Document:

Exhibit 10.41

 

AFFINITY GROUP HOLDING, INC.

BOARD OF DIRECTORS

AUDIT COMMITTEE CHARTER

Adopted August 3, 2004

Revised June 15, 2010

 

I.             INTRODUCTION AND
PURPOSE

 

The
primary function of the Audit Committee is to assist the Board of Directors of
Affinity Group Holding, Inc. (the “Company”) in fulfilling its fiduciary
responsibilities by overseeing the Company’s financial reporting and public
disclosure activities.  The Board of
Directors may serve as the Audit Committee of the Company and may designate one
or more of its members to act as its representative.  The Audit Committee’s primary purposes are
to:

 

·      Assist
Board oversight of (1) the integrity of the Company’s financial
statements, (2) the Company’s compliance with legal and regulatory
requirements, (3) the independent auditor’s qualifications and
independence, and (4) the performance of the Company’s independent
auditor.

 

·      Serve as
an independent and objective party to monitor the Company’s financial reporting
process and internal control system.

 

·      Provide an open avenue of
communication among the independent auditor, financial and senior management,
the internal auditors and the Board of Directors.

 

The
Audit Committee, in its capacity as a committee of the Board of Directors,
shall be directly responsible for the appointment, compensation, and oversight
of the work of any independent auditor employed by the Company (including
resolution of disagreements between management and the auditor regarding
financial reporting) for the purpose of preparing or issuing an audit report or
related work or performing other audit, review or attest services for the
Company, and each such independent auditor shall report directly to the Audit
Committee.

 

The
Audit Committee will primarily fulfill these responsibilities by carrying out
the activities specified in Section IV of this Charter.

 

Although the Audit Committee has the
responsibilities and powers set forth in this Charter, the role of the Audit
Committee is oversight.  The members of
the Audit Committee are not employees of the Company and may or may not be
auditors or accountants by profession and it is not the duty or responsibility
of the Audit Committee to plan or conduct audits or to determine that the
Company’s financial statements are in accordance with generally accepted
accounting principles.  These are the
responsibilities of Company management and the independent auditor.

 

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II.            COMPOSITION

 

The
Audit Committee shall be comprised of one or more Directors as determined from
time to time by the Board and shall be elected by the Board.  Audit Committee members shall serve until
their successors shall be duly elected and qualified.  Unless a Chair is elected by the full Board,
the members of the Audit Committee may designate a chair by majority vote of
the full Audit Committee membership.  If
an Audit Committee member desires to serve on the Audit Committees of more than
three companies with publicly traded debt or equity securities, then in each
such case, the Board must determine that such simultaneous service would not
impair the ability of such member to effectively serve on the Company’s Audit
Committee.

 

The
Audit Committee may, in its discretion, form and delegate authority to a
subcommittee of the Audit Committee or to the Chair.  If the Board of Directors is serving as the
Audit Committee, the Board of Directors may, in its descretion, delegate any of
its authority as the Audit Committee to one or more Directors.

 

Each
member of the Audit Committee shall be financially literate, as such
qualification is interpreted by the Company’s Board of Directors in its
business judgment, or must become financially literate within a reasonable
period of time after his or her appointment to the Audit Committee.  The Board of Directors shall determine
whether one or more members of the Audit Committee is an “Audit Committee
Financial Expert” as such term is defined by the Securities and Exchange
Commission (“SEC”).

 

III.          MEETINGS AND
COMMITTEE OPERATIONS

 

The Audit Committee shall meet in person or
telephonically at least four times annually, with additional meetings as often
as necessary, at times and places determined by the Chair, with further actions
to be taken by unanimous written consent, when deemed necessary or desirable by
the Audit Committee or its Chair.  To the
extent practicable, each of the Audit Committee members shall attend two
regularly scheduled meetings (the pre-audit and post-audit meetings)  in person. 
The Audit Committee shall periodically make time available during its
regularly scheduled meetings to meet with management and the independent
auditors in separate sessions to discuss any matters that the Audit Committee
or any of these groups believe should be discussed privately.

 

A
majority of the Audit Committee members currently holding office constitutes a
quorum for the transaction of business. 
The Audit Committee shall take action by the affirmative vote of a
majority of the Audit Committee members present at a duly held meeting or by
unanimous written action.

 

IV.          COMMITTEE DUTIES AND
RESPONSIBILITIES

 

The
Audit Committee shall undertake the following responsibilities and duties:

 

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A.                                    Documents/Financial
Statements/Reports

 

·                  Review and reassess the adequacy of this
Charter from time to time.

 

·                  Review and discuss with management and the
independent auditor the Company’s quarterly financial statements, including the
Company’s disclosures under “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and the independent auditor’s review of
the quarterly financial statements together with the accompanying quarterly
report on Form 10-Q prior to submission to shareholders, any governmental
body, any stock exchange or the public.

