Document:

Exhibit 10.1

 

WAIVER AND AMENDMENT NO. 5 TO CREDIT AGREEMENT

 

THIS WAIVER AND AMENDMENT NO. 5 TO CREDIT AGREEMENT (this “Waiver and Amendment No. 5”) is made as of March 23, 2016 (the “Effective Date”) by and among INTREPID POTASH, INC. (the “Borrower”), each of the Lenders party hereto and U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative Agent”), under that certain Credit Agreement, dated as of August 3, 2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the Lenders party thereto, and the Administrative Agent.  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Credit Agreement.

 

WHEREAS, Section 6.1(a) of the Credit Agreement requires the Borrower to deliver to the Administrative Agent audited annual financial statements without any going concern modifier;

 

WHEREAS, the Borrower has informed the Administrative Agent that it will not be able to deliver such financials for fiscal year 2015 without certain modifications to the Credit Agreement;

 

WHEREAS, the Borrower has requested that the Administrative Agent and the Required Lenders waive the requirement to deliver such 2015 annual financials without any going concern modifier until May 13, 2016 in order to provide time to discuss certain Credit Agreement modifications;

 

WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders waive compliance with Sections 6.21(a) and (b) for the quarter ending March 31, 2016 until May 13, 2016;

 

WHEREAS, the Borrower wishes to reduce the Aggregate Commitment to $85,000,000; and

 

WHEREAS, the Administrative Agent and the Required Lenders are willing to provide such waiver on the terms and conditions set forth below, and the Borrower, the Administrative Agent and the Required Lenders are willing to amend the Credit Agreement on the terms and conditions set forth below;

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Required Lenders and the Administrative Agent hereby agree as follows.

 

 

ARTICLE I — WAIVER AND AMENDMENT.

 

1.1          Waiver.  Effective as of the Effective Date but subject to the satisfaction of the conditions precedent set forth in Article III below, the Administrative Agent and the Required Lenders agree to waive, until May 13, 2016, the requirement that the Borrower deliver audited annual financial statements for fiscal year 2015 without any going concern modifier and agree that the failure to deliver audited annual financial statements for fiscal year 2015 without a going concern modifier (or the existence of audited annual financial statements for fiscal year 2015 with a going concern modifier) shall not constitute a Default or Event of Default until May 13, 2016.  An immediate Event of Default shall occur under the Credit Agreement if such financials are not delivered by such date.  In addition, the Administrative Agent and the Required Lenders agree to waive, until May 13, 2016, the Borrower’s compliance with Sections 6.21(a) and (b) of the Credit Agreement for the quarter ending March 31, 2016, and agree that the failure to comply with such financial covenants for the fiscal quarter ending March 31, 2016 shall not constitute a Default or Event of Default until May 13, 2016.  The foregoing waivers do not and shall not apply to any other Default or Event of Default that may currently be outstanding, and shall not apply to any future Default or Event of Default.  The Borrower, on its behalf and on behalf of its Subsidiaries and Affiliates, agrees that the foregoing waivers do not constitute or represent any agreement or commitment by the Administrative Agent or any Lender to provide any other modifications to the Credit Agreement or any other Loan Document.

 

