Document:

ex102nelnetarguaranty

EXECUTION VERSION   ACTIVE 210385139v.4   AMENDED AND RESTATED GUARANTY   THIS AMENDED AND RESTATED GUARANTY (as the same may be amended,   restated, supplemented or otherwise modified from time to time, this “Guaranty”) is made as of   October 30, 2015 by and among each of the Subsidiaries of Nelnet, Inc. (the “Borrower”) listed   on the signature pages hereto (each an “Initial Guarantor”) and those additional Subsidiaries of   the Borrower which become parties to this Guaranty by executing a supplement hereto (a   “Guaranty Supplement”) in the form attached hereto as Annex I (such additional Subsidiaries,   together with the Initial Guarantors, the “Guarantors”), in favor of U.S. Bank National   Association, as Administrative Agent (the “Administrative Agent”), for the benefit of the   Lenders under the Credit Agreement described below.  Unless otherwise defined herein,   capitalized terms used herein and not defined herein shall have the meanings ascribed to such   terms in the Credit Agreement.   W I T N E S S E T H :   WHEREAS, the Borrower, the financial institutions from time to time party thereto as   lenders (the “Existing Lenders”), and the Administrative Agent have entered into that certain   Credit Agreement, dated as of February 17, 2012 (as the same may have been amended, restated,   supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”),   which Existing Credit Agreement provides, subject to the terms and conditions thereof, for   extensions of credit and other financial accommodations to be made by the Existing Lender to or   for the benefit of the Borrower;   WHEREAS, the Initial Guarantors have previously entered into that certain Guaranty,   dated as of February 17, 2012 (as the same may have been amended, restated, supplemented or   otherwise modified prior to the date hereof, the “Existing Guaranty”), in favor of the Existing   Lenders and the Administrative Agent with respect to the obligations of the Borrower under the   Existing Credit Agreement;   WHEREAS, the Existing Credit Agreement is being amended and restated in its entirety   pursuant to the Amended and Restated Credit Agreement (as the same may be amended, restated,   supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among   the Borrower, the financial institutions party thereto (the “Lenders”) and the Administrative   Agent, which Credit Agreement provides, subject to the terms and conditions thereof, for   extensions of credit and other financial accommodations to be made by the Lenders to or for the   benefit of the Borrower;   WHEREAS, it is a condition precedent to the extensions of credit by the Lenders under   the Credit Agreement that each of the Guarantors (constituting all of the Subsidiaries of the   Borrower required to execute this Guaranty pursuant to Section 4.01 of the Credit Agreement)   execute and deliver this Guaranty, whereby each of the Guarantors, without limitation and with   full recourse, shall guarantee the payment when due of all indebtedness and obligations of the   Borrower under and pursuant to the Credit Agreement (the “Obligations”), including, without   limitation, all principal, interest, and other amounts that shall be at any time payable by the   Borrower under the Credit Agreement or the other Loan Documents; and     

 

   2   WHEREAS, in consideration of the direct and indirect financial and other support and   benefits that the Borrower has provided, and such direct and indirect financial and other support   and benefits as the Borrower may in the future provide, to the Guarantors, and in consideration   of the increased ability of each Guarantor that is a Subsidiary of the Borrower to receive funds   through contributions to capital, and for each Guarantor to receive funds through intercompany   advances or otherwise, from funds provided to the Borrower pursuant to the Credit Agreement   and the flexibility provided by the Credit Agreement for each Guarantor to do so which   significantly facilitates the business operations of the Borrower and each Guarantor and in order   to induce the Lenders and the Administrative Agent to enter into the Credit Agreement, and to   make the Loans and the other financial accommodations to the Borrower described in the Credit   Agreement, each of the Guarantors is willing to guarantee the Obligations under the Credit   Agreement and the other Loan Documents;   NOW, THEREFORE, in consideration of the foregoing premises and other good and   valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties   hereto hereby agree that the Existing Guaranty is amended and restated in its entirety as follows:   SECTION 1. Representations, Warranties and Covenants.  Each of the Guarantors   represents and warrants to each Lender and the Administrative Agent as of the date of this   Guaranty, giving effect to the consummation of the transactions contemplated by the Loan   Documents on the Effective Date that:   (a) It (i) is a corporation, partnership or limited liability company duly incorporated   or organized, as the case may be, validly existing and in good standing under the laws of its   jurisdiction of incorporation or organization, (ii) is duly qualified to do business as a foreign   entity and is in good standing (to the extent such concept is applicable) under the laws of each   jurisdiction where the business conducted by it makes such qualification necessary, and (iii) has   all requisite corporate, partnership or limited liability company power and authority, as the case   may be, to own, operate and encumber its property and to conduct its business in each   jurisdiction in which its business is conducted or proposed to be conducted, except to the extent   that the failure to have such authority could not reasonably be expected to result in a Material   Adverse Effect.   (b) It has the requisite corporate, limited liability company or partnership, as   applicable, power and authority and legal right to execute and deliver this Guaranty and to   perform its obligations hereunder.  The execution and delivery by it of this Guaranty and the   performance of its obligations hereunder have been duly authorized by proper corporate, limited   liability company or partnership proceedings, including any required shareholder, member or   partner approval, and this Guaranty constitutes a legal, valid and binding obligation of such   Guarantor, enforceable against such Guarantor, in accordance with its terms, except as   enforceability may be limited by bankruptcy, insolvency, or similar laws affecting the   enforcement of creditors’ rights generally.   (c) Neither the execution and delivery by it of this Guaranty, nor the consummation   by it of the transactions herein contemplated, nor compliance by it with the terms and provisions   hereof, will (i) conflict with the charter or other organizational documents of such Guarantor, (ii)   conflict with, result in a breach of or constitute (with or without notice or lapse of time or both) a        

 

   3   default under any law, rule, regulation, order, writ, judgment, injunction, decree or award   (including, without limitation, any environmental property transfer laws or regulations)   applicable to such Guarantor or any provisions of any indenture, instrument or agreement to   which the Borrower or any of the Borrower’s Subsidiaries is party or is subject or by which it or   its property is bound or affected, or require termination of any such indenture, instrument or   agreement, (iii) result in the creation or imposition of any Lien whatsoever upon any of the   property or assets of such Guarantor, other than Liens permitted or created by the Loan   Documents, or (iv) require any approval of such Guarantor’s board of directors, shareholders,   members, partners or unitholders except such as have been obtained.  The execution, delivery   and performance by such Guarantor of each of the Loan Documents to which such Guarantor is a   party do not and will not require any registration with, consent or approval of, or notice to, or   other action to, with or by any Governmental Authority, except filings, consents or notices which   have been made.       In addition to the foregoing, each of the Guarantors covenants that, so long as any Lender   has any Commitment outstanding under the Credit Agreement or any amount payable under the   Credit Agreement or any other Obligations shall remain unpaid, it will, and, if necessary, will   cause the Borrower to, fully comply with those covenants and agreements of the Borrower   applicable to such Guarantor set forth in the Credit Agreement.   SECTION 2. The Guaranty.  Each of the Guarantors hereby irrevocably and   unconditionally guarantees, jointly and severally with the other Guarantors, the full and punctual   payment and performance when due (whether at stated maturity, upon acceleration or otherwise)   of the Obligations, including, without limitation, (i) the principal of and interest on each Loan   made to the Borrower pursuant to the Credit Agreement, (ii) all other amounts payable by the   Borrower under the Credit Agreement and the other Loan Documents, and (iii) the punctual and   faithful performance, keeping, observance, and fulfillment by the Borrower of all of the   agreements, conditions, covenants, and obligations of the Borrower contained in the Loan   Documents (all of the foregoing being referred to collectively as the “Guaranteed Obligations”).    Upon the failure by the Borrower, or any of its Affiliates, as applicable, to pay punctually any   such amount or perform such obligation, subject to any applicable grace or notice and cure   period, each of the Guarantors agrees that it shall forthwith on demand pay such amount or   perform such obligation at the place and in the manner specified in the Credit Agreement or the   relevant other Loan Document, as the case may be.  Each of the Guarantors hereby agrees that   this Guaranty is an absolute, irrevocable and unconditional guaranty of payment and is not a   guaranty of collection.  Notwithstanding any other provision of this Guaranty, the amount   guaranteed by each Guarantor hereunder shall be limited to the extent, if any, required so that its   obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy   Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent   Conveyance Act or similar statute or common law.  In determining the limitations, if any, on the   amount of any Guarantor’s obligations hereunder pursuant to the preceding sentence, it is the   intention of the parties hereto that any rights of subrogation, indemnification or contribution   which such Guarantor may have under this Guaranty, any other agreement or applicable law   shall be taken into account.     

