Document:

Exhibit 10.3

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September 2, 2020
WINMARK CORPORATION
WIRTH BUSINESS CREDIT, INC.
WINMARK CAPITAL CORPORATION
GROW BIZ GAMES, INC.
c/o Winmark Corporation
605 Highway 169 North, Suite 400
Minneapolis, MN  55441
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		Re:
	Amendment No. 3 to Note Agreement

Ladies and Gentlemen:
Reference is made to the Note Agreement dated as of May 14, 2015 (as amended from time to time, the “Note Agreement”), among Winmark Corporation, a Minnesota corporation (the “Company”), Wirth Business Credit, Inc., a Minnesota corporation (“Wirth”), Winmark Capital Corporation, a Minnesota corporation (“Winmark Capital”), Grow Biz Games, Inc., a Minnesota corporation (“Grow Biz”; the Company, Wirth, Winmark Capital, Grow Biz and any other Person who joins the Note Agreement as an Issuer pursuant to paragraph 5J, collectively, the “Issuers”), The Prudential Insurance Company of America (“PICA”), Pruco Life Insurance Company (“Pruco”) and Prudential Retirement Guaranteed Cost Business Trust (“PRG”), PAR U Hartford Life Insurance Comfort Trust (“PAR”; PICA, Pruco, PRG and PAR, collectively, the “Holders”).  Capitalized terms used herein that are not otherwise defined herein shall have the meaning specified in the Note Agreement.  
The Issuers have requested that the Holders agree to certain amendments to the Note Agreement as set forth below.  Subject to the terms and conditions hereof, the Holders are willing to agree to such request.  Accordingly, and in accordance with the provisions of paragraph 11C of the Note Agreement, the parties hereto agree as follows:
SECTION 1.Amendments to the Note Agreement.  From and after the Effective Date (as defined in Section 5 hereof), the Note Agreement is amended as follows:
1.1Paragraph 6A(1) of the Note Agreement is amended and restated as follows:
6A(1).Tangible Net Worth.  Each Issuer covenants that it will not permit the Tangible Net Worth of the Company and its Subsidiaries to be:

 (i)as of September 26, 2020, less than One Hundred Twenty Million Dollars ($120,000,000); and
(ii)as of the last day of each fiscal month following the fiscal month ended September 26, 2020, less than the sum of the minimum Tangible Net Worth from the immediately preceding fiscal month plus fifty percent (50%) of the consolidated net income of the Company and its Subsidiaries of the fiscal month then ended, if positive.
Notwithstanding the foregoing, the parties acknowledge and agree that the effect of the 2015 Tender Offer, the 2017 Tender Offer and the 2020 Tender Offer shall be excluded in the foregoing covenant calculation.
SECTION 2.  Representations and Warranties.  Each Issuer represents and warrants that (a) the execution and delivery of this letter by each Issuer has been duly authorized by all necessary corporate action on behalf of the Issuers, this letter has been executed and delivered by a duly authorized officer of the Issuers, as applicable, and this letter constitutes legal, valid and binding obligations of the Issuers, enforceable against the Issuers in accordance with their terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), (b) each representation and warranty set forth in paragraph 8 of the Note Agreement and the other Transaction Documents to which it is a party is true and correct as of the date of execution and delivery of this letter by the Issuers with the same effect as if made on such date, before and after giving effect to this letter (except to the extent such representations and warranties expressly refer to an earlier date, in which case they were true and correct as of such earlier date), (c) no Event of Default or Default exists or has occurred and is continuing on the date hereof, before and after giving effect to this letter and (d) neither any Issuer nor any Subsidiary has paid or agreed to pay, and neither any Issuer nor any Subsidiary will pay or agree to pay, any fees or other consideration to any Person in connection with the amendment referenced in Section 3.1(iii) hereof, other than as set forth in Section 18 of such amendment and reimbursement of out-of-pocket fees and expenses of their own legal counsel and legal counsel to the Banks and the Bank Agent.
SECTION 3.  Conditions Precedent.  The amendments in Section 1 of this letter shall become effective as of the date (the “Effective Date”) that each of the following conditions has been satisfied:
3.1Documents.Each Holder shall have received original counterparts or, if satisfactory to such Holder, certified or other copies of all of the following, in form and substance satisfactory to such Holder, dated the date hereof unless otherwise indicated, and on the date hereof in full force and effect:
(i)counterparts of this letter executed by the Issuers and the Holders;
(ii)counterparts of an amendment to the Intercreditor Agreement, duly executed by the Holders, the Bank Agent and the Holders; 
(iii)a copy of an amendment to the Credit Agreement, duly executed by the Issuers, the Bank Agent and the Banks, and the conditions precedent to the effectiveness 