 

·                  Review and discuss with management and the
independent auditor the Company’s annual financial statements, including the
Company’s disclosures under “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and the annual audit together with the
accompanying annual report on Form 10-K prior to submission to
shareholders, any governmental body, any stock exchange or the public.

 

·                  Review the significant recommendations made
to management by the independent auditor and management’s responses.

 

·                  Recommend to the Board of Directors, if
appropriate, that the Company’s annual audited financial statements be included
in the Company’s annual report on Form 10-K for filing with the SEC.

 

·                  Discuss with the independent auditor the
matters required to be discussed by Statement on Auditing Standards No. 61,
as amended (AICPA, Professional Standards,
Vol. 1. AU section 380), as adopted by the Public Company Accounting Oversight
Board in Rule 3200T, relating to the conduct of the audit.

 

B.                                    Independent
Auditors

 

·                  Be responsible for (i) the
appointment of an independent auditor for the Company, (ii) review and
approval of the compensation of such independent auditor and (iii) oversight
of the work of such independent auditor (including resolution of disagreements between
management and the independent auditor regarding financial reporting).

 

·                  Have the sole authority to
review in advance, and grant any appropriate pre-approvals of, (i) all
auditing services to be provided by the independent auditor and (ii) all
significant non-audit services to be provided by the independent auditor as
permitted by Section 10A of the Securities and Exchange Act of 1934, and
in connection therewith to approve all fees and terms of engagement.  The Audit Committee shall also review and
approve disclosures required to be included in periodic reports filed under Section 13(a) of
the Securities and Exchange Act of 1934 with respect to non-audit services.

 

·                  At least annually, obtain and review a report
by the independent auditor describing: the firm’s internal quality-control
procedures; any material issues raised by the most recent internal
quality-control review, or peer review, of the firm, or by any inquiry or 

 

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investigation by governmental or professional authorities, within the
preceding five years, respecting one or more independent audits carried out by
the firm, and any steps taken to deal with any such issues.

 

·                  On an annual basis, the Audit Committee shall
receive from the independent auditor a written statement delineating all
significant relationships (and related fees) the Company’s independent auditor
has with the Company to consider in the evaluation of the independent auditor’s
independence.  The Audit Committee is
responsible for actively engaging in a dialogue with the independent auditor
with respect to any disclosed relationships or services that may impact the
objectivity and independence of the independent auditor and for taking
appropriate action in response to the independent auditor’s report to satisfy
itself of the independent auditor’s independence.

 

·                  Confirm that neither the lead audit partner
nor the audit partner responsible for reviewing the audit for the Company’s
independent auditor performs audit services for the Company for more than  five consecutive years.

 

·                  Review all reports required to be submitted
by the independent auditor to the Audit Committee under Section 10A of the
Securities and Exchange Act of 1934.

 

·                  Review any communications between the
independent auditor’s audit team and the independent auditor’s national office
respecting auditing or accounting issues presented by the engagement.

 

·                  Periodically consult with the Company’s
independent auditor (outside of the presence of management) about the
independent auditor’s judgments about the appropriateness, quality, and
acceptability of the Company’s accounting principles as applied to its
financial reporting, and the Company’s internal controls and the completeness
and accuracy of the Company’s financial statements.

 

C.                                    Financial
Reporting Processes

 

·                  In consultation
with the Company’s independent auditor, monitor the integrity of the Company’s
financial reporting processes, both internal and external.

 

·                  Review and
discuss the scope of the annual audit plan for the independent auditors.

 

·                  Review major
issues regarding, and approve if appropriate, significant changes to the
Company’s accounting principles and practices, financial reporting process and
presentations, and system of internal controls, as suggested by the Company’s
independent auditor or management.

 

·                  Review with the
Company’s independent auditor and management the extent to which significant
changes or improvements in financial or accounting practices, as approved by
the Audit Committee, have been implemented.

 

·                  Review with
management, the independent auditor and the Company’s legal counsel, as
appropriate, any legal, regulatory or compliance matters, including off balance

 

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sheet
structures, that could have a significant impact on the Company’s financial
statements, including significant changes in accounting initiatives, standards
or rules as promulgated by the Financial Statements Accounting Standards
Board, the SEC or other regulatory authorities with relevant jurisdiction.

 

D.                                    Process
Analysis and Review

 

·                  Review the systems of reporting to the Audit
Committee by management and the independent auditor regarding any significant
financial reporting issues and judgments made in connection with the
preparation of the financial statements, including the effect of alternative
GAAP methods, and the view of each as to the appropriateness of such judgments.

 

·                  Following completion of the annual audit,
review with the independent auditor any audit problems or difficulties or
significant disagreement with management encountered during the course of the
audit, including any restrictions on the scope of work or access to requested
information, and management’s response.