 

   4   SECTION 3. Guaranty Unconditional.  The obligations of each of the Guarantors   hereunder shall be unconditional and absolute and, without limiting the generality of the   foregoing, shall not be released, discharged or otherwise affected by:   (i) any extension, renewal, settlement, indulgence, compromise, waiver or   release of or with respect to the Guaranteed Obligations or any part thereof or any   agreement relating thereto, or with respect to any obligation of any other guarantor of any   of the Guaranteed Obligations, whether (in any such case) by operation of law or   otherwise, or any failure or omission to enforce any right, power or remedy with respect   to the Guaranteed Obligations or any part thereof or any agreement relating thereto, or   with respect to any obligation of any other guarantor of any of the Guaranteed   Obligations;   (ii) any modification or amendment of or supplement to the Credit   Agreement, or any other Loan Document, including, without limitation, any such   amendment which may increase the amount of, or the interest rates applicable to, any of   the Guaranteed Obligations guaranteed hereby;   (iii) any release, surrender, compromise, settlement, waiver, subordination or   modification, with or without consideration, of any collateral securing the Guaranteed   Obligations or any part thereof, any other guaranties with respect to the Guaranteed   Obligations or any part thereof, or any other obligation of any person or entity with   respect to the Guaranteed Obligations or any part thereof, or any nonperfection or   invalidity of any direct or indirect security for the Guaranteed Obligations;   (iv) any change in the corporate, partnership, limited liability company or   other existence, structure or ownership of the Borrower or any other guarantor of any of   the Guaranteed Obligations, or any insolvency, bankruptcy, reorganization or other   similar proceeding affecting the Borrower or any other guarantor of the Guaranteed   Obligations, or any of their respective assets or any resulting release or discharge of any   obligation of the Borrower or any other guarantor of any of the Guaranteed Obligations;   (v) the existence of any claim, setoff or other rights which the Guarantors may   have at any time against the Borrower, any other guarantor of any of the Guaranteed   Obligations, the Administrative Agent, any Lender or any other Person, whether in   connection herewith or in connection with any unrelated transactions, provided that   nothing herein shall prevent the assertion of any such claim by separate suit or   compulsory counterclaim;   (vi) the enforceability or validity of the Guaranteed Obligations or any part   thereof or the genuineness, enforceability or validity of any agreement relating thereto or   with respect to any collateral securing the Guaranteed Obligations or any part thereof, or   any other invalidity or unenforceability relating to or against the Borrower or any other   guarantor of any of the Guaranteed Obligations, for any reason related to the Credit   Agreement, or any other Loan Document, or any provision of applicable law, decree,   order or regulation purporting to prohibit the payment by the Borrower or any other     

 

   5   guarantor of the Guaranteed Obligations, of any of the Guaranteed Obligations or   otherwise affecting any term of any of the Guaranteed Obligations;   (vii) the failure of the Administrative Agent to take any steps to perfect and   maintain any security interest in, or to preserve any rights to, any security or collateral for   the Guaranteed Obligations, if any;   (viii) the election by, or on behalf of, any one or more of the Lenders, in any   proceeding instituted under Chapter 11 of Title 11 of the United States Code (11 U.S.C.   101 et seq.) (or any successor statute, the “Bankruptcy Code”), of the application of   Section 1111(b)(2) of the Bankruptcy Code;   (ix) any borrowing or grant of a security interest by the Borrower, as debtor-   in-possession, under Section 364 of the Bankruptcy Code;   (x) the disallowance, under Section 502 of the Bankruptcy Code, of all or any   portion of the claims of the Lenders or the Administrative Agent for repayment of all or   any part of the Guaranteed Obligations;   (xi) the failure of any other guarantor to sign or become party to this Guaranty   or any amendment, change, or reaffirmation hereof; or   (xii) any other act or omission to act or delay of any kind by the Borrower, any   other guarantor of the Guaranteed Obligations, the Administrative Agent, any Lender or   any other Person or any other circumstance whatsoever which might, but for the   provisions of this Section 3, constitute a legal or equitable discharge of any Guarantor’s   obligations hereunder or otherwise reduce, release, prejudice or extinguish its liability   under this Guaranty.   SECTION 4. Discharge Only Upon Payment In Full; Reinstatement In Certain   Circumstances.  Each of the Guarantors’ obligations hereunder shall remain in full force and   effect until all Guaranteed Obligations shall have been paid in full in cash and the Commitments   shall have terminated or expired, at which time, subject to all the foregoing conditions, the   guarantees made hereunder shall automatically terminate.   If at any time any payment of the   principal of or interest on any Loan, Obligation or any other amount payable by the Borrower or   any other party under the Credit Agreement, or any other Loan Document is rescinded or must   be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the   Borrower or otherwise, each of the Guarantors’ obligations hereunder with respect to such   payment shall be reinstated as though such payment had been due but not made at such time.       

 

   6   SECTION 5. General Waivers; Additional Waivers.     (a) General Waivers.  Each of the Guarantors irrevocably waives acceptance hereof,   presentment, demand or action on delinquency, protest and, to the fullest extent permitted by   law, any notice not provided for herein or under the other Loan Documents, as well as any   requirement that at any time any action be taken by any Person against the Borrower, any other   guarantor of the Guaranteed Obligations, or any other Person.   (b) Additional Waivers.  Notwithstanding anything herein to the contrary, each of the   Guarantors hereby absolutely, unconditionally, knowingly, and expressly waives, to the fullest   extent permitted by law:   (i) any right it may have to revoke this Guaranty as to future indebtedness or   notice of acceptance hereof;   (ii) (1) notice of acceptance hereof; (2) notice of any Loans or other financial   accommodations made or extended under the Loan Documents or the creation or   existence of any Guaranteed Obligations; (3) notice of the amount of the Guaranteed   Obligations, subject, however, to each Guarantor’s right to make inquiry of the   Administrative Agent and the Lenders to ascertain the amount of the Guaranteed   Obligations at any reasonable time; (4) notice of any adverse change in the financial   condition of the Borrower or of any other fact that might increase such Guarantor’s risk   hereunder; (5) notice of presentment for payment, demand, protest, and notice thereof as   to any instruments among the Loan Documents; (6) notice of any Default or Event of   Default; and (7) all other notices (except if such notice is specifically required to be given   to such Guarantor hereunder or under the Loan Documents) and demands to which each   Guarantor might otherwise be entitled;   (iii) its right, if any, to require the Administrative Agent and the other Lenders   to institute suit against, or to exhaust any rights and remedies which the Administrative   Agent and the other Lenders has or may have against, the other Guarantors or any third   party, provided by the other Guarantors, or any third party; and each Guarantor further   waives any defense arising by reason of any disability or other defense (other than the   defense that the Guaranteed Obligations shall have been fully and finally performed and   indefeasibly paid in full in cash) of the other Guarantors or by reason of the cessation   from any cause whatsoever of the liability of the other Guarantors in respect thereof;    (iv) (a) any rights to assert against the Administrative Agent and the other   Lenders defense (legal or equitable), set-off, counterclaim, or claim which such   Guarantor may now or at any time hereafter have against the other Guarantors or any   other party liable to the Administrative Agent and the other Lenders; (b) any defense, set-   off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the   present or future lack of perfection, sufficiency, validity, or enforceability of the   Guaranteed Obligations or any security therefor; and (c) any defense such Guarantor has   to performance hereunder, and any right such Guarantor has to be exonerated, arising by   reason of:  (1) the impairment or suspension of the Administrative Agent’s and the other   Lenders’ rights or remedies against the other guarantor of the Guaranteed Obligations; (2)     

 

   7   the alteration by the Administrative Agent and the other Lenders of the Guaranteed   Obligations; (3) any discharge of the other Guarantors’ obligations to the Administrative   Agent and the other Lenders by operation of law as a result of the Administrative Agent’s   and the other Lenders’ intervention or omission; or (4) the acceptance by the   Administrative Agent and the other Lenders of anything in partial satisfaction of the   Guaranteed Obligations; and   (v) any defense arising by reason of or deriving from (a) any claim or defense   based upon an election of remedies by the Administrative Agent and the Lenders; or (b)   any election by the Administrative Agent and the other Lenders under the Bankruptcy   Code, to limit the amount of, or any collateral securing, its claim against the Guarantors.   SECTION 6. Subordination of Subrogation; Subordination of Intercompany   Indebtedness.   (a) Subordination of Subrogation.  Until the Guaranteed Obligations have been fully   and finally performed and indefeasibly paid in full in cash, the Guarantors (i) shall have no right   of subrogation with respect to such Guaranteed Obligations and (ii) waive any right to enforce   any remedy which any of the Lenders or the Administrative Agent now have or may hereafter   have against the Borrower, any endorser or any guarantor of all or any part of the Guaranteed   Obligations or any other Person, and until such time the Guarantors waive any benefit of, and   any right to participate in, any security or collateral given to the Lenders and the Administrative   Agent to secure the payment or performance of all or any part of the Guaranteed Obligations or   any other liability of the Borrower to the Lenders or the Administrative Agent.  Should any   Guarantor have the right, notwithstanding the foregoing, to exercise its subrogation rights, each   Guarantor hereby expressly and irrevocably (A) subordinates any and all rights at law or in   equity to subrogation, reimbursement, exoneration, contribution, indemnification or set off that   such Guarantor may have to the payment in full in cash of the Guaranteed Obligations until the   Guaranteed Obligations are indefeasibly paid in full in cash and (B) waives any and all defenses   available to a surety, guarantor or accommodation co-obligor until the Guaranteed Obligations   are indefeasibly paid in full in cash.  Each Guarantor acknowledges and agrees that this   subordination is intended to benefit the Administrative Agent and the Lenders and shall not limit   or otherwise affect such Guarantor’s liability hereunder or the enforceability of this Guaranty,   and that the Administrative Agent, the Lenders and their respective successors and assigns are   intended third party beneficiaries of the waivers and agreements set forth in this Section 6(a).   (b) Subordination of Intercompany Indebtedness.  Each Guarantor agrees that any   and all claims of such Guarantor against the Borrower or any other Guarantor hereunder (each an   “Obligor”) with respect to any “Intercompany Indebtedness” (as hereinafter defined), any   endorser, obligor or any other guarantor of all or any part of the Guaranteed Obligations, or   against any of its properties shall be subordinate and subject in right of payment to the prior   payment, in full and in cash, of all Guaranteed Obligations; provided that, as long as no Event of   Default has occurred and is continuing, such Guarantor may receive payments of principal and   interest from any Obligor with respect to Intercompany Indebtedness.  Notwithstanding any right   of any Guarantor to ask, demand, sue for, take or receive any payment from any Obligor, all   rights, liens and security interests of such Guarantor, whether now or hereafter arising and   howsoever existing, in any assets of any other Obligor shall be and are subordinated to the rights     