of such amendment shall have been satisfied and such amendment shall be in full force and effect;
(iv)a Secretary’s Certificate signed by the Secretary or an Assistant Secretary and one other officer of each Issuer certifying, among other things, (a) as to the names, titles and true signatures of the officers of such Issuer, as the case may be, authorized to sign the Transaction Documents to which such Issuer, as the case may be, is a party, (b) that attached thereto is a true, accurate and complete copy of the certificate of incorporation or other formation document of such Issuer, as the case may be, certified by the Secretary of State of the state of organization of such Issuer, as the case may be, as of a recent date (or certifying that such certificate of incorporation or other formation document remains unchanged from the relevant document certified on the date of the closing), (c) that attached thereto is a true, accurate and complete copy of the by-laws, operating agreement or other organizational document of such Issuer, as the case may be, which were duly adopted and are in effect as of the Effective Date and have been in effect immediately prior to and at all times since the adoption of the resolutions referred to in clause (d), below (or certifying that such by-laws, operating agreement or other organization document remains unchanged from the relevant document certified on the date of the closing), (d) that attached thereto is a true, accurate and complete copy of the resolutions of the board of directors or other managing body of such Issuer, as the case may be, duly adopted at a meeting or by unanimous written consent of such board of directors or other managing body, authorizing the execution, delivery and performance of the Transaction Documents to which such Issuer, as the case may be, is a party, and that such resolutions have not been amended, modified, revoked or rescinded, are in full force and effect and are the only resolutions of the shareholders, partners or members of such Issuer, as the case may be, or of such board of directors or other managing body or any committee thereof relating to the subject matter thereof, and (e) that no dissolution or liquidation proceedings as to such Issuer have been commenced or are contemplated;, provided however, that the Officers’ Certificate delivered to the Bank Agent and Bank in a form satisfactory the Holders shall satisfy this condition;  
(v)a certificate of corporate or other type of entity and tax good standing for each Issuer and each of its Subsidiaries from the Secretary of State or other appropriate governmental official of the jurisdiction of organization of such Issuer or such Subsidiary and of each jurisdiction in which such Issuer or such Subsidiary is required to be qualified to transact business as a foreign organization, in each case dated as of a recent date provided however, that the Officers’ Certificate delivered to the Bank Agent and Bank in containing such good standing certificate shall satisfy this condition; ;
(vi)an Officer’s Certificate certifying, after giving effect to the amendments contemplated hereby and the amendment to the Credit Agreement referenced in Section 3.1(iii) above, as to the matters set forth in Section 4 hereof.
3.2Fees and Expenses.  The Issuers shall have paid the reasonable fees, charges and disbursements of Taft Stettinius & Hollister LLP, special counsel to the Purchasers, incurred in connection with this letter agreement.

3.3Proceedings.  All corporate and other proceedings taken or to be taken in connection with the transactions contemplated by this letter and all documents incident thereto shall be satisfactory to each Holder  and its counsel, and each such Holder shall have received all such counterpart originals or certified or other copies of such documents as they may reasonably request.
SECTION 4.Reference to and Effect on Note Agreement; Ratification of Transaction Documents.  Upon the effectiveness of the amendments in Section 1 of this letter, each reference to the Note Agreement in any other document, instrument or agreement shall mean and be a reference to the Note Agreement as modified by this letter.  Except as specifically set forth in Section 1, the Note Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  Except as expressly amended hereby, each of the Note Agreement and the other Transaction Documents are hereby ratified and confirmed in all respects and shall continue in full force and effect. Except as specifically stated in this letter, the execution, delivery and effectiveness of this letter shall not (a) amend the Note Agreement or any Note, (b) operate as a waiver of any right, power or remedy of any holder of the Notes, or (c) constitute a waiver of, or consent to any departure from, any provision of the Note Agreement or any Note at any time.  The execution, delivery and effectiveness of this letter shall not be construed as a course of dealing or other implication that any holder of the Notes has agreed to or is prepared to grant any consents or agree to any waiver to the Note Agreement in the future, whether or not under similar circumstances.
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SECTION 5.Release.  Each of the Issuers hereby absolutely and unconditionally releases and forever discharges each Purchaser, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, counterclaims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which the Issuers has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this letter, whether such claims, counterclaims, demands or causes of action are matured or unmatured or known or unknown. 
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SECTION 6.Expenses.  Each Issuer hereby confirms its obligations under the Note Agreement, whether or not the transactions hereby contemplated are consummated, to pay, promptly after request by any holder of the Notes, all reasonable out-of-pocket costs and expenses, including attorneys’ fees and expenses, incurred by any holder of the Notes in connection with this letter agreement or the transactions contemplated hereby, in enforcing any rights under this letter agreement, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this letter agreement or the transactions contemplated hereby.  The obligations of the Issuers under this Section 9 shall survive transfer by any holder of any Note and payment of any Note. 
SECTION 7.Governing Law.  THIS LETTER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF ILLINOIS (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS 

AGREEMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER JURISDICTION).
SECTION 8.  Counterparts; Section Titles.  This letter may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this letter by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this letter. The section titles contained in this letter are and shall be without substance, meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.
(Signature Page Follows)
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Very truly yours, 
THE PRUDENTIAL INSURANCE COMPANY
  OF AMERICA
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By:  /s/ Anna Sabiston​ ​​ ​​ ​
Second Vice President
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PRUCO LIFE INSURANCE COMPANY
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By:  /s/ Anna Sabiston​ ​​ ​​ ​
Assistant Vice President
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PRUDENTIAL RETIREMENT 
   GUARANTEED COST BUSINESS 
   TRUST
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By:Prudential Retirement Insurance and Annuity Company, as Grantor

By:PGIM, Inc., as Investment Manager
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By:  /s/ Anna Sabiston​ ​​ ​​ ​
Vice President
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PAR U HARTFORD LIFE INSURANCE
  COMFORT TRUST
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		By:
	Prudential Arizona Reinsurance Universal Company, as Grantor

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		By:
	PGIM, Inc., as Investment Manager

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By:  /s/ Anna Sabiston​ ​​ ​​ ​
Name: Anna Sabiston
Title: Vice President
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The foregoing letter is 
hereby accepted as of the 
date first above written.

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WINMARK CORPORATION

By: /s/ Anthony D. Ishaug_______________ 
  Name:  Anthony D. Ishaug
  Title:   Executive Vice President and Chief Financial Officer
WIRTH BUSINESS CREDIT, INC.

By: /s/ Anthony D. Ishaug_______________  
  Name:  Anthony D. Ishaug
  Title:   Chief Financial Officer and Treasurer
WINMARK CAPITAL CORPORATION

By: /s/ Anthony D. Ishaug_______________  
  Name:  Anthony D. Ishaug
  Title:   Chief Financial Officer and Treasurer
GROW BIZ GAMES, INC.

By: /s/ Anthony D. Ishaug_______________ 
  Name:  Anthony D. Ishaug
  Title:   Chief Financial Officer, Treasurer and Secretary

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Exhibit 10.5

AMENDMENT NO. 2 TO
INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT
This Amendment No. 2 to Intercreditor and Collateral Agency Agreement (this “Amendment”), dated as of this 2nd day of September, 2020, is by and among CIBC Bank USA, formerly known as The PrivateBank and Trust Company (“CIBC”), The Prudential Insurance Company of America (“Prudential”), Pruco Life Insurance Company (“Pruco”), Prudential Retirement Guaranteed Cost Business Trust (“Prudential Guaranteed”), PAR U Hartford Life Insurance Comfort Trust (“PAR”), CIBC, in its capacity as Bank Agent, and CIBC, in its capacity as Collateral Agent.  
WITNESSETH:
WHEREAS, the parties to this Amendment are party to the Intercreditor and Collateral Agency Agreement dated as of May 14, 2015 (the “Intercreditor Agreement”), as the same shall be amended by this Amendment and amended or otherwise modified from time to time; 
WHEREAS, as of the date hereof, BMO Harris Bank N.A. (“BMO”) has been repaid all outstanding Senior Indebtedness owed to it in full and is no longer a party to the Credit Agreement as a Bank Lender;
WHEREAS, the Borrowers and CIBC are entering into the Amendment No. 7 to Credit Agreement, dated as of the date hereof (“Bank Amendment”); 
WHEREAS, the Borrowers, Prudential, Pruco, Prudential Guaranteed and PAR are entering into the Amendment No. 3 to Note Purchase Agreement, dated as of the date hereof (the “Note Amendment”); 
WHEREAS, as a condition to the execution and delivery of each of the Bank Amendment and the Note Amendment, the parties thereto require the execution and delivery of this Amendment by the parties hereto.
NOW, THEREFORE, for the above reasons, in consideration of the mutual covenants herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
SECTION 1.Definitions.  Capitalized terms used but not defined in this Amendment have the meanings assigned thereto in the Intercreditor Agreement, as amended by this Amendment. 
SECTION 2.Amendments.  Effective as of the Effective Date (as defined below):
2.1Section 1 of the Intercreditor Agreement is hereby amended by amending and restating or inserting in appropriate alphabetical order, as applicable, the following defined terms:

“Additional Notes” shall mean any additional senior secured notes issued by Borrowers in favor of Noteholders under the Note Agreement from time to time after the date of the Second Amendment that constitute or evidence “Additional Prudential Debt” as defined in the Credit Agreement as in effect as of the date of the Second Amendment.
“Second Amendment” means that certain Amendment No. 2 to Intercreditor and Collateral Agency Agreement dated as of September 2, 2020 by and among the Collateral Agent, the Bank Lender and the Noteholders.
“Senior Secured Notes” shall mean, collectively, the Borrowers’ 5.50% Senior Secured Notes due May 14, 2025, the Borrowers’ 5.10% Senior Secured Notes due August 17, 2027 and all Additional Notes.
2.2Section 8 of the Intercreditor Agreement is hereby amended by amending and restating paragraph (a) thereof in its entirety to read as follows:
(a)The Bank Agent and each Bank Lender agrees that, without the consent in writing by Noteholders holding a majority of the outstanding principal amount of the Senior Secured Notes, it will not (i) make any Revolving Loan or issue any Letter of Credit if such loans or issuances would cause the aggregate outstanding principal amount of Revolving Loans and undrawn face amount of Letters of Credit to exceed the sum of (x) $28,000,000 less (y) the amount of all permanent reductions of the "Commitment" (as defined in the Credit Agreement) after the date of the Second Amendment, (ii) except for (x) Persons becoming Borrowers after the date hereof and (y) the Guaranty Agreements, retain or obtain the primary or secondary obligations of any other obligor or obligors with respect to all or any part of the Senior Indebtedness, or (iii) from and after the institution of any bankruptcy or insolvency proceeding involving any Loan Party, as respects the Collateral enter into any agreement with such Loan Party with respect to post-petition usage of cash collateral, post-petition financing arrangements or adequate protection. Each Noteholder agrees that, without the consent in writing by the Bank Lenders holding a majority of the outstanding principal amount of the Loan and Reimbursement Obligations and Outstanding Letters of Credit Exposure, it will not (i) make note purchases, advances, loans or extensions of credit pursuant to the Note Agreement if such purchases, advances, loans or extensions of credit would cause the outstanding aggregate principal amount of Senior Indebtedness under the Note Agreement to exceed the sum of (x) $23,000,000 in the aggregate under Senior Secured Notes issued and outstanding as of the date of the Second Amendment plus (y) $28,000,000 in the aggregate under Additional Notes less (z) the amount of all principal payments made on the Senior Secured Notes after the date of the Second Amendment, (ii) except for (x) Persons becoming Borrowers after the date hereof and (y) the Guaranty Agreements, retain or obtain the primary or secondary obligations of any other obligor or obligors with respect to all or any part of the Senior Indebtedness, or from and after the institution of any bankruptcy or insolvency proceeding involving any Loan Party, as respects the Collateral enter into any agreement with such Loan Party with respect to post-petition usage of cash collateral, post-petition financing arrangements or adequate protection.

