Document:

Exhibit 10.1

  

   

    

  Execution Version 

  

  

  

  

  

  FIRST AMENDMENT TO RESTRUCTURING SUPPORT AGREEMENT

   

  

  This FIRST AMENDMENT TO THE RESTRUCTURING SUPPORT AGREEMENT (this “Amendment”), dated as of December 16, 2019 (the “Effective Date”), is entered into by and among (a) the Debtors; (b) the TCC; (c) the
    Consenting Fire Claimant Professionals; and (d) the Shareholder Proponents (each as defined in the RSA referenced below).

  

  

  WHEREAS, the Debtors, the TCC, the Consenting Fire Claimant Professionals and the Shareholder Proponents are parties to that certain
    Restructuring Support Agreement, dated December 6, 2019 (together with all exhibits and attachments thereto, the “RSA”); and

  

  

  WHEREAS, the Parties desire to amend the RSA as set forth herein.

  

  

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

  

  

  1.          Definitions.  Capitalized terms used herein shall have the meanings given to them in the RSA unless otherwise defined herein.

  

  

  2.          Amendment to the RSA.  Section 3(a)(iii) of the RSA is hereby deleted in its entirety and
      replaced with the following:

  

  

  “iii.          [reserved].”

  

  

  3.          Amendment to Amended Plan Definition of “Aggregate Fire Victim Consideration.”  The Debtors and the Shareholder Proponents agree to amend the Amended Plan by deleting the definition
      of “Aggregate Fire Victim Consideration” in its entirety and replacing it with the following:

  

  

  1.6          Aggregate Fire Victim Consideration means the aggregate consideration used to fund the Fire Victim Trust of (a) $5.4  billion in cash to be contributed on the
      Effective Date, (b) $1.35 billion consisting of (i) $650 million to be paid in cash on or before January 15, 2021 pursuant to the Tax Benefits Payment Agreement, and (ii) $700 million to be paid in cash on or before January 15, 2022 pursuant to the
      Tax Benefits Payment Agreement; (c) $6.75 billion in New HoldCo Common Stock (issued at Fire Victim Equity Value), which shall not be less than 20.9% of the New HoldCo Common Stock based on the number of fully diluted shares of Reorganized HoldCo
      (calculated using the treasury stock method (using an Effective Date equity value equal to Fire Victim Equity Value)) that will be outstanding as of the Effective Date (assuming all equity offerings and all other equity transactions specified by the
      Plan, including without limitation, equity issuable upon the exercise of any rights or the conversion or exchange of or for any other securities, are consummated and settled on the Effective Date, but excluding any future equity issuance not
      specified by the Plan) assuming the Utility’s allowed return on equity as of the date of the Tort Claimants RSA and reasonable registration rights consistent with the recommendations of the Debtors’ equity underwriter and tax rules and regulations;
      (d) the assignment by the Debtors and Reorganized Debtors to the Fire Victim Trust of the Assigned Rights and Causes of Action; and (e) assignment of rights, other than the rights of the Debtors to be reimbursed under the 2015 Insurance Policies for
      claims submitted prior to the Petition Date, under the 2015 and 2016 Insurance Policies to resolve any claims related to Fires in those policy years. For the avoidance of doubt, the Aggregate Fire Victim Consideration shall not include any amounts
      for the Public Entities Settlement which shall be satisfied from other Plan financing sources but not from the Aggregate Fire Victim Consideration.

  

  

  

  

  
    
      

  

  

  

  4.          Reservation of Rights / No Waiver.  The Parties acknowledge and agree that except as expressly set forth herein, this Amendment shall not constitute a waiver by any Party of any
      rights or claims related to the RSA, and all Parties hereby reserve any and all rights not expressly amended or modified herein.

  

  

  

  

  5.          Effectiveness.  This Amendment shall be deemed effective on the date on which the Debtors,
      the Shareholder Proponents, and the Requisite Consenting Fire Claimant Professionals have duly executed and delivered counterparts of this Amendment.

  

  

  6.          Integration.  Each Party hereby: (a) acknowledges the terms of this Amendment; (b) agrees
      that this Amendment, together with the RSA, constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings among the Parties with respect to such subject matter and
      (c) agrees that each reference to the RSA hereafter made in any document, agreement, instrument, filing, pleading, notice or communication shall mean and be a reference to the RSA as amended and modified by this Amendment.

  

  

  7.          Counterparts.  This Amendment may be executed in counterparts, each of which shall be deemed
      an original, but all of which shall constitute the same instrument.  Delivery of a copy of this Amendment bearing an original signature by electronic transmission shall have the same effect as physical delivery of the paper document bearing the
      original signature.

