Document:

Exhibit
10.1

 

EIGHTH
AMENDMENT TO CREDIT AGREEMENT

 

THIS
EIGHTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of May 4, 2012 (the “Effective
Date”) between JPMORGAN CHASE BANK, N.A., as Administrative Agent, Issuing Bank, Swingline Lender, and as a Lender,
and ESCALADE, INCORPORATED (the “Borrower”).

 

Recitals

 

The
Borrower and JPMorgan Chase Bank, N.A., as Administrative Agent, Issuing Bank, and a Lender, are parties to a Credit Agreement,
dated as of April 30, 2009 (as amended by a First Amendment to Credit Agreement, dated as of July 29, 2009 and as amended by a
Second Amendment to Credit Agreement, dated as of September 30, 2009, as amended by a Third Amendment to Credit Agreement, dated
as of October 30, 2009, as amended by a Fourth Amendment to Credit Agreement, dated as of March 1, 2010, as amended by a Fifth
Amendment to Credit Agreement, dated as of April 15, 2010, as amended by a Sixth Amendment to Credit Agreement, dated as of May
31, 2010, and a Seventh Amendment to Credit Agreement, dated as of April 14, 2011, the “Credit Agreement”).
As of the Effective Date, JPMorgan Chase Bank, N.A. is the only Lender under the Credit Agreement.

 

The
Borrower is requesting the Lender and the Administrative Agent to agree to amendments of the Credit Agreement, as made by and
in accordance with the terms of this Amendment.

 

Agreement

 

NOW,
THEREFORE, in consideration of the premises, the mutual covenants and agreements herein, and each act performed and to be performed
hereunder, the Administrative Agent, the Lender, Issuing Bank, Swingline Lender and the Borrower agree as follows:

 

1.          Definitions.
All terms used in this Amendment, including its Recitals, that are defined in the Credit Agreement, and that are not otherwise
defined herein, shall have the same meanings in this Amendment as are ascribed to such terms in the Credit Agreement.

 

2.          Amendment
to the Credit Agreement. As of the Effective Date, the Credit Agreement is amended as follows:

 

(a)          Addition
of Defined Term. The following definition is added to Section 1.01 of the Credit Agreement in the appropriate alphabetical
position:

 

“Eighth
Amendment Effective Date” means May 4, 2012.

 

(b)          Amendment
to Section 6.04(a). Section 6.04(a) of the Credit Agreement is amended to delete the word “and” at the end of
subsection (n) thereof; to replace the grammatical period at the end of subsection (o) thereof with “; and”; and to
add the following subsection (p) thereto:

 

“(p)
purchases of Equity Interests of the Borrower to the extent permitted by Section 6.08 of this Agreement.” 

 

    	- 1 -

    	 

    

 

(c)          Amendment
to Section 6.08. As of the Effective Date, Section 6.08 of the Credit Agreement is amended and, as so amended, restated in
its entirety to read as follows:

 

“(a)
No Loan Party will, nor will it permit any Subsidiary to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, or enter into any transaction that has a substantially similar effect or incur any obligation (contingent
or otherwise) to do so, except (i) the Borrower may declare and pay dividends with respect to its common stock payable solely
in additional shares of its common stock, and, with respect to its preferred stock, payable solely in additional shares of such
preferred stock or in shares of its common stock, (ii) so long as there exists no Event of Default, the Borrower may, to the extent
required by law, repurchase fractional shares of Borrower’s Equity Interests up to an aggregate repurchase total for all
fractional shares repurchased of $500,000, (iii) the Borrower may issue its common stock pursuant to the Borrower’s stock
option plan existing on the Eighth Amendment Effective Date, and (iv) so long as there exists no Event of Default, during the
period beginning on the Eighth Amendment Effective Date and continuing to and including the Maturity Date, the Borrower may purchase
shares of Borrower’s Equity Interests up to an aggregate purchase total for all shares repurchased of $1,000,000.”

 

(d)          Amendment
to Section 6.12. As of the Effective Date, Section 6.12 of the Credit Agreement is amended and, as so amended, restated in
its entirety to read as follows:

 

“SECTION
6.12. Capital Expenditures. The Borrower and its Subsidiaries, on a consolidated basis, shall not incur or make Capital
Expenditures (a) during Fiscal Year 2012 of the Borrower in an aggregate amount exceeding $7,500,000, and (b) during Fiscal Year
2013 of the Borrower in an aggregate amount exceeding $4,000,000.”

