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EXHIBIT 10.01

 

ELEVENTH AMENDMENT LOAN AGREEMENT

 

THIS ELEVENTH AMENDMENT TO LOAN AGREEMENT (this
"Amendment") is made and entered into as of August 26, 2020 (the "Effective Date"),
by and between EDUCATIONAL DEVELOPMENT CORPORATION, a Delaware corporation ("Borrower"), and MIDFIRST
Bank, a federally charted savings association ("Lender").

 

Background Recitals

 

A.                
Borrower and Lender are parties to that certain Loan Agreement dated as of December 1, 2015, as amended by that certain First Amendment
to Loan Agreement dated as of March 10, 2016, as amended by that certain Second Amendment to Loan Agreement dated as of June 15,
2016, as further amended by that certain Third Amendment to Loan Agreement dated as of June 28, 2016, as further amended by that
certain Fourth Amendment to Loan Agreement dated as of February 7, 2017, as further amended by that certain Fifth Amendment to
Loan Agreement dated as of June 15, 2017, as further amended by that certain Sixth Amendment to Loan Agreement dated as of September
1, 2017, as further amended by that certain Seventh Amendment to Loan Agreement dated as of February 15, 2018, as further amended
by that certain Eighth Amendment to Loan Agreement dated as of June 15, 2018, and as further amended by that certain Ninth Amendment
to Loan Agreement dated as of February 7, 2019, and as further amended by that certain Tenth Amendment to Loan Agreement dated
as of August 15, 2019 (as amended, the "Loan Agreement"). Unless the context otherwise requires, capitalized
terms used in this Amendment and not otherwise defined herein have the respective meanings assigned to them in the Loan Agreement.

 

B.                 
Borrower has requested that Lender (i) extend the Termination Date until August 15, 2021, (ii) agree to certain other changes in
the Loan Agreement, and Lender has agreed to such requests, but only upon the terms and conditions set forth in this Amendment.

 

NOW, THEREFORE, in consideration of the premises
and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the Parties agree as follows:

 

1.                  
DECREASE and EXTENSION OF REVOLVING LOAN.

 

1.1.          
Maximum Revolving Principal Amount. Subject to the terms and conditions set forth in this Amendment, Lender hereby agrees
to decrease the Maximum Revolving Principal Amount from $15,000,000 to $10,000,000. Accordingly, the definition of Maximum Revolving
Principal Amount appearing in Exhibit A of the Loan Agreement is hereby amended in its entirety to read as follows:

 

"Maximum Revolving Principal
Amount" means $10,000,000.00, or if the Termination Date has occurred (and has not been extended by Lender in writing
in its sole discretion), $0.

 

1.2.          
Extension of Termination Date. The Termination Date is hereby extended from August 26, 2020, to August 15, 2021. Accordingly,
the definition of Termination Date appearing in Exhibit A of the Loan Agreement is hereby amended in its entirety
to read as follows:

 

"Termination Date"
means August 15, 2021, or as may be extended by Lender in writing from time to time in Lender's sole discretion.

 

1.3.          
Replacement Revolving Note. Borrower shall make, execute and deliver a replacement Promissory Note (Revolving Loan) in the
form of Exhibit A attached hereto (the "Replacement Revolving Note") payable to Lender in
the principal amount of $10,000,000. From and after the Effective Date, all references in the Loan Agreement or any other Loan
Documents to the Promissory Note evidencing the Revolving Loan or the Revolving Note shall be deemed references to the Replacement
Revolving Note, together with any and all renewals, extensions or replacements thereof, amendments or modifications thereto or
substitutions therefor.

 

     

     

    

 

2.                  
INTEREST RATE. The definitions of "LIBO Rate" and "Prime Rate"
appearing in Exhibit A of the Loan Agreement are hereby amended in its entirety to read as follows:

 

"LIBO Rate" means
the lesser of (i) the Maximum Rate, and (ii) the rate per annum equal to the sum of (a) the quotient of the LIBOR Index for Interest
Period in question divided by (1 minus the Reserve Requirement), and (b) 2.75%. Notwithstanding the foregoing, the LIBO Rate shall
never be less than 2.75%.

