Document:

EXHIBIT 10.2

 

 

AMENDED AND RESTATED RELATIONSHIP AGREEMENT

 

This Amended and Restated Relationship Agreement (the “Agreement”) dated as of April 30, 2015 (the “Effective Date”) is made and entered into between Ford Motor Company, a Delaware corporation (“Ford”), and Ford Motor Credit Company LLC, a Delaware limited liability company (“Ford Credit”).

 

RECITALS

 

A.  Ford Credit supports the sale of Ford’s products by providing, among other things, wholesale, retail, and lease financing for the purchase and lease of those products.

 

B.  Ford Credit is highly dependent on the public debt markets to raise funds for its business.

 

C.  Ford Credit’s ability to raise funds in the public debt markets is highly dependent on its credit ratings, which, in turn, are dependent on the level of Ford Credit’s equity, the quality of its assets, and its liquidity.

 

D.  It is important to the success of Ford that Ford Credit remains a viable finance company that can fund itself in the public debt markets and continue supporting the sale of Ford’s products.

 

E.  Towards maintaining the viability of Ford Credit, the parties entered into (i) an agreement dated October 18, 2001, as amended on December 12, 2006, and as further amended on March 14, 2008 (the “Intercompany Agreement”), which provided for certain agreements regarding transactions between them and the creditworthiness of Ford Credit, and (ii) an Amended and Restated Support Agreement dated November 6, 2008 (the “Support Agreement”), which provided for Ford to make capital contributions to Ford Credit to keep its Managed Leverage (as defined below) from exceeding 11.5 to 1.

 

F.  On April 30, 2014, the parties entered into a Relationship Agreement (the “Original Relationship Agreement”) in order to (i) combine the provisions of the Intercompany Agreement and the Support Agreement into a new, single agreement, (ii) make certain revisions to those provisions, and (iii) allocate and make available to Ford Credit a portion of Ford’s Credit Agreement (as defined below).  On the Effective Date of the Original Relationship Agreement, the Intercompany Agreement and the Support Agreement were terminated.

 

G.  The parties now desire to amend and restate the Original Relationship Agreement to, among other things, increase the allocation to Ford Credit of a portion of Ford’s Credit Agreement.

 

NOW, THEREFORE, for good and valuable consideration and the mutual agreements herein provided, the parties agree as follows:

 

 

1.  The parties agree that all Affiliate Receivables (as defined below) shall be on arm’s-length terms.  For purposes hereof, “Affiliate Receivables” means any advance, loan, extension of credit, or other financing to Ford or any affiliate of Ford whose assets and liabilities are classified on Ford’s consolidated balance sheet as Automotive (“Automotive Affiliate”).  Ford Credit shall enforce, and cause any affiliate of Ford Credit whose assets and liabilities are consolidated with Ford Credit’s on Ford Credit’s consolidated balance sheet (“Credit Affiliate”) to enforce, all Affiliate Receivables in a commercially reasonable manner, and Ford shall pay, shall cause its Automotive Affiliates to pay, and shall guarantee its Automotive Affiliates’ payment of, Affiliate Receivables in accordance with their terms.

 

2.  Ford Credit shall not, nor shall it permit any Credit Affiliate to, guarantee any indebtedness of (other than Permitted Guarantees), or purchase any equity securities issued by, or make any other investment in, Ford (parent company only) or any Automotive Affiliate.  In addition, Ford Credit shall not, nor shall it permit any Credit Affiliate to, purchase or finance any real property (other than Permitted Mortgages) or manufacturing equipment (including tooling) from or of Ford or any Automotive Affiliate that is classified as an Automotive asset on Ford’s consolidated balance sheet.  Ford shall not, nor shall it permit any Automotive Affiliate to request or require Ford Credit or any Credit Affiliate to do any of the transactions prohibited by this paragraph 2.  For purposes hereof, “Permitted Guarantees” shall mean guarantees by Ford Credit or Credit Affiliates of indebtedness of Ford or Automotive Affiliates that are cash collateralized in full and guarantees that are not cash collateralized in full but which at any time do not exceed $500 million in the aggregate, and “Permitted Mortgages” shall mean financing by Ford Credit or Credit Affiliates of real property of Ford or Automotive Affiliates which at any time does not exceed $500 million in the aggregate.

 

3.  As used herein, “Managed Leverage” means, as of the end of each calendar quarter, Ford Credit’s managed leverage reported in, and calculated in accordance with the managed leverage formula as set forth in, Ford Credit’s periodic report (Form 10-Q or Form 10-K, as the case may be) covering such calendar quarter filed with the United States Securities and Exchange Commission.  In the event that Ford Credit’s Managed Leverage as of the end of any calendar quarter, beginning with the calendar quarter ending June 30, 2015, is higher than 11.5 to 1, then, upon demand by Ford Credit, Ford shall make or cause to be made a capital contribution to Ford Credit in an amount sufficient to have caused such Managed Leverage to have been 11.5 to 1.  Such capital contribution, if required, will be made not later than 30 days after the filing by Ford Credit of its Form 10-Q or Form 10-K, as the case may be, covering such calendar quarter.