 

·                  Review with the independent auditor any
accounting adjustments that were noted or proposed by the auditor but were “passed”
(as immaterial or otherwise).

 

·                  Discuss with management, the
type and presentation of information to be included in earnings press releases
(paying particular attention to any use of “pro forma,” or “adjusted” non-GAAP,
information), as well as review any financial information and earnings guidance
provided to analysts and rating agencies prior to public release.

 

E.                                    Other

 

·                  Ensure appropriate procedures are established
and maintained for (i) the receipt, retention, and treatment of complaints
received by the Company regarding accounting, internal accounting controls, or
auditing matters; and (ii) the confidential, anonymous submission by
employees of the Company of concerns regarding questionable accounting or
auditing matters to the Audit Committee.

 

·                  Review and discuss with management (i) the
Company’s major financial risk exposures and the steps management has taken to
monitor and control such exposures (including management’s guidelines and
policies with respect to financial risk assessment and financial risk
management); and (ii) the program that management has established to
monitor compliance with its code of business conduct and ethics for directors,
officers and employees.

 

·                  Report regularly to the Board of Directors on
the activities of the Audit Committee and make such recommendations with
respect to the above matters as the Audit Committee may deem necessary or
appropriate.  This report shall include a
review of any issues that arise with respect to the quality or integrity of the
Company’s financial statements, the Company’s compliance with legal or
regulatory requirements or the performance and independence of the Company’s
independent auditor.

 

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V.            HIRING
GUIDELINES FOR INDEPENDENT AUDITOR EMPLOYEES

 

The
Audit Committee has adopted the following practices regarding the hiring by the
Company of any partner, director, manager, advising member of the department of
professional practice, reviewing actuary, reviewing tax professional and any
other persons having similar responsibility for providing audit assurance
(including all work that results in the expression of an opinion on financial
statements and audits of statutory accounts) to the Company’s independent
auditor on any aspect of its certification of the Company’s financial
statements:

 

·      No member, with the position
listed above, of an audit team that is auditing the Company or any of its
businesses can be hired by the Company for a period of two years following
association with that audit.

 

·      No former employee of the
independent auditor may sign a Company SEC filing for 5 years following
employment with the independent auditor.

 

·      No former employee of the
independent auditor may be named an officer of the Company or any of its
subsidiaries for 3 years following employment by the independent auditor.

 

·      The Audit Committee must
approve in advance all hires by the Company from an independent auditor.

 

VI.                               PROCESS
FOR HANDLING QUESTIONS, CONCERNS AND COMPLAINTS ABOUT ACCOUNTING OR AUDITING
MATTERS

 

The
Audit Committee has established the following procedures for:  (i) the receipt, retention, and
treatment of questions, concerns or complaints received by the Company
regarding accounting, internal accounting controls, or auditing matters; and (ii) the
confidential, anonymous submission by Company employees of questions, concerns
or complaints regarding questionable accounting or auditing matters:

 

·                  Questions,
concerns or complaints regarding accounting, internal accounting controls, or
auditing matters should be directed to the Company’s Chief Financial Officer at
the mail or email address published on the Company’s website.

 

·                  Copies of all such questions, concerns or
complaints will be sent to members of the Audit Committee.

 

·                  All questions,
concerns and complaints will be tracked by the Audit Committee, but handled by
the Company’s finance staff and legal counsel in the normal manner, except as
the Audit Committee may request.

 

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·                  The status of
all questions, concerns or complaints will be reported on a quarterly basis to
the Audit Committee, and, if the Audit Committee so directs, to the full Board
of Directors of the Company.

 

·                  The Audit
Committee may request special treatment, including the retention of outside
legal counsel or other advisors, for any question, concern or complaint.

 

VII. COMMITTEE REPORTS

 

1.     Present an annual
performance evaluation of the Audit Committee, which shall assess the
performance of the Audit Committee in fulfilling the requirements of this
charter, recommend any amendments to this charter, and set forth the goals and
objectives of the Audit Committee for the ensuing twelve months.

 

2.    Transmit to the Board
notices of Audit Committee meetings, agendas, and meeting minutes.

 

VIII.       RESOURCES AND
AUTHORITY OF THE COMMITTEE

 

The Audit Committee shall have such resources and authority as it deems
necessary to discharge its duties and responsibilities, including the sole
authority to retain, discharge, and approve fees and other terms for retention
of the independent auditors, independent legal counsel, and other independent
experts or advisors.  The Company shall
provide appropriate funding, as determined by the Audit Committee, in its
capacity as a committee of the Board of Directors of the Company, for the
payment of compensation of the independent auditors, independent legal counsel,
and other independent experts or advisors so retained by the Audit Committee
and ordinary administrative expenses that are necessary and appropriate to
carry out its duties. The Audit Committee may direct any officer or employee of
the Company or request any employee of the Company’s independent auditor or
outside legal counsel to attend an Audit Committee meeting or meet with any
Audit Committee members.