1.2          Amendments.  Effective as of the Effective Date but subject to the satisfaction of the conditions precedent set forth in Article III below, the Borrower, the Administrative Agent and the Required Lenders agree that the Aggregate Commitment is hereby permanently reduced from $150,000,000 to $85,000,000.  All provisions of the Credit Agreement and the other Loan Documents are hereby amended to give effect to such reduction, notwithstanding any notice requirements in respect thereof.  Each Lender’s Commitment shall be reduced ratably as a result of such permanent reduction in the Aggregate Commitment.  In addition, Section 9.6(a) of the Credit Agreement is hereby amended to insert the following immediately at the end thereof: “Notwithstanding the foregoing or anything to the contrary set forth herein, (i) the Borrower agrees that reasonable and documented costs, fees and expenses that are charged or incurred through and including May 13, 2016 by any financial advisor retained by the Administrative Agent on behalf of the Lenders shall be paid by the Borrower pursuant to this Section 9.6, and (ii) the Borrower shall pay in immediately available funds all of the foregoing costs, fees and expenses within twenty-one days after receipt of a written invoice therefor (with the understanding that any failure to make payment by the end of such a twenty-one day period (if any amounts are outstanding after applying all retainer amounts in respect of legal fees and expenses) shall be subject to the five Business Day grace period provided in Section 7.2(iii)); provided, however, that this clause (ii) shall terminate and be of no force and effect on and after the first date on which the retainer held by legal counsel for the Administrative Agent pursuant to the side letter entered into by the Borrower and the Administrative Agent on March 23, 2016 is returned to the Borrower or the amount of such retainer held by such legal counsel is less than that required by such side letter.”

 

ARTICLE II- REPRESENTATIONS AND WARRANTIES

 

The Borrower hereby represents and warrants as follows:

 

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2.1          This Waiver and Amendment No. 5 and the Credit Agreement, as modified hereby, constitute legal, valid and binding obligations of the Borrower and are enforceable against the Borrower in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally.

 

2.2          As of the date hereof and after giving effect to the terms of this Waiver and Amendment No. 5, (i) no Default or Event of Default shall have occurred and be continuing and (ii) the representations and warranties of the Borrower set forth in the Credit Agreement, as amended hereby, are (x) with respect to any representations or warranties that contain a materiality qualifier, true and correct in all respects as of the date hereof and (y) with respect to any representations or warranties that do not contain a materiality qualifier, true and correct in all material respects as of the date hereof, except in each case to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall have been true and correct on and as of such earlier date.

 

ARTICLE III- CONDITIONS PRECEDENT

 

This Waiver and Amendment No. 5 shall become effective on the Effective Date, provided, however, that the effectiveness of this Waiver and Amendment No. 5 is subject to:

 

1.              The Administrative Agent’s receipt of counterparts of (i) this Waiver and Amendment No. 5 duly executed by the Borrower, the Administrative Agent and the Required Lenders and (ii) a Consent and Reaffirmation in the form of Annex A hereto duly executed by each Guarantor.

 

2.          The Administrative Agent shall have received from the Borrower a non-refundable work fee of $5,000 for each Lender that delivers its executed signature page hereto to the Administrative Agent by the day and time designated for such delivery by the Administrative Agent (with the Administrative Agent determining in its sole discretion whether any such delivery was made on a timely basis).

 

3.          Payment of all fees and expenses then due and payable by the Borrower pursuant to Section 4.1 below.

 

4.          The Administrative Agent shall have received a fully executed and effective waiver or waiver and amendment, in form and substance acceptable to it, to the Borrower’s Note Purchase Agreement dated as of August 28, 2012, which, among other things, waives compliance with financial covenants for the quarter ending March 31, 2016 until May 13, 2016 or later.

 

ARTICLE IV- GENERAL

 

4.1          Expenses.  The Borrower agrees to reimburse the Administrative Agent upon demand for all reasonable and documented third party out-of-pocket expenses paid or incurred by the Administrative Agent, including, without limitation, reasonable fees, charges and disbursements of outside counsel to the Administrative Agent, in connection with preparation,

 

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negotiation and execution of this Waiver and Amendment No. 5 and any other document required to be furnished herewith, including, without limitation, all written invoices in respect of the foregoing delivered to the Borrower prior to the Effective Date.

 

4.2          Counterparts.  This Waiver and Amendment No. 5 may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Waiver and Amendment No. 5 by telecopy or other electronic imaging methods shall be effective as delivery of a manually executed counterpart of this Waiver and Amendment No. 5.

 

4.3          Severability.  Any provision in this Waiver and Amendment No. 5 that is held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction, and to this end the provisions of this Waiver and Amendment No. 5 are declared to be severable.

