth Amendment]

 

 

 

 

EXHIBIT E

 

NOTICE OF BORROWING

 

 

	To:	Bank of America, N.A	Date:	 	 
	 	
			100 Federal Street

			Boston, Massachusetts 02110

			Attention: Peter Walther

				 	 	 

 

Re:     Fourth Amended and Restated Credit Agreement dated as of December 18, 2014 (as amended, amended and restated, modified, supplemented or renewed from time to time, the “Credit Agreement”) by, among others, CALERES, INC. (the “Lead Borrower”), the other Borrowers party thereto, the Lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and collateral agent for the Lenders (in such capacities, the “Agent”) and as Lead Issuing Bank.

 

Ladies and Gentlemen:

 

Reference is made to the above described Credit Agreement. All capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement. The Lead Borrower, as agent for itself and the other Borrowers pursuant to Section 9.4 of the Credit Agreement, hereby irrevocably notifies you of the Borrowing specified below:

 

1.     The Business Day of the proposed Borrowing(s) is/are __________________.

 

2.     The aggregate amount of the proposed Borrowing(s) is $___________________, which Borrowing(s) shall consist of the following Types:

 

	
			Type of Borrowing

			(Prime Rate or LIBO)

			 

				
			Amount

				
			Interest Period for LIBO

			Advances

			
	 	
			$___________________________

				
			[months]    [days]

			 

			
	 	
			$___________________________

				
			[months]    [days]

			 

			
	 	
			$___________________________

				
			[months]    [days]

			 

			
	 	
			$___________________________

				
			[months]    [days]

			 

			

 

 

3.     The account to which the proceeds of such Borrowing are to be deposited, if not Account No. 5045183372 maintained by the Borrowers with Bank of America, N.A., is as follows: ________________________________________.

 

1

 

 

The Lead Borrower hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Borrowing, before and after giving effect thereto and to the application of the proceeds thereof:

 

(a)     All representations and warranties made by the Borrowers in the Loan Documents are true and correct in all material respects on and as of the date hereof, except (i) that such representations and warranties (A) that relate solely to an earlier date are true and correct in all material respects as of such earlier date and (B) are true and correct in all respects if they are qualified by a materiality standard and (ii) to the extent that the Agent and the Lenders have been notified by the Borrowers that any representation or warranty is not correct and the Required Lenders have explicitly waived in writing compliance with such representation or warranty;

 

(b)     No event has occurred and is continuing, or would result from the proposed Borrowing, which constitutes or would constitute a Default or an Event of Default;

 

(c)     [After giving effect to the proposed Borrowing(s) set forth in Section 2 above, cash in DDA Accounts (including savings accounts), the Blocked Accounts, the Concentration Account and each Disbursement Account maintained by, the Loan Parties shall not exceed $60,000,000 in the aggregate;]1  and

 

(d)     After giving effect to the proposed Borrowing(s) set forth in Section 2 above, there will be no more than fifteen (15) Borrowings of LIBO Loans outstanding under the Credit Agreement.

 

This Notice of Borrowing is issued pursuant to and is subject to the Credit Agreement.

 

[Remainder of page intentionally left blank]

 

 

1 Clause (c) is only applicable with respect to proposed Borrowings requested (1) on and after the Fourth Amendment Effective Date and (2) in the event that the aggregate amount of the Credit Extensions, after giving effect to such proposed Borrowing, would exceed $450,000,000.

 

 

 

 

This Notice of Borrowing is duly executed as of the date set forth above.

 

	
			 

				
			LEAD BORROWER: 

				
			 

			
	 	 	 
	 	
			CALERES, INC., as

			agent for itself and the other Borrowers

				 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name: 

				 	
			 

			
	
			 

				
			 

				
			Title: 

				 	
			 

			

 

 

 

 

Updated Exhibit C to Credit Agreement

 

Form of Borrowing Base Certificate

 

[See Attached]

 

 

[Exhibit C to Fourth Amendment]

 

 

 

 

EXHIBIT C

 

BORROWING BASE CERTIFICATE

 

	BANK OF AMERICA, N.A	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CONSOLIDATED CERTIFICATE # 	 	 	 	DATE:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	BABC USE ONLY
	ACCOUNTS RECEIVABLE (DETAIL SHOWN ON ATTACHED SCHEDULE 1)	 	 	 	 	 	 	 	 	 
	1.  BEGINNING BALANCE LINE 6 LAST REPORT	-	 	 (a)	 	 	 	 	 	 	 	 	 	 
	2.  PLUS: SALES AS OF	 	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	3.  LESS: CREDITS AS OF	 	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	4.  LESS: GROSS COLLECTIONS	 	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	5.  +/‐ ADJUSTMENTS	 	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	6.  ENDING BALANCE	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	7.  ‐ INELIGIBLE	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	
			8.  NET AMOUNT OF ELIGIBLE ACCOUNTS

