Document:

exhibit10_2

REAFFIRMATION OF AND FIRST AMENDMENT TO
UNLIMITED GUARANTY AGREEMENT

This Reaffirmation and First Amendment to Unlimited Guaranty Agreement (this “Amendment”), dated as of the 2nd  day of July, 2012, is made by and between Daktronics, Inc., a South Dakota corporation (the “Borrower”) and Bank of America, N.A. (the “Bank”).

Recitals

A.        The Borrower and the Lender are parties to that certain Loan Agreement dated as of December 23, 2010, as amended by that certain First Amendment to Loan Agreement dated February 1, 2011, that certain Second Amendment to Loan Agreement dated November 15, 2011, and that certain Third Amendment to Loan Agreement of even date herewith  (as amended, the “Loan Agreement”), whereby Lender extended certain credit facilities to the Borrower upon the terms and conditions set forth in the Loan Agreement.

B.        Section  2.1  of  the  Loan  Agreement  provides  that  Bank  agrees  to  make available to Borrower’s Foreign Subsidiaries, certain Alternative Borrowing, provided that, among other conditions, the credit available to Borrower under the Loan Agreement would be reduced dollar-for-dollar by the amount of the Alternative Borrowing, and provided further that Borrower agrees to unconditionally and without limitation guarantee such Alternative Borrowing pursuant to the terms of an Unlimited Guaranty Agreement dated December 23, 2010, as amended by the Second Amendment to Loan Agreement (changing the principal amount referenced in paragraph “A” of the Recitals from $10,000,000 to $20,000,000) (as amended, the “Guaranty).   Capitalized terms used herein without definition shall have the meanings ascribed in the Loan Agreement and Guaranty.

C.        The parties are in mutual agreement that the Guaranty should be further amended as provided herein, the effect of which, among other things, includes an expansion of the Guaranty to cover additional Foreign Subsidiaries as well as an expansion of the types of products and services included as Alternative Borrowing.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:

1.         Amendments to Guaranty. The Guaranty is hereby amended as follows

(a)        Paragraph “B” of the Recitals is hereby amended in its entirety and as so amended is restated as follows:

“Section 2.1 of the Loan Agreement provides that Bank agrees to make Alternative Borrowing  (as  this  term  is  defined  in  the  Loan  Agreement)  available  to  Borrower’s  Foreign Subsidiaries (as this term is defined in the Loan Agreement, and each of the Foreign Subsidiaries shall be individually known as a “Foreign Subsidiary”), provided that, among other conditions, the credit available to Borrower under the Loan Agreement would be reduced dollar-for-dollar by the amount of the Alternative Borrowing, and provided further that Borrower agrees to unconditionally and without limitation guarantee such Alternative Borrowing.”

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(b) Paragraph “C” of the Recitals is amended by deleting the paragraph in its entirety and replacing with the following:

“[Intentionally Omitted]”

2.         No Other Changes. Except as explicitly amended by this Amendment, all of the terms and conditions of the Guaranty shall remain in full force and effect.

3.         Reaffirmation.  Borrower  hereby  ratifies  and  reaffirms  all  of  the  terms, conditions,  provisions,  agreements,  requirements,  promises,  obligations,  duties,  covenants  and representations applicable to it in the Guaranty, as amended above, and that the Guaranty remains in full force and effect and is valid, binding and fully enforceable in accordance with its terms.

4.         Representations and Warranties. Borrower hereby represents and warrants as follows:

(a)        it has the corporate power and authority to execute, deliver and perform the terms and provisions of this Amendment and each other  loan documents, including the Guaranty, to which it is a party and has taken all necessary corporate action to authorize the execution, delivery and performance by it of this Amendment and each such other  loan documents;

(b)       it  has duly executed and delivered  this Amendment and  each other  loan document to which it is a party, and this Amendment and each such other loan document constitute its legal, valid and binding obligations, enforceable in accordance with their terms, except to the extent that the enforceability hereof or thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law);

(c)        all of the representations and warranties contained in the Guaranty are correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.

5.         Miscellaneous.  This  Amendment  may  be  executed  in  any  number  of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.