 

"Prime Rate" means,
for any day, the lesser of (i) the prime rate as published in The Wall Street Journal's "Money Rates" table for that
day plus 2.15%, and (ii) the Maximum Rate. If multiple prime rates are quoted in the "Money Rates" table, then
the highest quoted prime rate will be the Prime Rate. If the Prime Rate is no longer published in The Wall Street Journal, then
Lender will choose a substitute index rate for calculating the Prime Rate and promptly notify Borrower of the new index rate. The
Prime Rate may not be the lowest rate of interest that Lender charges. The Prime Rate will fluctuate with each change reported
by The Wall Street Journal (or as determined by Lender if no longer published by The Wall Street Journal) as of the day of any
reported change. Notwithstanding the foregoing, the Prime Rate shall never be less than 2.75%.

 

3.                  
CONDITIONS TO EFFECTIVENESS. This Amendment will be effective as of the Effective Date, but subject to satisfaction of each
of the following conditions precedent:

 

3.1.             
Execution of Amendment Documents. The following documents (collectively, the "Amendment Documents")
shall have been executed by the applicable parties and delivered to Lender, each in form and substance satisfactory to Lender:

 

(a)       
this Amendment; and

 

(b)       
the Replacement Revolving Note.

 

3.2.             
Legal Matters. All legal matters incident to this Amendment shall be satisfactory to Lender and its counsel.

 

4.                  
REPRESENTATIONS AND WARRANTIES.

 

4.1.           
Reaffirmation. Borrower confirms that all representations and warranties made by it in the Loan Agreement and the other
Loan Documents are, and as of the Effective Date will be, true and correct in all material respects, and all of such representations
and warranties are hereby remade and restated as of the Effective Date and shall survive the execution and delivery of this Amendment.

 

4.2.           
Additional Representations and Warranties.

 

4.2.1.       
Power; Transactional Authority; Enforceability. Borrower has the requisite power and authority to execute, deliver and carry
out the terms and provisions of this Amendment, and has taken all necessary action to authorize its execution, delivery and performance
of this Amendment. Borrower has duly executed and delivered this Amendment. This Amendment constitutes Borrower's legal, valid
and binding obligations, enforceable in accordance with the terms of the Loan Documents, as amended by this Amendment, subject
to (i) the effect of any Applicable Bankruptcy Law, or (ii) general principles of equity.

 

     

     

    

 

4.2.2.       
No Violation; No Consent. Borrower's execution, delivery and performance of this Amendment, and compliance with the terms
and provisions of the Loan Documents, as amended by this Amendment, will not (i) contravene any Applicable Law, (ii) conflict or
be inconsistent with or result in any breach of any term, covenant, condition or provision of, or constitute a default under, or
result in the creation or imposition of (or the obligation to create or impose) any lien upon any of the Property or Borrower's
other assets pursuant to the terms of any indenture, mortgage, deed of trust, agreement or other instrument to which Borrower is
a party or by which Borrower or any of the Property or Borrower's other assets is bound or may be subject, or (iii) violate any
term of Borrower's certificate of incorporation or other documents and agreements governing Borrower's existence, management or
operation. Borrower is not required to obtain the consent of any other party, including any Governmental Authority, in connection
with the execution, delivery, performance, validity or enforceability of the Loan Documents, as amended by this Amendment.

 

4.2.3.       
Financial Matters. Each Borrower Party financial statement previously delivered to Lender was prepared in accordance with
GAAP and completely, correctly and fairly present the financial condition and the results of operations of each Borrower Party
on the date and for the period covered by the financial statements. All other reports, statements and other data that any Borrower
Party furnished to Lender in connection with the Loan are true and correct in all material respects and do not omit any fact or
circumstance necessary to ensure that the statements are not misleading. Each Borrower Party (i) is solvent, (ii) is not bankrupt,
and (iii) has no outstanding liens, suits, garnishments, bankruptcies or court actions which may render such Borrower Party insolvent
or bankrupt. Since the date of the last financial statements each Borrower Party delivered to Lender, no event, act, condition
or liability has occurred or exists, which has had, or may reasonably be expected to have, a material adverse effect upon (A) such
Borrower Party's business, condition (financial or otherwise) or operations, or (B) such Borrower Party's ability to perform or
satisfy, or Lender's ability to enforce, any of the Indebtedness.

 

4.2.4.       
Litigation. There are no suits or proceedings (including condemnation) pending or (to Borrower's knowledge, after reasonable
inquiry) threatened against or affecting any Borrower Party or the Property or involving the validity, enforceability or priority
of any of the Loan Documents. Borrower has not received notice from any Governmental Authority alleging that any Borrower Party
or the Property is violating any Applicable Law.

