Document:

ex10_37.htm

EXHIBIT 10.37

 

SIXTH AMENDMENT TO ACCOUNT PURCHASE AGREEMENT

AND OTHER DOCUMENTS

 

This SIXTH AMENDMENT TO ACCOUNT PURCHASE AGREEMENT (this “Amendment”) is entered into as of March 15, 2013 by and among TRIAD PERSONNEL SERVICES, INC., an Illinois corporation (“Personnel”), GENERAL EMPLOYMENT ENTERPRISES, INC., an Illinois corporation (“GEE”), BMPS, INC., an Ohio corporation (“BMPS”; and together with Personnel and GEE, collectively, “Triad”), BMCH, Inc., d/b/a Triad Temporaries, an Ohio corporation (“BMCHOH”) and BMCHPA, INC., d/b/a Triad Temporaries, a Pennsylvania corporation (“BMCHPA”; and together with BMCHOH and Triad, collectively, the “Customer”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, acting through its WELLS FARGO BUSINESS CREDIT operating division (“WFB” or “WFBC”).

 

WHEREAS, Customer and WFBC have entered into certain accounts purchase arrangements pursuant to that certain Account Purchase Agreement, dated as of December 14, 2010 (as amended, restated, renewed, extended, supplemented, substituted and otherwise modified from time to time, the “Account Purchase Agreement”), between Customer and WFBC, and certain other instruments, agreements and documents executed and/or delivered in connection therewith (all such instruments, agreements and documents, as amended, restated, renewed, extended, supplemented, substituted and otherwise modified from time to time, together with the Account Purchase Agreement, collectively, the “Documents”);

 

WHEREAS, Customer has requested that WFBC agree, and WFBC has agreed, to amend and modify certain provisions of Account Purchase Agreement, subject to the terms and conditions of this Amendment.

 

NOW, THEREFORE, upon the mutual agreements and covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             ­Definitions.  Capitalized terms used and not defined in this Amendment shall have the respective meanings given them in the Account Purchase Agreement.

 

2.             Extension of Delivery Date.  Notwithstanding anything to the contrary set forth in Section 4.03(g) of the Account Purchase Agreement, for Customer’s fiscal year ended September 30, 2012, Customer will furnish to WFBC on or before April 30, 2013 Audited fiscal year end financial statements acceptable to WFBC in its sole discretion, including, but not limited to a statement of profit and loss, statement of cash flow and a balance sheet, and satisfactory proof of payment and compliance with all federal, state and local tax requirements.  The date on which Customer must submit Audited fiscal year end financial statements for each of Customer’s fiscal years ending after September 30, 2012 shall be as provided in Section 4.03(g) of the Accounts Purchase Agreement.

 

3.             Amendment to Account Purchase Agreement.

 

(a)           Definitions.  The definition of “Term” appearing in Section 2.18 of the Account Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

“2.18 “Term” shall mean the period of time commencing on December 14, 2010 through and including December 31, 2013; except, that, if

  

  

  

 

	 	
(a)

	
on or before April 30, , 2013, GEE fails to provide evidence, in form and substance satisfactory to WFBC, in its sole discretion, of the dismissal with prejudice of GEE as a defendant from that certain lawsuit no. 3:12-cv-00850-R filed on December 21, 2012 with the United States District Court for the Western District of Kentucky at Louisville, styled Derby Capital, LLC and Derby Capital JOB, LLC, as plaintiffs, vs. Trinity HR Services, LLC, et al., as defendants; or

 

	 	
(b)

	
on or before April 30, 2013, Customer fails to furnish WFBC with its Audited fiscal year end financial statements for Customer’s fiscal year ended September 30, 2012 or if the results of operations of Customer at September 30, 2012 and for the fiscal year then ended, as presented in such Audited fiscal year end financial statements, are not satisfactory to WFBC; or

 

	 	
(c)

	
at any time, background check results of any newly appointed senior officer (including, without limitation, any chairman of the board, president, chief executive officer, chief financial officer, chief information officer or chief restructuring officer) of Customer shall be unsatisfactory to WFBC, in its sole discretion, or if significant changes (as determined by WFBC, in its sole discretion) shall occur in the composition of the board of directors of Customer,

 

then, WFBC, in its sole discretion may issue a written notice to Customer establishing the last day of the Term to be sixty (60) days from the date of such written notice.”

