Document:

exv10w2

 

EXHIBIT 10.2

EXTENSION LETTER

February 11, 2008

Bell Microproducts Inc.

Total Tec Systems, Inc.

Bell Microproducts — Future Tech, Inc.

Rorke Data, Inc.

Bell Microproducts Canada — Tenex Data ULC

Forefront Graphics US Inc.

Bell Microproducts Canada Inc.

1941 Ringwood Avenue

San Jose, California 95131

Ladies and Gentlemen:

     Reference is made to that certain Loan and Security Agreement dated as of May 14, 2001 as
amended (the “Loan Agreement”) among each of you, the financial institutions party thereto
as Lenders, Wachovia Capital Finance Corporation (Western) in its capacity as administrative,
collateral and syndication agent for Lenders (“Administrative Agent”) and certain other
agents for Lenders, and to that certain Amendment and Consent Letter dated January 26, 2007 as
amended (the “Consent”). Unless otherwise defined herein, any capitalized terms defined in
the Loan Agreement shall have the same meanings as used herein.

     You have requested an extension of the March 17, 2008 deadline for furnishing your 2006
audited financial statements as set forth in Section 3 of the Consent (as amended by the Ninth
Amendment to Loan and Security Agreement dated as of September 27, 2007) and an extension of the
March 30, 2008 deadline for furnishing your 2007 audited financial statements as set forth in
clause (iii) of Section 9.6(a) of the Loan Agreement. Administrative Agent and the undersigned
Required Lenders are willing to accommodate such request subject to the terms and conditions set
forth below. Accordingly, Section 3 of the Consent is hereby amended and restated to read in its
entirety as follows:

“3. 2006 and 2007 Year End Audited Financial
Statements. With respect to clause (iii) of Section 9.6(a) of
the Loan Agreement, the deadlines for furnishing Administrative
Agent with the audited consolidated financial statements of Borrower
Agent and its Subsidiaries for the fiscal year ended December 31,
2006 and for the fiscal year ended December 31, 2007 (and related
documents), is hereby extended to September 30, 2008. This
extension shall apply only to such audited consolidated financial
statements for the fiscal years then ended, and the deadlines for
all other financial statements required in Section 9.6(a) of the
Loan Agreement shall remain in full force and effect.”

 

 

     Additionally, Section 10.1(s) of the Loan Agreement (as added in Section 2 of the Consent) is
hereby amended and restated to read in its entirety as follows:

     “(s) Borrower Agent is not both registered under Sections 12(b)
or 12(g) of the Securities and Exchange Act of 1934 and listed on
NASDAQ at any time after September 30, 2008.”

     In consideration of the foregoing extensions, you shall pay Administrative Agent (a) an
extension fee in the amount of $35,000 for the benefit of Lenders based upon their respective Pro
Rata Shares, which extension fee shall be due and payable on the date on which this Extension
Letter becomes effective (as provided below) and shall be fully earned by Lenders on that date, and
(b) the fee set forth in that certain Fee Letter of even date herewith among you and Administrative
Agent (or alternatively, Administrative Agent may charge such fees as a Revolving Loan under the
Loan Agreement). This Extension Letter shall become effective when it has been executed (where
provided below) by each of you and by Administrative Agent and Required Lenders, and delivered by
each of you and Required Lenders to Administrative Agent.

     Subject to the foregoing conditions, this letter shall amend and modify the Loan Agreement and
the Consent as specifically set forth above, and except for such specific amendment and
modification, all of the terms and provisions of the Loan Agreement, the Consent and other
Financing Agreements shall remain in full force and effect and are hereby ratified and confirmed.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN),

as Administrative Agent and Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/ Gary Whitaker	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	      Gary Whitaker, Director	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/
Robert M. Dalton	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Robert M. Dalton	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE CIT GROUP/BUSINESS CREDIT, INC.,

as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/
Kirk Wolverton	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Kirk Wolverton	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

 

 

Accepted and agreed this

11th day of February, 2008:

BELL MICROPRODUCTS INC.