 

4.2.5.       
No Default. No Event of Default currently exists or would exist after giving effect to the transactions contemplated by
this Amendment.

 

5.                  
MISCELLANEOUS.

 

5.1.             
Effect of Amendment. The terms of this Amendment shall be incorporated into and form a part of the Loan Agreement. Except
as expressly amended, modified and supplemented by this Amendment, the Loan Agreement shall continue in full force and effect in
accordance with its original stated terms, all of which are hereby reaffirmed in every respect as of the Effective Date. In the
event of any irreconcilable inconsistency between the terms of this Amendment and the terms of the Loan Agreement, the terms of
this Amendment shall control and govern, and the agreements shall be interpreted so as to carry out and give full effect to the
intent of this Amendment. All references to the Loan Agreement appearing in any of the Loan Documents shall hereafter be deemed
references to the Loan Agreement as amended, modified and supplemented by this Amendment.

 

5.2.             
No Course of Dealing; Past Acceptance. This Amendment shall not establish a course of dealing or be construed or relied
upon as evidence of any willingness on Lender's part to grant any future consent or amendment, should any be requested. Lender
acknowledges that Lender and its agents in the past may have accepted, without exercising the remedies to which Lender was entitled,
payments and performance by Borrower that constituted Events of Default under the Loan Documents. Borrower acknowledges that no
such acceptance or grace granted by Lender or its agents in the past, or Lender's agreement to the modifications evidenced hereby,
has in any manner diminished Lender's right in the future to insist that Borrower Parties strictly comply with the terms of the
Loan Documents, as modified by the terms of this Amendment. Furthermore, Borrower specifically acknowledges that any future grace
or forgiveness of any Events of Default shall not constitute a waiver or diminishment of any right of Lender with respect to any
future Event of Default, whether or not similar to any Event of Default with respect to which Lender has in the past chosen, or
may in the future choose, not to exercise all of the rights and remedies granted to it under the Loan Documents.

 

     

     

    

 

5.3.             
Release. Borrower hereby releases, remises, acquits and forever discharges Lender and any co-lender or loan participant,
together with their respective employees, agents, representatives, consultants, attorneys, fiduciaries, servants, officers, directors,
partners, predecessors, successors and assigns, subsidiary corporations, parent corporations, and related corporate divisions (all
of the foregoing the "Released Parties"), from any and all actions and causes of action, judgments, executions,
suits, liens, debts, claims, counterclaims, defenses, demands, liabilities, obligations, damages and expenses of any and every
character (collectively, "Claims"), known or unknown, direct or indirect, at law or in equity, of whatsoever
kind or nature, whether heretofore or hereafter accruing, for or because of any matter or things done, omitted or suffered to be
done by any of the Released Parties prior to and including the Effective Date, and in any way directly or indirectly arising out
of or in any way connected to this Amendment or the other Loan Documents, or any of the transactions associated therewith, or the
Property, including specifically but not limited to claims of usury, lack of consideration, fraudulent transfer and lender liability,
that it now has or may hereafter have against any Released Party, and hereby agrees to indemnify and hold harmless Lender and each
other Released Party for all Claims that any Person may bring against any such Released Party that arise under or in connection
with the Loan Agreement based on facts existing on or before the Effective Date. THE FOREGOING RELEASE INCLUDES ACTIONS AND
CAUSES OF ACTION, JUDGMENTS, EXECUTIONS, SUITS, DEBTS, CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, DAMAGES AND EXPENSES ARISING
AS A RESULT OF THE NEGLIGENCE OR STRICT LIABILITY OF ONE OR MORE OF THE RELEASED PARTIES.

 

5.4.             
Ratification and Affirmation. Borrower hereby acknowledges the terms of this Amendment and ratifies and affirms its obligations
under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees
that each Loan Document to which it is a party remains in full force and effect.

 

5.5.             
No Modification. This Amendment along with the Loan Documents supersedes and merges all prior and contemporaneous promises
and agreements. No modification of this Amendment or any other Loan Document, or any waiver of rights under any of the foregoing,
shall be effective unless made by supplemental agreement, in writing, executed by the Parties. The Parties further agree that the
Loan Agreement, as amended by this Amendment, may not in any way be explained or supplemented by a prior, existing or future course
of dealings between the Parties or by any prior, existing, or future performance between the Parties pursuant to this Amendment,
the Loan Agreement or otherwise.