 

   8   of the Lenders and the Administrative Agent in those assets. No Guarantor shall have any right   to possession of any such asset or to foreclose upon any such asset, whether by judicial action or   otherwise, unless and until all of the Guaranteed Obligations shall have been fully paid and   satisfied (in cash) and all financing arrangements pursuant to any Loan Document have been   terminated.  If all or any part of the assets of any Obligor, or the proceeds thereof, are subject to   any distribution, division or application to the creditors of such Obligor, whether partial or   complete, voluntary or involuntary, and whether by reason of liquidation, bankruptcy,   arrangement, receivership, assignment for the benefit of creditors or any other action or   proceeding, or if the business of any such Obligor is dissolved or if substantially all of the assets   of any such Obligor are sold, then, and in any such event (such events being herein referred to as   an “Insolvency Event”), any payment or distribution of any kind or character, either in cash,   securities or other property, which shall be payable or deliverable upon or with respect to any   indebtedness of any Obligor to any Guarantor (“Intercompany Indebtedness”) shall be paid or   delivered directly to the Administrative Agent for application on any of the Guaranteed   Obligations, due or to become due, until such Guaranteed Obligations shall have first been fully   paid and satisfied (in cash).  Should any payment, distribution, security or instrument or proceeds   thereof be received by the applicable Guarantor upon or with respect to the Intercompany   Indebtedness after any Insolvency Event and prior to the satisfaction of all of the Guaranteed   Obligations and the termination of all financing arrangements pursuant to any Loan Document   among the Borrower and the Lenders, such Guarantor shall receive and hold the same in trust, as   trustee, for the benefit of the Lenders and shall forthwith deliver the same to the Administrative   Agent, for the benefit of the Lenders, in precisely the form received (except for the endorsement   or assignment of the Guarantor where necessary), for application to any of the Guaranteed   Obligations, due or not due, and, until so delivered, the same shall be held in trust by the   Guarantor as the property of the Lenders.  If any such Guarantor fails to make any such   endorsement or assignment to the Administrative Agent, the Administrative Agent or any of its   officers or employees is irrevocably authorized to make the same.  Each Guarantor agrees that   until the Guaranteed Obligations have been paid in full (in cash) and satisfied and all financing   arrangements pursuant to any Loan Document among the Borrower and the Lenders have been   terminated, no Guarantor will assign or transfer to any Person (other than the Administrative   Agent) any claim any such Guarantor has or may have against any Obligor.   SECTION 7. Contribution with Respect to Guaranteed Obligations.   (a) To the extent that any Guarantor shall make a payment under this Guaranty (a   “Guarantor Payment”) which, taking into account all other Guarantor Payments then previously   or concurrently made by any other Guarantor, exceeds the amount which otherwise would have   been paid by or attributable to such Guarantor if each Guarantor had paid the aggregate   Guaranteed Obligations satisfied by such Guarantor Payment in the same proportion as such   Guarantor’s “Allocable Amount” (as defined below) (as determined immediately prior to such   Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Guarantors as   determined immediately prior to the making of such Guarantor Payment, then, following   indefeasible payment in full in cash of the Guarantor Payment and the Guaranteed Obligations,   and all Commitments have terminated or expired, such Guarantor shall be entitled to receive   contribution and indemnification payments from, and be reimbursed by, each other Guarantor for   the amount of such excess, pro rata based upon their respective Allocable Amounts in effect   immediately prior to such Guarantor Payment.     

 

   9   (b) As of any date of determination, the “Allocable Amount” of any Guarantor shall   be equal to the excess of the fair saleable value of the property of such Guarantor over the total   liabilities of such Guarantor (including the maximum amount reasonably expected to become   due in respect of contingent liabilities, calculated, without duplication, assuming each other   Guarantor that is also liable for such contingent liability pays its ratable share thereof), giving   effect to all payments made by other Guarantors as of such date in a manner to maximize the   amount of such contributions.   (c) This Section 7 is intended only to define the relative rights of the Guarantors, and   nothing set forth in this Section 7 is intended to or shall impair the obligations of the Guarantors,   jointly and severally, to pay any amounts as and when the same shall become due and payable in   accordance with the terms of this Guaranty.   (d) The parties hereto acknowledge that the rights of contribution and indemnification   hereunder shall constitute assets of the Guarantor or Guarantors to which such contribution and   indemnification is owing.   (e) The rights of the indemnifying Guarantors against other Guarantors under this   Section 7 shall be exercisable upon the full and indefeasible payment of the Guaranteed   Obligations in cash and the termination or expiry, on terms reasonably acceptable to the   Administrative Agent, of the Commitments and the termination of the Credit Agreement.   SECTION 8. Stay of Acceleration.  If acceleration of the time for payment of any   amount payable by the Borrower under the Credit Agreement or any other Loan Document is   stayed upon the insolvency, bankruptcy or reorganization of the Borrower or any of its Affiliates,   all such amounts otherwise subject to acceleration under the terms of the Credit Agreement shall   nonetheless be payable by each of the Guarantors hereunder forthwith on demand by the   Administrative Agent.   SECTION 9. Notices.  All notices, requests and other communications to any party   hereunder shall be given in the manner prescribed in Section 13.1 of the Credit Agreement with   respect to the Administrative Agent at its notice address therein and, with respect to any   Guarantor, in the care of the Borrower at the address of the Borrower set forth in the Credit   Agreement, or such other address or telecopy number as such party may hereafter specify for   such purpose in accordance with the provisions of Section 9.01 of the Credit Agreement.   SECTION 10. No Waivers.  No failure or delay by the Administrative Agent or any   Lenders in exercising any right, power or privilege hereunder shall operate as a waiver thereof   nor shall any single or partial exercise thereof preclude any other or further exercise thereof or   the exercise of any other right, power or privilege.  The rights and remedies provided in this   Guaranty, the Credit Agreement, any agreement evidencing Rate Management Transactions and   the other Loan Documents shall be cumulative and not exclusive of any rights or remedies   provided by law.     

 

   10   SECTION 11. Successors and Assigns.  This Guaranty is for the benefit of the   Administrative Agent and the Lenders and their respective successors and permitted assigns,   provided, that no Guarantor shall have any right to assign its rights or obligations hereunder   without the consent of the Administrative Agent, and any such assignment in violation of this   Section 11 shall be null and void; and in the event of an assignment of any amounts payable   under the Credit Agreement, in accordance with the respective terms thereof, the rights   hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such   indebtedness. This Guaranty shall be binding upon each of the Guarantors and their respective   successors and assigns.   SECTION 12. Changes in Writing.  Other than in connection with the addition of   additional Subsidiaries, which become parties hereto by executing a Guaranty Supplement hereto   in the form attached as Annex I, neither this Guaranty nor any provision hereof may be changed,   waived, discharged or terminated orally, but only in writing signed by each of the Guarantors   and the Administrative Agent.   SECTION 13. Governing Law; Jurisdiction.     (a) THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH   AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.   (b) Each Guarantor hereby irrevocably and unconditionally submits, for itself and its   property, to the exclusive jurisdiction of the Supreme Court of the State of New York sitting in   New York County and of the United States District Court of the Southern District of New York,   and any appellate court from any thereof, in any action or proceeding arising out of or relating to   this Guaranty or any other Loan Document, or for recognition or enforcement of any judgment,   and each Guarantor hereby irrevocably and unconditionally agrees that all claims in respect of   any such action or proceeding may be heard and determined in such New York State or, to the   extent permitted by law, in such Federal court.  Each Guarantor agrees that a final judgment in   any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by   suit on the judgment or in any other manner provided by law.  Nothing in this Guaranty or any   other Loan Document shall affect any right that the Administrative Agent, or any Lender may   otherwise have to bring any action or proceeding relating to this Guaranty or any other Loan   Document against any Guarantor or its properties in the courts of any jurisdiction.   (c) Each Guarantor hereby irrevocably and unconditionally waives, to the fullest   extent it may legally and effectively do so, any objection which it may now or hereafter have to   the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty or   any other Loan Document in any court referred to in paragraph (b) of this Section.  Each   Guarantor hereby irrevocably waives, to the fullest extent permitted by law, the defense of an   inconvenient forum to the maintenance of such action or proceeding in any such court.     