 

3.          Representations
and Warranties. The Borrower represents and warrants to the Lenders and the Administrative Agent that:

 

(a)(i)
The execution, delivery, and performance of this Amendment and all agreements, instruments and documents delivered pursuant hereto
by the Borrower and each Loan Guarantor have been duly authorized by all necessary corporate action, and do not and will not violate
any provision of any law, rule, regulation, order, judgment, injunction, or writ presently in effect applying to the Borrower
or any Loan Guarantor, or the articles of incorporation or by-laws of the Borrower or any Loan Guarantor, or result in a breach
of or constitute a default under any material agreement, lease, or instrument to which the Borrower or any Loan Guarantor is a
party or by which the Borrower or any Loan Guarantor or any of their respective properties may be bound or affected; (ii) no authorization,
consent, approval, license, exemption, or filing of a registration with any court or governmental department, agency, or instrumentality
is or will be necessary to the valid execution, delivery, or performance by the Borrower or any Loan Guarantor of this Amendment
and all agreements, instruments and documents delivered pursuant hereto; (iii) this Amendment is the legal, valid, and binding
obligation of the Borrower and is enforceable against the Borrower in accordance with its terms; and (iv) this Reaffirmation executed
by each Loan Guarantor in connection with this Amendment is the legal, valid, and binding obligation of each Loan Guarantor and
is enforceable against each Loan Guarantor in accordance with its terms.

 

    	- 2 -

    	 

    
 

(b)The
representations and warranties contained in Article III of the Credit Agreement are true and correct on and as of the Effective
Date with the same force and effect as if made on and as of the Effective Date.

 

(c)No
Default or Event of Default has occurred and is continuing or will exist under the Credit Agreement as of the Effective Date.

 

4.          Conditions.
The obligation of the Lenders and the Administrative Agent to execute and to perform this Amendment shall be subject to full satisfaction
of the following conditions precedent on or before the Effective Date:

 

(a)Copies,
certified as of the Effective Date, of the corporate documents or resolutions of the Borrower and the Loan Guarantors as the Administrative
Agent may request evidencing necessary action by the Borrower or such Loan Guarantors with respect to the approval and authorization
of this Amendment and all other agreements or documents delivered pursuant hereto as the Administrative Agent may request.

 

(b)This
Amendment shall have been executed by the Borrower and delivered to the Administrative Agent, and executed by the Lenders and
the Administrative Agent.

 

(c)Each
Loan Guarantor shall have executed and delivered to the Administrative Agent a Consent and Reaffirmation of its Unlimited Continuing
Guaranty, such reaffirmation to be in form and substance acceptable to the Administrative Agent in its sole discretion.

 

(d)The
Borrower shall have delivered to the Administrative Agent a copy of the Borrower’s stock option plan existing on the Eighth
Amendment Effective Date.

 

5.          Further
Agreements and Acknowledgements. The Borrower further agrees and acknowledges as follows:

 

(a)Neither
this Amendment, nor any action taken by the Lenders or the Administrative Agent pursuant to this Amendment, shall impair, prejudice,
or in any other manner affect the rights of the Lenders or the Administrative Agent in and to any Collateral or other security
which now or hereafter secures payment or performance of the Secured Obligations or any part thereof, or establish or be deemed
to establish any precedent or course of dealing with respect to any matter.

 

(b)Neither
this Amendment, nor any action taken by the Lenders or the Administrative Agent pursuant to this Amendment, shall constitute or
be deemed to be a waiver by the Lenders of any Default or Event of Default or of any of the provisions of the Loan Documents or
any rights or remedies of the Lenders or the Administrative Agent thereunder, it being understood that the Lenders and the Administrative
Agent have reserved and continues to expressly reserve and shall retain all rights, claims, remedies, actions, and causes of action
in connection with and with respect to the Secured Obligations, all Collateral which secures the Secured Obligations and the Loan
Documents, and any actions or failure to act by the Borrower or any other Loan Party either before or after execution of this
Amendment.

 

    	-  3 -

    	 

    
 

(c)Each
Loan Document executed by all or any of the Loan Parties remains and is valid, binding and enforceable in accordance with its
terms.

 

(d)The
Borrower shall pay, within ten (10) days of the date of its receipt of billing from the Administrative Agent, the reasonable fees
and out-of-pocket expenses of Baker & Daniels LLP, special counsel to the Administrative Agent, for the negotiation, preparation
and closing of this Amendment and all other documents required in connection herewith. The Administrative Agent is authorized
to debit Borrower’s operating account with JPMorgan Chase Bank, N.A. to pay such fees and expenses.