  

  

  [SIGNATURE PAGES FOLLOW]

  
    
      

  

  

  

  IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed and delivered by their respective duly authorized officers,
    solely in their respective capacities as officers of the undersigned and not in any other capacity, as of the date first set forth above.

   

   

  	 	
          DEBTORS

        	 
	 	 	 	 
	 	
          PG&E CORPORATION

        	 
	 	 	 	 
	
           

        	
          By:

        	/s/ Janet C. Loduca	 
	 	 	
          Name:

        	
          Janet C. Loduca

        	 
	 	 	
          Title:

        	
          Senior Vice President,

            General Counsel

        	 
	 	 	 	 

   

  	 	
          PACIFIC GAS AND ELECTRIC COMPANY

        	 
	 	 	 	 
	
           

        	
          By:

        	/s/ Janet C. Loduca	 
	 	 	
          Name:

        	
          Janet C. Loduca

        	 
	 	 	
          Title:

        	
          Senior Vice President,

            General Counsel

        	 
	 	 	 	 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  [First Amendment to the Restructuring Support Agreement]

  

  
    
      

  

  

  

  

  

  

  

  	
          TCC

        	 	 
	 	 	 	 
	 	 	 	 
	
          By:

        	/s/ Cecily A. Dumas	 	 
	 	 	 	 
	
          Name:

        	
          Cecily A. Dumas

        	 	 
	 	 	 	 
	
          Firm:

        	
          Baker & Hostetler LLP

        	 	 
	 	
          Attorneys for TCC

        	 	 

   

  
    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [First Amendment to the Restructuring Support Agreement]

  

  
    
      

  

  

  

  

  

  	
          CONSENTING FIRE CLAIMANT PROFESSIONAL

        	 
	 	 	 	 
	 	 	 	 
	
          By:

        	/s/ Brendan M. Kunkle	 	 
	 	 	 	 
	
          Name:

        	Brendan M. Kunkle

        	 	 
	 	 	 	 
	
          Firm:

        	Abbey, Weitzenberg, Warren & Emery

        	 	 
	 	
           Attorneys for Holders of Fire Victim Claims

        	 	 

   

   

  

   

  

   

  

   

  

   

  

   

  

   

  

   

  

  

  

   

  

  
    
      

  

  

  

  

  

  
    

    

    	
            CONSENTING FIRE CLAIMANT 

            PROFESSIONAL

          	 
	 	 	 	 
	 	 	 	 
	
            By:

          	/s/ E. Elliot Adler	 	 
	 	 	 	 
	
            Name:

          	E. Elliot Adler

          	 	 
	 	 	 	 
	
            Firm:

          	Adler Law Group, APLC

          	 	 
	 	
            Attorneys for Holders of Fire Victim Claims

            

          	 	 

     

     

  

  

  

  

  

  

  

  

  

  

  

  [First Amendment to the Restructuring Support Agreement]

  
    
      

  

  
    

    

    
      

      

      	
              CONSENTING FIRE CLAIMANT 

              PROFESSIONAL

            	 
	 	 	 	 
	 	 	 	 
	
              By:

            	/s/ Mary E. Alexander

            	 	 
	 	 	 	 
	
              Name:

            	Mary E. Alexander	 	 
	 	 	 	 
	
              Firm:

            	Mary Alexander & Associates

            	 	 
	 	
              Attorneys for Holders of Fire Victim Claims

              

            	 	 

       

       
        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        [First Amendment to the Restructuring Support Agreement]

        

        

        
          
            

        

        
          

          

          	
                  CONSENTING FIRE CLAIMANT 

                  PROFESSIONAL

                	 
	 	 	 	 
	 	 	 	 
	
                  By:

                	/s/ Nelson C. Barry III	 	 
	 	 	 	 
	
                  Name:

                	Nelson C. Barry III

                	 	 
	 	 	 	 
	
                  Firm:

                	Law Office of Nelson C. Barry III

                	 	 
	 	Attorneys for Holders of Fire Victim Claims

                	 	 

           

           

          

           

          

           

          

           

          

           

          

           

          

           

          

           [First Amendment to the Restructuring Support Agreement]

          
            
              

          

           
            

            

            
              

              

              	
                      CONSENTING FIRE CLAIMANT 

                      PROFESSIONAL

                    	 
	 	 	 	 
	 	 	 	 
	
                      By:

                    	/s/ James P. Frantz	 	 
	 	 	 	 
	
                      Name:

                    	James P. Frantz

                    	 	 
	 	 	 	 
	
                      Firm:

                    	Frantz Law Group APLC

                    	 	 
	 	
                      Attorneys for Holders of Fire Victim Claims

                      

                    	 	 

                

                

                

                
                  

                  

                  	
                          By:

                        	/s/ Richard K. Bridgford	 	 
	 	 	 	 
	
                          Name:

                        	Richard K. Bridgford, Esq.