 

4.  Ford Credit shall, and shall cause each Credit Affiliate to, conduct its business, including its finance and lease business, in a prudent and commercially reasonable manner, including maintaining and adhering to credit risk underwriting standards for finance and lease receivables and residual assumptions for lease receivables it acquires or originates that are consistent with industry standards.  Ford shall not, nor shall it permit any Automotive Affiliate to, require Ford Credit or any Credit Affiliate to accept credit or residual risk beyond what it would be willing to accept acting in a prudent and commercially reasonable manner.  For avoidance of doubt, acquisition or origination of finance or lease receivables having terms that are not market-based shall be considered to be prudent and commercially reasonable if subsidies (in the form of interest rate subvention payments, guarantees, residual risk sharing arrangements, or otherwise)

 

2

 

are provided by Ford or an Automotive Affiliate in an amount sufficient to assure that Ford Credit or a Credit Affiliate, as the case may be, will receive the economic benefits of such receivables as if they had been acquired or originated on market-based terms.  Notwithstanding the foregoing, in recognition of the fact that Ford uses Ford Credit as the exclusive provider of financial services for special retail and lease programs to support the sale of products manufactured by Ford and other Automotive Affiliates, it is understood that it would be commercially reasonable and prudent for Ford Credit to accept, to a limited extent, higher levels of credit risk than it might otherwise accept in order to continue as the exclusive provider of financial services to Ford and the other Automotive Affiliates with respect to such programs.   For any given program, Ford Credit may waive its right to be the exclusive provider of financial services to Ford and the other Automotive Affiliates.

 

5.  Ford and Ford Credit agree that (a) Ford Credit shall at all times maintain its books, records, financial statements, and bank accounts separate from those of Ford and any Automotive Affiliate; (b) Ford Credit shall maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain, or identify its assets from those of Ford and any Automotive Affiliate; (c) the funds and other assets of Ford Credit shall not be commingled with those of Ford or any Automotive Affiliate; (d) Ford Credit shall at all times hold itself out as a legal entity separate and distinct from Ford and any Automotive Affiliate; (e) except with respect to the agreements set forth in Paragraph 3 hereof and Paragraphs 9 through 16 hereof, each will act in a manner and conduct its business such that creditors of Ford, acting reasonably, will rely primarily on the creditworthiness of, and look solely to the assets of Ford, for repayment of indebtedness, and creditors of Ford Credit, acting reasonably, will rely primarily on the creditworthiness of, and look solely to the assets of Ford Credit, for repayment of indebtedness; and (f) they otherwise will take such reasonable and customary action so that Ford Credit will not be consolidated with Ford or any Automotive Affiliate in any case or other proceeding seeking liquidation, reorganization, or other relief with respect to Ford or any Automotive Affiliate or its debts under any bankruptcy, insolvency, or other similar law.

 

6.  In the event that Ford or any of its subsidiaries engages in a corporate transaction that causes the Pension Benefit Guaranty Corporation (“PBGC”) to threaten to terminate the pension plans sponsored by Ford or any of its subsidiaries, Ford shall, or shall cause any of its subsidiaries to, seek to negotiate a settlement with the PBGC to avoid an involuntary plan termination.  In connection with such negotiated settlement, Ford shall endeavor not to grant to the PBGC a security interest in the assets of Ford Credit that has priority over the claims of unsecured creditors of Ford Credit.

 

7.  All determinations to be made under this Agreement shall be made in accordance with, or with reference to financial statements prepared in accordance with, United States generally accepted accounting principles.  For purposes of this Agreement, the term “lease receivables” shall mean “net investment in operating leases” as stated on or reflected in Ford Credit’s consolidated financial statements.

 

8.  During the term of this Agreement, Ford Credit shall continue to make inventory and capital financing generally available to dealers of vehicles manufactured or sold by Ford or its Automotive Affiliates and shall continue to make retail and lease financing generally available to

 

3

 

such dealers’ customers to substantially the same extent that Ford Credit has historically made such services available, so long as providing such services to such an extent would not result in a breach of any of the foregoing provisions.  Nothing herein precludes Ford Credit from providing or continuing to provide financial services to automotive manufacturers other than Ford or its Automotive Affiliates.