 

6.          Amendment
of Other Loan Documents. All references to the Credit Agreement in the other Loan Documents shall mean the Credit Agreement,
as modified and amended by this Amendment and as it may be further amended, modified, extended, renewed, supplemented and/or restated
from time to time and at any time. Except as expressly modified and amended by this Amendment, all of the terms and provisions
of the Credit Agreement and the other Loan Documents remain in full force and effect, and are fully binding on the parties thereto
and their respective successors and assigns.

 

7.          Binding
on Successors and Assigns. All of the terms and provisions of this Amendment shall be binding upon and inure to the benefit
of the parties hereto, their respective successors, assigns and legal representatives.

 

8.          Governing
Law. This Amendment is a contract made under, and shall be governed by and construed in accordance with the laws of the State
of Indiana.

 

9.          Entire
Agreement. This Amendment constitutes and expresses the entire understanding between the parties with respect to the subject
matter hereof, and supersedes all prior agreements and understandings, commitments, inducements, or conditions, whether expressed
or implied, oral or written.

 

10.        Survival.
All covenants, agreements, undertakings, representations, and warranties made in this Amendment shall survive the execution and
delivery of this Amendment, and shall not be affected by any investigation made by any person.

 

11.        Counterparts/Facsimile
Signatures. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one
agreement, and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an executed counterpart
of a signature page of this Amendment by facsimile, e-mail or other electronic means shall be effective as delivery of a executed
physical counterpart of this Amendment.

 

    	4

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective authorized
signatories.

 

	 	JPMORGAN
    CHASE BANK, N.A., as 

Administrative Agent, Issuing Bank, Swingline Lender and Lender
	 	 	 
	 	By:	/s/
Randall
    K. Stephens
	 	 	Randall
    K. Stephens, Vice President
	 	 	 
	 	ESCALADE,
    INCORPORATED
	 	 	 
	 	By:	/s/ Deborah
    J. Meinert   
	 	 	Deborah
    J. Meinert, VP Finance and CFO

 

    	- 5 -

    	 

    
 

 

Consent
and Reaffirmation

 

Each
of the undersigned expressly consents to the execution, delivery and performance by the Borrower, the Issuing Bank, the Swingline
Lender, the Lenders and the Administrative Agent of the Eighth Amendment to Credit Agreement, dated as of May 4, 2012 (the “Amendment”)
and all agreements, instruments and documents delivered pursuant to the Amendment, and agrees that neither the provisions of the
Amendment nor any action taken or not taken in accordance with the terms of the Amendment shall constitute a termination, extinguishment,
release, or discharge of any of its obligations under the Unlimited Continuing Guaranty, dated as of April 30, 2009, in favor
of the Lenders and the Administrative Agent guaranteeing payment of the Secured Obligations when due (each a “Guaranty”),
or provide a defense, set off, or counterclaim to it with respect to any of its obligations under such Guaranty or any other Loan
Documents. Each of the undersigned affirms to the Issuing Bank, the Swingline Lender, the Lenders and the Administrative Agent
that its Guaranty is in full force and effect, is a valid and binding obligation of the undersigned and continues to secure and
support the Secured Obligations, the payment of which is guaranteed by the undersigned pursuant to the Guaranty. Each of the undersigned
acknowledges and agrees that the fact that the Administrative Agent, the Issuing Bank, the Swingline Lender, and the Lenders have
sought this Reaffirmation does not create any obligation, right, or expectation that the Administrative Agent and the Lenders
will seek the undersigned’s consent to or reaffirmation with respect to any other or further amendments or modifications
to the Credit Agreement or the Loan Documents. Each of the undersigned agrees that the representations set forth in Sections 3(a),
(b) and (c) of the Amendment are correct as of the date set forth below.

 

Dated
as of May 4, 2012.

 

	Bear
    Archery, Inc.	 	Martin
    Yale Industries, Inc.
	 	 	 	 	 
	By:	/s/
    Deborah
    J. Meinert	 	By:	/s/
    Deborah
    J. Meinert
	Deborah
    J. Meinert, VP Finance and Secretary	 	Deborah
    J. Meinert, VP Finance and Secretary
	 	 	 	 	 
	EIM
    Company, Inc.	 	Olympia
    Business Systems, Inc.
	 	 	 	 	 
