Document:

EX-10.99

 Exhibit 10.99 

November 13, 2014 
 The
Coast Distribution System, Inc. 
 350 Woodview Avenue 
 Morgan
Hill, California 95037 
  

			
	Re:	  	Nineteenth Amendment

 Ladies and Gentlemen: 

The Coast Distribution System, Inc., a Delaware corporation (“Coast Delaware”), United Sales & Warehouse of Texas,
Inc., a Texas corporation (“United Sales”), C/P Products Corp., an Indiana corporation (“C/P”), Mohawk Trailer Supply, Inc., a New York corporation (“Mohawk”), and Les Systemes De
Distribution Coast (Canada) Inc. The Coast Distribution System (Canada) Inc., a corporation organized under the laws of the Province of Quebec (“Coast Canada”) (Coast Delaware, United Sales, C/P, Mohawk, and Coast Canada are
referred to individually as “Borrower” and collectively as “Borrowers”), and Bank of America, N.A. (in its individual capacity, “US Lender”), acting by and through Bank of America, N.A., a national
banking association, as agent for US Lender (in such capacity, “Agent”) and Bank of America, N.A. (acting through its Canada branch) (“Canadian Lender”), (US Lender, acting through Agent, and Canadian Lender are
referred to collectively as “Lender”), have entered into that certain Third Amended and Restated Loan and Security Agreement dated August 30, 2005 (the “Security Agreement”). From time to time thereafter,
Borrowers and Lender may have executed various amendments (each an “Amendment” and collectively the “Amendments”) to the Security Agreement (the Security Agreement and the Amendments hereinafter are referred to,
collectively, as the “Agreement”). Borrowers and Lender now desire to further amend the Agreement as provided herein, subject to the terms and conditions set forth hereinafter. 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. The
Agreement hereby is amended as follows: 
 (a) Subsection 1 of the Agreement is hereby amended to amend and restate the
following definitions in their entirety as follows: 
 Canadian Inventory Advance Sublimit” shall mean an amount
up to the lesser of (i) Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000.00) or (ii) (a) from June 1st of each year through January 31st of each following year, fifty percent (50%) of the value of
Eligible Inventory owned by Coast Canada and (b) from February 1st of each year through May of each year, fifty-five percent (55%) of the value of Eligible Inventory owned by Coast Canada; provided, however, that in no
event shall the Inventory advances under the Canadian Inventory Advance Sublimit plus the advances under the US Inventory Advance Sublimit exceed Fifteen Million and No/100 Dollars ($15,000,000.00); provided further that Lender may
reduce the lending formula with respect to Coast Canada Eligible Inventory in its Permitted Discretion. Coast US acknowledges that any request by Coast Canada to increase the Canadian Inventory Advance Sublimit shall constitute a corresponding
request to Coast US to reduce the US Inventory Advance Sublimit. Notwithstanding the 

  
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foregoing, during the 2015 calendar year, “Canadian Inventory Advance Sublimit” shall mean an amount up to the lesser of (i) Three Million Five Hundred Thousand and No/100 Dollars
($3,500,000.00) or (ii) fifty percent (50%) of the value of Eligible Inventory owned by Coast Canada; provided, however, that in no event shall the Inventory advances under the Canadian Inventory Advance Sublimit plus
the advances under the US Inventory Advance Sublimit exceed Fifteen Million and No/100 Dollars ($15,000,000.00) for the months of January, August, September, October, November and December; Sixteen Million and No/100 Dollars ($16,000,000.00) for the
month of February; Seventeen Million and No/100 Dollars ($17,000,000.00) for the months of March and July; and Eighteen Million and No/100 Dollars ($18,000,000.00) for the months of April, May and June; provided further that Lender may reduce
the lending formula with respect to Coast Canada Eligible Inventory in its Permitted Discretion. 
 “Canadian Maximum
Loan Sublimit” shall mean an amount up to Eight Million and No/100 Dollars ($8,000,000.00), except as such amount may be increased or decreased by Canadian Lender in its Permitted Discretion, minus the FX Reserve (if any),
provided that Coast Canada may, upon three (3) days prior notice, request that the Canadian Maximum Loan Sublimit be increased or decreased in increments of Five Hundred Thousand and No/100 Dollars ($500,000.00). Coast US acknowledges
that any request by Coast Canada to increase the Canadian Maximum Loan Sublimit shall constitute a corresponding request to Coast US to reduce the US Maximum Loan Sublimit by a like amount. Borrowers acknowledge that the amount of the Canadian
Maximum Loan Sublimit as of the date hereof is Four Million and No/100 Dollars ($4,000,000.00) and the amount of the US Maximum Loan Sublimit as of the date hereof is Twenty One Million and No/100 Dollars ($21,000,000.00). Borrowers further
acknowledge that the amount of the Canadian Maximum Loan Sublimit plus the amount of the US Maximum Loan Sublimit shall in no event exceed Twenty Five Million and No/100 Dollars ($25,000,000.00). Notwithstanding the foregoing, during the 2015
calendar year, Borrowers further acknowledge that the amount of the Canadian Maximum Loan Sublimit plus the amount of the US Maximum Loan Sublimit shall in no event exceed Twenty Five Million and No/100 Dollars ($25,000,000.00) during the months of
January, August, September, October, November and December; Twenty Seven Million Five Hundred Thousand and No/100 Dollars ($27,500.000.00) during the months of February and July; Thirty Million and No/100 Dollars ($30,000,000.00) during the months
of March, April and May; and Twenty Nine Million and No/100 Dollars ($29,000,000.00) during the month of June. 