                        	 	 
	 	 	 	 
	
                          Firm:

                        	Bridgford, Gleason & Artinian

                        	 	 
	 	
                          Attorneys for Holders of Fire Victim Claims

                          

                        	 	 

                    

                  

                   

                  

                  
                    

                    

                    	
                            By:

                          	/s/ Patrick McNicholas

                          	 	 
	 	 	 	 
	
                            Name:

                          	Patrick McNicholas, Esq.	 	 
	 	 	 	 
	
                            Firm:

                          	McNicholas & McNicholas

                          	 	 
	 	
                            Attorneys for Holders of Fire Victim Claims

                            

                          	 	 

                     

                     

                  

                

                

                

                

                

                

                

                

                

                

                

                

                

                

                

                

                

                

                

                [First Amendment to the Restructuring Support Agreement]

                
                  
                    

                

                
                  

                  

                  

                  

                  
                    

                    

                      

                    
                      	
                              CONSENTING FIRE CLAIMANT 

                              PROFESSIONAL

                            	 
	 	 	 	 
	 	 	 	 
	
                              By:

                            	/s/ Steven M. Campora	 	 
	 	 	 	 
	
                              Name:

                            	Steven M. Campora

                            	 	 
	 	 	 	 
	
                              Firm:

                            	Dreyer, Babich, Buccola, Wood, Campora LLP

                            	 	 
	 	
                              Attorneys for Holders of Fire Victim Claims

                            	 	 

                       

                       

                      

                       

                      

                       

                      

                       

                      

                       

                      

                       

                      

                       

                      

                       

                      

                       

                      

                       

                      

                      [First Amendment to the Restructuring Support Agreement] 

                      
                        
                          

                      

                       
                        
                          

                          

                          
                            

                            

                            	
                                    CONSENTING FIRE CLAIMANT 

                                    PROFESSIONAL

                                  	 
	 	 	 	 
	 	 	 	 
	
                                    By:

                                  	/s/ Dario de Ghetaldi	 	 
	 	 	 	 
	
                                    Name:

                                  	Dario de Ghetaldi

                                  	 	 
	 	 	 	 
	
                                    Firm:

                                  	Corey, Luzaich, de Ghetaldi & Riddle LLP

                                  	 	 
	 	
                                    Attorneys for Holders of Fire Victim Claims

                                    

                                  	 	 

                              

                              

                              

                              
                                

                                

                                	
                                        By:

                                      	/s/ Michael S. Danko	 	 
	 	 	 	 
	
                                        Name:

                                      	Michael S. Danko

                                      	 	 
	 	 	 	 
	
                                        Firm:

                                      	Danko Meredith, Trial Lawyers

                                      	 	 
	 	
                                        Attorneys for Holders of Fire Victim Claims

                                        

                                      	 	 

                                  

                                

                                 

                                

                                
                                  

                                  

                                  	
                                          By:

                                        	/s/ Eric Gibbs	 	 
	 	 	 	 
	
                                          Name:

                                        	Eric Gibbs

                                        	 	 
	 	 	 	 
	
                                          Firm:

                                        	Gibbs Law Group LLP

                                        	 	 
	 	
                                          Attorneys for Holders of Fire Victim Claims

                                          

                                        	 	 

                                   

                                   

                                

                              

                              

                              

                            

                          

                        

                        

                        

                        

                        

                        

                        

                        

                        

                        

                        

                        [First Amendment to the Restructuring Support Agreement]

                        

                        

                        
                          
                            

                        

                        
                          

                          

                          	
                                  CONSENTING FIRE CLAIMANT 

                                  PROFESSIONAL

                                	 
	 	 	 	 
	 	 	 	 
	
                                  By:

                                	/s/ Dave Fox

                                	 	 
	 	 	 	 
	
                                  Name:

                                	Dave Fox

                                	 	 
	 	 	 	 
	
                                  Firm:

                                	Fox Law, APC

                                	 	 
	 	
                                  Attorneys for Holders of Fire Victim Claims

                                  

                                	 	 

                           

                           

                        

                      

                    

                  

                

              

            

          

        

      

    

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  [First Amendment to the Restructuring Support Agreement]

  
    
      

  

  
    

    

    
      

      

      	
              CONSENTING FIRE CLAIMANT 

              PROFESSIONAL

            	 
	 	 	 	 
	 	 	 	 
	
              By:

            	/s/ Frank M. Pitre	 	 
	 	 	 	 
	
              Name:

            	Frank M. Pitre

            	 	 
	 	 	 	 
	
              Firm:

            	Cotchett, Pitre & McCarthy

            	 	 
	 	
              Attorneys for Holders of Fire Victim Claims

            	 	 

       

       

       

      

      
        

        

        

        

        

        

        

        

        

        

         

        