[SIGNATURE PAGE TO FOLLOW]

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IMPORTANT:  READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER   TERMS   OR   ORAL   PROMISES   NOT   CONTAINED   IN   THIS   WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.  YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.

IN WITNESS WHEREOF, the parties have caused this Third Amendment to be duly executed as
of the date first written above.

	
		
	BORROWER:
	BANK:

	Daktronics, Inc.
	Bank of America, N.A.

	 
	 

	By:  /s/ William R. Retterath
	By:

	Name:  William R. Retterath
	Name: Michael T. Letsch

	Title:  CFO
	Title: Vice President

	 
	 

	By:  /s/ James B. Morgan
	 

	Name:  James B. Morgan
	 

	Title:  President and CEO
	 

[SIGNATURE PAGE TO REAFFIRMATION OF AND FIRST AMENDMENT TO UNLIMITED GUARANTY AGREEMENT]

3eh1200856_ex1001.htm

EXHIBIT 10.1

 

 

EXECUTION COPY

 

WAIVER AND AMENDMENT NO. 4 TO CREDIT AGREEMENT

WAIVER AND AMENDMENT NO. 4, dated as of July 2, 2012 (this “Amendment”), by and between AMC Entertainment Inc., a Delaware corporation (the “Borrower”) and Citicorp North America, Inc., as administrative agent (in such capacity, the “Administrative Agent”).

 

W I T N E S S E T H:

 

WHEREAS, the Borrower and the Administrative Agent are parties to that certain Credit Agreement, dated as of January 26, 2006 (as amended, restated, modified or otherwise supplemented, the “Credit Agreement”) by and among the Borrower, the Administrative Agent and each Lender and Issuer from time to time party thereto;

 

WHEREAS, pursuant to the terms of the Agreement and Plan of Merger, dated as of May 21, 2012 (the “Wanda Merger Agreement”), by and among AMC Entertainment Holdings, Inc., a Delaware corporation (“Holdings”), and Dalian Wanda Group Co., Ltd., a Chinese private conglomerate (“Wanda”), Wanda has agreed to acquire Holdings (the “Wanda Acquisition”);

 

WHEREAS, the Borrower, is a wholly-owned subsidiary of Holdings;

 

WHEREAS, the Wanda Acquisition will result in a Change of Control under the Credit Agreement (the “Specified Default”);

 

WHEREAS, the Borrower has requested, and the Requisite Lenders and the Administrative Agent have agreed, to waive the Specified Default and make certain other modifications to the Credit Agreement, in each case, subject to the limitations and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the foregoing, the parties hereto hereby agree as follows:

 

1.           Defined Terms.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement.

 

2.           Waiver.  Effective as of the Amendment Effective Date (as defined below), the Requisite Lenders hereby waive the Specified Default that will occur upon the Wanda Merger Effective Date (as defined below); provided, that the waiver set forth in this Section 2 shall not excuse or otherwise waive any failure by any Loan Party to comply with any other terms of any Loan Document.

 

3.           Amendments.  Except as provided in the final paragraph of Section 4 below, effective as of the Wanda Merger Effective Date and subject to the terms and conditions set forth herein, the Credit Agreement shall be amended as follows:

 

(a)           Section 1.1 of the Credit Agreement is amended by inserting the following defined terms in the correct alphabetical order:

 

“Stub Fiscal Year” has the meaning given to such term in Section 1.3(e).

 

“Wanda” means Dalian Wanda Group Co., Ltd., a Chinese private conglomerate.

 

“Wanda Acquisition” means the acquisition of Holdings by Wanda pursuant to the Wanda Merger Agreement.

 

 

  

  

  

 

“Wanda Group” means Wanda and any Affiliate of Wanda.

 

“Wanda Merger Agreement” means the Agreement and Plan of Merger, dated as of May 21, 2012 by and between Holdings and Wanda.

 

“Wanda Merger Effective Date” means the Closing Date (as defined in the Wanda Merger Agreement).

 

(b)           Section 1.1 of the Credit Agreement is amended by deleting the definitions of “Permitted Sponsor” and “New Voting Agreement” in their entirety.