TOTAL TEC SYSTEMS, INC.

BELL MICROPRODUCTS — FUTURE TECH, INC.

RORKE DATA, INC.

BELL MICROPRODUCTS CANADA — TENEX DATA ULC

FOREFRONT GRAPHICS US INC.

BELL MICROPRODUCTS CANADA INC.

	 	 	 	 	 
	By:
	 	     /s/
Jim Illson	 	 
	 

	 	 	 	 
	 

	 	Jim Illson, COO and President-Americasexv10w3

 

EXHIBIT 10.3

February 11, 2008

Bell Microproducts Inc.

1941 Ringwood Avenue

San Jose, CA 95131

	 	 	 
	Re:

	 	Securities Purchase Agreement dated as of July 6, 2000 (the “2000 Securities Purchase
Agreement”) between Bell Microproducts Inc. (the “Company”) and Retirement Systems of Alabama
(“2000 Investor”); Securities Purchase Agreement dated as of October 2, 2006 (the “2006
Securities Purchase Agreement”) among the Company and The Teachers’ Retirement System of
Alabama and The Employees’ Retirement System of Alabama (collectively “2006 Investor”); and
Revolving Credit Agreement dated as of January 30, 2007 (the “2007 Credit Agreement”) among
the Company and The Teachers’ Retirement System of Alabama and The Employees’ Retirement
System of Alabama (collectively “2007 Lender”)

Gentlemen and Ladies,

In consideration of the Company’s aggregate payment of $50,000.00 (to be shared ratably among the
2000 Investor, the 2006 Investor and the 2007 Lender), the receipt of which is hereby acknowledged,
each of the 2000 Investor, the 2006 Investor and the 2007 Lender (a) understands and acknowledges
that the Company is in the process of restating its financial statements and that the Company has
been and will be unable to timely deliver the various financial statements and SEC reports as
required in the 2000 Securities Purchase Agreement, the 2006 Securities Purchase Agreement and the
2007 Credit Agreement; (b) agrees that the Company shall have until September 30, 2008 to make such
deliveries; (c) waives any defaults which may otherwise arise or result from the failure to timely
deliver such financial statements and SEC reports for time periods prior to September 30, 2008; (d)
waives any defaults which may otherwise arise or result from any representation or warranty made or
deemed made with respect to the previously delivered financial statements which are the subject of
the restatement and the related SEC reports; and (e) waives any defaults which may otherwise arise
or result from any covenant requiring the filing of the SEC reports (with the SEC) prior to
September 30, 2008.

(THE SIGNATURE PAGE FOLLOWS.)

 

 

(Signature page to the February 11, 2008 letter to Bell Microproducts Inc.)

Very truly yours,

2000 INVESTOR:

	 	 	 	 	 	 	 
	 	 	THE RETIREMENT SYSTEMS OF ALABAMA, on behalf of itself and as agent for, and
on behalf of, TEACHERS’ RETIREMENT SYSTEMS OF ALABAMA, EMPLOYEES’ RETIREMENT
SYSTEMS OF ALABAMA, JUDICIAL RETIREMENT FUND, PEIRAF-DEFERRED COMPENSATION
PLAN, PUBLIC EMPLOYEES INDIVIDUAL RETIREMENT ACCOUNT FUND and STATE
EMPLOYEES’ HEALTH INSURANCE FUND
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/ David G. Bronner	 	 
	 

	 	 	 	 	 	 
	 	 	Name: David G. Bronner	 	 
	 

	 	Title:
	 	Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	2006 INVESTOR:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE TEACHERS’ RETIREMENT SYSTEM OF ALABAMA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/ David G. Bronner	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	David G. Bronner	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	THE EMPLOYEES’ RETIREMENT SYSTEM OF ALABAMA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ David G. Bronner	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:

Title:
	 	David G. Bronner

Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	2007 LENDER:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE TEACHERS’ RETIREMENT SYSTEM OF ALABAMA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ David G. Bronner	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:

Title:
	 	David G. Bronner

Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	THE EMPLOYEES’ RETIREMENT SYSTEM OF ALABAMA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ David G. Bronner	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:

Title:
	 	David G. Bronner

Chief Executive Officerexv10w4

 

EXHIBIT 10.4

EXECUTION
COPY

SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED

CREDIT AND SECURITY AGREEMENT

     This SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT, dated
as of February 12, 2008 (this “Amendment”), is entered into by and among:

     (i) BELL MICROPRODUCTS FUNDING CORPORATION, a Delaware corporation, as borrower (the
“Borrower”);

     (ii) BELL MICROPRODUCTS INC., a California corporation, as servicer (the “Servicer”);

     (iii) VARIABLE FUNDING CAPITAL COMPANY LLC, a Delaware limited liability company, as a Lender
(“VFCC”);

     (iv) WACHOVIA BANK, NATIONAL ASSOCIATION (“Wachovia”), as agent for the Lenders (the
“Agent”) and as Lender Group Agent and Liquidity Bank for the Lender Group of which VFCC is
a party; and

     (v) GENERAL ELECTRIC CAPITAL CORPORATION (“GECC”), as a Lender and as Lender Group
Agent and Liquidity Bank for the Lender Group of which GECC is a party.

     Capitalized terms used but not otherwise defined herein have the respective meanings set forth
in the Credit and Security Agreement (as defined below).

BACKGROUND

     WHEREAS, the parties hereto have entered into that certain Second Amended and Restated Credit
and Security Agreement, dated as of May 14, 2007 (as amended, restated, supplemented or otherwise
modified to the date hereof, the “Credit and Security Agreement”);

     WHEREAS, the parties hereto desire to amend the Credit and Security Agreement in certain
respects as provided herein; and

     WHEREAS, in connection with this Amendment, the Borrower will enter into amended and restated
Fee Letters, dated as of the date hereof, with each of (i) the members of the VFCC Group and (ii)
the members of the GECC Group (such amended and restated fee letters, each an “A&R Fee
Letter” and together, the “A&R Fee Letters”);

     NOW THEREFORE, in consideration of the premises and the other mutual covenants contained
herein, the parties hereto agree as follows:

     SECTION 1. Amendments. The Credit and Security Agreement is amended as follows:

     (a) The last sentence of Section 7.1(a)(i) of the Credit and Security Agreement is
amended and restated in its entirety as follows:

 

 

“Notwithstanding the foregoing, the Servicer shall deliver its annual
audited financial statements for its 2006 and 2007 fiscal years on or before
September 30, 2008.”

     (b) Sections 7.1(a)(xii), 9.1(t), 9.1(u), 9.1(v) and
9.1(z) of the Credit and Security Agreement are each amended by deleting the date “March
17, 2008” where it appears therein and substituting the date “September 30, 2008” therefor.

     (c) Clause (ii) of the first sentence of the definition of “LIBO Rate” set forth in
Exhibit I to the Credit and Security Agreement is amended and restated in its entirety as
follows:

“(ii) on any day (A) prior to the occurrence of a Delisting Event, (x) prior to
November 28, 2008, 1.50% per annum, and (y) at all times on and after November 28,
2008, 2.40% per annum, and (B) from and after the date on which any Delisting Event
occurs, (x) prior to November 28, 2008, 2.25% per annum, and (y) at all times on and
after November 28, 2008, 2.40% per annum”

     SECTION 2. Representations and Warranties. Each of the Borrower and the Servicer
hereby represents and warrants that:

     (a) all representations and warranties of such Person set forth in the Credit and Security
Agreement (as amended hereby) are true and correct as of the date hereof (unless stated to relate
solely to an earlier date, in which case such representations and warranties were true and correct
as of such earlier date);

     (b) no Amortization Event or Unmatured Amortization Event has occurred and is continuing as of
the date hereof;

     (c) the execution and delivery by such Person of this Amendment and such Person’s performance
of its obligations under the Credit and Security Agreement (as amended hereby) are within its
corporate powers and have been duly authorized by all necessary corporate action on its part, and

     (d) each of this Amendment, the Credit and Security Agreement (as amended hereby) and, with
respect to the Borrower, each A&R Fee Letter is the valid and legally binding obligation of such
Person, enforceable against such Person in accordance with its terms.