“Maximum Loan Limit” shall mean an amount not to exceed Twenty Five Million and No/100 Dollars
($25,000,000.00). Notwithstanding the foregoing, during the 2015 calendar year, “Maximum Loan Limit” shall mean an amount not to exceed Twenty Five Million and No/100 Dollars ($25,000,000.00) during the months of January, August,
September, October, November and December; Twenty Seven Million Five Hundred Thousand and No/100 Dollars ($27,500,000.00) during the months of February and July; Thirty Million and No/100 Dollars ($30,000,000.00) during the months of March, April
and May; and Twenty Nine Million and No/100 Dollars ($29,000,000.00) during the month of June. 
 “US Inventory
Advance Sublimit” shall mean the lesser of (i) up to Twelve Million Five Hundred Thousand and No/100 Dollars ($12,500,000.00) or (ii) (a) from June 1st of each year through January 31st of each following year, fifty
percent (50%) of the value of Eligible Inventory owned by Coast US and (b) from February 1st of each year through May 31st of each year, fifty five percent (55%) of the value of Eligible Inventory owned by Coast US;
provided, however, that in no event shall the Inventory advances under the US Inventory Advance Sublimit plus advances under the Canadian Inventory 

  
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Advance Sublimit exceed Fifteen Million and No/100 Dollars ($15,000,000.00); provided further that US Lender may reduce the lending formula with respect to Coast US’ Eligible
Inventory in its Permitted Discretion. Notwithstanding the foregoing, during the 2015 calendar year, “US Inventory Advance Sublimit” shall mean the lesser of (i) Fifteen Million and No/100 Dollars ($15,000,000.00) during the months of
January, August, September, October, November and December; Sixteen Million and No/100 Dollars ($16,000,000.00) during the month of February; and Seventeen Million and No/100 Dollars ($17,000,000.00) during the months of March and July; and Eighteen
Million and No/100 Dollars ($18,000,000.00) during the months of April, May, and June; (ii) fifty percent (50%) of the value of Eligible Inventory owned by Coast US; provided, however, that in no event shall the Inventory
advances under the US Inventory Advance Sublimit plus advances under the Canadian Inventory Advance Sublimit exceed Fifteen Million and No/100 Dollars ($15,000,000.00) for the months of January, August, September, October, November and
December; Sixteen Million and No/100 Dollars ($16,000,000.00) during the month of February; Seventeen Million and No/100 Dollars ($17,000,000.00) during the months of March and July; and Eighteen Million and No/100 Dollars ($18,000,000.00) during
the months of April, May and June; provided further that US Lender may reduce the lending formula with respect to Coast US’ Eligible Inventory in its Permitted Discretion. 