 

(c)           The definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is amended by inserting the following as a new clause (iii) and re-numbering the existing clause (iii) as clause (iv):

 

(iii)           with respect to Term B-3 Loans, commencing on the Wanda Merger Effective Date, (A) for Base Rate Loans, 2.75% per annum and (B) for Eurodollar Rate Loans, 3.75% per annum;

 

(d)           The definition of “Base Rate” in Section 1.1 of the Credit Agreement is amended by adding the following sentence at the end thereof:

 

Notwithstanding the foregoing, commencing on the Wanda Merger Effective Date, in the case of the Term B-2 Loans, in no event shall the Base Rate be less than 2.00% per annum.

 

(e)           The definition of “Change of Control” in Section 1.1 of the Credit Agreement is amended by deleting the phrase “(other than any “Change of Control” (or any comparable term) resulting from the New Voting Agreement)” from clause (b) thereof.

 

(f)           The definition of “Consolidated EBITDA” in Section 1.1 of the Credit Agreement is amended by amending and restating clause (x) of the definition in its entirety to read as follows:

 

(x) management, monitoring, consulting and advisory fees, related expenses, any other fees and expenses (or any accruals relating to such fees and related expenses) and any one-time termination fees in respect of a Change of Control or Qualifying IPO and related indemnities and reasonable out of pocket expenses, in each case, as permitted under this Agreement to be paid to the Permitted Holders (as defined in this Agreement as in effect immediately prior to the Wanda Merger Effective Date)

 

(g)           The definition of “Continuing Directors” in Section 1.1 of the Credit Agreement is amended by amending and restating the definition in its entirety to read as follows:

 

“Continuing Directors” shall mean the directors of Holdings on the Wanda Merger Effective Date, as elected or appointed after giving effect to the Wanda Acquisition, and each other director, if, in each case, such other director’s nomination for election to the board of directors of Holdings is recommended by a majority of the then Continuing Directors or such other director receives the vote of Wanda in his or her election by the stockholders of Holdings.

 

 

 

  

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(h)           The definition of “Eurodollar Base Rate” in Section 1.1 of the Credit Agreement is amended by adding the following sentence at the end thereof:

 

Notwithstanding the foregoing, commencing on the Wanda Merger Effective Date, in the case of the Term B-2 Loans, in no event shall the Eurodollar Base Rate be less than 1.00% per annum.

 

(i)           The definition of “Holdings” in Section 1.1 of the Credit Agreement is amended by amending and restating the definition in its entirety to read as follows:

 

“Holdings” means AMC Entertainment Holdings, Inc., a Delaware corporation, or any successor thereto.

 

(j)           The definition of “Permitted Holder” in Section 1.1 of the Credit Agreement is amended by amending and restating the definition in its entirety to read as follows:

 

“Permitted Holder” means any member of the Wanda Group.

 

(k)           Section 1.3 of the Credit Agreement is amended by inserting the following as a new clause (e):

 

(e)           Notwithstanding anything in this Agreement to the contrary, following the Wanda Merger Effective Date, the Company and its Subsidiaries may make a one-time election (the “Election”) to change its current Fiscal Year so that it ends on December 31, 2012 (the Fiscal Year that, as a result of the Election, will effectively be reduced to nine months, the “Stub Fiscal Year”).  If the Election is made, the following provisions shall automatically take effect under this Agreement:

 

(i)           the definition of “Fiscal Year” shall be amended and restated in its entirety to read as follows:

 

“Fiscal Year” means the Stub Fiscal Year and each subsequent twelve month period ending on December 31.

 

(ii)           solely for the Stub Fiscal Year, the baskets tied to a Fiscal Year in the definition of “Property Loss Event” and Section 8.4(i) shall each be reduced to 75% of their stated amounts.

 

(iii)           solely during the Stub Fiscal Year, the quarterly reports described in Section 6.1(a) of this Agreement shall be delivered for only the first two Fiscal Quarters of the Stub Fiscal Year, it being understood that in the Stub Fiscal Year the annual reports described in Section 6.1(b) of this Agreement shall be delivered after the third Fiscal Quarter, and in each case, within the respective time periods set forth therein.