     SECTION 3. Conditions to Effectiveness. This Amendment shall be effective as of the
date hereof upon the later to occur of (a) receipt by the Agent and each of the Lender Group Agents
of counterparts to this Amendment and the A&R Fee Letters (or copies thereof) duly executed by each
of the other parties hereto and thereto (as applicable) and (b) the Borrower’s payment in full to
each Lender Group Agent of the Amendment Fee (as defined in the applicable A&R Fee Letter) due to
such Lender Group Agent pursuant to the applicable A&R Fee Letter.

     SECTION 4. Effect of Amendment; Ratification. Except as specifically amended hereby,
the Credit and Security Agreement shall remain in full force and effect. This Amendment shall
neither (i) constitute a novation of the Credit and Security Agreement, but shall constitute an
amendment thereof nor (ii) operate as a waiver of any right, power or remedy

2

 

of the Agent or any of the Lender Group Agents or any other Secured Party under the Credit
Agreement or any of the other Transaction Documents. Upon the effectiveness of this Amendment,
each reference in the Credit and Security Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein”, or words of like import shall mean and be a reference to the Credit and Security
Agreement as amended hereby, and each reference to the Credit and Security Agreement in any other
Transaction Document or any other document, instrument or agreement, executed and/or delivered in
connection with any Transaction Document shall mean and be a reference to the Credit and Security
Agreement as amended hereby.

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

     SECTION 6. Counterparts; Delivery. This Amendment may be executed in any number of
counterparts, and by the different parties hereto 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. Delivery of an executed counterpart of a signature page to this Amendment
by facsimile or other electronic means shall be effective as delivery of a manually executed
counterpart of this Amendment.

     SECTION 7. Headings. 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

     SECTION 8. GOVERNING LAW. THIS AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY
AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF OTHER THAN SECTION
5-1401 OF THE GENERAL OBLIGATIONS LAW.

     SECTION 9. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AMENDMENT, THE
CREDIT AND SECURITY AGREEMENT, ANY DOCUMENT EXECUTED BY ANY LOAN PARTY PURSUANT HERETO OR THERETO
OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

[Signature pages follow.]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
by their duly authorized officers as of the date hereof.

	 	 	 	 	 	 	 
	 	 	BELL MICROPRODUCTS FUNDING CORPORATION	 	 
	 	 	as Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/
Karl Steffen	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Karl Steffen	 	 
	 

	 	Title:	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BELL MICROPRODUCTS INC.	 	 
	 	 	as Servicer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/
James E. Illson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	James E. Illson	 	 
	 

	 	Title:	 	Chief Operating Officer and
President — Americas	 	 

2nd
Amendment to
2nd
A&R CSA

S-1

 

	 	 	 	 	 	 	 
	 	 	VARIABLE FUNDING CAPITAL COMPANY LLC	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wachovia Capital Markets, LLC,

as Attorney-in-Fact	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/ Douglas
R. Wilson, Sr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Douglas
R. Wilson, Sr.	 	 
	 

	 	Title:	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK,
NATIONAL ASSOCIATION
as a Liquidity Bank, as Lender Group Agent for the
Lender Group of which VFCC is a member and as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/ Michael J. Landry	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael J. Landry	 	 
	 

	 	Title:	 	Vice President	 	 

2nd
Amendment
to 2nd A&R CSA

S-2

 

	 	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION,

as a Lender, as Lender Group Agent for the Lender
Group of which GECC is a member, as a Liquidity Bank
and as a Conduit	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	     /s/
David C. Johnson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	David C. Johnson	 	 
	 

	 	Title:	 	Duly Authorized Signatory	 	 

2nd
Amendment
to 2nd A&R CSA

S-3

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