Document:

EXHIBIT
10.35

 

AFFINITY GROUP,
INC.

 

PROMISSORY NOTE

 

Ventura, California

June 10, 2009

 

FOR VALUE RECEIVED, Affinity Group, Inc., a Delaware corporation
(the “Maker”) promises to pay to the order of SA Holding, LLC, a Minnesota
limited liability company (the “Payee”), or order, the principal sum of two
million dollars ($2,000,000), or so much thereof as has been advanced by Payee
to Maker, together with interest from the date advanced on the principal
balance outstanding from time to time. 
Interest shall be paid at the Reference Rate (hereinafter defined) plus
two per cent (2%) per annum.  Principal
and interest shall be paid on the Maturity Date (hereinafter defined). Until
paid, interest shall be compounded monthly.

 

The Maker may, at any time, prepay all or any part of the unpaid
principal balance of this Note without premium or prepayment penalty.  All payments made hereunder shall be first
applied to accrued interest and then to the unpaid principal balances.

 

This Note is made pursuant to the terms of a loan agreement dated as of
June 10, 2009 between the Maker and the Payee (the “Loan Agreement”).  Unless otherwise defined herein, capitalized
terms used herein shall have the meanings given to them in the Loan Agreement.

 

If any amount hereunder is not paid when such amount is due for
payment, and if Maker shall fail to cure said default within five business
days, then the whole amount evidenced by this Note shall, at the option of the
Payee, become immediately due and payable, and the holder shall have the right
to institute any proceedings upon this Note and any lien given to secure the
same for the purpose of collecting the principal and interest, with costs and
expenses, including reasonable attorneys’ fees. 
The Maker hereby waives presentment, demand, protest, and notice of
dishonor except as provided above.  The
Maker shall pay on demand all reasonable and necessary costs, including court
costs and reasonable attorneys’ fees, paid or incurred by Payee hereof in
enforcing this Note, which costs and attorneys’ fees shall also be awarded in
any judgment entered in a suit or arbitration to enforce this Note.

 

If any payment of principal or interest is not paid within five
calendar days of its due date, the Maker shall pay, in addition to such other
amounts as may be due and payable hereunder, a late charge equal in amount to
5% of the amount of such delinquent payment. 
In addition, after acceleration of this Note by the Payee as
hereinbefore provided, the unpaid principal balance hereof shall, thereafter,
bear interest at four percent in excess of the Reference Rate rather than two
percent in excess of the Reference Rate.

 

As used herein, “Reference Rate” means the rate of interest payable
from time to time by the Maker in respect of the loans made by the terms of the Amended and
Restated Credit Agreement dated as of June 24, 2003, as amended, among
Maker, the 

 

1

 

guarantors party thereto, the lenders party thereto, Canadian Imperial
Bank of Commerce, as syndication agent and as administrative agent and General
Electric Capital Corporation, as documentation agent (the “Senior Secured
Credit Agreement”), as such rate may be changed from time to time.

 

As used herein, “Maturity Date” means the date on which the
indebtedness under the Senior Secured Credit Agreement is paid in full, whether
at maturity thereof, acceleration thereof, realization upon the collateral
securing such indebtedness, or otherwise.

 

This Note is a contract made under the laws of the State of Minnesota,
and, together with the rights and obligations of Payee and the Maker hereunder
shall be construed, interpreted and enforced under the laws of Minnesota.

 

IN WITNESS WHEREOF, the Maker has caused this Note to be signed by its
officer and hereunto authorized, as of the date first above written.

 

 

	
   

  	
  AFFINITY GROUP,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Schneider

  
	
   

  	
   

  	
  Michael
  Schneider

  
	
   

  	
  Its:

  	
  Chief Executive
  Officer

  

 

2EXHIBIT
10.34

 

LOAN AGREEMENT

 

SA Holding LLC

Fox Wood

88 Old Roxbury
Road

Roxbury, CT  06783

 

June 10, 2009

 

Affinity Group, Inc.

2575 Vista Del Mar
Drive

Ventura, CA 93001

 

Gentlemen:

 

You have advised us that Affinity Group, Inc (“AGI”)
recently entered into a tenth amendment (the “Amendment”) to its Amended and
Restated Credit Agreement dated as of June 24, 2003, as amended, among AGI, the guarantors party
thereto, the lenders party thereto, Canadian Imperial Bank of Commerce, as
syndication agent and as administrative agent and General Electric Capital
Corporation, as documentation agent (as amended by the Amendment, the “Senior
Secured Credit Agreement”). The Senior Secured Credit Agreement requires an Adams Party (capitalized
terms used herein and not otherwise defined herein shall have the meanings
given to them in the Senior
Secured Credit Agreement) to loan to AGI, or cause to have loaned to AGI, interest
payable under the Senior
Secured Credit Agreement on $16,000,000 in aggregate principal amount of the
Term Loans outstanding on the date of the Amendment (the “Loan Commitment”).
You have advised us that the Loan Commitment is anticipated to aggregate
approximately $2 million through the maturity of AGI’s indebtedness under the Senior Secured Credit Agreement.

 

SA Holding LLC (“SAH”) is an affiliate of the Adams Parties, Stephen
Adams being the sole owner of SAH.  AGI
has requested that SAH make loans to AGI up to the amount of the Loan
Commitment.  SAH has agreed to do so on
the terms set forth in the promissory note attached hereto as Exhibit A
(the “Note”).  We acknowledge that the
Note is subordinate in right of payment to the obligations of AGI under the
Senior Secured Credit Agreement (but not subordinated in right of payment to
any other obligation of AGI) and that the Note is unsecured.