        [First Amendment to the Restructuring Support Agreement]

        
          
            

        

        
          

          

          	
                  CONSENTING FIRE CLAIMANT 

                  PROFESSIONAL

                	 
	 	 	 	 
	 	 	 	 
	
                  By:

                	/s/ Donald Dowling	 	 
	 	 	 	 
	
                  Name:

                	Donald Dowling

                	 	 
	 	 	 	 
	
                  Firm:

                	Ross, Hackett, Dowling, Valencia & Walti

                	 	 
	 	
                  Attorneys for Holders of Fire Victim Claims

                	 	 

           

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          [First Amendment to the Restructuring Support Agreement]

          
            
              

          

           

          

          
            

              

          

          
            

            

            
              

              

              	
                      CONSENTING FIRE CLAIMANT 

                      PROFESSIONAL

                    	 
	 	 	 	 
	 	 	 	 
	
                      By:

                    	/s/ Gerald Singleton	 	 
	 	 	 	 
	
                      Name:

                    	Gerald Singleton

                    	 	 
	 	 	 	 
	
                      Firm:

                    	Singleton Law Firm, APC

                    	 	 
	 	
                      Attorneys for Holders of Fire Victim Claims

                    	 	 

               

               

               

              

               

              

               

              

               

              

               

              

               

              

               

              

               [First Amendment to the Restructuring Support Agreement]

              
                
                  

              

              
                
                  

                  

                  	
                          CONSENTING FIRE CLAIMANT 

                          PROFESSIONAL

                        	 
	 	 	 	 
	 	 	 	 
	
                          By:

                        	/s/ Steven J. Skikos	 	 
	 	 	 	 
	
                          Name:

                        	Steven J. Skikos

                        	 	 
	 	 	 	 
	
                          Firm:

                        	Skikos, Crawford, Skikos & Joseph

                        	 	 
	 	
                          Attorneys for Holders of Fire Victim Claims

                        	 	 

                   

                   

                   

                  

                  
                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    [First Amendment to the Restructuring Support Agreement]

                    
                      
                        

                    

                    
                      

                      

                      	
                              CONSENTING FIRE CLAIMANT 

                              PROFESSIONAL

                            	 
	 	 	 	 
	 	 	 	 
	
                              By:

                            	/s/ Tom Tosdal	 	 
	 	 	 	 
	
                              Name:

                            	Tom Tosdal

                            	 	 
	 	 	 	 
	
                              Firm:

                            	Tosdal Law Firm

                            	 	 
	 	
                              Attorneys for Holders of Fire Victim Claims

                            	 	 

                       

                       

                       

                      

                      
                        

                        

                        
                          

                          

                          

                          

                          

                          

                          

                          

                          

                          

                          

                          

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                                  CONSENTING FIRE CLAIMANT 

                                  PROFESSIONAL

                                	 
	 	 	 	 
	 	 	 	 
	
                                  By:

                                	/s/ Khaldoun A. Baghdadi	 	 
	 	 	 	 
	
                                  Name:

                                	Khaldoun A. Baghdadi, Esq.

                                	 	 
	 	 	 	 
	
                                  Firm:

                                	Walkup, Melodia, Kelly & Schoenberger

                                	 	 
	 	
                                  Attorneys for Holders of Fire Victim Claims

                                	 	 

                           

                           

                           

                          

                          
                            

                            

                            

                            

                            

                            

                            

                            

                            

                            

                            

                            

                            

                            

                            [First Amendment to the Restructuring Support Agreement]

                            
                              
                                

                            

                            
                              

                              

                              	
                                      CONSENTING FIRE CLAIMANT 

                                      PROFESSIONAL

                                    	 
	 	 	 	 
	 	 	 	 
	
                                      By:

                                    	/s/ Mikal Watts

                                    	 	 
	 	 	 	 
	
                                      Name:

                                    	Mikal Watts

                                    	 	 
	 	 	 	 
	
                                      Firm:

                                    	Watts Guerra LLP

                                    	 	 
	 	
                                      Attorneys for Holders of Fire Victim Claims

                                    	 	 

                               

                               

                               

                              

                               

                              

                              
                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

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                                  	SHAREHOLDER PROPONENT

                                          	 
	 	 	 	 
	 	 	 	 
	
                                          By:

                                        	
                                          Abrams Capital Management, L.P. on

                                          

                                          behalf of certain funds and accounts it

                                          

                                          manages or advises

                                          

                                        	 	 
	 	 	 	 
	 	
                                          By: Abrams Capital Management,

                                          

                                          LLC, its General Partner

                                          

                                        	 	 
	 	 	 	 
	
                                          Signature:

                                          

                                        	/s/ David Abrams

                                        	 	 
	Name:

                                        	David Abrams

                                        	 	 
	
                                          Title:

                                        	Managing Member

                                        	 	 
	 	
                                          

                                          

                                        	 	 

                                   

                                   

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

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                                    	SHAREHOLDER PROPONENT

                                            	 
	 	 	 	 
	 	 	 	 
	
                                            By:

                                          	
                                            Knighthead Capital

                                            

                                            Management, LLC

                                            

                                            on behalf of certain funds and

                                            

                                            accounts it manages or advises

                                            

                                          	 	 
	 	 	 	 
	
                                            Signature:

                                            

                                          	/s/ Thomas A. Wagner	 	 
	Name:

                                          	Thomas A. Wagner

                                          	 	 
	
                                            Title:

                                          	Managing Member

                                          	 	 
	 	
                                            

                                            

                                          	 	 

                                     

                                     

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                   

                                  

                                  [First Amendment to the Restructuring Support Agreement]Ex_101_Tender

		
			AMENDMENT NO. 6
		

		
			to
		

		
			CREDIT AGREEMENT
		

		
			 
		

		
			THIS AMENDMENT NO. 6 TO CREDIT AGREEMENT (this “Amendment”) is dated as of December 16, 2019, by and among WINMARK CORPORATION,  WIRTH BUSINESS CREDIT, INC.,  WINMARK CAPITAL CORPORATION and GROW BIZ GAMES, INC. (each of the foregoing are referred to herein individually as a “Loan Party” and collectively as the “Loan Parties”), CIBC BANK USA (formerly known as The PrivateBank and Trust Company) (the “Administrative Agent” and a “Lender”), and BMO HARRIS BANK N.A. (formerly known as HARRIS N.A.) (also a “Lender”).
		

		
			RECITALS:
		

		
			 
		

		
			A.The Loan Parties, the Administrative Agent and the Lenders are parties to that certain Credit Agreement, dated as of July 13, 2010, as amended prior to the date hereof (the “Credit Agreement”).
		

		
			 
		

		
			B.Winmark Corporation (the “Company”) has informed the Administrative Agent and the Lenders that the Company desires to make a tender offer for shares of the Company’s common stock, with the aggregate tender offer price funded in 2020 partially from the proceeds of a revolving loan under the Credit Agreement (the “2020 Tender Offer”).
		

		
			 
		

		
			C.The Company has requested that the Administrative Agent and the Lenders consent to the 2020 Tender Offer, and the Administrative Agent and the Lenders are willing to so consent, as provided herein.
		

		
			 
		

		
			D.The Loan Parties, the Administrative Agent and the Lenders desire to further amend the Credit Agreement as provided herein.
		

		
			 
		

		
			AGREEMENTS:
		

		
			 
		

		
			IN CONSIDERATION of the premises and mutual covenants herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
		

		
			 
		

			
	
			
				 1.
			Definitions.  Capitalized terms not otherwise defined in this Amendment have the same meanings as set forth in the Credit Agreement.

			
	
			
				 2.
			Amendment of Section 1.1.  Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions to such Section in their correct alphabetical order: 

		
			“Sixth Amendment”:  That certain Amendment No. 6 to Credit Agreement, dated as of December 16, 2019, by and among the Loan Parties, the Administrative Agent and the Lenders.
		

		
			 
		

		
			

		 

		

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				 3.
			Amendment of Section 11.4.  Section 11.4 of the Credit Agreement is hereby amended by deleting “$4,000,000” where it appears in clause (ii) of such Section and inserting “$6,000,000” in lieu thereof. 

			
	
			
				 4.
			Amendment of Section 11.15.    Section 11.15 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

		
			11.15Tangible Net Worth.  Not permit the Tangible Net Worth of the Loan Parties to be:
		

		
			 
		

		
			(a)as of September 2, 2017, less than $60,000,000; and
		

		
			 
		

		
			(b)as of the last day of each fiscal month following the fiscal month ended September 2, 2017, the sum of the minimum Tangible Net Worth from the immediately preceding fiscal month plus fifty percent (50%) of the net income of the fiscal month then ended, if positive.
		

		
			 
		

		
			Notwithstanding the foregoing, the parties acknowledge and agree that effect of each of the 2015 Tender Offer (as such term is defined in the Fourth Amendment) (the “2015 Tender Offer”),  the 2017 Tender Offer (as such term is defined in the Fifth Amendment) (the “2017 Tender Offer”), and the 2020 Tender Offer (as such term is defined in the Sixth Amendment) shall be excluded in the foregoing covenant calculation.
		

		
			 
		

			
	
			
				 5.
			Amendment of Section 4.  Section 4 of the Credit Agreement is hereby amended by adding a new Section 4.5 thereto, with such new Section 4.5 to read as follows:

		
			4.5Effect of Benchmark Transition Event.
		