 

(l)           Section 8.8(d) of the Credit Agreement is amended by amending and restating the section in its entirety to read as follows:

 

(d)           [reserved];

 

(m)           Section 8.8(l) of the Credit Agreement is amended by amending and restating the section in its entirety to read as follows:

 

 

 

  

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(l)           [reserved].

 

(n)           Section 8.13(b) of the Credit Agreement is amended by adding the phrase “subject to Section 1.3(e)”, at the beginning thereof.

 

(o)           Section 9.5(a) of the Credit Agreement is amended by replacing the phrase “any Permitted Sponsor” with “Wanda”.

 

4.           Conditions to Effectiveness of this Amendment.  Subject to the final paragraph of this Section 4, this Amendment shall become effective as of the date the following conditions precedent have been satisfied (the “Amendment Effective Date”):

 

(a)           the Administrative Agent shall have received: (i) this Amendment, duly executed and delivered by the Borrower and the Administrative Agent, (ii) the Affirmation of Guarantors, in the form attached hereto as Annex A, duly executed and delivered by each of the Guarantors and (iii) Lender Consents, in the form attached hereto as Annex B (the “Lender Consents”), duly executed by Lenders constituting the Requisite Lenders;

 

(b)           the Administrative Agent shall have received all fees and accrued expenses of the Administrative Agent required to be paid by the Borrower;

 

(c)           each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of the date hereof, as if made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date;

 

(d)           no Default or Event of Default shall have occurred and be continuing on the date hereof; and

 

(e)           the Borrower shall have paid to the Administrative Agent (i) for the account of each Lender party hereto, the consent fee referred to in Section 6 hereof and (ii) in accordance with Section 11.3 of the Credit Agreement, all outstanding costs and expenses of the Administrative Agent, including the reasonable fees and out-of-pocket expenses of Weil, Gotshal & Manges LLP, counsel for the Administrative Agent, incurred prior to or otherwise in connection with this Amendment and each other Loan Document.

 

Notwithstanding anything in this Amendment to the contrary, the amendments described in Section 3 (other than the amendment in Section 3(i)) shall not be effective until the Wanda Merger Effective Date shall have occurred, if at all, in accordance with the terms of the Wanda Merger Agreement; provided, that if the Wanda Merger Effective Date does not occur or the Wanda Merger Agreement is terminated, such amendments (other than the amendment in Section 3(i)) shall be disregarded and of no further force and effect.

 

5.           Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and the Lenders, on and as of the date hereof, that:

 

(a)           The Borrower has taken all necessary action to authorize the execution, delivery and performance of this Amendment, (ii) this Amendment has been duly executed and delivered by the Borrower and (iii) this Amendment is the legal, valid and binding obligation of the Borrower, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, 

 

 

 

 

  

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insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles.

 

(b)           Each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents is true and correct in all material respects on and as of the date hereof, as if made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date.

 

(c)           No Default or Event of Default has occurred and is continuing as of the date hereof.

 

6.             Fees.  As consideration for a Lender consenting to this Amendment (each a “Consenting Lender”), the Borrower agrees to pay to the Administrative Agent on the Amendment Effective Date, for the account of each Consenting Lender for whom the Administrative Agent shall have received (by facsimile, .pdf or otherwise) an executed Lender Consent by 5:00 p.m. (New York City time) on June 26, 2012 or such later time as the Borrower and the Administrative Agent may agree, a consent fee equal to 0.25% of the sum of the (x) Revolving Credit Commitment of such Consenting Lender and (y) aggregate outstanding principal amount of Term Loans held by such Consenting Lender, in each case, as in effect on the Amendment Effective Date.

 

7.             Continuing Effect.  Except as expressly set forth in this Amendment, all of the terms and provisions of the Credit Agreement and the other Loan Documents are and shall remain in full force and effect and the Borrower and the other Loan Parties shall continue to be bound by all of such terms and provisions.  This Amendment is limited as specified herein and shall not constitute an amendment or waiver of, or an indication of the Administrative Agent’s or the Lenders’ willingness to amend or waive, any other provisions of the Credit Agreement or the other Loan Documents for any other date or purpose.