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SECTION 3.Effectiveness.  This Amendment shall become effective as of the date (the “Effective Date”) upon which this Amendment has been executed and delivered by each party hereto concurrently with the effectiveness of the Bank Amendment and the Note Amendment.
SECTION 4.Confirmations.  Each party hereto acknowledges and agrees that (i) each reference to the “Credit Agreement” in any Collateral Documents shall include the Credit Agreement as amended by the Bank Amendment and (ii) each reference to the “Note Agreement” in any Collateral Documents shall include the Note Agreement as amended by the Note Amendment.
SECTION 5.Effect of Amendment.  Upon the effectiveness of this Amendment, each reference to the Intercreditor Agreement in each Collateral Document and in any other document, instrument or agreement shall mean and be a reference to the Intercreditor Agreement as modified by this Amendment.  Except as specifically set forth in Section 2, the Intercreditor Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  Except as expressly amended hereby, the Intercreditor Agreement and each of the Collateral Documents are hereby ratified and confirmed in all respects and shall continue in full force and effect.  Except as specifically stated in this Amendment, the execution, delivery and effectiveness of this Amendment shall not (a) amend the Intercreditor Agreement, (b) operate as a waiver of any right, power or remedy of the Collateral Agent, any Bank Lender, the Bank Agent or any Noteholder, or (c) constitute a waiver of, or consent to any departure from, any provision of the Intercreditor Agreement at any time.  The execution, delivery and effectiveness of this Amendment shall not be construed as a course of dealing or other implication that the Collateral Agent, any Bank Lender, the Bank Agent or any Noteholder has agreed to or is prepared to grant any consents or agree to any amendment to the Intercreditor Agreement in the future, whether or not under similar circumstances.
SECTION 6.Entire Agreement.  The Intercreditor Agreement, as amended by this Amendment, constitutes the entire agreement and understanding between the parties to each with respect to the subject matter thereof and hereof and supersedes any and all oral communication and prior writings in respect thereof or hereof.
SECTION 7.Counterparts. This Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which, when so executed and delivered, shall be an original, but all of which together shall constitute but one and the same instrument.
SECTION 8.Governing Law.  THIS AMENDMENT SHALL BE GOVERNED AS TO VALIDITY, INTERPRETATION, ENFORCEMENT AND EFFECT BY THE LAWS OF THE STATE OF MINNESOTA (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS AMENDMENT TO BE GOVERNED BY THE LAWS OF ANY OTHER JURISDICTION).
SECTION 9.Bank Lender Party.The parties acknowledge and agree that BMO has, as of the date of this Amendment, been repaid all outstanding Senior Indebtedness owed to it, has terminated its “Commitments” under the Credit Agreement and is no longer a Bank Lender under 

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or otherwise a party to the Credit Agreement, the Intercreditor Agreement or any of the Collateral Documents.
[Signature page follows.]
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first written above.
CIBC BANK USA, in its individual capacity, as 
Bank Agent, as the sole Bank Lender and as 
Collateral Agent

By: /s/ Leanne Manning____________
Name:  Leanne Manning
Title:    Managing Director
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THE PRUDENTIAL INSURANCE COMPANY
  OF AMERICA
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By: /s/ Anna Sabiston____________
Second Vice President
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PRUCO LIFE INSURANCE COMPANY
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By:  /s/ Anna Sabiston____________
Assistant Vice President
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PRUDENTIAL RETIREMENT 
 GUARANTEED COST BUSINESS 
TRUST
​
By:Prudential Retirement Insurance and 
Annuity Company, as Grantor

By:PGIM, Inc., as Investment Manager
​
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By:/s/ Anna Sabiston____________​ ​
Vice President
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PAR U HARTFORD LIFE INSURANCE
PAR U HARTFORD LIFE INSURANCE COMFORT TRUST
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By:Prudential Arizona Reinsurance
Universal Company, as Grantor
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By:PGIM, Inc., as Investment Manager
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By: /s/ Anna Sabiston____________
Name: Anna Sabiston
 Title:   Vice President
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Acknowledged, consented and agreed:
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WINMARK CORPORATION
By: /s/ Anthony D. Ishaug____________
Name:Anthony D. Ishaug
Title:Executive Vice President and Chief
Financial Officer
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WIRTH BUSINESS CREDIT, INC.
By: /s/ Anthony D. Ishaug____________
Name:Anthony D. Ishaug
Title:Chief Financial Officer and Treasurer
WINMARK CAPITAL CORPORATION
By: /s/ Anthony D. Ishaug____________
Name:Anthony D. Ishaug
Title:Chief Financial Officer and Treasurer
GROW BIZ GAMES, INC.
By: /s/ Anthony D. Ishaug____________
Name:Anthony D. Ishaug
Title:Chief Financial Officer, Treasurer and Secretary

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