“US Maximum Loan Sublimit” shall mean an amount up to Twenty Five Million and No/100
Dollars ($25,000,000.00), except as such amount may be increased or decreased by Lender in its Permitted Discretion, provided that Coast US may, upon three (3) days prior notice, request that the US Maximum Loan Sublimit be increased or
decreased in increments of Five Hundred Thousand and No/100 Dollars ($500,000.00). Coast Canada acknowledges that any request by Coast US to increase the Coast US Maximum Loan Sublimit shall constitute a corresponding request to Coast Canada to
reduce the Canadian Maximum Loan Sublimit by a like amount. Borrowers acknowledge that the amount of the US Maximum Loan Sublimit as of the date hereof is Twenty One Million and No/100 Dollars ($21,000,000.00) and the amount of the Canadian Maximum
Loan Sublimit as of the date hereof is Four Million and No/100 Dollars ($4,000,000.00). Borrowers further acknowledge that the amount of the US Maximum Loan Sublimit plus the amount of the Canadian Maximum Loan Sublimit shall in no event exceed
Twenty Five Million and No/100 Dollars ($25,000,000.00). Notwithstanding the foregoing, during the 2015 calendar year, “US Maximum Loan Sublimit” shall mean an amount up to (i) Twenty Five Million and No/100 Dollars
($25,000,000.00) during the months of January, August, September, October, November and December; Twenty Seven Million Five Hundred Thousand and No/100 Dollars ($27,500,000.00) during the months of February and July; Thirty Million and No/100
Dollars ($30,000,000.00) during the months of March, April and May; and Twenty Nine Million and No/100 Dollars ($29,000,000.00) during the month of June; except as such amount may be increased or decreased by Lender in its Permitted Discretion,
provided that Coast US may, upon three (3) days prior notice, request that the US Maximum Loan Sublimit be increased or decreased in increments of Five Hundred Thousand and No/100 Dollars ($500,000.00). Coast Canada acknowledges
that any request by Coast US to increase the Coast US Maximum Loan Sublimit shall constitute a corresponding request to Coast Canada to reduce the Canadian Maximum Loan Sublimit by a like amount. Borrowers acknowledge that the amount of the US
Maximum Loan Sublimit as of the date hereof is Twenty One Million and No/100 Dollars ($21,000,000.00) and the amount of the Canadian Maximum Loan Sublimit as of the date hereof is Four Million and No/100 Dollars ($4,000,000.00). Borrowers further
acknowledge that the amount of the US Maximum Loan Sublimit plus the amount of the Canadian Maximum Loan Sublimit shall in no event exceed Twenty Five Million and No/100 Dollars ($25,000,000.00) during the months of January, August, September,
October, November and December; Twenty Seven Million Five Hundred Thousand and No/100 Dollars ($27,500,000.00) during the months of February and July; 

  
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 Thirty Million and No/100 Dollars ($30,000,000.00) during the months of March, April and
May; and Twenty Nine Million and No/100 Dollars ($29,000,000.00) during the month of June. 
 (b) Subsection 4(c)(v) is hereby
amended and restated in its entirety as follows: 
 (c)(v) Amendment Fee. Borrowers shall pay to Lender a one-time fee of
Twenty Five Thousand and No/100 Dollars ($25,000.00) which shall be fully earned and payable on the date hereof. 
 (c) Subsections
14(a) and 14(c) of the Agreement is hereby amended and restated in its entirety as follows: 
  

	 	(a)	Fixed Charge Coverage Ratio. 

 Borrowers shall not permit their Fixed Charge
Coverage Ratio for each period set forth below to be less than the ratio set forth below for the corresponding period set forth below (it being understood that the Fixed Charge Coverage Ratio is not being measured for the fiscal quarter ending
September 30, 2014): 
  

			
	 Period
	  	 Ratio

	For the 12 month period ending on March 31, 2015 and for each twelve (12) month period ending on the last day of each fiscal quarter thereafter	  	1.10:1.0

  

	 	(c)	EBITDA 

 Borrowers shall maintain EBITDA of at least $800,000 for the twelve
(12) month period ending December 31, 2014. 
 2. Borrowers represent and warrant to Lender that this Amendment has been
approved by all necessary corporate action, and each individual signing below represents and warrants that he or she is fully authorized to do so. 

3. Except as expressly amended hereby and by any other supplemental documents or instruments executed by either party hereto in order
to effectuate the transactions contemplated by this Amendment, the Agreement and all Exhibits thereto are ratified and confirmed by Borrowers and Lender and remain in full force and effect in accordance with their terms. 

4. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which, taken together,
shall constitute one and the same agreement. This Amendment may be delivered by facsimile, and when so delivered will have the same force and effect as delivery of an original signature. 

5. Borrowers shall reimburse Lender for all reasonable attorney’s fees (whether for internal or outside counsel) incurred by
Lender in connection with the documentation and consummation of this Nineteenth Amendment to the Agreement. 