 

4.4          Governing Law.  This Waiver and Amendment No. 5 shall be construed in accordance with the internal laws (without regard to the conflict of law provisions) of the State of Colorado, but giving effect to federal laws applicable to national banks.

 

4.5          Successors; Enforceability.  The terms and provisions of this Waiver and Amendment No. 5 shall be binding upon the Borrower, the Administrative Agent and the Lenders and their respective successors and assigns, and shall inure to the benefit of the Borrower, the Administrative Agent and the Lenders and the successors and assigns of the Administrative Agent and the Lenders.

 

4.6          Reference to and Effect on the Credit Agreement.

 

a.             Upon the effectiveness of this Waiver and Amendment No. 5, on and after the date hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Credit Agreement, as amended and modified hereby.

 

b.             Subject to the waiver and amendment provided hereby, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith (including, without limitation, all of the Loan Documents) shall remain in full force and effect and are hereby ratified and confirmed.

 

c.             Except as specifically set forth herein, the execution, delivery and effectiveness of this Waiver and Amendment No. 5 shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

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4.7          Headings.  Section headings in this Waiver and Amendment No. 5 are for convenience of reference only, and shall not govern the interpretation of any of the provisions of this Waiver and Amendment No. 5.

 

4.8          Release. In further consideration of the execution by the Administrative Agent and the Lenders of this Waiver and Amendment No. 5, the Borrower, on behalf of itself and each of its Subsidiaries Affiliates, and all of the successors and assigns of each of the foregoing (collectively, the “Releasors”), hereby completely, voluntarily, knowingly, and unconditionally releases and forever discharges the Administrative Agent, each of the Lenders, each of their advisors, professionals and employees, each affiliate of the foregoing and all of their respective successors and assigns (collectively, the “Releasees”), from any and all claims, actions, suits, and other liabilities, including, without limitation, any so-called “lender liability” claims or defenses (collectively, “Claims”), whether arising in law or in equity, which any of the Releasors ever had, now has or hereinafter can, shall or may have against any of the Releasees for, upon or by reason of any matter, cause or thing whatsoever from time to time occurred on or prior to the date hereof, in any way concerning, relating to, or arising from (i) any of the Releasors, (ii) the Obligations, (iii) the Credit Agreement or any of the other Loan Documents, (iv) the financial condition, business operations, business plans, prospects or creditworthiness of the Borrower, and (v) the negotiation, documentation and execution of this Waiver and Amendment No. 5 and any documents relating hereto.  The Borrower, on behalf of each of the Releasors, hereby acknowledges that they collectively have been advised by legal counsel of the meaning and consequences of this release.

 

(signature pages follow)

 

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IN WITNESS WHEREOF, the parties hereto have caused this Waiver and Amendment No. 5 to be executed by their respective officers thereunto duly authorized as of the date first written above.

 

 

	
 
    	
INTREPID   POTASH, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian D. Frantz
    
	
 
    	
Name:
    	
Brian D. Frantz
    
	
 
    	
Title: 
    	
Senior Vice President   and Chief Accounting Officer
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender, as LC Issuer and as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William J. Umscheid
    
	
 
    	
Name:
    	
William J. Umscheid
    
	
 
    	
Title:
    	
Senior Vice President
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

	
 
    	
WELLS   FARGO BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter Clark
    
	
 
    	
Name:
    	
Peter Clark
    
	
 
    	
Title:
    	
Senior Vice President
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

	
 
    	
BANK   OF MONTREAL, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lindsay Giometti
    
	
 
    	
Name:
    	
Lindsay Giometti
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

	
 
    	
BANK   OF AMERICA, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel J. Ricke
    
	
 
    	
Name:
    	
Daniel J. Ricke
    
	
 
    	
Title:
    	
VP
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

	
 
    	
AGFIRST   FARM CREDIT BANK, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael C. Hawkins
    
	
 
    	
Name:
    	
Michael C. Hawkins
    
	
 
    	
Title:
    	
Asst. Vice President
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

	
 