 

8.             Expenses.  The Borrower agrees to pay and reimburse the Administrative Agent for all its reasonable costs and expenses incurred in connection with the negotiation, preparation, execution and delivery of this Amendment, and all other documents prepared in connection herewith, and the transactions contemplated hereby, including, without limitation, reasonable fees and disbursements and other charges of counsel to the Administrative Agent.

 

9.             Choice of Law.  This Amendment and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

 

10.           Counterparts.  This Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile, .pdf or e-mail shall be effective as a manual delivery of an executed counterpart of this Amendment.

 

11.           Integration.  This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.

 

12.           Severability.  In case any provision in this Amendment shall be held to invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the 

 

 

 

 

  

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validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

13.           Loan Document.  This Amendment is a Loan Document.

 

14.           Waiver of Jury Trial.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT AND ANY OTHER LOAN DOCUMENT.

 

[Signature Pages Follow]

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.

 

	 	
AMC ENTERTAINMENT INC.

	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	 /s/ Craig R. Ramsey	 
	 	Name: 	Craig R. Ramsey	 
	 	Title: 	
Executive Vice President &

Chief Financial Officer

	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO WAIVER AND AMENDMENT NO. 4]

  

  

  

 

	 	

CITICORP NORTH AMERICA, INC., as 

Administrative Agent

	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	 /s/ Matthew S. Burke	 
	 	Name: 	Matthew S. Burke	 
	 	Title: 	Vice President	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO WAIVER AND AMENDMENT NO. 4]

  

  

  

ANNEX A

AFFIRMATION OF GUARANTORS

Each Guarantor hereby consents to Waiver and Amendment No. 4 to the Credit Agreement (the “Amendment”), dated as of June 27, 2012, to which this Affirmation of Guarantors is attached and agrees that the terms thereof shall not affect in any way its obligations and liabilities under the Loan Documents (as amended and otherwise expressly modified by the Amendment) to which it is a party, all of which obligations and liabilities shall remain in full force and effect and each of which is hereby reaffirmed.

Consented to and agreed as of

the date of the Amendment:

AMC CARD PROCESSING SERVICES, INC.

AMC ENTERTAINMENT INTERNATIONAL, INC.

AMC ITD, INC.

AMC LICENSE SERVICES, INC.

AMERICAN MULTI-CINEMA, INC.

CLUB CINEMA OF MAZZA. INC.

LCE ACQUISITIONSUB, INC.

LCE MEXICAN HOLDINGS, INC.

LOEWS CITYWALK THEATRE CORPORATION

AMC SHOWPLACE THEATRES, INC., as Guarantors

 

	
By: 

	 	 
	Name: 	 	 
	Title: 	 	 
	 	 	 

 

 

 

 

 

  

  

  

 

ANNEX B

LENDER CONSENT

Reference is made to the Credit Agreement, dated as of January 26, 2006 (as amended, restated, modified or otherwise supplemented, the “Credit Agreement”), among AMC Entertainment Inc., a Delaware corporation (the “Borrower”), Citicorp North America, Inc., as Administrative Agent (in such capacity, the “Administrative Agent”) and each Lender and Issuer from time to time party thereto.  Unless otherwise defined herein, capitalized terms used herein and defined in the Credit Agreement are used herein as therein defined.

The Borrower has requested that the Lenders consent to the waiver and amendments to the Credit Agreement on the terms and subject to the conditions described in Waiver and Amendment No. 4 to the Credit Agreement (the “Amendment”) to which this Lender Consent is attached.

Pursuant to Section 11.1 (Amendments, Waivers, Etc.) of the Credit Agreement, the undersigned Lender hereby consents to the Amendment and authorizes the Administrative Agent to execute the Amendment on its behalf.

Consented to and agreed as of

the date of the Amendment:

 

	 	 
	[NAME OF LENDER] 	 
	 	 	 
	 	 	 
	
By: 

	 	 
	Name: 	 	 
	Title:

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