 

7Exhibit 10.42

 

FIRST AMENDMENT AND LIMITED WAIVER TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS
FIRST AMENDMENT AND LIMITED WAIVER TO SECOND AMENDED AND RESTATED CREDIT
AGREEMENT (the “Amendment”)
is entered into as of August 12, 2010 by and among AFFINITY GROUP, INC.,
a Delaware Corporation (the “Borrower”),
as a Borrower and as a Credit Party, the CREDIT PARTIES party hereto (each a “Credit Party” and, collectively,
the “Credit Parties”), the LENDERS party
hereto (each a “Lender”
and, collectively, the “Lenders”)
and WILMINGTON TRUST FSB, as administrative agent for the Lenders (the “Agent”).

 

A.            WHEREAS, Agent, Lenders and Credit
Parties are parties to that certain Second Amended and Restated Credit
Agreement dated as of March 1, 2010 (as heretofore and hereafter amended,
supplemented, modified and/or restated from time to time, the “Credit Agreement”), pursuant to
which the Lenders made/make Loans to the Borrower;

 

B.            WHEREAS, the Credit Parties have
requested that Agent and Lenders agree to modify certain terms of the Credit
Agreement; and

 

C.            WHEREAS, the Agent and Lenders have
agreed to the foregoing requests, subject in all respects to the terms and
conditions set forth in this Amendment.

 

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

 

SECTION 1.        Accuracy
of Recitals; Definitions.  The Credit Parties, the Agent and Lenders
acknowledge and agree that the foregoing Recitals are accurate and complete and
are incorporated herein by reference. 
All capitalized terms used but not otherwise defined in this Amendment
shall have the meanings given such terms in the Credit Agreement.

 

SECTION 2.        Limited
Waiver.

 

Pursuant
to the request of the Credit Parties, Agent and Lenders hereby waive any
Default or Event of Default that may have occurred under Section 7.16
of the Credit Agreement subsequent to the Effective Date based on the existence
of the Phantom Stock Accruals, provided, however, that: (i) this
limited waiver is and shall be effective solely for the specific instance and
purpose described herein and is not and shall not be applicable to any other
Default or Event of Default whether now existing or hereafter occurring or to
any other provision of the Credit Agreement or other Loan Documents; and (ii) all
of the conditions precedent set forth in Section 4 (Conditions
Precedent) of this Amendment have been satisfied.

 

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SECTION 3.        Amendments
to Credit Agreement.  The Credit
Parties, the Agent and the Lenders agree that the Credit Agreement is hereby
amended as follows:

 

(a)           Section 1.1 of the Credit
Agreement (Defined Terms) is hereby amended as follows:

 

(i)            to delete the
definition of “Consolidated Fixed Charges Ratio” set forth therein and
to replace it with the following -

 

“Consolidated
Fixed Charges Ratio” means, as at any date, commencing with the fiscal
quarter ending June 30, 2010, the ratio of (a) the total of
(i) EBITDA for the period of four consecutive fiscal quarters ending on or
most recently ended prior to such date minus (ii) the aggregate amount of
all Capital Expenditures made during such period to (b)  the sum for the
Credit Parties (determined on a consolidated basis without duplication in
accordance with GAAP) of the following: 
(i) Cash Interest Expense for such period, plus (ii) all
regularly scheduled payments of principal on any Indebtedness (including the
Term Loans and the principal component of any payments in respect of Capital
Lease Obligations for such period, plus (iii) the aggregate amount paid,
or required to be paid (without duplication as between fiscal periods), in cash
in respect of income, franchise and other like taxes (excluding real estate
taxes) for such period (to the extent not deducted in determining EBITDA for
such period) (but excluding any accrued tax liability not paid in cash
resulting from the election by the Borrower to be treated as an “S Corporation”
under the Code or from the election by the Borrower to treat any of the
Guarantors as “Qualified Subchapter S Subsidiaries” under the Code) plus
(iv) Permitted Tax Distributions to the extent paid in cash during such
period plus (v) any payments in respect of deferred compensation to the
extent paid in cash or Cash Equivalents during such period plus (vi) any
payments in respect of Phantom Stock Agreements to the extent paid in cash or
Cash Equivalents during such period; provided, however, that the
Consolidated Fixed Charges Ratio for any period prior to the Effective Date
shall be determined on a pro forma basis.