  
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 6. Lender shall have received a copy of this Amendment executed by Borrowers and Lender,
together with the Guarantor’s Acknowledgment attached hereto, executed by each Guarantor, and payment of the “Amendment Fee” required to be paid pursuant to Subsection 4(c)(v) hereof. 

(Remainder of page intentionally blank; signatures follow) 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the date first set forth above. 
  

			
	LENDER:
	
	BANK OF AMERICA, N.A., as Agent
		
	By:	 	     /s/ JOHN W. MUNDSTOCK

		
	Title:	 	Senior Vice President
	
	BANK OF AMERICA, N.A., as US Lender
		
	By:	 	     /s/ JOHN W. MUNDSTOCK

		
	Title:	 	Senior Vice President
	
	BANK OF AMERICA, N.A., acting through its
	Canada branch, as Canadian Lender
		
	By:	 	     /s/ MEDINA SALES De ANDRADE

		
	Title:	 	Vice President

  
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	BORROWERS:
	
	THE COAST DISTRIBUTION SYSTEM, INC.
		
	By:	 	     /s/ SANDRA A. KNELL

		
	Title:	 	    Executive Vice President
	
	UNITED SALES & WAREHOUSE OF TEXAS, INC.
		
	By:	 	     /s/ SANDRA A. KNELL

		
	Title:	 	    Executive Vice President
	
	C/P PRODUCTS, CORP.
		
	By:	 	     /s/ SANDRA A. KNELL

		
	Title:	 	    Executive Vice President
	
	MOHAWK TRAILER SUPPLY, INC.
		
	By:	 	     /s/ SANDRA A. KNELL

		
	Title:	 	    Executive Vice President
	
	LES SYSTEMES DE DISTRIBUTION COAST (CANADA) INC. THE COAST DISTRIBUTION SYSTEM (CANADA) INC.
		
	By:	 	     /s/ SANDRA A. KNELL

		
	Title:	 	    Executive Vice President

  
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 GUARANTOR’S ACKNOWLEDGMENT 

The undersigned guarantor acknowledges that Bank of America, N.A., (in its individual capacity, “US Lender”), acting by and through Bank of America,
N.A., as agent for US Lender (in such capacity, “Agent”) and Bank of America, N.A. (acting through its Canada branch), (“Canadian Lender”) (US Lender, acting through Agent, and Canadian Lender are referred to collectively as
“Lender”) have no obligation to provide it with notice of, or to obtain its consent to, the terms of the foregoing Nineteenth Amendment (the “Nineteenth Amendment”) to the Third Amended and Restated Loan and Security Agreement
dated August 30, 2005, as amended, modified or supplemented from time to time. The undersigned guarantor nevertheless: (i) acknowledges and agrees to the terms and conditions of the Nineteenth Amendment; and (ii) acknowledges that its
guaranty remains fully valid, binding, and enforceable. 
  

			
	9002-1288 QUEBEC INC.
		
	By:	 	     /s/ SANDRA A. KNELL

	Title:	 	    Executive Vice President

  
 8FIRST AMENDMENT TO PROMISSORY NOTES

 

 

THIS FIRST AMENDMENT TO PROMISSORY NOTES (this
“Amendment”), is made as of the 25th day of August 2014, by and between American Realty Capital Hospitality
Operating Partnership, L.P., a Delaware limited partnership (“Maker”), and Barceló Crestline Corporation,
a Maryland corporation (“BCC”).

 

WITNESSETH :

 

WHEREAS, multiple subsidiaries of Maker and
multiple subsidiaries of BCC entered into such Agreement of Purchase and Sale dated January 30, 2014 (as amended, modified, or
supplemented from time to time, the “PSA”);

 

WHEREAS, the PSA provided one deferred payment
of $3,000,000 owed on the first anniversary of the closing of the transaction (the “First GA Tech Payment”)
and another deferred payment of $500,000 on the second anniversary of the closing of the transaction (the “Second GA Tech
Payment”, collectively such First GA Tech Payment and Second GA Tech Payment shall herein be referred to as “GA
Tech Payments”);

 

WHEREAS, Maker delivered to BCC a promissory
note date March 21, 2014 in the amount of $58,074,056.52 (the “First Promissory Note”) and delivered a promissory
note dated March 21, 2014 in the amount of $5,000,000 (the “Second Promissory Note”, collectively such First
Promissory Note and Second Promissory Note shall herein be referred to as “Promissory Notes”);

 

WHEREAS, a subsidiary of Maker, American Realty
Capital Hospitality Portfolio Member, LLC, entered into a Real Estate Sale Agreement, dated as of May 23, 2014, relating to the
acquisition of a portfolio of one hundred and twenty-six (126) hotels, as more particularly described therein (the closing of such
transaction shall herein be referred to as the “Equity Inns Closing”); and

 

WHEREAS, Maker and BCC desire to amend the
Promissory Notes on the terms and subject to the provisions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

 

1.CAPITALIZED TERMS.Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the First Promissory Note.