		
			 
		

		
			(a)Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, Agent (without, except as specifically provided in the two following sentences, any action or consent by any other party to this Agreement) may amend this Agreement to replace the LIBOR Rate with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (Minneapolis time) on the fifth (5th) Business Day after Agent has posted such proposed amendment to all Lenders and Company so long as Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that Company and Lenders comprising Required Lenders have delivered to Agent written notice that Company and such Required Lenders accept such amendment. No replacement of LIBOR with a Benchmark Replacement pursuant to this Section titled “Effect of Benchmark Transition Event” will occur prior to the applicable Benchmark Transition Start Date. 
		

		
			 
		

		
			(b) Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, Agent will have the right to make 

		 

		

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Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement. 
		

		
			 
		

		
			(c)Notices; Standards for Decisions and Determinations.  Agent will promptly notify Company and Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by Agent or Lenders pursuant to this Section titled “Effect of Benchmark Transition Event,” including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section titled “Effect of Benchmark Transition Event.” 
		

		
			 
		

		
			(d)Benchmark Unavailability Period. Upon Company’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Loan Parties will be deemed to have converted any pending request for a LIBOR Loan, and any conversion to or continuation of any LIBOR Loans to be made, converted or continued during any Benchmark Unavailability Period into a request for a borrowing of or conversion to Base Rate Loans. 
		

		
			 
		

		
			(e)Certain Defined Terms. As used in this Section titled “Effect of Benchmark Transition Event”: 
		

		
			 
		

		
			“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by Agent giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the LIBOR Rate for U.S. dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment.
		

		
			 
		

		
			“Benchmark Replacement Adjustment” means, with respect to any replacement of the LIBOR Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by Agent giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBOR Rate with 

		 

		

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the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBOR Rate with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time. 
		

		
			 
		

		
			 “Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by Agent in a manner substantially consistent with market practice (or, if Agent decides that adoption of any portion of such market practice is not administratively feasible or if Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as Agent decides is reasonably necessary in connection with the administration of this Agreement).
		

		
			 
		

		
			“Benchmark Replacement Date” means the earlier to occur of the following events with respect to the LIBOR Rate:
		

		
			 
		

			
	
			
				 (1)
			in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the LIBOR Rate permanently or indefinitely ceases to provide the LIBOR Rate; or 

		
			 
		

			
	
			
				 (2)
			in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein. 

		
			 
		

		
			“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the LIBOR Rate:  
		

		
			 
		

			
	
			
				 (1)
			a public statement or publication of information by or on behalf of the administrator of the LIBOR Rate announcing that such administrator has ceased or will cease to provide the LIBOR Rate, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the LIBOR Rate;  

		
			 
		

			
	
			
				 (2)
			a public statement or publication of information by the regulatory supervisor for the administrator of the LIBOR Rate, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for the 

		 

		

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	LIBOR Rate, a resolution authority with jurisdiction over the administrator for the LIBOR Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the LIBOR Rate, which states that the administrator of the LIBOR Rate has ceased or will cease to provide the LIBOR Rate permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the LIBOR Rate; or

		
			 
		

			
	
			
				 (3)
			a public statement or publication of information by the regulatory supervisor for the administrator of the LIBOR Rate announcing that the LIBOR Rate is no longer representative. 

		
			 
		

		
			“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by Agent or Required Lenders, as applicable, by notice to Company,  Agent (in the case of such notice by Required Lenders) and Lenders. 
		

		
			 
		

		
			“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the LIBOR Rate and solely to the extent that the LIBOR Rate has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the LIBOR Rate for all purposes hereunder in accordance with the Section titled “Effect of Benchmark Transition Event” and (y) ending at the time that a Benchmark Replacement has replaced the LIBOR Rate for all purposes hereunder pursuant to the Section titled “Effect of Benchmark Transition Event.” 
		

		
			 
		

		
			“Early Opt-in Election” means the occurrence of: 
		

		
			 
		

		
			(1) (i) a determination by Agent or (ii) a notification by Required Lenders to Agent (with a copy to Company) that Required Lenders have determined, that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in this Section titled “Effect of Benchmark Transition Event,” are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the LIBOR Rate, and 
		

		
			 
		

		
			(2) (i) the election by Agent or (ii) the election by Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as 

		 

		

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applicable, by Agent of written notice of such election to Company and Lenders or by Required Lenders of written notice of such election to Agent.
		

		
			 
		

		
			“Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source. 
		

		
			 
		

		
			“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto. 
		

		
			 
		

		
			“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website. 
		

		
			 
		

		
			“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. 
		

		
			 
		

		
			“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
		

			
	
			
				 6.
			Amendment of Section 16.1. Section 16.1 is hereby amended (i) first by adding the words “Except as set forth in Section 4.5” to the beginning of such Section, and (ii) by amending clause (d) of such Section by adding the words “except as set forth in Section 4.5” to such clause. 