 

4.             Effect of this Amendment.  Except as specifically set forth herein, no other changes or modifications to the Account Purchase Agreement or the other Documents are intended or implied, and, in all other respects, the Account Purchase Agreement and the other Documents shall continue to remain in full force and effect in accordance with their respective terms as of the date hereof. This Amendment, and the instruments and agreements delivered pursuant hereto and thereto constitute the entire agreement of the parties with respect to the subject matter hereof and thereof, and supersede all prior oral or written communications, memoranda, proposals, negotiations, discussions, term sheets and commitments with respect to the subject matter hereof and thereof.  To the extent of any conflict between any term of this Amendment and any term of the Account Purchase Agreement or any other Document, the term of this Amendment shall control.  Except as specifically set forth herein, nothing contained herein shall evidence a waiver or amendment by WFBC of any other provision of the Account Purchase Agreement or the Documents.

 

5.             ­Further Assurances.  Customer shall execute and deliver such additional documents and take such additional action as may be reasonably requested by WFBC to effectuate the provisions and purposes of this Amendment.

 

6.             ­Binding Effect.  This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

 

7.             Governing Law.  The rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in accordance with the internal laws of the State of Texas (without giving effect to principles of conflict of laws).

 

  

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8.             Counterparts.  This Amendment may be signed in counterparts, each of which shall be an original and all of which taken together constitute one agreement. In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart signed by the party to be charged. Delivery of an executed counterpart of this Amendment electronically or by facsimile shall be effective as delivery of an original executed counterpart of this Amendment.

 

[Signature page follows]

 

  

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Each of the parties has signed this Amendment as of the day and year first above written.

 

	  	
TRIAD PERSONNEL SERVICES, INC.

	  	  	 
	  	
By:

	 
	  	  	 
	  	
Title: 

	 
	  	  	 
	  	
GENERAL EMPLOYMENT ENTERPRISES, INC.

	  	  	 
	  	
By:

	 
	  	  	 
	  	
Title:

	 
	  	  	 
	  	
BMPS, INC.

	  	  	 
	  	
By:

	 
	  	  	 
	  	
Title:

	 
	  	  	 
	  	
BMCH, INC., d/b/a Triad Temporaries

	  	  	 
	  	
By:

	 
	  	  	 
	  	
Title:

	 
	  	  	 
	  	
BMCHPA, INC., d/b/a Triad Temporaries

	  	  	 
	  	
By:

	 
	  	  	 
	  	
Title:

	 

 

  

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WELLS FARGO BANK, NATIONAL ASSOCIATION

	 	 
	 	 
By:

	 
	 	 	 
	 	 
Title:

	Authorized Signatory

By his signature below, Michael Schroering (the “Validity Guarantor”) consents to the terms of this Sixth Amendment to Account Purchase Agreement, confirms that his Validity Guaranty is in full force and effect and is binding upon him without any defense, setoffs or counterclaims.

Acknowledged and agreed to

by the Validity Guarantor:

	
By:

	  	  
	  	
MICHAEL SCHROERING, individually

	  

 

  

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STATE OF

	
)

	
  

	
)  ss.:

	
COUNTY OF

	
)

On this _____ day of March, 2013, before me personally came _____________________________, to me known, who being by me duly sworn, did depose and say that he is the __________________ of TRIAD PERSONNEL SERVICES, INC., the corporation described herein and which executed the foregoing instrument, and that he is authorized to execute said instrument on behalf of said corporation.

	  	  
	  	
Notary Public

 

	
STATE OF

	
)

	
  

	
)  ss.:

	
COUNTY OF

	
)

On this _____ day of March, 2013, before me personally came _____________________________, to me known, who being by me duly sworn, did depose and say that he is the __________________ of GENERAL EMPLOYMENT ENTERPRISES, INC., the corporation described herein and which executed the foregoing instrument, and that he is authorized to execute said instrument on behalf of said corporation.