    	
UNITED   FCS PCA
    
	
 
    	
D/B/A   FCS COMMERCIAL FINANCE GROUP, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel J. Best
    
	
 
    	
Name:
    	
Daniel J. Best
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

	
 
    	
BANK   OF THE WEST, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stanley J. Adelstein
    
	
 
    	
Name:
    	
Stanley J. Adelstein
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

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

 

Signature Page to

Waiver and Amendment No. 5

to

Intrepid Potash Credit Agreement

 

 

Annex A

 

FORM OF CONSENT AND REAFFIRMATION

 

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Waiver and Amendment No. 5 to Credit Agreement (the “Waiver and Amendment No. 5”)  dated as of March 23, 2016 by and among INTREPID POTASH, INC. (the “Borrower”), each of the Lenders party to the Credit Agreement (defined below) and U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative Agent”), under that certain Credit Agreement, dated as of August 3, 2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the Lenders party thereto, and the Administrative Agent.  Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement.  Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned consents to the Waiver and Amendment No. 5 and reaffirms the terms and conditions of the Guaranty and any other Loan Document executed by it and acknowledges and agrees that such Guaranty and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed.  Each of the undersigned also agrees to join in and be bound by all of the terms and provisions of the release contained in Section 4.8 of Waiver and Amendment No. 5.  All references to the Credit Agreement contained in the above referenced documents shall be a reference to the Credit Agreement as so modified by the Waiver and Amendment No. 5 and as the same may from time to time hereafter be amended, modified or restated.

 

Dated: March 23, 2016

 

(signature page follows)

 

 

IN WITNESS WHEREOF, each of the undersigned has caused this Consent and Reaffirmation to be executed by its officers thereunto duly authorized, as of the date first above written.

 

 

	
 
    	
INTREPID   POTASH — MOAB, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
INTREPID   POTASH, INC., its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian D. Frantz
    
	
 
    	
Name:
    	
Brian   D. Frantz
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Accounting Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTREPID   POTASH — WENDOVER, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
INTREPID   POTASH, INC., its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian D. Frantz
    
	
 
    	
Name:
    	
Brian   D. Frantz
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Accounting Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTREPID   POTASH — NEW MEXICO, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
INTREPID   POTASH, INC., its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian D. Frantz
    
	
 
    	
Name:
    	
Brian   D. Frantz
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Accounting OfficerExhibit 10.2

 

Execution Version

 

INTREPID POTASH, INC.

 

WAIVER TO

 

NOTE PURCHASE AGREEMENT

 

$60,000,000 3.23% Senior Notes, Series A, due April 16, 2020

$45,000,000 4.13% Senior Notes, Series B, due April 14, 2023

$45,000,000 4.28% Senior Notes, Series C, due April 16, 2025

 

Dated as of March 23, 2016

 

To the Holders of the Senior Notes

of Intrepid Potash, Inc.

Named in the Attached Schedule I

 

Ladies and Gentlemen:

 

Reference is made to the Note Purchase Agreement dated as of August 28, 2012 among Intrepid Potash, Inc. (the “Company”) and the Purchasers listed in Schedule A attached thereto, as amended by that certain First Amendment to Note Purchase Agreement dated as of January 15, 2016 (as so amended, the “Existing Note Purchase Agreement”), pursuant to which the Company issued (i) $60,000,000 aggregate principal amount of its 3.23% Senior Notes, Series A, due April 16, 2020; (ii) $45,000,000 aggregate principal amount of its 4.13% Senior Notes, Series B, due April 14, 2023; and (iii) $45,000,000 aggregate principal amount of its 4.28% Senior Notes, Series C, due April 16, 2025 (collectively, the “Notes”).  You are referred to herein individually as a “Holder” and collectively as the “Holders.”  The Existing Note Purchase Agreement, as modified by this Waiver to Note Purchase Agreement (this “Waiver Agreement”) and as may be further amended, restated, supplemented or otherwise modified from time to time, is referred to herein as the “Note Purchase Agreement”.  Capitalized terms used and not otherwise defined herein have the meanings ascribed to them in the Note Purchase Agreement.