 

5.6.             
Headings. The headings of the sections and subsections of this Amendment are for convenience of reference only and will
not affect the scope or meaning of the sections of this Amendment.

 

5.7.             
Applicable Law. This Amendment and the rights and obligations of Borrower and Lender are in all respects governed by, and
construed and enforced in accordance with the Governing Law (without giving effect to its principles of conflicts of law), except
for those terms of the Security Instruments pertaining to the creation, perfections, validity, priority or foreclosure of the liens
or security interests on the Property located within the State, which terms will be governed by, and construed and enforced in
accordance with the laws of the State (without giving effect to its principles of conflicts of law).

 

5.8.           
Counterparts; Miscellaneous. This Amendment may be executed in any number of counterparts with the same effect as if all
signers executed the same instrument. All counterparts of this Amendment must be construed together and will constitute one instrument.
This Amendment is a Loan Document. Time is of the essence with respect to this Amendment. The Parties acknowledge and confirm that
each of their respective attorneys has participated or has had the opportunity to participate jointly in the review and revision
of this Amendment and that it has not been written solely by counsel for one party. The Parties therefore stipulate and agree that
the rule of construction to the effect that any ambiguities are to or may be resolved against the drafting Party will not favor
either Party against the other. The terms and provisions of this Amendment are binding upon and inure to the benefit of the Parties
and their successors and assigns.

 

     

     

    

 

5.9.            
Reimbursement of Expenses. Borrower agrees to pay or reimburse Lender for all reasonable out-of-pocket expenses, including
Attorneys' Fees, incurred by Lender in connection with the negotiation, preparation, execution and delivery of this Amendment and
the consummation of the transactions contemplated hereby.

 

IN WITNESS WHEREOF, the parties
have caused this Amendment to be duly executed effective as of the Effective Date.

 

	Borrower:	EDUCATIONAL DEVELOPMENT CORPORATION, a Delaware corporation
	 	 	 	 
	 	By:	 	 
		Name:	Randall W. White	 
		Title:	Chairman, President and CEO	 
	 	 	 	 
	 	 	 	 
	Lender:	MIDFIRST BANK, a federally chartered savings association
		 	 	 
	 	By:	 	 
		Name:	Marc Short	 
		Title:	Senior Vice President	 

 

 

 

 

     

     

    

 

EXHIBIT A

 

PROMISSORY NOTE

 

(Revolving Loan) 

 

	$10,000,000.00	 	August 26, 2020

 

MidFirst
Bank, a federally chartered savings association (collectively, with any holder of this Note, "Lender")
has made a loan ("Loan") to EDUCATIONAL DEVELOPMENT CORPORATION, a Delaware corporation ("Borrower"),
pursuant to a Loan Agreement dated as of December 1, 2015 (as, from time to time, amended, modified or restated, the "Loan
Agreement"), between Lender and Borrower. All capitalized terms used, but not otherwise defined in this Promissory
Note have the meaning assigned such capitalized terms in the Loan Agreement.

 

FOR VALUE RECEIVED, Borrower promises to pay
to the order of Lender, at 501 NW Grand Blvd. Oklahoma City, OK 73118, or at such other address as may be specified by Lender,
the principal sum of Ten Million and No/100 Dollars ($10,000,000.00), or such amounts as may be advanced under the Revolving Loan
pursuant to the terms of the Loan Agreement, in Dollars, with interest thereon as set forth in the Loan Agreement, and to be paid
in accordance with the terms of the Loan Agreement. Borrower's obligations to Lender are governed by the Loan Agreement.

 

1.                  
All terms of the Loan Agreement are incorporated into this Note.

 

2.                  
This Note is secured, in part, by the Security Instruments.

 

3.                  
This Note only evidences Borrower's obligations to Lender under the Revolving Loan which are more specifically set forth in the
Loan Agreement.

 

4.                
This Promissory Note is issued by Borrower in replacement, ratification and continuation of, but not in extinguishment or novation
of, that certain Promissory Note (Revolving Loan) dated August 15, 2019, payable to the order of Lender in the stated principal
amount of $15,000,000 (the "Prior Note"). All Security Instruments securing payment of the Prior Note,
and the liens and security interests created thereby, shall continue in full force and effect, unabated and uninterrupted, as security
for payment of this Promissory Note and the indebtedness evidenced hereby. This Note shall be construed and enforced in accordance
with the laws of the State of Oklahoma.