	  	  
	  	
Notary Public

 

	
STATE OF

	
)

	
  

	
)  ss.:

	
COUNTY OF

	
)

On this _____ day of ______________, 2013, before me personally came _____________________________, to me known, who being by me duly sworn, did depose and say that he is the __________________ of BMPS, INC., the corporation described herein and which executed the foregoing instrument, and that he is authorized to execute said instrument on behalf of said corporation.

	  	  
	  	
Notary Public

 

  

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STATE OF

	
)

	
  

	
)  ss.:

	
COUNTY OF

	
)

On this _____ day of March, 2013, before me personally came _____________________________, to me known, who being by me duly sworn, did depose and say that he is the __________________ of BMCH, INC., d/b/a TRIAD TEMPORARIES, the corporation described herein and which executed the foregoing instrument, and that he is authorized to execute said instrument on behalf of said corporation.

 

	  	  
	  	
Notary Public

 

	
STATE OF

	
)

	
  

	
)  ss.:

	
COUNTY OF

	
)

 

On this _____ day of March, 2013, before me personally came _____________________________, to me known, who being by me duly sworn, did depose and say that he is the __________________ of BMCHPA, INC., d/b/a TRIAD TEMPORARIES, the corporation described herein and which executed the foregoing instrument, and that he is authorized to execute said instrument on behalf of said corporation.

 

	  	  
	  	
Notary Public

 

  

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STATE OF

	
)

	
  

	
)  ss.:

	
COUNTY OF

	
)

On this _____ day of March, 2013, before me personally came MICHAEL SCHROERING to me known and known to me to be the individual described in and who executed the foregoing instrument and acknowledged to be that he/she executed same.

 

	  	  
	  	
Notary Public

 

  

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AFFIDAVIT OF OUT-OF-STATE DELIVERY

 

	
STATE OF TEXAS

	
)

	
  

	
)  ss.:

	
COUNTY OF DALLAS

	
)

 

BEFORE ME, the undersigned authority, personally appeared the undersigned Jason M. Cole (the “Affiant”), who being first duty sworn upon oath, deposes and says that:

1.             The Affiant Is a Senior Vice President of Wells Fargo Bank, National Association (“WFB”), and the Affiant is duly authorized to and does make this affidavit In said capacity on behalf of WFB.

2.             That on the date sworn to and subscribed below, I executed on behalf of WFB on the date referenced below that certain Fifth Amendment to Account Purchase Agreement (the “Agreement”), which Agreement is between Triad Personnel Services, Inc., an Illinois corporation, General Employment Enterprises, Inc., an Illinois corporation and BMPS, Inc., an Ohio corporation (collectively “TRIAD”), BMCH, Inc. d/b/a Triad Personnel Services, an Ohio corporation (“BMCHOH”) and BMCHPA, Inc. d/b/a Triad Temporaries, a Pennsylvania corporation (“BMCHPA”) (collectively “Customer”) as Customer, and Wells Fargo Bank, National Association.

3.             That the execution of the Agreement by WFB took place in Dallas, Texas.

FURTHER AFFIANT SAYETH NAUGHT.

	  	  
	  	
Jason M. Cole, Senior Vice President

SWORN TO AND SUBSCRIBED before me this ______ day of March, 2013 by Jason M. Cole, who personally appeared before me, and who is personally known to me.

	  	  
	  	
[NOTARIAL SEAL]

	  	
Notary Public, State of Texas

	  	
Print Name:

	  
	  	
My Commission Expires:

	  

 

 

9ex10_21.htm

Exhibit 10.21

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "First Amendment") is dated and effective as of November 16, 2012 (the "First Amendment Effective Date") between FIFTH THIRD BANK and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lenders, and WELLS FARGO BANK, NATIONAL ASSOCIATION as Administrative Agent for the Lenders, and PATRICK INDUSTRIES, INC., as Borrower.

 

Recitals

 

A.          Borrower, Lenders and Administrative Agent are parties to that certain Credit Agreement, dated October 24, 2012 (the "Credit Agreement").