			
	
			
				 7.
			Consent to 2020 Tender Offer.  Pursuant to Section 11.4 of the Credit Agreement, the Administrative Agent and the Lenders hereby consent to the 2020 Tender Offer,  provided that at the time of the payment of the purchase price for the tendered shares no Unmatured Event of Default or Event of Default then exists or could result therefrom (after taking into account the effect of this Amendment).

			
	
			
				 8.
			Conditions to Effectiveness.  The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent:

			
	
			
				 (a)
			The Administrative Agent shall have received a counterpart signature page to this Amendment, duly executed by the Loan Parties and the Lenders.

			
	
			
				 (b)
			The Lenders and the Administrative Agent shall have received an amendment to the Note Agreement, dated May 14, 2015 (as amended) with Prudential, in form and substance acceptable to the Lenders and the Administrative Agent, duly executed by Prudential and the Loan Parties.

		
			

		 

		

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				 (c)
			The Administrative Agent shall have received such certificates of good standing, certified organizational documents, and officer’s certificates, in each case respecting the Loan Parties, as the Administrative Agent may request.

			
	
			
				 (d)
			The Administrative Agent shall have received a completed pro forma Borrowing Base Certificate evidencing $5,000,000 of availability after giving effect to the 2020 Tender Offer, in form and substance acceptable to the Administrative Agent.

			
	
			
				 (e)
			The Administrative Agent shall have received a pro forma Compliance Certificate evidencing Tangible Net Worth of the Loan Parties of not less than $95,000,000 (excluding the effect of the 2020 Tender Offer), in form and substance acceptable to the Administrative Agent.

			
	
			
				 (f)
			The representations and warranties set forth in Section 9  below shall be true and correct as of the effective date.

			
	
			
				 (g)
			The Administrative Agent shall be satisfied that since December 29, 2018, there has been no material adverse change in the business, assets, liabilities, properties, condition (financial or otherwise), results of operations or prospects of any of the Loan Parties.

			
	
			
				 (h)
			All legal, tax, environmental and regulatory matters shall be satisfactory to the Administrative Agent.

		
			For the avoidance of doubt, the amendments and consent contemplated by this Amendment shall not be effective until each of the foregoing conditions have been satisfied or waived in writing by the Lenders and the Administrative Agent.  
		

		
			 
		

			
	
			
				 9.
			Representations and Warranties.  To induce the Administrative Agent and the Lenders to enter into this Amendment, the Loan Parties, jointly and severally, represent and warrant to the Administrative Agent and the Lenders as follows:

		
			(a)The execution, delivery and performance by the Loan Parties of this Amendment and any other documents required to be executed and/or delivered by the Loan Parties by the terms of this Amendment have been duly authorized by all necessary corporate action, do not require any approval or consent of, or any registration, qualification or filing with, any government agency or authority or any approval or consent of any other person, do not and will not conflict with, result in any violation of or constitute any default under, any provision of the Loan Parties’ organizational documents, any agreement binding on or applicable to the Loan Parties or any of their property, or any law or governmental regulation or court decree or order, binding upon or applicable to the Loan Parties or of any of their property and will not result in the creation or imposition of any Lien in or on any of their property pursuant to the provisions of any agreement applicable to the Loan Parties or any of their property, other than Liens in favor of the Administrative Agent.
		

		
			 
		

		
			

		 

		

			7

		

		

			 

		

		

			 

		

		

		
			(b)Both before and after giving effect to this Amendment, the representations and warranties contained in the Credit Agreement are true and correct as of the date hereof and will be true and correct as of the effectiveness of this Amendment, as though made on each such date, except to the extent that such representations and warranties relate solely to an earlier date.
		

		
			 
		

		
			(c)There does not exist any Unmatured Event of Default or Event of Default.
		

		
			 
		

			
	
			
				 10.
			No Waiver.  This Amendment is not intended to operate as, and shall not be construed as, a waiver of any Unmatured Event of Default or Event of Default whether known to the Administrative Agent and/or the Lenders, or unknown, as to which all rights and remedies of the Administrative Agent and the Lenders shall remain reserved.

			
	
			
				 11.
			Binding Nature of Loan Documents.  Each Loan Party acknowledges and agrees that the terms, conditions and provisions of the Credit Agreement and of each Loan Document are fully binding and enforceable agreements, and are not subject to any defense, counterclaim, set off or other claim of any kind or nature.  Each Loan Party hereby reaffirms and restates its duties, obligations and liability under the Credit Agreement, as amended hereby, and each other Loan Document.

			
	
			
				 12.
			Reference to the Loan Documents.  From and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference to the “Credit Agreement” or “Agreement”, “thereunder”, “thereof”, “therein” or words of like import referring to the Credit Agreement in any other Loan Document, shall mean and be a reference to the Credit Agreement as amended hereby.