 

(ii)           to delete the
definition of “EBITDA” set forth therein in its entirety and to replace
it with the following -

 

“EBITDA”
means, for any period, operating income for the Credit Parties (determined on a
consolidated basis without duplication in accordance with GAAP) for such period
plus (to the extent deducted in computing operating income) income, franchise
and other like taxes (excluding real estate taxes) expensed during such period,
interest, depreciation, amortization and other write-offs of intangible assets
such as goodwill and any other non-cash income or charges expensed for such
period (including such charges in respect of Phantom Stock Accruals, but
expressly excluding any payments made in cash or Cash Equivalents on account of
any Phantom Stock Agreements) and (except to the extent received or paid in
cash by the Credit Parties) income or loss attributable to equity in Affiliates
for such period, excluding from the calculation of such operating income
(determined on a consolidated basis without duplication in accordance with
GAAP) any extraordinary and unusual gains or losses (determined on a
consolidated basis

 

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without
duplication in accordance with GAAP) during such period and excluding from the
calculation of such operating income the income or loss from any Casualty
Events and Dispositions.  Notwithstanding
the foregoing which may be to the contrary, the following shall not be
deducted in determining operating income: amounts accrued or paid as consent
fees, waiver fees, deferred financing costs or intangible assets which are
written off as a consequence of the waiver, amendment, repayment or discharge
of Indebtedness under or with respect, to the extent paid on or around the
Effective Date only, to (x) the Existing Credit Agreement, (y) this
Agreement and the other financial proposals preceding this Agreement, and (z) the
Camping World Credit Facility, provided further, however, that items (x), (y) and
(z) shall not be applicable for purposes of this definition in calculating
EBITDA in connection with any future transactions entered into by the Company.

 

Notwithstanding
the foregoing, if during any period for which EBITDA is being determined, any
Credit Party shall have consummated any Acquisition and (if such acquisition is
a stock or other equity Acquisition) the company acquired in such Acquisition
becomes a Subsidiary in accordance with the provisions of Section 6.10(a) then,
for all purposes of this Agreement, with the exception of the calculation of
Excess Cash Flow, EBITDA shall be determined on a pro forma basis as if such
Acquisition had been made or consummated on the first day of such period.

 

(iii)          to delete the
definition of “Excess Cash Flow” set forth therein in its entirety and
to replace it with the following -

 

“Excess
Cash Flow” means, for each fiscal year, commencing with the fiscal year
ending December 31, 2010 and for each fiscal year thereafter, (a) the
sum of EBITDA plus Related Retail Sale-Leaseback Proceeds received in such
fiscal year minus (b) the sum of the following (to the extent not deducted
in computing EBITDA):  (i) Cash
Interest Expense for such fiscal year, plus (ii) the aggregate amount of
all Non-Financed Capital Expenditures made during such fiscal year, plus (iii) all
regularly scheduled payments, mandatory prepayments and voluntary prepayments
(other than any voluntary prepayments in respect of the Camping World Credit
Agreement) of principal on any Indebtedness (including the Term Loans and the
principal component of any payments in respect of Capital Lease Obligations for
such fiscal year), plus (iv)  the aggregate amount paid, or required to be
paid, in cash in respect of income, franchise, and other like taxes (excluding
real estate taxes) for such fiscal year, plus (v) all Permitted Tax
Distributions to the extent paid in cash during such fiscal year, plus (vi) any
payments in respect of (x) deferred compensation or (y) the Phantom
Stock Agreements to the extent permitted to be paid pursuant to Section 7.6,
in each case, (x) and (y), to the extent paid in cash or Cash Equivalents
during such fiscal year, plus (vii) any other Restricted Junior Payments
made in cash to the extent permitted to be made pursuant to Section 7.6,
in each case, to the extent paid in cash or Cash Equivalents during such fiscal
year minus (c) any net increase in Working Capital during such fiscal year
plus (d) any net decrease in Working Capital during such fiscal year.

 

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(iv)          to delete the
definition of “Restricted Junior Payment” set forth therein in its
entirety and to replace it with the following -

 

“Restricted
Junior Payment” means (i) any dividend or other distribution, direct
or indirect, on account of any shares of any class of stock of any Credit Party
now or hereafter outstanding, except a dividend payable solely in shares of
that class of stock to the holders of that class; provided, however,
that any payments in cash or Cash Equivalents on account of any Phantom Stock
Agreements shall constitute a Restricted Junior Payment, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of stock
of any Credit Party now or hereafter outstanding, (iii) any payment made
to retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares of any class of stock of any Credit Party now or
hereafter outstanding, and (iv) any payment or prepayment of principal of,
premium, if any, or interest on, or redemption purchase, retirement, defeasance
(including in-substance or legal defeasance), sinking fund or similar payment
with respect to, any Subordinated Indebtedness.

 

(v)           to add the following definition in
the appropriate alphabetical order:

 

“First
Amendment” shall mean that certain First Amendment to Second Amended and
Restated Credit Agreement dated as of August     ,
2010, by and among the Credit Parties, Agent and Lenders party thereto.