 

B.       Borrower has requested that Lenders and Administrative Agent amend and modify the Credit Agreement to, among other things, modify the capital expenditures limitation for fiscal year 2012.

 

C.           Subject to the terms and conditions stated in this First Amendment, Lenders, Borrower and Administrative Agent are willing to modify and amend the Credit Agreement, as provided in this First Amendment.

 

Agreement

 

NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements herein, and each act performed and to be performed hereunder, Lenders, Borrower and Administrative Agent agree as follows:

 

1.   Definitions.  Except as otherwise expressly stated in this First Amendment, all terms used in the Recitals and in this First Amendment that are defined in the Credit Agreement, and that are not otherwise defined herein, shall have the same meanings in this First Amendment as are ascribed to them in the Credit Agreement.

 

2.   Amendments.

 

(a)  Amendment of Section 9.3(c).  Section 9.3(c) of the Credit Agreement is amended and restated as of the First Amendment Effective Date to read as follows:

 

  "(c)           during fiscal year 2012, Investments by the Borrower or any of its Subsidiaries in the form of Capital Expenditures not to exceed $8,000,000; during fiscal year 2013 and each fiscal year thereafter, Investments by the Borrower or any of its Subsidiaries in the form of Capital Expenditures not to exceed $7,000,000;"

 

(b)     Amendment of Schedule 8.21.  Schedule 8.21 to the Credit Agreement is amended to replace all references to "within thirty (30) days after the Closing Date" with "within ninety (90) days after the Closing Date."

 

  

  

  

 

3.   Representations of Borrower.  Borrower represents and warrants to Lenders and Administrative Agent as follows:

 

(a)  The execution, delivery and performance of this First Amendment and all agreements and documents delivered pursuant hereto by Borrower has been duly authorized by all necessary corporate action and do not and will not violate any provision of any law, rule, regulation, order, judgment, injunction, or writ presently in effect applying to Borrower, or its articles of incorporation or bylaws, as applicable, or result in a breach of or constitute a default under any material agreement, lease or instrument to which Borrower is a party or by which Borrower or any of its properties may be bound or affected; (ii) no authorization, consent, approval, license, exemption or filing of a registration with any court or governmental department, agency or instrumentality is or will be necessary to the valid execution, delivery or performance by Borrower of this First Amendment and all agreements and documents delivered pursuant hereto; and (iii) this First Amendment and all agreements and documents delivered pursuant hereto by Borrower are the legal, valid and binding obligations of Borrower, as a signatory thereto, and enforceable against Borrower in accordance with the terms thereof.

 

(b)  After giving effect to the amendments contained in this First Amendment, the representations and warranties contained in Article VII of the Credit Agreement are true and correct on and as of the First Amendment Effective Date with the same force and effect as if made on and as of the First Amendment Effective Date, except that the representation in Section 7.15 of the Credit Agreement shall be deemed to refer to the financial statements of Borrower most recently delivered to Lenders and Administrative Agent prior to the First Amendment Effective Date. 

 

(c)  No Default or Event of Default has occurred and is continuing or will exist under the Credit Agreement as of the First Amendment Effective Date.

 

4.   Conditions.  The obligation of Lenders and Administrative Agent to execute and to perform this First Amendment shall be subject to full satisfaction of the following conditions precedent on or before the First Amendment Effective Date:

 

(a)         There shall exist no Default or Event of Default.

 

(b)         Copies, certified as of the First Amendment Effective Date, of such corporate documents or resolutions of Borrower as Administrative Agent or Lenders may request evidencing necessary corporate action by Borrower with respect to this First Amendment and all other agreements or documents delivered pursuant hereto as any Lender or Administrative Agent may request.

 

(c)         All liens in favor of Lenders shall be in full force and effect with the required first priority.

 

(d)         This First Amendment shall have been duly executed and delivered by Borrower to Lenders and Administrative Agent.

 

  

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(e)         Lenders and Administrative Agent shall have received such additional agreements, documents and certifications, fully executed by Borrower, as may be reasonably requested by Lenders or Administrative Agent.