	By:	/s/
    Deborah
    J. Meinert	 	By:	/s/
    Deborah
    J. Meinert
	Deborah
    J. Meinert, VP Finance and Secretary	 	Deborah
    J. Meinert, VP Finance and Secretary
	 	 	 	 	 
	Escalade
    Insurance, Inc.	 	SOP
    Services, Inc.
	 	 	 	 	 
	By:	/s/
    Deborah
    J. Meinert	 	By:	/s/
    Deborah
    J. Meinert
	Deborah
    J. Meinert, VP Finance and Secretary	 	Deborah
    J. Meinert, VP Finance and Secretary
	 	 	 	 	 
	Escalade
    Sports Playground, Inc.	 	U.
    S. Weight, Inc.
	 	 	 	 	 
	By:	/s/
    Deborah
    J. Meinert	 	By:	/s/
    Deborah
    J. Meinert
	Deborah
    J. Meinert, VP Finance and Secretary	 	Deborah
    J. Meinert, VP Finance and Secretary
	 	 	 	 	 
	Harvard
    Sports, Inc.	 	Indian
    Industries, Inc.
	 	 	 	 	 
	By:	/s/
    Deborah
    J. Meinert	 	By:	/s/
    Deborah
    J. Meinert
	Deborah
    J. Meinert, VP Finance and Secretary	 	Deborah
    J. Meinert, VP Finance and SecretaryExhibit 4.1

 

	
  

  	
  COUNTERSIGNED:
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY JERSEY CITY, NJ TRANSFER AGENT
  BY: AUTHORIZED OFFICER THIS CERTIFIES THAT: IS THE OWNER OF NUMBER SHARES
  DATED: SEE REVERSE FOR CERTAIN DEFINITIONS PROOF CC INCORPORATED UNDER THE
  LAWS OF THE STATE OF OHIO C O M M O N S H A R E S transferable on the books
  of the Corporation in person or by attorney upon surrender of this
  certificate duly endorsed or assigned. This certificate and the shares
  represented hereby are subject to the laws of the State of Ohio, and to the
  Articles of Incorporation and Regulations of the Corporation, as now or
  hereafter amended. This certificate is not valid until countersigned by the
  Transfer Agent. WITNESS the facsimile seal of the Corporation and the facsimile
  signatures of its duly authorized officers. CUSIP 20367Q 10 7 FULLY PAID AND
  NON-ASSESSABLE COMMON SHARES, $0.01 PAR VALUE PER SHARE, OF COMMUNITY CHOICE
  FINANCIAL INC. SENIOR VICE PRESIDENT AND SECRETARY SENIOR VICE PRESIDENT AND
  TREASURER 

  

 

	
  

  	
  THE SIGNATURE
  TO THE ASSIGNMENT MUST CORRESPOND TO THE NAME AS WRITTEN UPON THE FACE OF
  THIS CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR
  ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A COMMERCIAL BANK OR TRUST
  COMPANY OR A MEMBER FIRM OF A NATIONAL OR REGIONAL OR OTHER RECOGNIZED STOCK
  EXCHANGE IN CONFORMANCE WITH A SIGNATURE GUARANTEE MEDALLION PROGRAM.
  COLUMBIA FINANCIAL PRINTING CORP. - www.stockinformation.com Community Choice
  Financial Inc. The express terms and provisions, including conditions of
  transfer, of the Common Shares may be found in the Corporation’s Articles of
  Incorporation, a copy of which will be sent to each shareholder without
  charge within five days after receipt of written request therefor. The
  following abbreviations, when used in the inscription on the face of this
  certificate, shall be construed as though they were written out in full
  according to applicable laws or regulations: TEN COM - as tenants in common
  UNIF GIFT MIN ACT - Custodian TEN ENT - as tenants by the entireties (Cust)
  (Minor) JT TEN - as joint tenants with right of under Uniform Gifts to Minors
  survivorship and not as tenants Act in common (State) Additional
  abbreviations may also be used though not in the above list. For Value
  Received, hereby sell, assign and transfer unto PLEASE INSERT SOCIAL SECURITY
  OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR TYPE NAME AND
  ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) Shares represented by the within
  Certificate, and do hereby irrevocably constitute and appoint Attorney to
  transfer the said Shares on the books of the within named Corporation with
  full power of substitution in the premises. Dated NOTICE: THE SIGNATURE TO
  THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
  CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
  CHANGE WHATSOEVER.

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