 

(b)           Section 7.6 of the Credit
Agreement (Restricted Junior Payments and Cash Flow Distributions) is hereby
amended to add a new subsection (v) after the end of subsection (iv) set
forth therein as follows:

 

“and
(v) so long as no Default or Event of Default shall have occurred or be
continuing or shall be caused thereby, the Borrower make any payments in cash
or Cash Equivalents in respect of Phantom Stock Accruals;”

 

(c)           Section 7.7 of the Credit
Agreement (Transactions with Affiliates) is hereby amended to delete subsection
(iv) set forth therein in its entirety and to replace it with the
following:

 

“(iv)        the Borrower may make payments under the
Phantom Stock Agreements for key employees of the Borrower to the extent that
such payments are permitted to be made pursuant to the other provisions of this
Agreement;”

 

(d)           Section 7.16 of the
Credit Agreement (Compensation Payments to Stephen Adams; Management
Compensation) is hereby deleted in its entirety and replaced with the
following:

 

“7.16.     Compensation Payments
to Stephen Adams; Management Compensation  No Credit Party shall pay or cause to be paid
any salary, bonuses or other compensation payments to Stephen Adams except
(a) in the event of a change in circumstances related to management
personnel or management structure of the Credit

 

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Parties
as a result of which Stephen Adams is performing duties other than those
performed by him as Chairman of the Board of Directors of the Borrower as of
the Effective Date, or (b) with the consent of the Required Lenders. 
Notwithstanding anything to the contrary set forth in this Agreement or any
other Loan Document, no Credit Party will make any payments in cash or Cash
Equivalents in respect of any Phantom Stock Accruals or otherwise in respect of
Phantom Stock Accruals pursuant to any Phantom Stock Agreements or otherwise if
a Default or Event of Default has occurred or is continuing or would result
from such payment.”

 

SECTION 4.        Conditions
Precedent.  Agent and
Lenders’ obligations to enter into this Amendment and to perform their
obligations hereunder and the consents and amendments given or made herein are
all subject to the conditions precedent that the Agent shall have received the
following documents and other items, each, satisfactory (in form and substance,
as applicable) to Required Lenders, their sole discretion, duly executed where
appropriate by authorized representatives of the Credit Parties and all other
parties thereto, as the case may be and, notwithstanding anything herein to the
contrary, upon execution of this Amendment by the Credit Parties, Agent and
Lenders immediately shall be entitled to all of the rights, remedies, and
benefits of this Amendment:

 

(a)           The Agent shall have received the
countersignatures of the Credit Parties, and the other parties listed on the
signature pages hereto, to this Amendment evidencing their agreement to
the terms and provisions hereof, and Agent and Required Lenders shall have
evidenced their acceptance thereof by executing this Amendment;

 

(b)           No Default or Event of Default shall
have occurred or be continuing on the date of this Amendment after giving
effect hereto; and

 

(c)           The Agent shall have received all
fees, charges and expenses due and payable to Agent and Lenders pursuant to
this Amendment and/or the other Loan Documents.

 

SECTION 5.  Agreement
in Full Force and Effect as Amended.  Except as specifically amended hereby, the
Credit Agreement and other Loan Documents shall remain in full force and effect
and hereby are ratified and confirmed as so amended.  This Amendment shall not constitute a
novation, satisfaction and accord, cure, release and/or satisfaction of the
Credit Agreement and/or other Loan Documents, but shall constitute an amendment
thereof.  The parties hereto agree to be
bound by the terms and conditions of the Credit Agreement and Loan Documents as
amended by this Amendment, as though such terms and conditions were set forth
herein and therein in full.  Each
reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein”
or words of similar import shall mean and be a reference to the Credit
Agreement as amended by this Amendment, and each reference herein or in any
other Loan Document or any other document or instrument to the Credit Agreement
shall mean and be a reference to the Credit Agreement as amended and modified by
this Amendment.  Each reference in the
Credit Agreement and/or other Loan Documents or any other document or
instrument to any Loan Documents or words of similar import shall mean and be a
reference to the Loan Documents as amended hereby.