 

The Company has requested a waiver of compliance by the Company with Sections 10.1 and 10.2 of the Note Purchase Agreement for the fiscal quarter ending March 31, 2016 until May 13, 2016.  The undersigned Holders have agreed to such waiver on the terms and conditions set forth herein.

 

In consideration of the premises and for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Company and the undersigned Holders agree as follows:

 

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1.             WAIVER

 

Effective as of the Effective Date, the undersigned Holders agree to waive, until May 13, 2016, the requirement that the Company comply with Sections 10.1 and 10.2 of the Note Purchase Agreement for the fiscal quarter ending March 31, 2016 (the “Waiver”), and agree that any failure by the Company to comply with such Sections 10.1 and/or 10.2 for the fiscal quarter ending March 31, 2016 shall not constitute a Default or an Event of Default until May 13, 2016.  An immediate Event of Default shall occur under Section 11(c) of the Note Purchase Agreement if the Company is not in compliance with Sections 10.1 and 10.2 of the Note Purchase Agreement for the fiscal quarter ending March 31, 2016 on May 13, 2016.

 

The Waiver is limited to its terms and does not constitute a waiver of any other term, condition, representation, covenant or undertaking under the Note Purchase Agreement or any of the other agreements, documents, or instruments executed and delivered in connection therewith.  Without limiting the foregoing, the Waiver does not and shall not apply to any other Default or Event of Default that may currently be outstanding, and shall not apply to any future Default or Event of Default (other than a Default or Event of Default under Section 11(c) of the Note Purchase Agreement occurring during the period from the Effective Date until May 13, 2016 and arising solely from the Company’s failure to comply with Sections 10.1 and/or 10.2 of the Note Purchase Agreement for the fiscal quarter ending March 31, 2016).  The Company, on its behalf and on behalf of its Subsidiaries and Affiliates, agrees that the Waiver does not constitute or represent any agreement or commitment by any Holder to provide any other modifications to the Note Purchase Agreement or any of the other agreements, documents, or instruments executed and delivered in connection therewith, or establish any course of dealing by any Holder.  Except as expressly provided in the Waiver, (a) the Waiver does not and shall not constitute a waiver, release or limitation upon the exercise by any Holder of any of its rights, legal or equitable, hereunder or under the Note Purchase Agreement or any of the other agreements, documents, or instruments executed and delivered in connection therewith and (b) each Holder reserves any and all rights and remedies which it has had, has or may have under the Note Purchase Agreement and the other agreements, documents, or instruments executed and delivered in connection therewith.

 

2.             REPRESENTATIONS AND WARRANTIES

 

2.1          No Default or Event of Default.  No event has occurred and no condition exists that, as of the date hereof or as of the Effective Date (after giving effect to the Waiver), would constitute a Default or Event of Default.

 

2.2          Authorization, etc.  The execution, delivery and performance by the Company of this Waiver Agreement has been duly authorized by all necessary corporate action and does not require any registration with, consent or approval of, notice to or action by, any Person (including any Governmental Authority) in order to be effective and enforceable.  The Note Purchase Agreement, this Waiver Agreement and the Notes each constitute the legal, valid, and binding obligations of the Company, enforceable in accordance with their respective terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting the enforcement of

 

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creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

2.3          Compliance with Laws, Other Instruments, etc.  The execution, delivery and performance by the Company of this Waiver Agreement will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, corporate charter or by-laws, or any other Material agreement, lease, or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.

 

2.4          Disclosure.  This Waiver Agreement and the documents, certificates or other writings delivered to the Holders by or on behalf of the Company in connection herewith, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.  There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the other documents, certificates and other writings delivered to the Holders by or on behalf of the Company.

 

2.5          Indebtedness Under Credit Agreement.  As of the date of this Waiver Agreement, (a) no principal or interest is outstanding in respect of Loans (as defined in the Credit Agreement) under the Credit Agreement and (b) the aggregate amount of all LC Obligations (as defined in the Credit Agreement) is $500,000.