 

9.  Subject to the terms set forth in Paragraphs 10-16 hereof, Ford previously designated Ford Credit as a Subsidiary Borrower under the Third Amended and Restated Credit Agreement, dated as of December 15, 2006, as amended and restated on November 24, 2009, as amended and restated as of April 30, 2014, and as further amended and restated as of April 30, 2015 (as further amended, supplemented, or modified from time to time, the “Credit Agreement;” unless otherwise defined herein, capitalized terms used in this Agreement have the meanings ascribed to them in the Credit Agreement), among Ford Motor Company, the Subsidiary Borrowers from time to time party thereto, the several banks and other financial institutions or entities from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents party thereto.

 

10.  During the term of the Credit Agreement, Ford Credit shall have the irrevocable right to borrow for any purpose (i) up to the total amount of any RMB Revolving Commitments, and (ii) up to $2,000,000,000 of any Revolving Commitments other than the RMB Revolving Commitments ((i) and (ii), collectively, the “Maximum Amount”) under the terms and conditions of the Credit Agreement and agrees not to have any outstanding borrowings thereunder at any time in excess of the Maximum Amount.

 

11.  Ford shall not terminate the Credit Agreement prior to its maturity or take any other action that would impair Ford Credit’s ability to borrow the Maximum Amount under the Credit Agreement, in each case without Ford Credit’s prior written consent.

 

12.  Notwithstanding the foregoing, Ford may take actions with regard to the Credit Agreement (e.g., amendment, restatement, cancellation, and replacement) so long as the resulting credit available thereunder to Ford Credit up to the Maximum Amount is not materially adversely affected.

 

13.  Ford agrees in advance to approve all Ford Credit actions pursuant to its right as a Subsidiary Borrower under the Credit Agreement that would require Ford’s consent.  No written Ford approvals to Ford Credit’s actions under the Credit Agreement will be required except those written consents explicitly required by the terms of the Credit Agreement (e.g., guarantee, legal opinions).

 

14.  Ford agrees to guarantee the Obligations of Ford Credit as a Subsidiary Borrower as required by and in accordance with the terms of the Credit Agreement.

 

15.  Ford Credit will reimburse Ford for a proportion of the total costs incurred by Ford under the Credit Agreement that is equal to the proportion that the Maximum Amount bears to the total Commitments under the Credit Agreement.

 

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16.  Ford and Ford Credit will promptly and duly execute and deliver such further documents and assurances and take such further actions as may from time to time be necessary to carry out the intent and purpose of Paragraphs 9 through 15 of this Agreement.

 

17.  This Agreement shall be construed and interpreted in accordance with, and governed by, the internal laws of the State of New York, excluding any choice of law rules that may direct the application of the laws of another jurisdiction.

 

18.  This Agreement shall terminate initially on April 30, 2020 (the “Termination Date”).  On April 30, 2016,  and on each April 30 thereafter during the term of this Agreement, the Termination Date shall be extended automatically for an additional one-year period (ending on the April 30 next following the then-current Termination Date) unless either party shall have given the other party written notice during the period beginning on the January 1 and ending on the April 1 immediately preceding such April 30, specifying its election not to extend the Termination Date beyond the then-current Termination Date and that the term of this Agreement shall, therefore, expire on such then-current Termination Date.

 

19.  No person other than Ford and Ford Credit, and their permitted successors and assigns, shall have any right to enforce any term of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

 

	
FORD MOTOR COMPANY
    	
FORD MOTOR CREDIT COMPANY LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
   /s/ Neil M. Schloss
    	
 
    	
By:
    	
/s/ Michael L. Seneski
    	
 
    
	
 
    	
Neil M. Schloss
    	
 
    	
Michael L. Seneski
    
	
 
    	
Vice President and Treasurer
    	
 
    	
Chief Financial Officer and Treasurer
    
						

 

5EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 FORM OF SECOND AMENDMENT
AND WAIVER TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS SECOND AMENDMENT AND WAIVER TO SECOND AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”) is entered into as of April 14, 2015 among AMVAC CHEMICAL CORPORATION, a California corporation (the “Company”), AMVAC NETHERLANDS B.V., a besloten vennootschap met beperkte
aansprakelijkheid, organized under the law of the Netherlands (“AMVAC Netherlands”), AMVAC C.V., a commanditaire vennootschap, organized under the law of the Netherlands (collectively, with AMVAC Netherlands, the “Designated
Borrowers”), AMERICAN VANGUARD CORPORATION, a Delaware corporation (“American Vanguard”), GEMCHEM, INC., a California corporation (“GemChem”), 2110 DAVIE CORPORATION, a California corporation (“2110
Davie”), AVD INTERNATIONAL LLC, a Delaware limited liability company (collectively, with the Designated Borrowers, American Vanguard, GemChem and 2110 Davie, the “Guarantors”), the Lenders party hereto, and BANK OF THE
WEST, as Agent. 
 RECITALS 