 

5.   Fees.  Upon demand, Borrower shall immediately pay all costs and expenses incurred by Lenders and Administrative Agent in connection with the negotiation, preparation and closing of this First Amendment and the other documents and agreements delivered pursuant hereto, including the reasonable fees and out-of-pocket expenses of Faegre Baker Daniels LLP, special counsel to Administrative Agent.

 

6.   Waiver of Defenses and Claims.  In consideration of the financial accommodations provided to Borrower by Lenders as contemplated by this First Amendment, Borrower hereby waives, releases, and forever discharges Lenders from and against any and all rights, claims or causes of actions of Borrower against Lenders arising from any Lender's actions or inactions with respect to the Loan Documents or any security interest, lien or collateral in connection therewith as well as any and all rights of set off, defenses, claims, causes of action and any other bar to the enforcement of the Loan Documents which exist as of the First Amendment Effective Date.

 

7.   Binding on Successors and Assigns.  All of the terms and provisions of this First Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, assigns and legal representatives.

 

8.   Governing Law/Entire Agreement/Survival/Miscellaneous.  This First Amendment is a contract made under, and shall be governed by and construed in accordance with, the laws of the State of Illinois applicable to contracts made and to be performed entirely within such state and without giving effect to the choice or conflicts of laws principles of any other jurisdiction.   This First Amendment constitutes and expresses the entire understanding between the parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings, commitments, inducements or conditions, whether expressed or implied, oral or written.  All covenants, agreements, undertakings, representations and warranties made in this First Amendment shall survive the execution and delivery of this First Amendment, and shall not be affected by any investigation made by any person.  The Credit Agreement, as amended hereby, remains in full force and effect in accordance with its terms and provisions.

 

9.   Amendment of Other Loan Documents.  All references to the Credit Agreement in the other Loan Documents shall mean the Credit Agreement, as modified and amended by this First Amendment and as it may be further amended, modified, extended, renewed, supplemented and/or restated from time to time and at any time.  The other Loan Documents are hereby modified and amended to the extent necessary to conform them to, or to cause them to accurately reflect, the terms of the Credit Agreement, as modified by this First Amendment.  Except as otherwise expressly provided herein, all of the terms and provisions of the Credit Agreement and the other Loan Documents, as modified and amended by this First Amendment, remain in full force and effect, and fully binding on the parties thereto and their respective successors and assigns.

 

  

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10.         Further Assurances.  The parties shall duly execute and deliver, or cause to be executed and delivered, such further instruments and perform or cause to be performed such further acts as may be necessary or proper in the reasonable opinion of any other party to carry out the provisions and purposes of this First Amendment.

 

11.         Counterparts. This First Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one agreement.  In the event any party executes and delivers this First Amendment via facsimile, such party hereby agrees that for the purposes of enforcement and all applicable statutes, laws and rules, including, without limitation, the Uniform Commercial Code, rules of evidence and statutes of fraud: (i) the facsimile signature of such party shall constitute a binding signature of such party as a symbol and mark executed and adopted by such party with a present intention to authenticate this First Amendment; (ii) the facsimile of this First Amendment shall constitute a writing signed by such party; and (iii) the facsimile of this First Amendment shall constitute an original of and best evidence of this First Amendment.

 

[Signatures on following page]

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed and delivered by their respective authorized signatories.

 

	 	
PATRICK INDUSTRIES, INC., as Borrower

	 
	 	 	 	 
	 	
By: 

	/s/ Andy L. Nemeth 	 
	 	 	
Andy L. Nemeth, Executive Vice President-

	 
	 	 	Finance, Chief Financial Officer, Secretary and 	 
	 	 	Treasurer	 

 

	 	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 
	 	
as Administrative Agent and Lender

	 
	 	 	 
	 	
By: 

	/s/ David W. O’Neal	 
	 	 	
David W. O'Neal, Senior Vice President

	 

 

	 	
FIFTH THIRD BANK, as Lender

	 
	 	 	 	 
	 	
By: 

	/s/ Craig Ellis	 
	 	Printed:	Craig Ellis	 
	 	Title: 	Vice President

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