 

2.6          Credit Agreement Waiver.  No consideration or remuneration has been paid or will be paid to any agent or any lender under the Credit Agreement as an inducement to enter into the Credit Agreement Waiver other than the work fee described in the Credit Agreement Waiver.

 

3.             EFFECTIVE DATE

 

The Waiver shall become effective as of the date on which each of the following conditions precedent has been satisfied in full (the “Effective Date”):

 

3.1          Execution and Delivery of Waiver Agreement.  The Required Holders shall have executed and delivered this Waiver Agreement and the Holders shall have received a counterpart of this Waiver Agreement duly executed and delivered by the Company.

 

3.2          Credit Agreement Waiver.  The Holders shall have received a fully executed copy of a Waiver and Amendment No. 5 to Credit Agreement containing a waiver, until May 13, 2016 or later, of the requirement that the Company comply with Sections 6.21(a) and (b) of the Credit Agreement for the fiscal quarter ending March 31, 2016, and otherwise in form and substance satisfactory to the Required Holders party hereto (the “Credit Agreement

 

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Waiver”), and the Credit Agreement Waiver shall have been duly executed and delivered by the Company, U.S. Bank National Association, as administrative agent, and the Required Lenders (as defined in the Credit Agreement).

 

3.3          Confirmation of Subsidiary Guaranties.  The Holders shall have received a counterpart of the Consent and Reaffirmation attached hereto as Annex A duly executed and delivered by each Subsidiary Guarantor.

 

3.4          Representations and Warranties True.  The representations and warranties set forth in Section 2 hereof shall be true and correct on such date in all respects.

 

3.5          Work Fee.  Each Holder shall have received from the Company a work fee of $5,000; such fee shall be deemed earned when paid and shall be nonrefundable.

 

3.6          Fees and Expenses.  The Company shall have paid all reasonable fees, expenses and costs of (a) the Holders’ special counsel, Morgan, Lewis & Bockius LLP, incurred in connection with the preparation, negotiation, execution and delivery of this Waiver Agreement and any other documents related hereto (including, without limitation, the fees and expenses of a financial advisor to the Holders) and (b) the Holders’ prior special counsel, Foley & Lardner LLP, in each case to the extent invoiced.

 

4.             MISCELLANEOUS

 

4.1          Financial Advisor.  The Company hereby agrees, on behalf of itself and its Subsidiaries, that, notwithstanding Section 7.4(a) of the Note Purchase Agreement, any financial advisor engaged by or on behalf of the Holders may, from and after the Effective Date until May 13, 2016, upon reasonable prior notice to the Company, visit the offices and properties of the Company and its Subsidiaries and discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s and its Subsidiaries’ officers and the independent public accountants of the Company and its Subsidiaries, all at such reasonable times and as often as may be reasonably requested in writing.

 

4.2          Ratification.  Subject to the Waiver, the Note Purchase Agreement, the Notes and each of the other agreements, documents, and instruments executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified, approved and confirmed in all respects as of the date hereof.

 

4.3          Reference to and Effect on the Note Purchase Agreement.  On and after the Effective Date, each reference in the Note Purchase Agreement and in other documents describing or referencing the Note Purchase Agreement to the “Agreement,” “Note Purchase Agreement,” “hereunder,” “hereof,” “herein,” or words of like import referring to the Note Purchase Agreement shall mean and be a reference to the Note Purchase Agreement as modified hereby.

 

4.4          Binding Effect.  This Waiver Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

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4.5          Governing Law.  This Waiver Agreement shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such state that would permit the application of the laws of a jurisdiction other than such state.

 

4.6          Counterparts.  This Waiver Agreement may be executed in any number of counterparts, each executed counterpart constituting an original, but altogether only one instrument.  Delivery of an executed signature page by facsimile or e-mail transmission shall be effective as delivery of a manually signed counterpart of this Waiver Agreement.