				-	 	 	
			ADVANCE RATE

				
			85%

				
			‐

				 	 	 	 	 	 	 
	CREDIT CARD ACCOUNTS RECEIVABLE (DETAIL SHOWN ON ATTACHED SCHEDULE 2)	 	 	 	 	 	 	 	 	 
	9.  CREDIT CARD A/R	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	10. LESS: INELIGIBLES	 	-	 	 	 	 	 	 	 	 	 	 	 	 
	
			11. NET AMOUNT OF ELIGIBLE CREDIT CARD A/R

				-	 	 	
			ADVANCE RATE

				
			90%

				
			‐

				 	 	 	 	 	 	 
	PERPETUAL INVENTORY (DETAIL SHOWN ON ATTACHED SCHEDULE 3)	 	 	 	 	 	 	 	 	 	 
	12.  INVENTORY AVAILABILITY BASED ON APPRAISED VALUE	-  	 	 	 	 	 	 	 	 	 
	
			13.  INVENTORY COMPONENT OF BORROWING BASE (LINE 12)

				
			 

				 	
			‐

				 	 	 	 	 	 	 
	AVAILABILITY RESERVES (DETAIL SHOWN ON ATTACHED SCHEDULE 4)	 	 	 	 	 	 	 	 	 	 
	14.  LESS: AVAILABILITY RESERVES	 	 	 	-	 	 	 	 	 	 	 
	
			15.  BORROWING BASE (LINE 8 + LINE 11 + LINE 13 + LINE 14)

				 	 	
			 

				 	 	 	
			-

				 	 	 
	CREDIT EXTENSIONS	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	16.  OUTSTANDING LOAN BALANCE AS OF	 	 	 	 	 	 	-	 	 	 	 	 	 	 
	17.  MERCHANDISE L/C's as of:	 	 	 	 	 	 	-	 	 	 	 	 	 	 
	18.  STANDBY L/C's as of:	 	 	 	 	 	 	-	 	 	 	 	 	 	 
	19.  BANKERS' ACCEPTANCES	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
			20. TOTAL CREDIT EXTENSIONS

				 	 	 	 	 	 	
			 

				 	 	 	-	 	 	 
	EXCESS AVAILABILITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	21. TOTAL COMMITMENTS (PER SCHEDULE 1.1 OF THE AGREEMENT)	 	600,000,000	 	 	 	 	 	 	 
	22. BORROWING BASE (LINE 15)	 	 	-	 	 	 	 	 	 	 
	23. LESSER OF TOTAL COMMITMENTS OR BORROWING BASE (LESSER OF LINE 21 OR LINE 22)	 	 	 	 	 	-	 	 	 
	
			24. LESS: TOTAL CREDIT EXTENSIONS (LINE 20)

				 	 	 	 	 	
			-

				 	 	 
	
			25. EXCESS AVAILABILITY

				 	 	$	
			‐

				 	 	 

 

	THE UNDERSIGNED REPRESENTS AND WARRANTS THAT THE INFORMATION SET FORTH ABOVE AND ON THE ATTACHED SCHEDULES IS TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. THE UNDERSIGNED REPRESENTS AND WARRANTS THAT (A) THE COLLATERAL REFLECTED ABOVE AND IN THE SUPPORTING DOCUMENTATION DELIVERED IN CONNECTION HEREWITH COMPLIES IN ALL MATERIAL RESPECTS WITH THE REPRESENTATIONS, WARRANTIES AND COVENANTS CONTAINED IN THE FOURTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF APRIL 14, 2020 (AS AMENDED, RESTATED, SUPPLEMENTED AND OTHERWISE MODIFIED FROM TIME TO TIME, THE “CREDIT AGREEMENT”) AND THE OTHER LOAN DOCUMENTS (AS DEFINED IN THE CREDIT AGREEMENT), BY, AMONG OTHERS, CALERES, INC. (THE “LEAD BORROWER”), CERTAIN OF ITS SUBSIDIARIES, BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT, COLLATERAL AGENT, SWINGLINE LENDER AND LEAD ISSUING BANK, AND THE OTHER LENDERS PARTY THERETO FROM TO TIME, AND (B) NO DEFAULT OR EVENT OF DEFAULT (AS SUCH TERMS ARE DEFINED IN THE CREDIT AGREEMENT) HAS OCCURRED OR IS CONTINUING.	 

 

CALERES, INC.,

AS LEAD BORROWER AND AS A BORROWER:

 

 

	AUTHORIZED SIGNATURE:	 	 	 
	 	 	 	 
	NAME:    	 	William Berberich, Jr.	 
	 	 	 	 
	TITLE:    	 	VP, Taxes, Treasury and Assistant Secretary

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