 

5.                  
THIS NOTE IS NOT A NEGOTIABLE INSTRUMENT. THIS NOTE IS NOT GOVERNED BY ARTICLE 3 OF THE UCC.

 

	Borrower:	EDUCATIONAL DEVELOPMENT CORPORATION, a Delaware corporation
	 	 	 	 
	 	By:	 	 
		Name:	Randall W. White	 
		Title:	Chairman, President and CEOExhibit

Exhibit 10.4

THIRD AMENDMENT TO CREDIT AGREEMENT
This Third Amendment to Credit Agreement (“Amendment”) dated August 28, 2020 is entered into between DAKTRONICS, INC., a South Dakota corporation (the “Borrower”) and U.S. BANK NATIONAL ASSOCIATION, a national banking association (together with its successors and assigns, the “Lender”).  
RECITALS:

A.Lender and Borrower entered into a Credit Agreement dated November 15, 2016, as amended, pursuant to which Lender made certain Revolving Loans to Borrower. 

B.The parties wish to amend the Credit Agreement as provided in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt of which is acknowledged, the parties agree as follows:

1.Each of the following defined terms in Section 1.1 of the Credit Agreement are amended and restated to read:

“EBITDA” means, with respect to any fiscal period of determination, the net income of the Borrower before deductions for income, taxes, interest expense, depreciation, amortization, and non-cash, stock-based compensation, all as determined in accordance with GAAP.

“IBD” means all interest bearing obligations, including those represented by bonds, debentures, or other debt securities and open-ended bank guaranties, but excluding any long-term contractual obligations related to marketing transactions whose source of payment is underlying advertising agreements.
“Loan Documents” means this Agreement, the Facility LC Applications, the Notes, the Security Agreement, and any other document or agreement, now or in the future, executed by the Borrower for the benefit of the Lender in connection with this Agreement.

“Obligations” means all unpaid principal of and accrued and unpaid interest (including interest that accrues after the commencement of an insolvency proceeding with respect to the Borrower, regardless of whether allowed or allowable in whole or in part as a claim in such insolvency proceeding) on the Loans, all Facility LC Obligations, all ACH obligations, all obligations in connection with Cash Management Services, all Hedge Management Obligations provided to the Borrower or any Subsidiary by the Lender, all accrued and unpaid fees, and all expenses (including fees and expenses that accrue after the commencement of an insolvency proceeding, regardless of whether allowed or allowable in whole or in part as a claim in such insolvency proceeding),  reimbursements, indemnities and other obligations of the Borrower or any Subsidiary to Lender, any of its Affiliates or any indemnified party arising under the Loan Documents (regardless of whether allowed or allowable in whole or in part as a claim in such insolvency proceeding), whether arising from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether direct or indirect, absolute or contingent, due or to become due, primary or secondary, or joint or several.

2.The following defined term is added to Section 1.1 of the Credit Agreement:

“Unrestricted, Unencumbered Liquid Assets” means unrestricted, unencumbered marketable securities, cash, and cash equivalents plus the availability under the Borrower's line of credit.

3.Section 2.6 of the Credit Agreement is amended and restated to read:

2.6    Interest Rates.  Interest on each advance hereunder shall accrue at an annual rate equal to the Applicable Margin plus the Daily Reset LIBOR Rate. Lender’s internal records of applicable interest rates shall be determinative in the absence of manifest error. If Lender has determined that (a) the rate index described above (“LIBOR”) is no longer available, either because (i) LIBOR is not being quoted or published, (ii) any relevant agency or authority has announced that LIBOR will no longer be published or is no longer representative, or (iii) any similar circumstance exists such that LIBOR has become unavailable or ceased to exist, or (b) similar loans are being documented with a replacement rate to LIBOR, Lender may, in its discretion, replace LIBOR with a replacement rate (which may include a successor index and a spread adjustment), taking into consideration any selection or recommendation of a replacement rate by any relevant agency or authority and evolving or prevailing market conventions. In connection with the selection and implementation of any such replacement rate, Lender may make any technical, administrative or operational changes that Lender decides may be appropriate to reflect the adoption and implementation of such replacement rate. Lender does not warrant or accept any responsibility for the administration or submission of, or any other matter related to, LIBOR or with respect to any alternative or successor rate thereto, or replacement rate thereof, including without limitation whether any such alternative, successor or replacement rate will have the same value as, or be economically equivalent to, LIBOR.