A. Pursuant to a Second Amended and Restated Credit Agreement dated as of June 17, 2013 (as amended by a First Amendment dated as of
July 11, 2014, the “Credit Agreement”) among the Company, the Guarantors, the Designated Borrowers, the Lenders party thereto and the Agent, the Lenders extended and agreed to extend credit to the Borrowers. Capitalized terms
used herein which are not otherwise defined shall have the meanings given them in the Credit Agreement. 
 B. The Company has notified the
Lenders that, pursuant to Asset Purchase and Sale Agreements dated as of April, 2015 (the “Bromacil APSAs”) by and between E. I. Du Pont De Nemours and Company (together with its applicable Affiliates, the “Seller”)
and AMVAC Netherlands, AMVAC Netherlands (together with its applicable Affiliates, the “Buyer”) intends to acquire the Non-Singapore Purchased Assets and the Singapore Purchased Assets (as such terms are defined in the Bromacil
APSAs) in a Permitted Acquisition (the “Bromacil Acquisition”). 
 C. To pay a portion of the consideration for the
Bromacil Acquisition, the Company has notified the Lenders that the Buyer intends to issue evidence of unsecured Indebtedness in a principal amount of $10,000,000 due one year from the date of issuance bearing interest, payable quarterly, at a rate
per annum equal to 4.00% (the “Seller Note”). 
 D. In connection with the Bromacil Acquisition , the Company has requested
the Lenders to (i) waive, solely for the period from the date of this Amendment until one Business Day prior to the closing of the Bromacil Acquisition, the requirement that the Company deliver to Agent at least 15 days prior to such
Acquisition a Compliance Certificate prepared on a Pro Forma Basis and projections evidencing compliance with the Credit Agreement as provided in clause (f) of the definition of “Permitted Acquisition” in Section 1.01 of
the Credit Agreement (the “Specified Requirement”) and (ii) amend certain terms of the Credit Agreement as further provided in this Amendment. 

NOW, THEREFORE, in consideration of the above Recitals and for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows: 
 AGREEMENT 

1. Waiver. Subject to the occurrence of the Amendment Effective Date, the Required Lenders hereby waive the Specified Requirement
solely with respect to the Bromacil Acquisition; provided, that this waiver shall terminate unless the Company delivers to Agent on a date prior to the Bromacil Acquisition acceptable to Agent in its sole discretion a Compliance Certificate prepared
on a Pro Forma Basis and projections, each in form and substance satisfactory to Agent, demonstrating that, after 

  
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giving effect to such Acquisition and this Amendment, no Event of Default will have occurred or is reasonably expected to occur. Except for the specific waiver set forth in this Section, nothing
contained herein shall be deemed to constitute a waiver of (a) any rights or remedies Agent or any Lender may have under the Credit Agreement or any other Loan Document or under any Law or (b) the Loan Parties’ obligation to comply
fully with any duty, term, condition, obligation or covenant contained in the Credit Agreement and the other Loan Documents not specifically waived. The specific waiver set forth herein is effective only with respect to the Specified Requirement and
shall not obligate the Lenders to waive any other term or condition in the Credit Agreement or any other Loan Document. 
 2.
Amendments. 
 (i) New definitions of “Consolidated Current Assets,” “Consolidated Current Liabilities” and
“Modified Consolidated Current Ratio” are added to Section 1.01 of the Credit Agreement in correct alphabetical order, each to read as follows: 

“Consolidated Current Assets” means, as of any date, the aggregate amount of all assets of American Vanguard and its
Subsidiaries, determined on a consolidated basis, which would be properly classified as current assets in accordance with GAAP. 

“Consolidated Current Liabilities” means, as of any date, the aggregate amount of all liabilities of American Vanguard and its
Subsidiaries, determined on a consolidated basis, which would be properly classified as current liabilities in accordance with GAAP. 

“Modified Consolidated Current Ratio” means, as of any date of determination, the ratio of (a) Consolidated Current
Assets as of such date to (b) Consolidated Current Liabilities as of such date plus, to the extent not included in Consolidated Current Liabilities, Total Outstandings under this Agreement. 