 

In order to
confirm that the foregoing properly reflects our understanding regarding the
Loan Commitment, we would appreciate your executing a copy of this letter,
which has been enclosed for that purpose, together with an executed original of
the Note.  Upon receipt of such executed
counterpart of this letter agreement and the Note, we agree to make loans under
the Note upon not less than five business day’s request detailing the amount of
the advance and the requested date of funding. 
Upon receipt of such executed counterpart, this letter agreement shall
constitute a binding loan agreement between us on the terms and conditions
contained herein.

 

1

 

This letter agreement contains the entire agreement between us with
respect to the subject matter hereof and no prior oral or written agreement,
and no contemporaneous oral representations or agreements between us with
respect to the subject matter of this letter agreement shall be of any force or
effect.  The making of this agreement has
not been induced by any representations, understandings or other considerations
not specifically enumerated herein.  Any
additions, amendments or modifications to this letter agreement shall be of no
force or effect unless in writing and signed by both of us. This letter
agreement is made under, and shall be construed and enforced in accordance
with, the laws of the State of Minnesota applicable to agreements made and to
be performed solely therein, without giving effect to principles of conflicts
of law.  The provisions of this letter
agreement shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns This letter agreement may be
executed in any number of counterparts, each of which when so executed and
delivered, shall constitute an original hereof and it shall not be necessary in
making proof of this letter agreement to produce or account for more than one
original counterpart thereof.

 

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SA Holding LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen
  Adams

  
	
   

  	
   

  	
  Stephen Adams

  
	
   

  	
  Its:

  	
  Sole Member

  

 

Accepted and
agreed to as

of the date first
above written

 

Affinity Group, Inc.

 

	
  By:

  	
  /s/ Michael
  Schneider

  	
   

  
	
   

  	
  Michael
  Schneider

  	
   

  
	
  Its:

  	
  Chief Executive
  Officer

  	
   

  

 

2EXHIBIT
10.35

 

AFFINITY GROUP,
INC.

 

PROMISSORY NOTE

 

Ventura, California

June 10, 2009

 

FOR VALUE RECEIVED, Affinity Group, Inc., a Delaware corporation
(the “Maker”) promises to pay to the order of SA Holding, LLC, a Minnesota
limited liability company (the “Payee”), or order, the principal sum of two
million dollars ($2,000,000), or so much thereof as has been advanced by Payee
to Maker, together with interest from the date advanced on the principal
balance outstanding from time to time. 
Interest shall be paid at the Reference Rate (hereinafter defined) plus
two per cent (2%) per annum.  Principal
and interest shall be paid on the Maturity Date (hereinafter defined). Until
paid, interest shall be compounded monthly.

 

The Maker may, at any time, prepay all or any part of the unpaid
principal balance of this Note without premium or prepayment penalty.  All payments made hereunder shall be first
applied to accrued interest and then to the unpaid principal balances.

 

This Note is made pursuant to the terms of a loan agreement dated as of
June 10, 2009 between the Maker and the Payee (the “Loan Agreement”).  Unless otherwise defined herein, capitalized
terms used herein shall have the meanings given to them in the Loan Agreement.

 

If any amount hereunder is not paid when such amount is due for
payment, and if Maker shall fail to cure said default within five business
days, then the whole amount evidenced by this Note shall, at the option of the
Payee, become immediately due and payable, and the holder shall have the right
to institute any proceedings upon this Note and any lien given to secure the
same for the purpose of collecting the principal and interest, with costs and
expenses, including reasonable attorneys’ fees. 
The Maker hereby waives presentment, demand, protest, and notice of
dishonor except as provided above.  The
Maker shall pay on demand all reasonable and necessary costs, including court
costs and reasonable attorneys’ fees, paid or incurred by Payee hereof in
enforcing this Note, which costs and attorneys’ fees shall also be awarded in
any judgment entered in a suit or arbitration to enforce this Note.

 

If any payment of principal or interest is not paid within five
calendar days of its due date, the Maker shall pay, in addition to such other
amounts as may be due and payable hereunder, a late charge equal in amount to
5% of the amount of such delinquent payment. 
In addition, after acceleration of this Note by the Payee as
hereinbefore provided, the unpaid principal balance hereof shall, thereafter,
bear interest at four percent in excess of the Reference Rate rather than two
percent in excess of the Reference Rate.

 

As used herein, “Reference Rate” means the rate of
interest payable from time to time by the Maker in respect of the loans made by
the terms of the Amended and

 

1

 

Restated Credit Agreement dated as of June 24, 2003, as amended,
among Maker, the guarantors party thereto, the lenders party thereto, Canadian
Imperial Bank of Commerce, as syndication agent and as administrative agent and
General Electric Capital Corporation, as documentation agent (the “Senior
Secured Credit Agreement”), as such rate may be changed from time to time.

 

As used herein, “Maturity Date” means the date on which the
indebtedness under the Senior Secured Credit Agreement is paid in full, whether
at maturity thereof, acceleration thereof, realization upon the collateral
securing such indebtedness, or otherwise.

 

This Note is a contract made under the laws of the State of Minnesota,
and, together with the rights and obligations of Payee and the Maker hereunder
shall be construed, interpreted and enforced under the laws of Minnesota.

 

IN WITNESS WHEREOF, the Maker has caused this Note to be signed by its
officer and hereunto authorized, as of the date first above written.

 

 

	
   

  	
  AFFINITY GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Schneider

  
	
   

  	
   

  	
  Michael
  Schneider

  
	
   

  	
  Its:

  	
  Chief Executive
  Officer

  

 

2

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