 

4.7          Release.  In further consideration of the execution by the Holders of this Waiver Agreement, the Company, on behalf of itself and each of its Subsidiaries and Affiliates, and all of the successors and assigns of each of the foregoing (collectively, the “Releasors”), hereby completely, voluntarily, knowingly, and unconditionally releases and forever discharges each of the Holders and each of their respective advisors, professionals and employees, each affiliate of the foregoing and all of their respective successors and assigns (collectively, the “Releasees”), from any and all claims, actions, suits, and other liabilities, including, without limitation, any so-called “lender liability” claims or defenses (collectively, “Claims”), whether arising at law or in equity, which any of the Releasors ever had, now has or hereinafter can, shall or may have against any of the Releasees for, upon or by reason of any matter, cause or thing whatsoever from time to time occurring on or prior to the date hereof, in any way concerning, relating to, or arising from (a) any of the Releasors, (b) the Note Purchase Agreement, the Notes, the Subsidiary Guaranties or any of the other agreements, documents, or instruments executed and delivered in connection therewith, or any of the obligations thereunder, (c) the financial condition, business operations, business plans, prospects or creditworthiness of the Company, and/or (d) the negotiation, documentation and execution of this Waiver Agreement and any documents relating hereto.  The Company, on behalf of itself and the other Releasors, hereby acknowledges that they collectively have been advised by legal counsel of the meaning and consequences of this release.

 

[Signature Pages Follow]

 

5

 

IN WITNESS WHEREOF, the Company and the Holders have caused this Waiver Agreement to be executed and delivered by their respective officer or officers thereunto duly authorized.

 

 

	
 
    	
INTREPID POTASH, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian D. Frantz
    
	
 
    	
Name:
    	
Brian D. Frantz
    
	
 
    	
Title:
    	
Senior Vice President and Chief Accounting Officer
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
TEACHERS INSURANCE AND ANNUITY ASSOCIATION
    	
 
    
	
OF AMERICA
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Roi G. Chandy
    	
 
    
	
Name:
    	
Roi G. Chandy
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
THE GUARDIAN LIFE INSURANCE   COMPANY OF
    	
 
    
	
AMERICA
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Brian Keating
    	
 
    
	
Name:
    	
Brian Keating
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
COBANK, ACB
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Kristina Jensen
    	
 
    
	
Name:
    	
Kristina Jensen
    	
 
    
	
Title:
    	
Vice President
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
AGFIRST FARM CREDIT BANK
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Christopher Reynolds
    	
 
    
	
Name:
    	
Christopher Reynolds
    	
 
    
	
Title:
    	
Assistant Vice President
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
FARM CREDIT BANK OF TEXAS
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Luis M. H. Requejo
    	
 
    
	
Name:
    	
Luis M. H. Requejo
    	
 
    
	
Title:
    	
Director Capital Markets
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
GREENSTONE FARM CREDIT SERVICES,   ACA/FLCA
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jeff Pavlik
    	
 
    
	
Name:
    	
Jeff Pavlik
    	
 
    
	
Title:
    	
Sr.Vice President
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
1ST FARM CREDIT SERVICES, PCA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Corey J. Waldinger
    	
 
    
	
Name:
    	
Corey J. Waldinger
    	
 
    
	
Title:
    	
Vice President, Capital Markets   Group
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

	
FARM   CREDIT SERVICES OF AMERICA, PCA
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Mary Anne Mullen
    	
 
    
	
Name:
    	
Mary Anne Mullen
    	
 
    
	
Title:
    	
Vice President
    	
 
    

 

[Signature Page to Waiver to Note Purchase Agreement]

 

 

ANNEX A

 

CONSENT AND REAFFIRMATION

 