 

2.COMBINATION OF NOTES. Maker and BCC agree to pool the First Promissory Note and the Second
Promissory Note into one combined note with the amount of outstanding principal of SIXTY THREE MILLION SEVENTY FOUR THOUSAND FIFTY

 

    	1

    	 

    

 

SIX AND 52/100 DOLLARS ($63,074,056.52) and
the terms of which shall be governed by the terms set forth in the First Promissory Note, as modified herein.

 

3.MATURITY DATE.The first sentence
in Section 2 of the First Promissory Note is hereby deleted in its entirety and replaced with the following:

 

“The entire principal balance of this Note, together
with all accrued and unpaid interest thereon, if any, and any and all other amounts payable by Maker under this Note, shall be
fully and immediately due and payable by Maker within ten (10) business days after the date that the common equity raised by Maker
or its parent corporation, American Realty Capital Hospitality Trust, Inc., with respect to Qualified Capital Raises (hereinafter
defined) exceed Seventy Million and 00/100 Dollars ($70,000,000.00). “Qualified Equity Raise” shall mean common
equity raised by Maker or its parent corporation, American Realty Capital Hospitality Trust, Inc. (excluding any such common equity
raised on or prior to the Equity Inns Closing).”

 

4.GA TECH PAYMENTS. The GA Tech
Payments shall become due and payable upon the Maturity Date as set forth in Section 3 of this Amendment. The GA Tech Payments
shall not be subject to any other terms of the First Promissory Note.

 

5.REVERSION INTO MULTIPLE NOTES. This
Amendment shall continue in effect until 11:59 PM EDT on March 31, 2015. If the Equity Inns Closing has not occurred by 11:59 PM
EDT on March 31, 2015, the terms of this Amendment shall become null and void, the principal amounts shall revert to being split
between the First Promissory Note and the Second Promissory Note, and the Promissory Notes and all the terms contained therein
shall be in full effect as if this Amendment never existed. The GA Tech Payments shall also revert and shall only be governed by
the terms set forth in the PSA if this Amendment becomes null and void.

 

6.CONTINUING EFFECT.Maker and
BCC hereby agree and acknowledge that, except to the extent expressly modified herein, the terms of the First Promissory Note shall
remain in full force and effect.

 

7.ENTIRE AGREEMENT.This Amendment,
read with the terms of the First Promissory Note not amended herein, constitutes the entire understanding between the parties hereto
with respect to the repayment of the Promissory Notes. No terms may be changed orally but only by an agreement in writing signed
by the parties hereto.

 

8.COUNTERPARTS.This Amendment
may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.
The parties hereto may execute and deliver this Amendment by forwarding a portable document format (PDF) copy of this Amendment
executed by each such parties, and the parties agree and intend that each such signature shall have the same effect as an original
signature, that the parties shall be bound by such means of execution and delivery, and that the parties hereby waive any defense
to validity based on any such copies or signatures.

 

 

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IN WITNESS WHEREOF, the parties hereto have
executed this Amendment as of the day and year first written above.

 

 

	 	MAKER:
	 	 
	 	AMERICAN REALTY CAPITAL HOSPITALITY
	 	OPERATING PARTNERSHIP, L.P., a Delaware
	 	limited partnership
	 	 
	 	By:	American Realty Capital Hospitality Trust,
	 	 	Inc., a Maryland corporation, its general partner
	 	 	 
	 	 	 
	 	 	By:	/s/ Jonathan P. Mehlman
	 	 	 	Name:	Jonathan P. Mehlman
	 	 	 	Title:	Executive Vice President & CIO
	 	 	 	 
	 	BCC:
	 	 
	 	Barceló Crestline Corporation,
	 	a Maryland corporation
	 	 	 	 
	 	By:	/s/ Vicente Fenollar
	 	 	Name:	 Vicente Fenollar
	 	 	Title:	 CFO
	 	 	 	 

 

 

 

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