(ii) Clause (e) of the definition of “Permitted Acquisition” in Section 1.01 of the Credit Agreement is amended and
restated in its entirety to read as follows: 
 (e) The Consolidated Funded Debt Ratio, after giving effect to the Acquisition, will not
exceed (i) solely for purposes of the Acquisitions contemplated by the Asset Purchase and Sale Agreements dated as of April, 2015 by and between E. I. Du Pont De Nemours and Company and AMVAC Netherlands, 3.25 to 1.00 and (ii) in all other
cases 3.00 to 1.00, in each case determined on a Pro Forma Basis. 
 (iii) Section 8.08(a) of the Credit Agreement is amended
and restated in its entirety and a new Section 8.08(c) is added immediately after Section 8.08(b), each to read as follows: 

(a) Permit the Consolidated Funded Debt Ratio as of the end of any fiscal quarter, commencing March 31, 2015, to exceed the ratio set
forth below opposite such fiscal quarter: 
  

			
	 Fiscal quarter ending:
	  	 Maximum Consolidated Funded Debt Ratio

	March 31, 2015 through December 31, 2015	  	3.50 to 1.00
	March 31, 2016 and each fiscal quarter thereafter	  	3.25 to 1.00

 (c) Permit the Modified Consolidated Current Ratio as of the end of any fiscal quarter, commencing
March 31, 2015, to be less than 1.20 to 1.00. 
 (iv) The form of Compliance Certificate appearing as Exhibit D to the Credit
Agreement is amended and restated in its entirety to read as set forth on Exhibit D to this Amendment. 

  
 -2- 

 3. Conditions Precedent to Effectiveness. This Amendment shall be effective as of the date
(the “Amendment Effective Date”) when the Agent determines that the following conditions have been satisfied: 
 (a) the
Agent shall have executed and received executed counterparts of this Amendment from each of the Loan Parties and the Required Lenders, by original or electronic transmission (promptly followed by originals), each in form and substance satisfactory
to the Agent; 
 (b) all acts and conditions required to be done and performed and to have happened precedent to the execution, delivery and
performance of this Amendment and to constitute the same a legal, valid and binding obligation of the parties, enforceable in accordance with its terms shall have been done and performed and shall have happened in due and strict compliance with all
applicable laws; 
 (c) all documentation shall be reasonably satisfactory in form and substance to the Agent and its counsel; 

(d) any upfront and other fees or expenses, including, without limitation, fees and expenses of counsel, required to be paid on or before the
Amendment Effective Date shall have been paid, and 
 (e) there shall not have occurred and be continuing a Default or Event of Default.

 4. Miscellaneous Provisions. 

(a) Representations and Warranties. Each Loan Party hereby represents and warrants to the Agent and each Lender that each of the
representations and warranties of the Company and each other Loan Party contained in Article V of the Credit Agreement and in any other Loan Document shall be true and correct in all material respects on and as of the Amendment Effective Date and
after giving effect to the Bromacil Acquisition, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date. The
Company further represents, warrants and covenants for the benefit of the Agent and each Lender that the Recitals to this Amendment are true and correct in all material respects and that, without the prior written consent of the Required Lenders, no
portion of the principal amount payable under the Seller Note shall be paid or payable prior to one year from the date of execution. 
 (b)
Ratification. The Credit Agreement and each of the other Loan Documents, as amended hereby, is hereby ratified and remains in full force and effect. 

(c) Entire Agreement. This Amendment embodies the entire agreement and understanding between the parties hereto and supersedes all
prior agreements and understandings relating to the subject matter hereof and thereof. 
 (d) Governing Law. This Amendment shall be
governed by and construed in accordance with the laws of the State of California, without giving effect to choice of law rules. 
 (e)
Counterparts. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement and any of the parties hereto may execute this Amendment by signing any such counterpart. 

[Remainder of page intentionally left blank.] 

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

			
	AMVAC CHEMICAL CORPORATION, as the Company
		
	By:		  

	Name:		  

	Title:		  

  
 -S-1- 

 
			
	AMERICAN VANGUARD CORPORATION, as a Guarantor
		
	By:		  

	Name:		  

	Title:		  

	
	GEMCHEM, INC., as a Guarantor
		
	By:		  

	Name:		  

	Title:		  

	
	2110 DAVIE CORPORATION, as a Guarantor
		
	By:		  

	Name:		  

	Title:		  

	
	AVD INTERNATIONAL LLC, as a Guarantor
		
	By:		  

	Name:		  

	Title:		  

	
	AMVAC NETHERLANDS B.V., as a Designated Borrower and as a Guarantor
	
	  

	Name: A.P.M. de Jong
	Title: Managing Director
	
	AMVAC C.V., as a Designated Borrower and as a Guarantor

 
					
	
	By: AMVAC Chemical Corporation, General Partner
			
			By:		  

			Name:		  

			Title:		  

  
 -S-2- 

 
			
	BANK OF THE WEST, as Agent
		
	By:		  

	Name:		  

	Title:		  

	
	BANK OF THE WEST, as a Lender, L/C Issuer and Swing Line Lender
		
	By:		  

	Name:		  

	Title:		  

  
 -S-3- 

 
			