 

   11   (d) Each party to this Guaranty irrevocably consents to service of process in the   manner provided for notices in Section 9 of this Guaranty, and each of the Guarantors hereby   appoints the Borrower as its agent for service of process.  Nothing in this Guaranty or any other   Loan Document will affect the right of any party to this Guaranty to serve process in any other   manner permitted by law.   SECTION 14. WAIVER OF JURY TRIAL.  EACH GUARANTOR HEREBY   WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY   RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING   DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS   GUARANTY OR ANY OTHER LOAN DOCUMENT (WHETHER BASED ON   CONTRACT, TORT OR ANY OTHER THEORY).  EACH GUARANTOR (A)   CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY   OTHER GUARANTOR HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT   SUCH OTHER GUARANTOR WOULD NOT, IN THE EVENT OF LITIGATION, SEEK   TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT   AND THE OTHER GUARANTORS HAVE BEEN INDUCED TO ENTER INTO THIS   GUARANTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND   CERTIFICATIONS IN THIS SECTION.   SECTION 15. No Strict Construction.  The parties hereto have participated jointly in the   negotiation and drafting of this Guaranty.  In the event an ambiguity or question of intent or   interpretation arises, this Guaranty shall be construed as if drafted jointly by the parties hereto   and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of   the authorship of any provisions of this Guaranty.   SECTION 16. Taxes, Expenses of Enforcement, Etc.   (a) Taxes.   Each payment by any Guarantor hereunder or under any promissory note shall   be made without withholding for any Taxes, unless such withholding is required by any   law. If any Guarantor determines, in its sole discretion exercised in good faith, that it is   so required to withhold Taxes, then such Guarantor may so withhold and shall timely pay   the full amount of withheld Taxes to the relevant Governmental Authority in accordance   with applicable law. If such Taxes are Indemnified Taxes, then the amount payable by the   Guarantor shall be increased as necessary so that, net of such withholding (including such   withholding applicable to additional amounts payable under this Section), the applicable   Recipient receives the amount it would have received had no such withholding been   made.  For purposes of this Guaranty, “Recipient” means, as applicable, (a) the   Administrative Agent, and (b) any Lender.      (ii) In addition, such Guarantor shall timely pay any Other Taxes to the   relevant Governmental Authority in accordance with applicable law.   (iii) As soon as practicable after any payment of Indemnified Taxes by   any Guarantor to a Governmental Authority, such Guarantor shall deliver to the   Administrative Agent the original or a certified copy of a receipt issued by such     

 

   12   Governmental Authority evidencing such payment, a copy of the return reporting such   payment or other evidence of such payment reasonably satisfactory to the Administrative   Agent.   (iv) The Guarantors shall jointly and severally indemnify each   Recipient for any Indemnified Taxes that are paid or payable by such Recipient in   connection with any Loan Document (including amounts payable under this Section   16(a)) and any reasonable expenses arising therefrom or with respect thereto, whether or   not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant   Governmental Authority. The indemnity under this Section 16(a) shall be paid within   fifteen (15) days after the Recipient delivers to any Guarantor a certificate stating the   amount of any Indemnified Taxes so payable by such Recipient. Such certificate shall be   conclusive of the amount so payable absent manifest error. Such Recipient shall deliver a   copy of such certificate to the Administrative Agent. In the case of any Lender making a   claim under this Section 16(a) on behalf of any of its beneficial owners, an indemnity   payment under this Section 16(a) shall be due only to the extent that such Lender is able   to establish that, with respect to the applicable Indemnified Taxes, such beneficial owners   supplied to the applicable Persons such properly completed and executed documentation   necessary to claim any applicable exemption from, or reduction of, such Indemnified   Taxes.   (i) (v)  By accepting the benefits hereof, each Lender agrees that it will   comply with Section 3.5 of the Credit Agreement.   (b) Expenses of Enforcement, Etc.  The Guarantors agree to reimburse the   Administrative Agent and the other Lenders for any reasonable costs and out-of-pocket expenses   (including attorneys’ fees) paid or incurred by the Administrative Agent or any other Lenders in   connection with the collection and enforcement of amounts due under the Loan Documents,   including without limitation this Guaranty.   SECTION 17. Setoff.  At any time after all or any part of the Guaranteed Obligations   have become due and payable (by acceleration or otherwise), each Lender and the   Administrative Agent may, without notice to any Guarantor and regardless of the acceptance of   any security or collateral for the payment hereof, set off and apply toward the payment of all or   any part of the Guaranteed Obligations any and all deposits (general or special, time or demand,   provisional or final and in whatever currency denominated at any time held) and other   obligations at any time owing by such Lender or the Administrative Agent or any of their   Affiliates to or for the credit or the account of any Guarantor against any of and all the   Guaranteed Obligations, irrespective of whether or not such Lender or the Administrative Agent   shall have made any demand under this Guaranty and although such obligations may be   unmatured.  The rights of each Lender or the Administrative Agent under this Section are in   addition to other rights and remedies (including other rights of setoff) which such Lender or the   Administrative Agent may have.   SECTION 18. Financial Information.  Each Guarantor hereby assumes responsibility for   keeping itself informed of the financial condition of the Borrower, the other Guarantors and any   and all endorsers and/or other guarantors of all or any part of the Guaranteed Obligations, and of     

 

   13   all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations, or   any part thereof, that diligent inquiry would reveal, and each Guarantor hereby agrees that none   of the Lenders or the Administrative Agent shall have any duty to advise such Guarantor of   information known to any of them regarding such condition or any such circumstances.  In the   event any Lender or the Administrative Agent, in its sole discretion, undertakes at any time or   from time to time to provide any such information to a Guarantor, such Lender or the   Administrative Agent shall be under no obligation (i) to undertake any investigation not a part of   its regular business routine, (ii) to disclose any information which such Lender or the   Administrative Agent, pursuant to accepted or reasonable commercial finance or banking   practices, wishes to maintain confidential or (iii) to make any other or future disclosures of such   information or any other information to such Guarantor.   SECTION 19. Severability.  Wherever possible, each provision of this Guaranty shall be   interpreted in such manner as to be effective and valid under applicable law, but if any provision   of this Guaranty shall be prohibited by or invalid under such law, such provision shall be   ineffective to the extent of such prohibition or invalidity without invalidating the remainder of   such provision or the remaining provisions of this Guaranty.   SECTION 20. Merger.  This Guaranty represents the final agreement of each of the   Guarantors with respect to the matters contained herein and may not be contradicted by evidence   of prior or contemporaneous agreements, or subsequent oral agreements, between each such   Guarantor and any Lender or the Administrative Agent.   SECTION 21. Headings.  Section headings in this Guaranty are for convenience of   reference only and shall not govern the interpretation of any provision of this Guaranty.   SECTION 22. Amendment and Restatement.  Each of the parties hereto acknowledges   and agrees that upon the execution and delivery of this Guaranty by each of the parties hereto,   the terms and conditions of the Existing Guaranty shall be and hereby are amended, superseded   and restated in their entirety by the terms and provisions of this Guaranty.      [SIGNATURE PAGES TO FOLLOW]    

 

    

 

    

 

      ANNEX I TO GUARANTY      Reference is hereby made to the Guaranty (as the same may be amended, restated,   supplemented or otherwise modified from time to time, the “Guaranty”), dated as of [DATE],   made by each of the Subsidiaries of [__________] (the “Borrower”) listed on the signature pages   thereto (each an “Initial Guarantor”, and together with any additional Subsidiaries which become   parties to the Guaranty by executing Guaranty Supplements thereto substantially similar in form   and substance hereto, the “Guarantors”), in favor of the Administrative Agent, for the ratable   benefit of the Lenders, under the Credit Agreement.  Each capitalized term used herein and not   defined herein shall have the meaning given to it in the Guaranty.     By its execution below, the undersigned, [NAME OF NEW GUARANTOR], a    [________________] [corporation] [partnership] [limited liability company] (the “New   Guarantor”), agrees to become, and does hereby become, a Guarantor under the Guaranty and   agrees to be bound by such Guaranty as if originally a party thereto.  By its execution below, the   undersigned represents and warrants as to itself that all of the representations and warranties   contained in Section 1 of the Guaranty are true and correct in all respects as of the date hereof.   IN WITNESS WHEREOF, the New Guarantor has executed and delivered this Annex I   counterpart to the Guaranty as of this __________ day of _________, 20___.           [NAME OF NEW GUARANTOR]          By:____________________________________    Name:    Title:mntx-ex103_297.htm

 

Exhibit 10.3

AMENDMENT NO. 2 TO Amended and Restated CREDIT AGREEMENT

This Amendment No. 2 to Amended and Restated Credit Agreement (“Amendment”) is made as of October 30, 2015 (“Amendment No. 2 Effective Date”) among MANITEX INTERNATIONAL, INC., a Michigan corporation, MANITEX, INC., a Texas corporation, MANITEX SABRE, INC., a Michigan corporation, BADGER EQUIPMENT COMPANY, a Minnesota corporation, and MANITEX LOAD KING, INC., a Michigan corporation (each, individually a “US Borrower,” and collectively the “US Borrowers”) and MANITEX LIFTKING, ULC, an Alberta company (the “Canadian Borrower” and, together with the US Borrowers, the “Borrowers” and each individually, a “Borrower”) and the other Credit Parties (as defined in the Credit Agreement, defined below) and COMERICA BANK, a Texas banking association (in its individual capacity, “Comerica”), as US Agent, US Swing Line Lender, US Issuing Lender and a US Lender, COMERICA BANK, a Texas banking association and authorized foreign bank under the Bank Act (Canada), through its Toronto branch (in its individual capacity, “Comerica Canada”) as Canadian Agent, Canadian Swing Line Lender, Canadian Issuing Lender and a Canadian Lender, FIFTH THIRD BANK, an Ohio banking corporation, as a US Lender and a Canadian Lender (Canadian Lenders, Canadian Swing Line Lender, US Lenders and US Swing Line Lender are sometimes referred to herein collectively as the “Lenders”).