			
	
			
				 13.
			Release.  Each Loan Party hereby releases, acquits, and forever discharges each of the Administrative Agent and the Lenders and each and every past and present subsidiary, affiliate, stockholder, officer, director, agent, servant, employee, representative, and attorney of any of them from any and all claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including attorneys’ fees) of any kind, character, or nature whatsoever, known or unknown, fixed or contingent, which any Loan Party may have or claim to have now or which may hereafter arise out of or be connected with any act of commission or omission of the Administrative Agent and/or the Lenders existing or occurring prior to the date of this Amendment or any instrument executed prior to the date of this Amendment including, without limitation, any claims, liabilities or obligations arising with respect to the indebtedness evidenced by any Loan Document.  The provisions of this Section shall survive payment of all Obligations and shall be binding upon the Loan Parties and shall inure to the benefit of the Administrative Agent and the Lenders and their respective successors and assigns.

			
	
			
				 14.
			Estoppel.  Each Loan Party represents and warrants that there are no known claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including attorneys’ fees) of any kind, character or nature whatsoever, fixed or contingent, which any Loan Party may have or claim to have against the Administrative Agent and/or the Lenders, which might arise out of or be connected with any act of commission or 

		 

		

			8

		

		

			 

		

		

			 

		

	omission of the Administrative Agent and/or the Lenders existing or occurring on or prior to the date of this Amendment, including, without limitation, any claims, liabilities or obligations arising with respect to the indebtedness evidenced by any Loan Document.

			
	
			
				 15.
			Expenses.  Without in any way limiting the generality of Section 16.5 of the Credit Agreement, the Loan Parties, jointly and severally, hereby agree to pay to the Administrative Agent all of the Administrative Agent’s reasonable legal fees and expenses incurred in connection with this Amendment,  the Credit Agreement and/or any other Loan Document, which amount shall be due and payable upon execution of this Amendment.

			
	
			
				 16.
			Captions.   The captions or headings herein are for convenience only and in no way define, limit or describe the scope or intent of any provision of this Amendment.

			
	
			
				 17.
			Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.  Any executed counterpart of this Amendment delivered by facsimile or other electronic transmission to a party hereto shall constitute an original counterpart of this Amendment.

			
	
			
				 18.
			No Other Modification.  Except as expressly amended by the terms of this Amendment, all other terms of the Credit Agreement shall remain unchanged and in full force and effect.

		
			 
		

		
			[The signature pages follow.]
		

		
			

		 

		

			9

		

		

			 

		

		

			 

		

		

		
			THE PARTIES HAVE EXECUTED this Amendment No. 6 to Credit Agreement in the manner appropriate to each as of the date and year first above written.
		

		
			 
		

		
			LOAN PARTIES:
		

		
			WINMARK CORPORATION 
		

		
			 
		

		
			 
		

		
			 
		

		
			By: /s/ BRETT D. HEFFES______________
		

		
			Name:  Brett D. Heffes
		

		
			Title:    Chief Executive Officer 
		

		
			 
		

		
			 
		

		
			 
		

		
			WIRTH BUSINESS CREDIT, INC.
		

		
			 
		

		
			 
		

		
			 
		

		
			By: /s/ BRETT D. HEFFES______________
		

		
			Name:  Brett D. Heffes
		

		
			Title:    Treasurer
		

		
			 
		

		
			 
		

		
			 
		

		
			WINMARK CAPITAL CORPORATION 
		

		
			 
		

		
			 
		

		
			 
		

		
			By: /s/ BRETT D. HEFFES______________
		

		
			Name:  Brett D. Heffes
		

		
			Title:    Chief Financial Officer and Treasurer
		

		
			 
		

		
			 
		

		
			 
		

		
			GROW BIZ GAMES, INC.
		

		
			 
		

		
			 
		

		
			 
		

		
			By: /s/ BRETT D. HEFFES______________
		

		
			Name:  Brett D. Heffes
		

		
			Title:    Treasurer
		

		
			(Signatures continue on next page.)
		

		
			

		 

		

			 

		

ADMINISTRATIVE AGENT
		

		
			AND A LENDER:
		

		
			CIBC BANK USA (formerly known as The PrivateBank and Trust Company)
		

		
			 
		

		
			 
		

		
			 
		

		
			By: /s/ LEANNE MANNING______________
		

		
			Name:  Leanne Manning 
		

		
			Title:    Managing Director
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			A LENDER:BMO HARRIS BANK N.A. (f/k/a Harris N.A.)
		

		
			 
		

		
			 
		

		
			By: /s/ KIRK PAULEY__________________
		

		
			Name:    Kirk Pauley
		

		
			Title:    Vice President

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