	BMO HARRIS FINANCING, INC., as Lender
		
	By:		  

	Name:		  

	Title:		  

  
 -S-4- 

 
			
	WELLS FARGO BANK, N.A., as Lender
		
	By:		  

	Name:		  

	Title:		  

  
 -S-5- 

 
			
	MUFG UNION BANK, N.A., as Lender
		
	By:		  

	Name:		  

	Title:		  

  
 -S-6- 

 
			
	AGSTAR FINANCIAL SERVICES, PCA, as Lender
		
	By:		  

	Name:		  

	Title:		  

  
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	GREENSTONE FARM CREDIT SERVICES, ACA, FLCA as Lender
		
	By:		  

	Name:		  

	Title:		  

  
 -S-8- 

 CERTIFICATE OF AUTHORIZED OFFICER 

The undersigned hereby certifies to the Agent that (1) each of the Loan Parties has previously delivered to the Agent a true, correct and
complete copy of its Organization Documents (collectively, the “Delivered Organization Documents”), (2) since such delivery, there has been no change in the Delivered Organization Documents except for those changes attached,
and no such document has been repealed, revoked, rescinded or amended in any respect, and each remains in full force and effect, (3) each of the Loan Parties remains in good standing in the jurisdiction of its organization, (4) the
resolutions (the “Delivered Resolutions”) previously delivered to the Agent by the Loan Parties authorize the execution, delivery and performance of the foregoing Amendment, (5) the Delivered Resolutions authorize the Person(s)
holding the office(s) indicated above or, if none, the office(s) held by the Person(s) executing the foregoing (the “Authorized Executing Office”) to execute the foregoing on behalf of the respective Loan Parties, (6) each
Person executing the foregoing Amendment on behalf of a Loan Party has been duly elected and now holds the Authorized Executing Office set forth below his(her) name, and the signature set forth above is his(her) true signature, (7) the
undersigned is authorized to deliver this Certificate on behalf of each of the Loan Parties, and (8) the Agent may conclusively rely on this Certificate unless and until superseding documents shall be delivered to the Agent. 

 

			
	
	  

	Type/Print Name:		  

 Certificate of Authorized Officer 

  
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 EXHIBIT D 

FORM OF COMPLIANCE CERTIFICATE 
 Financial
Statement Date:
                                         
                    
  

	To:	Bank of the West, as Agent 

 Ladies and Gentlemen: 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of June 17, 2013 (as amended, restated,
extended, supplemented or otherwise modified in writing from time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among AMVAC Chemical Corporation, a California corporation (the
“Company”), the Designated Borrowers from time to time party thereto, the other Loan Parties and Lenders from time to time party thereto, and Bank of the West, as Agent, L/C Issuer and Swing Line Lender. 

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                                         
        of the Company, and that, as such, he/she is authorized to execute and deliver this Certificate to Agent on the behalf of the Company, and that: 

[Use following paragraph 1 for fiscal year-end financial statements] 

1. The Company has delivered the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal
year of American Vanguard ended, as of the above date, together with the report and opinion of an independent certified public accountant required by such section. 

[Use following paragraph 1 for fiscal quarter-end financial statements] 

1. The Company has delivered the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal
quarter of the Company ended as of the above date. Such financial statements fairly present the financial condition, results of operations and cash flows of American Vanguard and its Subsidiaries in accordance with GAAP as at such date and for such
period, subject only to normal year-end audit adjustments and the absence of footnotes. 
 2. The undersigned has reviewed and is familiar
with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of American Vanguard and its Subsidiaries during the accounting period
covered by such financial statements. 
 3. A review of the activities of American Vanguard and its Subsidiaries during such fiscal period
has been made under the supervision of the undersigned with a view to determining whether during such fiscal period each of the Borrowers performed and observed all its Obligations under the Loan Documents, and 

[select one:] 

[to the best knowledge of the undersigned during such fiscal period each of the Borrowers performed and observed each covenant and
condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.] 
 Form of Compliance Certificate 

  
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 —or— 

[to the best knowledge of the undersigned, during such fiscal period the following covenants or conditions have not been performed or
observed and the following is a list of each such Default and its nature and status:] 
 4. The representations and warranties of
(i) the Loan Parties contained in Article VI of the Agreement and (ii) each Loan Party contained in each other Loan Documents or in any document furnished at any time under or in connection with the Loan Documents, are true and
correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this
Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 6.01 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and
(b), respectively, of Section 6.01 of the Agreement, including the statements in connection with which this Compliance Certificate is delivered. 

5. The financial covenant analyses and information set forth on Schedules 1 and 2 attached hereto are true and accurate on
and as of the date of this Certificate. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
            ,             . 