PRELIMINARY STATEMENT

The Borrowers, the Credit Parties (as defined in the Credit Agreement), US Agent, Canadian Agent and the Lenders entered into that certain Amended and Restated Credit Agreement dated January 9, 2015 as amended by Amendment No. 1 to Amended and Restated Credit Agreement dated as of March 25, 2015 (as amended, the “Credit Agreement”) providing terms and conditions governing certain loans and other credit accommodations extended by the US Agent, Canadian Agent and Lenders to Borrowers (the “Obligations”).

Borrowers, US Agent, Canadian Agent and the Lenders have agreed to amend the terms of the Credit Agreement as provided in this Amendment.

AGREEMENT

1. Defined Terms. In this Amendment, capitalized terms used without separate definition shall have the meanings given them in the Credit Agreement.

2. Amendment.

2.1 The following terms and their respective definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order:

“Cash Distributions” shall mean for any applicable period of determination, a distribution made in cash and received by Parent from the earnings of any non-North American Subsidiaries and/or Unrestricted Subsidiaries.

“Consolidated Adjusted North American EBITDA” shall mean for any period of determination, without duplication: (a) Consolidated North American EBITDA, plus (b) any Cash Distributions, all as determined on a consolidated basis of the Parent and its Restricted Subsidiaries located in North America for such period in accordance with GAAP.

“Net Repatriated Loan Proceeds” shall mean for any applicable period of determination the greater of (i) zero dollars ($0), or (ii) for the twelve month period ending as of the date of determination, the difference of (x) the total amount of cash payments received by Parent as payment for any outstanding loans or advances owed to Parent by any non-North America Subsidiary and/or payment of outstanding accrued management fees for the management services provided by Parent to CVS Ferrari S.R.L., minus (y) intercompany loans advanced by Parent to any non-North America Subsidiary. For greater certainty, the net loans to payments received by Parent applies only to the calculation of the Consolidated Fixed Charge Coverage Ratio and does not amend or modify the limitations set forth in Section 8.1 of this Agreement.

“Permitted Credit Party Sale” shall mean the sale of the 100% of the ownership shares or all of the assets of a Credit Party, in each case, subject to (i) receipt of prior written consent from the Agent and Majority Lenders, (ii) pro forma covenant compliance, and (iii) no default or event of default exists or is continuing.

 

 

2.2 The term and the definition of “Consolidated North American Total Debt to Consolidated North American EBITDA Ratio” contained in Section 1.1 of the Credit Agreement is hereby deleted and replaced with “Consolidated North American Total Debt to Consolidated Adjusted North American EBITDA Ratio” defined as follows:

“Consolidated North American Total Debt to Consolidated Adjusted North American EBITDA Ratio” shall mean, the ratio of (a) Consolidated North American Total Debt, as of the last day of such fiscal quarter end, to (b) the sum of (i) Consolidated Adjusted North American EBITDA, plus (ii) for the period commencing June 30, 2015 through March 31, 2016, US$557,000, for the management services provided by Parent to CVS Ferrari S.R.L. and for the period of April 1, 2016 and thereafter, $0.00, all for the four quarter period then ending on the date of determination.

2.3 The definition of “Consolidated Fixed Charge Coverage Ratio” contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Consolidated Fixed Charge Coverage Ratio” shall mean as of any date of determination thereof, the ratio of, without duplication:  (i) Consolidated Adjusted North American EBITDA for Applicable Measuring Period ending on such date, plus Net Repatriated Loan Proceeds (for greater certainty such Net Repatriated Loan Proceeds are added only to the extent such Net Repatriated Loan Proceeds are not included in the calculation of Consolidated Net Income), minus unfinanced Capital Expenditures during such period, minus Distributions, to (ii) Consolidated Fixed Charges for Applicable Measuring Period ending on such date, all as determined on a consolidated basis for Parent and its Restricted Subsidiaries located in North America in accordance with GAAP.

2.4 The term and the definition of “Senior Secured First Lien North American Debt to Consolidated North American EBITDA Ratio” contained in Section 1.1 of the Credit Agreement is hereby deleted and replaced with  “Senior Secured First Lien North American Debt to Consolidated Adjusted North American EBITDA Ratio” defined as follows:

“Senior Secured First Lien North American Debt to Consolidated Adjusted North American EBITDA Ratio” shall mean, the ratio of (a) Senior Secured First Lien North American Debt, as of the last day of such fiscal quarter end, to (b) the sum of (i) Consolidated Adjusted North American EBITDA, plus (ii) for the period commencing June 30, 2015 through March 31, 2016, US$557,000, for the management services provided by Parent to CVS Ferrari S.R.L., and for the period of April 1, 2016 and thereafter, $0.00, all for the four quarter period then ending on the date of determination.

2.5 Paragraph (b) of Section 7.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

	
 
	
“(b)
	
(I) for each of the 1st, 2nd, 3rd fiscal quarters of each fiscal year, as soon as available, but in any event not later than the date that is the earliest of: (i) sixty (60) days after the end of each such fiscal quarter of the Credit Parties, or (ii) the earlier of (A) two Business Days after the filing by the Parent with the SEC of a quarterly report on Form 10-Q for such fiscal quarter, and (B) the deadline for the Parent filing with the SEC of such quarterly report on Form 10-Q for such fiscal quarter (without giving effect to any extensions that may be permitted pursuant to Rule 12b-25 under the Exchange Act), a copy of the Parent prepared: (1) unaudited Consolidated and Consolidating balance sheets of the Parent and its Restricted Subsidiaries located in North America as at the end of such quarter and the related unaudited statements of income, stockholders equity and cash flows of the Parent and its Restricted Subsidiaries located in North America for the portion of the Fiscal Year through the end of such quarter, (2) unaudited Consolidated and Consolidating balance sheets of the Parent and its Subsidiaries located in North America as at the end of such quarter and the related unaudited statements of income, stockholders equity and cash flows of the Parent and its Subsidiaries located in North America for the portion of the Fiscal Year through the end of such quarter, and (3) unaudited Consolidated and Consolidating balance sheets of the Parent and its Subsidiaries as at the end of such quarter and the related unaudited statements of income, stockholders equity and cash flows of the Parent and its Subsidiaries for the portion of the Fiscal Year through the end of such quarter setting forth in each case in comparative form the figures for the corresponding periods in the previous Fiscal Year, and all of the aforementioned certified by a Responsible Officer of the US Borrower and Canadian Borrower as being fairly stated in all material respects; and

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(II) for the 4th fiscal quarter of each fiscal year, as soon as available, but in any event not later than seventy-five (75) days after the end of each such fiscal quarter of the Credit Parties a copy of the Parent prepared: (1) unaudited Consolidated and Consolidating balance sheets of the Parent and its Restricted Subsidiaries located in North America as at the end of such quarter and the related unaudited statements of income, stockholders equity and cash flows of the Parent and its Restricted Subsidiaries located in North America for the portion of the Fiscal Year through the end of such quarter, (2) unaudited Consolidated and Consolidating balance sheets of the Parent and its Subsidiaries located in North America as at the end of such quarter and the related unaudited statements of income, stockholders equity and cash flows of the Parent and its Subsidiaries located in North America for the portion of the Fiscal Year through the end of such quarter, and (3) unaudited Consolidated and Consolidating balance sheets of the Parent and its Subsidiaries as at the end of such quarter and the related unaudited statements of income, stockholders equity and cash flows of the Parent and its Subsidiaries for the portion of the Fiscal Year through the end of such quarter setting forth in each case in comparative form the figures for the corresponding periods in the previous Fiscal Year, and all of the aforementioned certified by a Responsible Officer of the US Borrower and Canadian Borrower as being fairly stated in all material respect;”

2.6 Paragraph (a) of Section 7.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“(a) Concurrently with the delivery of the financial statements described in Section 7.1(a) for each Fiscal Year end, and 7.1(b) for each fiscal quarter end, a Covenant Compliance Report (or, in the case of the Parent prepared financial statements described in 7.1(b)(II), a draft Covenant Compliance Report) duly executed by a Responsible Officer of the US Borrowers’ Representative;”

2.7 Paragraph (d) of Section 7.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“(d) On or before January 29, 2016 with respect to the 2016 fiscal year and within ninety (90) days after the end of each Fiscal Year commencing with the 2016 fiscal year end (for the 2017 fiscal year projections) and each fiscal year end thereafter, projections for the Credit Parties for the next succeeding Fiscal Year, on a quarterly, consolidating and consolidated basis (for Parent and non-North American operations for fully consolidated Parent) and for the following Fiscal Year on an annual basis, including a balance sheet, as at the end of each relevant period and for the period commencing at the beginning of the Fiscal Year and ending on the last day of such relevant period, such projections certified by a Responsible Officer of the US Borrowers and a Responsible Officer of the Canadian Borrower, as applicable, each such report being based on reasonable estimates and assumptions taking into account all facts and information known (or reasonably available to any Credit Party) by a Responsible Officer of such Borrower(s);”

2.8 Paragraphs (f) and (g) of Section 7.2 of the Credit Agreement are hereby re-lettered changing them to (h) and (i) respectively and the following new paragraphs (f) and (g) are hereby added to Section 7.2:

“(f) on the first business day of each week, commencing with the week of December 7, 2015, deliver a schedule of expected cash receipts and cash disbursements for a thirteen week projected period, in detail, form and substance acceptable to Agent.  The statement shall contain a comparison of actual results to Borrowers’ projections with explanations of any variances from those projections;

(g) within thirty (30) days after and as of the end of each month, including the last month of each Fiscal Year, or more frequently as requested by the Agent or the Majority Lenders, commencing with the month ending October 31, 2015, a monthly back-log report from each Borrower, in detail, form and substance acceptable to Agent; ”