 

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SECTION 6.        Representations.  Each Credit Party hereby represents and
warrants to Agent and Lenders as follows as of the date hereof: (a) it is
duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization; (b) the execution, delivery and performance
by it of this Amendment and the other Loan Documents to which it is a party are
within its powers, have been duly authorized by all limited liability company,
corporate or other organizational action, as applicable, and do not contravene (i) its
certificate of formation or other organizational documents, or (ii) any
applicable law; (c) no consent, license, permit, approval or authorization
of, or registration, filing or declaration with any Governmental Authority or
other Person is required in connection with the execution, delivery,
performance, validity or enforceability of this Amendment by or against it; (d) this
Amendment has been duly executed by it and it has delivered to the Agent true,
accurate and complete executed copies of this Amendment and all schedules and
exhibits hereto; (e) this Amendment constitutes its legal, valid and
binding obligations enforceable against it in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally or by general principles of equity; (f) after
giving effect to this Amendment, it is in compliance with all covenants and
agreements in the Loan Documents and it is not in default under the Credit
Agreement or any other Loan Document and no Default or Event of Default exists,
has occurred and is continuing or would result by the execution, delivery or performance
of this Amendment, and (g) the representations and warranties contained in
the Loan Documents are true and correct in all respects as of the date hereof
as if made on such date.

 

SECTION 7.        RELEASE.  EACH CREDIT PARTY HEREBY ACKNOWLEDGES AND
AGREES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS COMPLAINT, CLAIM OR
DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR
ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE OBLIGATIONS OR TO
SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT AND THE
LENDERS.  EACH CREDIT PARTY HEREBY
VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES AGENT, THE LENDERS
AND EACH OF THEIR RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, COUNSEL,
SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”)
FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS,
EXPENSES AND LIABILITIES WHATSOEVER, WHETHER KNOWN OR UNKNOWN, ANTICIPATED OR
UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT OR CONDITIONAL, OR
AT LAW OR IN EQUITY, IN ANY CASE ORIGINATING IN WHOLE OR IN PART ON
OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED THAT ANY CREDIT PARTY MAY NOW
OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF ANY, IRRESPECTIVE
OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND THAT ARISE FROM ANY LOANS, THE EXERCISE OF ANY
RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT OR OTHER LOAN DOCUMENTS, AND/OR
NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT, INCLUDING, WITHOUT
LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE.

 

6

 

SECTION 8.        Miscellaneous.

 

(a)           The execution, delivery
and effectiveness of this Amendment shall not, except as expressly provided
herein, be deemed to be an amendment or modification of, or operate as a waiver
of, any provision of the Credit Agreement or any other Loan Document or any
right, power or remedy of Agent, nor constitute a waiver of any provision of
the Credit Agreement or any other Loan Document, or any other document,
instrument and/or agreement executed or delivered in connection therewith or of
any Default or Event of Default under any of the foregoing, in each case
whether arising before or after the date hereof or as a result of performance
hereunder or thereunder.  This Amendment
shall not preclude the future exercise of any right, remedy, power or privilege
available to Agent whether under the Credit Agreement, other Loan Documents, at
law or otherwise.

 

(b)           This Amendment may
be executed in any number of counterparts (including by facsimile), and by the
different parties hereto or thereto on the same or separate counterparts, each
of which shall be deemed to be an original instrument but all of which together
shall constitute one and the same agreement. 
Each party agrees that it will be bound by its own facsimile signature
and that it accepts the facsimile signature of each other party.  The Credit Parties shall provide original
signed copies of all Loan Documents.  The
descriptive headings of the various sections of this Amendment are inserted for
convenience of reference only and shall not be deemed to affect the meaning or
construction of any of the provisions hereof or thereof.  Whenever the context and construction so
require, all words herein in the singular number herein shall be deemed to have
been used in the plural, and vice versa, and the masculine gender shall include
the feminine and neuter and the neuter shall include the masculine and
feminine.

 

(c)           This Amendment may
not be changed, amended, restated, waived, supplemented, discharged, canceled,
terminated or otherwise modified orally or by any course of dealing or in any
manner other than as provided in the Credit Agreement or the applicable Loan
Document.  This Amendment shall be
considered part of the Credit Agreement and shall be a Loan Document for all
purposes under the Credit Agreement and other Loan Documents.

 

(d)           This Amendment, the
Credit Agreement, and the Loan Documents constitute the final, entire agreement
and understanding between the parties with respect to the subject matter hereof
and thereof and may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements between the parties, and shall be binding upon and
inure to the benefit of the successors and assigns of the parties hereto and
thereto.  There are no unwritten oral
agreements between the parties with respect to the subject matter hereof and
thereof.  If any provision of this
Amendment is adjudicated to be invalid under applicable laws or regulations,
such provision shall be inapplicable to the extent of such invalidity without
affecting the validity or enforceability of the remainder of this Amendment
which shall be given effect so far as possible.

 

(e)           THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE CHOICE OF LAW 

 

7

 

PROVISIONS SET FORTH IN THE CREDIT AGREEMENT AND
SHALL BE SUBJECT TO THE WAIVER OF JURY TRIAL AND NOTICE PROVISIONS OF THE
CREDIT AGREEMENT.