4.Section 2.12(a) of the Credit Agreement is amended and restated to read:

(a)    Issuance.  Lender agrees, on the terms and conditions set forth in this Agreement, to issue standby and commercial Letters of Credit denominated in Dollars (each, a “Facility LC”) and to renew, extend, increase, decrease or otherwise modify each Facility LC (“Modify,” and each such action a “Modification”), from time to time from and including the Effective Date and prior to the Facility Termination Date upon the request of the Borrower; provided that immediately after each such Facility LC is issued or Modified, (i) the aggregate amount of the outstanding Facility LC Obligations shall not exceed $20,000,000, and (ii) the aggregate amount of the Revolving Exposure shall not exceed the Revolving Commitment Amount. In the event either party elects not to renew or extend the Credit Agreement (either by new agreement or amendment), or this Agreement otherwise terminates pursuant to the terms hereof, Borrower agrees to Cash Collateralize, on or before the fifth Business Day prior to the Facility Termination Date, an amount equal to 100% of the Facility LC Obligations that have any expiry date later than the Facility Termination Date. Notwithstanding anything herein to the contrary, the Lender shall have no obligation hereunder to issue any Facility LC the proceeds of which would be made available to any Person (i) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at the time of such funding, is the subject ofany Sanctions or (ii) in any manner that would result in a violation of any Sanctions by any party to this Agreement.  

5.Section 6.16 of the Credit Agreement is amended and restated to read:

6.16Financial Covenants.  

(a)Adjusted Fixed Charge Coverage Ratio. Commencing with Borrower’s first fiscal quarter in 2021 and thereafter, Borrower will not permit the Adjusted Fixed Charge Ratio, determined as of the end of each fiscal quarter for the then most-recently ended four (4) fiscal quarters, to be less than 2.0 to 1.0.

(b)IBD/EBITDA Ratio. Commencing with Borrower’s first fiscal quarter in 2021 and thereafter, Borrower will not permit the ratio of its IBD plus all outstanding non-cash secured letters of credit and bank guarantees to EBITDA, determined as of the end of each fiscal quarter for the then most-recently ended four (4) fiscal quarters, to be greater than 2.5 to 1.0.  

(c)Minimum Liquidity. Commencing with Borrower’s first fiscal quarter in 2021 and thereafter through Borrower’s second fiscal quarter in 2021, Borrower will maintain minimum Unrestricted, Unencumbered Liquid Assets of $7,000,000 or greater, determined at the end of each of its fiscal quarters for the then most-recently ended four (4) fiscal quarters. Commencing with Borrower’s third fiscal quarter in 2021 and thereafter, Borrower will maintain minimum Unrestricted, Unencumbered Liquid Assets of $15,000,000 or greater, determined at the end of each of its fiscal quarters for the then most-recently ended four (4) fiscal quarters. Availability under the Borrower’s line of credit for this calculation will be limited to what is supported by the IBD/EBITDA ratio covenant.

6.    Subsection (d) of Section 8.1 of the Credit Agreement is amended and restated to read:

(d)     After the exercise of remedies provided for in this Section 8.1 (or after the Obligations under this Agreement and the other Loan Documents have automatically become immediately due and payable as set forth in the first sentence of Section 8.1), any amounts received by Lender on account of the Obligations will be applied by Lender to the payment of the Obligations and any other amounts as shall from time to time have become due and payable by the Borrower to the Lender as Lender may decide in its sole discretion.

7.Borrower represents and warrants that as of the date of this Amendment, no Default or Event of Default has occurred and is continuing. 
 
8.    This Amendment does not constitute a novation of the Credit Agreement.  Except as modified in this Amendment, all of the terms and conditions of the Credit Agreement will remain in full force and effect.

9.    Borrower acknowledges the Credit Agreement and related Loan Documents are and will remain the legal and binding obligation of Borrower, free of any claim, defense, or offset.
 
10.    The officers signing on behalf of the Borrower represent and warrant that the execution and delivery of this Amendment has been fully authorized by all necessary corporate action.

                    	
	
	BORROWER:

DAKTRONICS, INC.

By: /s/ Reece A. Kurtenbach
Name: Reece A. Kurtenbach
Title:   Chief Executive Officer

By: /s/  Sheila M. Anderson
Name:  Sheila M. Anderson
Title:    Chief Financial Officer

	 

	 

	LENDER:

	 

	U.S. BANK NATIONAL ASSOCIATION

	 

	

By: /s/  Carl A. Johnson
Name:  Carl A. Johnson
Title:    Vice President

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