2.9 Section 7.6 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“7.6 Inspection of Property; Books and Records, Discussions.  Permit the Agents and each Lender, through their authorized attorneys, accountants and representatives (a) at all reasonable times during normal business hours, upon the request of such Agent or such Lender, to examine each Credit Party’s books, accounts, records, ledgers and assets and properties; (b) from time to time, during normal business hours, upon the request of the Agent, to conduct full or partial collateral audits of the Accounts and Inventory of the Credit Parties, such audits to be completed by an appraiser as may be selected by the Agent and consented to by the applicable Borrowers (such consent not to be unreasonably withheld), with all reasonable costs and expenses of such audits to be reimbursed by the Credit Parties, provided that so long as no Event of Default or Default exists, the US Borrowers shall not be required to reimburse US Agent for such audits or appraisals more frequently than twice each Fiscal Year and the Canadian Borrower shall not be required not reimburse the Canadian Agent for such audits or appraisals more frequently than twice each Fiscal Year; (c) during normal business hours and at their own risk, to enter onto the real property owned or leased by any Credit Party to conduct inspections, investigations or other reviews of such real property; and (d) at reasonable times during normal business hours and at reasonable intervals, to visit all of the Credit Parties’ offices, discuss each Credit Party’s respective financial matters with their respective officers, as applicable, and, by this provision, the Borrowers authorize, and will cause each of their respective Subsidiaries to authorize, its independent certified or chartered public accountants to discuss the finances and affairs of any Credit Party and examine any of such Credit Party’s books, reports or records held by such accountants.”

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2.10 Effective as of September 30, 2015, Section 7.9 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“7.9 Financial Covenants.  US Borrowers shall maintain on a Consolidated basis the financial covenants set forth in this Section 7.9, tested on the last day of each fiscal quarter of Parent:

(a) Maintain, as of the last day of each fiscal quarter, for the Applicable Measuring Period then ending, a Consolidated Fixed Charge Coverage Ratio of not less than the amount set forth below for the periods indicated below, including the quarter ends indicated and each fiscal quarter end between such dates:

 

	
September 30, 2015  
	
 
	
1.20 to 1.00
	
 

	
December 31, 2015  
	
 
	
0.90 to 1.00
	
 

	
March 31, 2016 and each fiscal quarter end thereafter 
	
 
	
1.20 to 1.00
	
 

(b) Maintain, as of the last day of each fiscal quarter, a Senior Secured First Lien North American Debt to Consolidated Adjusted North American EBITDA Ratio of not more than the amount set forth below for the periods indicated below, including the quarter ends indicated and each fiscal quarter end between such dates:

 

	
September 30, 2015  
	
 
	
4.75 to 1.00
	
 

	
December 31, 2015  
	
 
	
5.25 to 1.00
	
 

	
December 31, 2015 following the closing of any Permitted Credit Party Sale
	
 
	
4.75 to 1.00
	
 

	
March 31, 2016
	
 
	
3.50 to 1.00
	
 

	
June 30, 2016 and each fiscal quarter end thereafter
	
 
	
2.75 to 1.00
	
 

(c) Maintain, as of the last day of each fiscal quarter, a Consolidated North American Total Debt to Consolidated Adjusted North American EBITDA Ratio of not more than the amount set forth below for the periods indicated below, including the quarter ends indicated and each fiscal quarter end between such dates:

 

	
September 30, 2015  
	
 
	
6.75 to 1.00
	
 

	
December 31, 2015  
	
 
	
7.50 to 1.00
	
 

	
December 31, 2015 following the closing of any Permitted Credit Party Sale
	
 
	
7.00 to 1.00
	
 

	
March 31, 2016
	
 
	
4.50 to 1.00
	
 

	
June 30, 2016 and each fiscal quarter end thereafter
	
 
	
3.75 to 1.00
	
 

2.11 Annex I (Applicable Margin Grid) to the Credit Agreement is hereby amended  and restated in its entirety as set forth on Annex I attached hereto.

2.12 Schedule 8.13 (Consulting Agreements) to the Credit Agreement is hereby amended  and restated in its entirety as set forth on Schedule 8.13 attached hereto.

2.13 Exhibit J (Form of Covenant Compliance Report) to the Credit Agreement is hereby deleted and replaced in its entirety with Exhibit J attached hereto.

3. Amendment Fee. The US Agent shall have received for the ratable benefit of each Lender that has provided its consent to this Amendment on or before October 30, 2015, by 4:00 p.m. (Eastern), a non-refundable amendment fee equal to 0.15% of the sum of each such Lender’s US Revolving Credit Commitment Amount, Term Loan Amount and Canadian Revolving Credit Commitment Amount, such amendment fee being fully earned and payable to such consenting Lenders upon the effectiveness of this Amendment.

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4. Representations and Warranties. The Borrowers represent, warrant, and agree that:

(a) Except as expressly modified in this Amendment or as otherwise provided in writing by Borrowers to Lenders, the representations, warranties, and covenants set forth in the Credit Agreement and in each related document, agreement, and instrument remain true and correct, continue to be satisfied in all respects, and are legal, valid and binding obligations with the same force and effect as if entirely restated in this Amendment, other than those representations and warranties that expressly relate solely to a specific earlier date, which shall remain correct as of such earlier date.

(b) When executed, the Agreement, as amended by this Amendment will continue to constitute a duly authorized, legal, valid, and binding obligation of the Borrowers enforceable in accordance with its terms. The Credit Agreement, as amended, along with each related document, agreement and instrument, is ratified and confirmed and shall remain in full force and effect and the Credit Parties further represent and warrant that they have taken all actions necessary to authorize the execution and performance of such documents.

(c) There is no Default or Event of Default existing under the Credit Agreement, or any related document, agreement, or instrument, and no event has occurred or condition exists that is or, with the giving of notice or lapse of time or both, would be such a default.

(d) As applicable to each such Credit Party, the articles of incorporation, articles of formation, articles of amalgamation, bylaws, operating agreements and resolutions and incumbency certificates of the Borrowers and the Guarantors delivered to US Agent and Canadian Agent as of the Amendment No. 2 Effective Date and/or in connection the Prior Credit Agreement, have not been repealed, amended or modified since the date of delivery thereof and that same remain in full force and effect.

5. Successors and Assigns. This Amendment shall inure to the benefit of and be binding upon the parties and their respective successors and assigns.

6. Governing Law. The parties agree that the terms and provisions of this Amendment shall be governed by and construed in accordance with the laws of the State of Michigan without regard to principles of conflicts of law.

7. No Defenses. The Credit Parties acknowledge, confirm, and warrant to US Agent, Canadian Agent and the Lenders that as of the date hereof the Credit Parties have absolutely no defenses, claims, rights of set-off, or counterclaims against US Agent, Canadian Agent and the Lenders under, arising out of, or in connection with, this Amendment, the Credit Agreement, the Loan Documents and/or the individual advances under the Obligations, or against any of the indebtedness evidenced or secured thereby.

8. Ratification. Except for the modifications under this Amendment, the parties ratify and confirm the Credit Agreement and the Loan Documents and agree that they remain in full force and effect.

9. Further Modification; No Reliance. This Amendment may be altered or modified only by written instrument duly executed by the Credit Parties and the Lenders. In executing this Amendment, the Credit Parties are not relying on any promise or commitment of US Agent, Canadian Agent and/or the Lenders that is not in writing signed by the applicable Agent and/or the Lenders.

10. Acknowledgment and Consent of Guarantors. Each of the US Credit Parties has guaranteed the payment and performance of the Obligations by Borrowers pursuant to Guaranty dated August 19, 2013 (the “Guaranty”) and with respect to North American Distribution, Inc. and North American Equipment, Inc. by way of joinder dated as of even date herewith (“Joinder Agreement”). Each of the Guarantors, by signing below, acknowledges and consents to the execution, delivery and performance of this Amendment, and agrees that the Guaranty and Joinder Agreement, as applicable, remains in full force and effect. Each of the Guarantors further represents that it is in compliance with all of the terms and conditions of its Guaranty or as applicable its Joinder Agreement.

11. Expenses. Borrowers shall promptly pay all out-of-pocket fees, costs, charges, expenses, and disbursements of US Agent, Canadian Agent and the Lenders incurred in connection with the preparation, execution, and delivery of this Amendment, and the other documents contemplated by this Amendment.

12. RELEASE.  BORROWERS AND GUARANTORS, IN EVERY CAPACITY, INCLUDING, BUT NOT LIMITED TO, AS SHAREHOLDERS, PARTNERS, OFFICERS, DIRECTORS, INVESTORS AND/OR CREDITORS OF BORROWERS AND/OR GUARANTORS, OR ANY ONE OR MORE OF THEM, HEREBY WAIVE, DISCHARGE AND FOREVER RELEASE BANK, BANK’S EMPLOYEES, OFFICERS, DIRECTORS, ATTORNEYS, STOCKHOLDERS, AFFILIATES AND SUCCESSORS AND ASSIGNS, FROM AND OF ANY AND ALL CLAIMS, CAUSES OF ACTION, DEFENSES, COUNTERCLAIMS OR OFFSETS AND/OR ALLEGATIONS ANY BORROWER AND/OR ANY GUARANTOR MAY HAVE OR MAY HAVE MADE OR WHICH ARE BASED ON FACTS OR CIRCUMSTANCES ARISING AT ANY TIME UP THROUGH AND INCLUDING THE DATE OF THIS AMENDMENT, WHETHER KNOWN OR UNKNOWN, AGAINST ANY OR ALL OF BANK, BANK’S EMPLOYEES, OFFICERS, DIRECTORS, ATTORNEYS, STOCKHOLDERS, AFFILIATES AND SUCCESSORS AND ASSIGNS.