 

			
	AMVAC CHEMICAL CORPORATION
		
	By:		  

	Name:		  

	Title:		  

 Form of Compliance Certificate 

  
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 SCHEDULE 1 

to the Compliance Certificate 

[attach financial statements] 

Schedule 1 to Form of Compliance Certificate 

  
 -1- 

 SCHEDULE 2 

to the Compliance Certificate 
 For the
Quarter/Year ended
                                         
            (“Statement Date”) 
  

									
		 		 		  	($ in 000’s)
	I.    	 	Section 8.08(a) — Consolidated Funded Debt Ratio
			
		 	A.    	 	Consolidated Funded Indebtedness (incl. Letters of Credit, Capitalized Leases, Amounts Outstanding Under Product Acquisition Agreements, etc.)
					
		 		 	1.	 	Consolidated Funded Indebtedness:	  	$                    
			
		 	B.    	 	Consolidated EBITDA for the four fiscal quarters just ended:
					
		 		 	1.	 	Consolidated Net Income:	  	$                    
		 		 	2.	 	Consolidated Interest Expense:	  	$                    
		 		 	3.	 	Provision for taxes:	  	$                    
		 		 	4.	 	Depreciation and amortization:	  	$                    
		 		 	5.	 	Nonrecurring non-cash charges and up to $5,000,000 in related cash charges subject to consent of Agent:	  	$                    
		 		 	6.	 	Losses (gains) on the sale of fixed assets:	  	$                    
		 		 	7.	 	Non-cash stock based compensation expenses:	  	$                    
		 		 	8.	 	Extraordinary losses (gains):	  	$                    
		 		 	9.	 	Losses (gains) from Dispositions of assets and discontinued operations outside of the ordinary course of business:	  	$                    
		 		 	10.	 	EBITDA subject to consent of Agent related to Acquisitions pursuant to Permitted Acquisitions under the Credit Agreement	  	$                    
		 		 	11.	 	Consolidated EBITDA (Sum of 1+2+3+4+5+/-6+7+/-8+/-9+10):	  	$                    
				
		 	C.	 	Consolidated Funded Debt Ratio (Ratio of 1.A.1 to 1.B.11):	  	

									
			
	Not to exceed	 		  	3.50 to 1.00 from March 31, 2015 through December 31, 2015
	Not to exceed	 		  	3.25 to 1.00 from March 31, 2016 and thereafter

  

															
	 Applicable Rate
	 
	 Pricing
Level
	  	 Consolidated

Funded Debt Ratio
	  	Unused fee	 	 	Eurocurrency Rate +	 	 	Alternate Base
Rate +	 
	  	  	 	Standby Letter of
Credit Fees	 	 
	  	  	 	Daily One-Month
LIBOR+	 	 
	I	  	>3.00:1.00	  	 	0.35	% 	 	 	2.50	% 	 	 	1.50	% 
	II	  	<3.00:1.00 but >2.50:1.00	  	 	0.30	% 	 	 	2.25	% 	 	 	1.25	% 
	III	  	<2.50:1.00 but >2.00:1.00	  	 	0.25	% 	 	 	2.00	% 	 	 	1.00	% 
	IV	  	<2.00:1.00 but >1.50:1.00	  	 	0.20	% 	 	 	1.75	% 	 	 	0.75	% 
	V	  	<1.50:1.00	  	 	0.15	% 	 	 	1.50	% 	 	 	0.50	% 

 Schedule 2 to Form of Compliance Certificate 

  
 -1- 

			
	Applicable Rate based on the most recently submitted Compliance Certificate:		Level                      
		
	Applicable Rate based on current Compliance Certificate:		Level                      

  

									
	II.    		Section 8.08(b) — Consolidated Fixed Charge Coverage Ratio
			
			A.    		Adjusted Consolidated EBITDA:
					
					1.		Consolidated EBITDA (I.B.11 above):		$__________
					2.		Unfinanced Capital Expenditures:		$__________
					3.		Taxes paid in Cash:		$__________
					4.		Distributions paid in cash:		$__________
					5.		Adjusted Consolidated EBITDA (Sum of 1-2-3-4):		$__________
			
			B.    		Adjusted CPLTD:
					
					1.		Current Portion of Consolidated Funded Indebtedness:		$__________
					2.		Current Portion of Capital Lease Obligations:		$__________
					3.		Consolidated Interest Expenses:		$__________
					4.		Current Portion of Amounts Outstanding under Product Acquisition Agreements		$__________
					5.		Deferred Short-Term Earn Out Amounts:		$__________
					6.		Adjusted CPLTD (Sum of 1+2+3+4+5):		$__________
			
			C.    		Ratio of II.A.5 to 11.B.6:
			
					Not to be less than 1.25 to 1.00.
		