 

(f)            No Credit Party may assign, delegate or transfer
this Amendment or any of its rights or obligations hereunder or thereunder and
any delegation, transfer or assignment in violation hereof shall be null and
void.  No rights are intended to be
created under this Amendment for the benefit of any third party donee, creditor
or incidental beneficiary of any Credit Party or any other Person other than
Agent and each Lender.  Nothing contained
in this Amendment shall be construed as a delegation to Agent of any Credit
Party’s duties of performance, including, without limitation, any duties under
any account or contract in which Agent has a security interest or Lien.  This Amendment shall be binding upon the
Credit Parties, the Agent and Lenders and their respective successors and permitted
assigns.  Agent’s and Lenders’ ability to
assign, sell or transfer all of any part of this Amendment shall be governed by
the Credit Agreement.

 

(g)           Each Credit Party
hereby: (i) reaffirms its obligations under the Credit Agreement and each
of the other Loan Documents to which it is a party, and (ii) agrees that
each of such Loan Documents remain in full force and effect and are hereby
ratified and confirmed.  All
representations and warranties made in this Amendment shall survive the
execution and delivery of this Amendment and no investigation by Agent shall
affect such representations or warranties or the right of Agent to rely upon
them.

 

(h)           Each Credit Party
shall execute and deliver such other documents, certificates and/or instruments
and take such other actions as Agent may reasonably request in order to more
effectively consummate the transactions contemplated hereby.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

8

 

SIGNATURE PAGE 1 OF 6 TO

FIRST AMENDMENT AND LIMITED WAIVER TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

IN
WITNESS WHEREOF, the parties have caused this First Amendment to Second Amended
and Restated Credit Agreement to be executed by their respective officers
thereunto duly authorized as of the date first written above to be effective on
such date.

 

	
  CREDIT
  PARTIES:

  	
   

  	
  AFFINITY
  GROUP, INC., as Borrower

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Thomas F. Wolfe

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Thomas F. Wolfe

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Senior Vice President

  	
   

  

 

9

 

SIGNATURE PAGE 2 OF 6 TO

FIRST AMENDMENT AND LIMITED WAIVER TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	
   

  	
   

  	
  AFFINITY
  BROKERAGE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AFFINITY
  GUEST SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AFFINITY
  ROAD AND TRAVEL CLUB, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AGI
  PRODUCTIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAMP
  COAST TO COAST, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COAST
  MARKETING GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EHLERT
  PUBLISHING GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLF
  CARD INTERNATIONAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLF
  CARD RESORT SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GSS
  ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  POWER
  SPORTS MEDIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TL
  ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VBI, INC.,
  as Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Thomas F. Wolfe

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Thomas F. Wolfe

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Senior Vice President

  	
   

  

 

10

 

SIGNATURE PAGE 3 OF 6 TO

FIRST AMENDMENT AND LIMITED WAIVER TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	
   

  	
   

  	
  CAMPING
  REALTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAMPING
  WORLD CARD SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAMPING
  WORLD, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAMPING
  WORLD INSURANCE SERVICES OF KENTUCKY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAMPING
  WORLD INSURANCE SERVICES OF NEVADA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAMPING
  WORLD INSURANCE SERVICES OF TEXAS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CWI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CW
  MICHIGAN, INC., as Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Kenneth Marshall

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Kenneth Marshall

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Chief Financial Officer

  	
   

  

 

11

 

SIGNATURE PAGE 4 OF 6 TO

FIRST AMENDMENT AND LIMITED WAIVER TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

ADMINISTRATIVE
AGENT:

 

	
   

  	
   

  	
  WILMINGTON
  TRUST FSB, as

  	
   

  
	
   

  	
  Administrative
  Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jeffery Rose

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Jeffery Rose

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Vice President

  	
   

  

 

12

 

SIGNATURE PAGE 5 OF 6 TO

FIRST AMENDMENT AND LIMITED WAIVER TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

LENDERS:

 

	
   

  	
   

  	
  GOLDENTREE
  LEVERAGE LOAN MASTER FUND, LTD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  GOLDENTREE LEVERAGE LOAN MANAGER LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Director – Bank Debt

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLDENTREE
  CREDIT OPPORTUNITIES FINANCING I, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  GOLDENTREE ASSET MANAGEMENT, L.P., its
  Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Director – Bank Debt

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLDENTREE
  MASTER FUND, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  GOLDENTREE ASSET MANAGEMENT, L.P., its
  Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Director – Bank Debt

  	
   

  

 

13

 

SIGNATURE PAGE 6 OF 6 TO

FIRST AMENDMENT AND LIMITED WAIVER TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	
   

  	
   

  	
  GOLDENTREE
  MASTER FUND II, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  GOLDENTREE ASSET MANAGEMENT, L.P., its
  Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Name:     Karen Weber

  	
   

  
	
   

  	
   

  	
   

  	
  Title:       Director – Bank Debt

  	
   

  

 

14

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