- 5 -

 

13. WAIVER OF JURY TRIAL. THE LENDERS, THE AGENTS AND THE BORROWERS KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS Amendment OR ANY RELATED INSTRUMENT OR AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS Amendment OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY OF THEM.  NEITHER THE LENDERS, THE AGENTS NOR THE BORROWERS SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.  THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY THE LENDERS AND THE AGENTS OR THE BORROWERS EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY ALL OF THEM.

14. Effectiveness and Counterparts. This Amendment may be executed in as many counterparts as US Agent, Canadian Agent, the Lenders and the Borrowers deem convenient, and shall become effective upon delivery to US Agent and Canadian Agent of: (i) all executed counterparts hereof from the Lenders and from Borrowers and each of the Guarantors; (ii) receipt by Agent of all fees payable to Borrowers to Lenders and Agent as detailed herein and in the Fee Letter from Borrowers to Agent dated on or about October 26, 2015; (iii) the documents listed on the Closing Checklist attached hereto as Exhibit A, except for (x) the reaffirmations of subordination agreements from Terex Corporation which shall be delivered to Agent on a post-closing basis on or before November 30, 2015, and (y) the Borrower shall use its best efforts to deliver to Agent the reaffirmation  of subordination agreement from MI Convert Holdings LLC and Invemed Associates LLC on or before November 30, 2015; and (iv) any other documents or items which US Agent or Canadian Agent may require to carry out the terms hereof.

[Signature Pages Follow]

- 6 -

 

[Signature Page - Amendment No. 2 to Amended and Restated Credit Agreement- Borrowers ]

This Amendment No. 2 to Amended and Restated Credit Agreement is executed and delivered on the Amendment No. 2 Effective Date.

 

	
 
	
MANITEX INTERNATIONAL, INC.

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Andrew M. Rooke

	
 
	
 
	
 
	
Andrew M. Rooke

	
 
	
Its:
	
 
	
President

	
 
	
 
	
 
	
 

	
 
	
MANITEX, INC.

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Andrew M. Rooke

	
 
	
 
	
 
	
Andrew M. Rooke

	
 
	
Its:
	
 
	
President

	
 
	
 
	
 
	
 

	
 
	
MANITEX SABRE, INC.

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Andrew M. Rooke

	
 
	
 
	
 
	
Andrew M. Rooke

	
 
	
Its:
	
 
	
President

	
 
	
 
	
 
	
 

	
 
	
BADGER EQUIPMENT COMPANY

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Andrew M. Rooke

	
 
	
 
	
 
	
Andrew M. Rooke

	
 
	
Its:
	
 
	
President

	
 
	
 
	
 
	
 

	
 
	
MANITEX LOAD KING, INC.

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Andrew M. Rooke

	
 
	
 
	
 
	
Andrew M. Rooke

	
 
	
Its:
	
 
	
President

	
 
	
 
	
 
	
 

	
 
	
MANITEX LIFTKING, ULC

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Andrew M. Rooke

	
 
	
 
	
 
	
Andrew M. Rooke

	
 
	
Its:
	
 
	
Vice President

- 7 -

 

[Signature Page- Amendment No. 2 to Amended and Restated Credit Agreement – Comerica Bank]

 

	
COMERICA BANK
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ James Q. Goudie, III
	
 

	
 
	
 
	
James Q. Goudie, III
	
 

	
Its:
	
 
	
Vice President
	
 

	
 
	
 
	
 
	
 

	
COMERICA BANK, as US Lender, as US
	
 

	
Issuing Lender, and as US Swing Line Lender
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ James Q. Goudie, III
	
 

	
 
	
 
	
James Q. Goudie, III
	
 

	
Its:
	
 
	
Vice President
	
 

	
 
	
 
	
 
	
 

	
COMERICA BANK, as Canadian Agent
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Prashant Prakash
	
 

	
 
	
 
	
Prashant Prakash
	
 

	
Its:
	
 
	
Portfolio Risk Manager
	
 

	
 
	
 
	
 
	
 

	
COMERICA BANK, as Canadian Lender,
	
 

	
As Canadian Issuing Lender, and as Canadian
	
 

	
Swing Line Lender
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Prashant Prakash
	
 

	
 
	
 
	
Prashant Prakash
	
 

	
Its:
	
 
	
Portfolio Risk Manager
	
 

 

- 8 -

 

[Signature Page - Amendment No. 2 to Amended and Restated Credit Agreement – US Lender]

 

	
FIFTH THIRD BANK, as US Lender
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Matthew Berman
	
 

	
 
	
 
	
Matthew Berman
	
 

	
Its:
	
 
	
Assistant Vice President
	
 

 

- 9 -

 

[Signature Page - Amendment No. 2 to Amended and Restated Credit Agreement - Canadian Lender]

 

	
FIFTH THIRD BANK, as Canadian Lender
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Ramin Ganjavi
	
 

	
 
	
 
	
Ramin Ganjavi
	
 

	
Its:
	
 
	
Director
	
 

 

- 10 -

 

[Signature Page - Amendment No. 2 to Amended and Restated Credit Agreement - Guarantors]

 

	
GUARANTORS: 
	
 
	
 
	
 

	
MANITEX INTERNATIONAL, INC.
	
 
	
MANITEX, INC.

	
 
	
 
	
 
	
 
	
 

	
By: 
	
/s/ Andrew M. Rooke
	
 
	
By: 
	
/s/ Andrew M. Rooke

	
 
	
Andrew M. Rooke
	
 
	
 
	
Andrew M. Rooke

	
Its:
	
President
	
 
	
Its:
	
President

	
 
	
 
	
 
	
 
	
 

	
MANITEX SABRE, INC.
	
 
	
BADGER EQUIPMENT COMPANY

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Andrew M. Rooke
	
 
	
By:
	
/s/ Andrew M. Rooke

	
 
	
Andrew M. Rooke
	
 
	
 
	
Andrew M. Rooke

	
Its:
	
President
	
 
	
Its:
	
President

	
 
	
 
	
 
	
 
	
 

	
MANITEX LOAD KING, INC.
	
 
	
LIFTKING, INC.

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Andrew M. Rooke
	
 
	
By:
	
/s/ Andrew M. Rooke

	
 
	
Andrew M. Rooke
	
 
	
 
	
Andrew M. Rooke

	
Its:
	
President
	
 
	
Its:
	
President

	
 
	
 
	
 
	
 
	
 

	
MANITEX, LLC
	
 
	
NORTH AMERICAN EQUIPMENT, INC.

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Andrew M. Rooke
	
 
	
By:
	
/s/ Andrew M. Rooke

	
 
	
Andrew M. Rooke
	
 
	
 
	
Andrew M. Rooke

	
Its:
	
President
	
 
	
Its:
	
President

	
 
	
 
	
 
	
 
	
 

	
NORTH AMERICAN DISTRIBUTION, INC.
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Andrew M. Rooke
	
 
	
 
	
 

	
 
	
Andrew M. Rooke
	
 
	
 
	
 

	
Its:
	
President
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

 

 

 

- 11 -

 

EXHIBIT “A”

DOCUMENTATION CHECKLIST

 

 

 

 

DOCUMENTATION CHECKLIST

 

		
	
US Borrowers:
	
Manitex International, Inc., a Michigan corporation
Manitex, Inc. a Texas corporation
Manitex Sabre, Inc., a Michigan corporation
Badger Equipment Company, a Minnesota corporation
Manitex Load King, Inc., a Michigan corporation

	
 
	
 

	
Canadian Borrower:
	
Manitex Liftking, ULC, an Alberta corporation

	
 
	
 

	
Agent:
	
Comerica Bank, as US Agent for all Lenders
Comerica Bank, as Canadian Agent for all Canadian Lenders

	
 
	
 

	
Guarantors:
	
Liftking, Inc. (with respect to debt of all Borrowers)
Manitex, LLC (with respect to debt of all Borrowers)
All US Borrowers (with respect to debt of Canadian Borrower)
North American Distribution, Inc. (with respect to debt of all Borrowers)
North American Equipment, Inc. (with respect to debt of all Borrowers)

	
 
	
 

	
Subordinated Creditors:
	
Terex Corporation, MI Convert Holdings LLC and Invemed Associates LLC a New York limited liability company

	
 
	
 

	
Transaction:
	
Amendment No. 2 to Amended and Restated Credit Agreement 

	
 
	
 

	
Closing Date:
	
October 30, 2015

 

	
ITEM
	
 
	
SOURCE
	
 
	
NOTES / STATUS
	
 
	
Ordered/ Drafted

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
I.   LOAN DOCUMENTATION
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Primary Loan Documents 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
1.   Amendment No. 2 to Amended and Restated Credit Agreement
	
 
	
Bodman
	
 
	
Doc No. 
	
 
	
x

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2.   Closing Certificate
	
 
	
Bodman
	
 
	
Doc No. 
	
 
	
x

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Collateral Instruments/Agreements
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
3.   Reaffirmation of 

a.   Terex Subordination agreement 

b.   Terex Lien Subordination 
	
 
	
Bodman
	
 
	
Not a condition to close – post-closing delivery

Doc No.