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Waiver to Note Purchase Agreement (the “Waiver Agreement”) dated as of March 23, 2016, among Intrepid Potash, Inc. (the “Company”) and certain of the Holders party to the Note Purchase Agreement, dated as of August 28, 2012, as amended by that certain First Amendment to Note Purchase Agreement dated as of January 15, 2016 (as modified by the Waiver Agreement and as further amended, supplemented or otherwise modified from time to time, the “Note Purchase Agreement”).  Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Note Purchase Agreement.  Without in any way establishing a course of dealing by the Holders, each of the undersigned consents to the Waiver Agreement and reaffirms the terms and conditions of the Subsidiary Guaranty executed by it and acknowledges and agrees that such Subsidiary Guaranty executed by the undersigned in connection with the Note Purchase Agreement remains and shall remain in full force and effect and hereby reaffirms, ratifies and confirms (a) in all respects each and every obligation and covenant made by it in its respective Subsidiary Guaranty and (b) that its respective Subsidiary Guaranty remains the legal, valid and binding obligation of such Subsidiary Guarantor enforceable against such Subsidiary Guarantor in accordance with its terms.  All references to the Note Purchase Agreement contained in each such Subsidiary Guaranty shall be a reference to the Note Purchase Agreement as modified by the Waiver Agreement and as the same may from time to time hereafter be amended, restated, supplemented or otherwise modified.

 

Dated: March 23, 2016

 

[Signature Page Follows]

 

[Signature Page to Consent and Reaffirmation (Note Purchase Agreement)]

 

 

IN WITNESS WHEREOF, each of the undersigned has caused this Consent and Reaffirmation to be executed by its officers thereunto duly authorized, as of the date written immediately above.

 

	
 
    	
INTREPID POTASH — MOAB, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
Intrepid Potash, Inc., its   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian D. Frantz
    
	
 
    	
Name:
    	
Brian D. Frantz
    
	
 
    	
Title:
    	
Senior Vice President and Chief   Accounting Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INTREPID POTASH — WENDOVER, LLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
Intrepid Potash, Inc., its   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian D. Frantz
    
	
 
    	
Name:
    	
Brian D. Frantz
    
	
 
    	
Title:
    	
Senior Vice President and Chief   Accounting Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTREPID POTASH — NEW MEXICO, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
Intrepid Potash, Inc., its   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian D. Frantz
    
	
 
    	
Name:
    	
Brian D. Frantz
    
	
 
    	
Title:
    	
Senior Vice President and Chief   Accounting Officer
    

 

 

SCHEDULE I

 

	
Holder
    	
 
    	
Aggregate
    Principal
    Amount of
    Series A Notes
    Outstanding
    	
 
    	
Aggregate
   Principal
   Amount of
   Series B Notes
   Outstanding
    	
 
    	
Aggregate
   Principal
   Amount of
   Series C Notes
   Outstanding
    	
 
    
	
Teachers Insurance and Annuity   Association of America
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    	
$
    	
37,500,000
    	
 
    
	
The Guardian Life Insurance   Company of America
    	
 
    	
$
    	
0
    	
 
    	
$
    	
23,500,000
    	
 
    	
$
    	
7,500,000
    	
 
    
	
CoBank, ACB
    	
 
    	
$
    	
25,000,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    
	
AgFirst Farm Credit Bank
    	
 
    	
$
    	
15,000,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    
	
Farm Credit Bank of Texas
    	
 
    	
$
    	
10,000,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    
	
GreenStone Farm Credit Services,   ACA/FLCA
    	
 
    	
$
    	
10,000,000
    	
 
    	
$
    	
7,000,000
    	
 
    	
$
    	
0
    	
 
    
	
1st Farm Credit Services, PCA
    	
 
    	
$
    	
0
    	
 
    	
$
    	
7,500,000
    	
 
    	
$
    	
0
    	
 
    
	
Farm Credit Services of America,   PCA
    	
 
    	
$
    	
0
    	
 
    	
$
    	
7,000,000
    	
 
    	
$
    	
0
    	
 
    
	
Totals
    	
 
    	
$
    	
60,000,000
    	
 
    	
$
    	
45,000,000
    	
 
    	
$
    	
45,000,000

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