	III.    		Section 8.08(c) — Modified Consolidated Current Ratio
				
			A.    		Consolidated Current Assets:		$                    
			
			B.    		Modified Current Liabilities:
					
					1.		Consolidated Current Liabilities:		$__________
					2.		Total Outstandings:		$__________
					3.		Modified Current Liabilities (Sum of 1+ 2):		$__________
				
			C.    		Modified Consolidated Current Ratio:		__________
			
					Not to be less than 1.20 to 1.00.
		
	IV.    		Section 8.09 — Capital Expenditures
				
			A.		Capital Expenditures fiscal year to date:		$__________
	
	Not to exceed $30,000,000 in any fiscal year plus not more than $10,000,000 carried over from the immediately preceding fiscal year.

  
 Schedule 2 to Form of
Compliance Certificate 
 -2- 

							
				
			B.    		Carried Over Capital Expenditures from prior fiscal year:		$__________
		
	V.    		Section 7.14 — Material Subsidiaries
				
			A.    		5% of consolidated net assets of American Vanguard:		$__________
				
			B.    		Consolidated net assets of Subsidiaries who were not Guarantors or Material Subsidiaries as of the end of the immediately preceding fiscal quarter:		$__________
				
			C.    		If B is greater than A, identity of Subsidiary (Subsidiaries) whose net assets increased (or which was acquired or created) and caused such excess:		__________
				
			D.    		10% of consolidated gross revenues of American Vanguard for 4 fiscal quarters most recently ended:		$__________
				
			E.    		Consolidated gross revenues of Subsidiaries who were not Guarantors for the 4 fiscal quarters most recently ended.		$__________
				
			F.    		If D is greater than E, identity of Subsidiary (Subsidiaries) whose gross revenues increased (or which was acquired or created) and caused such excess.		__________
				
			G.    		Subsidiary(ies) included in C and F that are not Guarantors:		__________
				
			H.    		Identity of any Subsidiary acquiring Equity Interests in Designated Borrower or Material Subsidiary during most recent fiscal quarter:		__________
	
	Domestic Subsidiaries included in Line G are Material Domestic Subsidiaries. Material Domestic Subsidiaries and Domestic Subsidiaries holding Equity Interests in Material Subsidiaries (Line H) are required to be
Affiliate Domestic Guarantors.
	
	Foreign Subsidiaries included in Line G are Material Foreign Subsidiaries. Material Foreign Subsidiaries and Foreign Subsidiaries holding Equity Interests in Material Subsidiaries (Line H) are required to be Affiliate
Foreign Guarantors.
			
	VI.		Section 8.05 – Investments		
				
			A.		Consolidated outstanding Investments of American Vanguard in Foreign Wholly-Owned Subsidiaries:		$_________
	
	When aggregated with $20 Million in Investments in Dutch Borrowers not to exceed $70 Million.
				
			B.		Consolidated outstanding Investments of American Vanguard in Joint Ventures and other Investments:		$__________
	
	Such Investments made after Closing Date not to exceed $20 Million.
		
	VII.		Section 8.16 – Distributions
				
			A.		Consolidated Net Income for 4 quarters ending with quarter prior to current quarter:		$__________

  
 Schedule 2 to Form of
Compliance Certificate 
 -3- 

							
				
	    		B.    		If current quarter is the last quarter of 2014 or first quarter of 2015, cash dividends paid during third quarter of 2014:		
				
			C.		Dividends declared in current quarter for payment in subsequent quarter (if such fiscal quarter is last quarter of 2014 or first quarter of 2015, not to exceed the greater of VII.B or amount permitted by VII.F):		$__________
				
			D.		Cash dividends paid in current fiscal quarter and in two prior fiscal quarters:		$__________
				
			E.		Sum of VII.C. plus VII.D. (not to exceed VII.A. unless current fiscal quarter is last quarter of 2014 or first quarter of 2015):		$__________
	
	Cash dividends declared in any fiscal quarter and paid in subsequent fiscal quarter not to exceed, when aggregated with cash dividends paid or payable during the fiscal quarter in which such cash dividend is declared
and cash dividends paid during the two fiscal quarters prior to the quarter in which such declaration is paid, Consolidated Net Income for the four fiscal quarters ending immediately prior to the fiscal quarter in which such cash dividends are
declared; provided, however, that cash dividends declared in each of the fourth fiscal quarter of 2014 and the first fiscal quarter of 2015 (and payable in the first and second fiscal quarters of 2015, respectively) shall not exceed the greater of
(i) the amount otherwise provided in this subsection (c) and (ii) the cash dividends paid in the fiscal quarter ending September 30, 2014.

  
 Schedule 2 to Form of
Compliance Certificate 
 -4-

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