 
	
 
	
 

o

o

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
4.   Reaffirmation of Convert Holdings LLC and Invemed Associates LLC subordination agreement
	
 
	
Bodman
	
 
	
Not a condition to close – post-closing delivery – on a best efforts basis

Doc No.

 
	
 
	
o

 

 

 

 

 

ANNEX I

Applicable Margin Grid
Revolving Credit and Term Loan Facilities
(basis points per annum)

 

	
Basis for Pricing
	
 
	
Level I
	
 
	
Level II
	
 
	
Level III
	
 
	
Level IV
	
 
	
Level V**

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Consolidated North American Total Debt to Consolidated Adjusted North American EBITDA Ratio *
	
 
	
<3.00 to 1.00
	
 
	
>3.00 to 1.00
<3.50 to 1.00
	
 
	
>3.50 to 1.00
<4.00 to 1.00
	
 
	
>4.00 to 1.00

 <4.50 to 1.00
	
 
	
>4.50 to 1.00

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US Revolving Credit Eurodollar Margin
	
 
	
275
	
 
	
300
	
 
	
325
	
 
	
350
	
 
	
400

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US Revolving Credit US Base Rate Margin
	
 
	
175
	
 
	
200
	
 
	
225
	
 
	
250
	
 
	
300

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US Revolving Credit Facility Fee
	
 
	
37.5
	
 
	
50
	
 
	
50
	
 
	
50
	
 
	
50

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
US Letter of Credit Fees (exclusive of facing fees)
	
 
	
275
	
 
	
300
	
 
	
325
	
 
	
350
	
 
	
400

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 Canadian BA-based Rate (for Canadian Dollar advances) and Eurodollar Rate (for US Dollar Advances)
	
 
	
275
	
 
	
300
	
 
	
325
	
 
	
350
	
 
	
400

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Canadian Revolving Credit Canadian Prime-based Margin
	
 
	
275
	
 
	
300
	
 
	
325
	
 
	
350
	
 
	
400

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Canadian Revolving Credit US Prime-based Margin
	
 
	
175
	
 
	
200
	
 
	
225
	
 
	
250
	
 
	
300

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Canadian Revolving Credit Facility Fee
	
 
	
50
	
 
	
50
	
 
	
50
	
 
	
50
	
 
	
50

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Canadian Letter of Credit Fees (exclusive of facing fees)
	
 
	
275
	
 
	
300
	
 
	
325
	
 
	
350
	
 
	
400

 

	
Basis for Pricing
	
 
	
Level I
	
 
	
Level II
	
 
	
Level III
	
 
	
Level IV
	
 
	
Level V**
	
 
	
Level VI

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Consolidated North American Total Debt to Consolidated Adjusted North American EBITDA Ratio *
	
 
	
<3.50 to 1.00
	
 
	
>3.50 to 1.00
<4.00 to 1.00
	
 
	
>4.00 to 1.00
<4.75 to 1.00
	
 
	
>4.75 to 1.00
<5.50 to 1.00
	
 
	
>5.50 to 1.00

 <6.25 to 1.00
	
 
	
>6.25 to 1.00

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Term Loan Eurodollar Margin
	
 
	
375
	
 
	
400
	
 
	
450
	
 
	
500
	
 
	
550
	
 
	
600

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Term Loan US Base Rate Margin
	
 
	
275
	
 
	
300
	
 
	
350
	
 
	
400
	
 
	
450
	
 
	
500

 

	
*
	
Definitions as set forth in the Credit Agreement.

	
**
	
Pricing grid level at close

 

 

 

 

 

Schedule 8.13

Consulting Agreements

[CVS Ferrari S.R.L. agreement with Manitex International, Inc. for the management services provided by Manitex International, Inc. to CVS Ferrari S.R.L.]

Manitex International, Inc. has a consulting agreement with Marvin Rosenberg.

Manitex Sabre, Inc. has a consulting agreement with Steve Adler.

 

 

Exhibit J

FORM OF COVENANT COMPLIANCE REPORT

	
TO:
	
Comerica Bank, as Agent

 

	
RE:
	
Amended and Restated Credit Agreement dated as of January 8, 2015 (as amended, supplemented, amended and restated or otherwise modified from time to time the “Credit Agreement”) by and among MANITEX INTERNATIONAL, INC., a Michigan corporation, MANITEX, INC., a Texas corporation, MANITEX SABRE, INC., a Michigan corporation,  BADGER EQUIPMENT COMPANY, a Minnesota corporation and MANITEX LOAD KING, INC., a Michigan corporation (collectively the “US Borrowers”) and MANITEX LIFTKING, ULC, an Alberta unlimited liability corporation (the “Canadian Borrower” and together with the US Borrowers, collectively, the “Borrowers”), the other Credit Parties (as defined in the Credit Agreement) from time to time party thereto, the financial institutions from time to time signatory thereto, Comerica Bank, a Texas banking association, in its capacity as US Agent (as defined in the Credit Agreement and referred to herein as the “US Agent”), for and on behalf of the US Lenders (as defined in the Credit Agreement), Comerica Bank, a Texas banking association and authorized foreign bank under the Bank Act (Canada), in its capacity as the Canadian Agent (as defined in the Credit Agreement and referred to herein as the “Canadian Agent”, together with US Agent, collectively “Agent”), for and on behalf of the Canadian Lenders (as defined in the Credit Agreement)

This Covenant Compliance Report (“Report”) is furnished pursuant to Section 7.2(a) of the Credit Agreement and sets forth various information as of ______________, 20___ (the “Computation Date”).

	
1.
	
Consolidated Fixed Charge Coverage Ratio (Section 7.9 (a)).  On the Computation Date, the Consolidated Fixed Charge Coverage Ratio, which is required to be not less than the amount set forth below for the fiscal quarter ends indicated:

 

	
September 30, 2015  
	
 
	
1.20 to 1.00
	
 

	
December 31, 2015  
	
 
	
0.90 to 1.00
	
 

	
March 31, 2016 and each fiscal quarter end thereafter 
	
 
	
1.20 to 1.00
	
 

was ______ to 1.00, as computed in the supporting documents attached hereto as Schedule 1.

	
2.
	
Senior Secured First Lien North American Debt to Consolidated Adjusted North American EBITDA Ratio (Section 7.9 (b)).  On the Computation Date, the Senior Secured First Lien North American Debt to Consolidated Adjusted North American EBITDA Ratio, which is required to be not more than the amount set forth below for the fiscal quarter ends indicated:

 

	
September 30, 2015  
	
 
	
4.75 to 1.00
	
 

	
December 31, 2015  
	
 
	
5.25 to 1.00
	
 

	
December 31, 2015 following the closing of any Permitted Credit Party Sale
	
 
	
4.75 to 1.00
	
 

	
March 31, 2016
	
 
	
3.50 to 1.00
	
 

	
June 30, 2016 and each fiscal quarter end thereafter
	
 
	
2.75 to 1.00
	
 

was ______ to 1.00, as computed in the supporting documents attached hereto as Schedule 2.

	
3.
	
Consolidated North American Total Debt to Consolidated Adjusted North American EBITDA Ratio (Section 7.9(c)).  On the Computation Date, the Consolidated North American Total Debt to Consolidated Adjusted North American EBITDA Ratio, which is required to be not more than the amount set forth below for the fiscal quarter ends indicated:

 

	
September 30, 2015  
	
 
	
6.75 to 1.00
	
 

	
December 31, 2015  
	
 
	
7.50 to 1.00
	
 

	
December 31, 2015 following the closing of any Permitted Credit Party Sale
	
 
	
7.00 to 1.00
	
 

	
March 31, 2016
	
 
	
4.50 to 1.00
	
 

	
June 30, 2016 and each fiscal quarter end thereafter
	
 
	
3.75 to 1.00
	
 

was ______ to 1.00, as computed in the supporting documents attached hereto as Schedule 3.

	
4.
	
Capital Expenditures (Section 8.6).  On the Computation Date, Capital Expenditures, which were required to be not more than US$3,000,000 (or the Equivalent Amount in Canadian Dollars) in the aggregate for the Fiscal Year in which the Computation Date occurs, were US$_____________ in the aggregate to date for the Fiscal Year in which the Computation Date occurs, as evidenced in the supporting documentation attached as Schedule 5.

 

 

The US Borrowers’ Representative hereby certifies that:

A. To the best of my knowledge, all of the information set forth in this Report (and in any Schedule attached hereto) is true and correct in all material respects.

B. To the best of my knowledge, the representations and warranties of the Credit Parties contained in the Credit Agreement and in the Loan Documents are true and correct in all material respects with the same effect as though such representations and warranties had been made on and at the date hereof, except to the extent that such representations and warranties expressly relate to an earlier specific date, in which case such representations and warranties were true and correct in all material respects as of the date when made.

C. I have reviewed the Credit Agreement and this Report is based on an examination sufficient to assure that this Report is accurate.

D. To the best of my knowledge, except as stated in Schedule 5 hereto (which shall describe any existing Default or Event of Default and the notice and period of existence thereof and any action taken with respect thereto or contemplated to be taken by Borrowers or any other Credit Party), no Default or Event of Default has occurred and is continuing on the date of this Report.

Capitalized terms used in this Report and in the Schedules hereto, unless specifically defined to the contrary, have the meanings given to them in the Credit Agreement.

 

 

IN WITNESS WHEREOF, Borrowers have caused this Report to be executed and delivered by the US Borrowers’ Representative this ______ day of __________________, ____.

 

	
 
	
MANITEX INTERNATIONAL, INC.

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
 
	
 

	
 
	
Its:

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