Document:

Exhibit 4.2

 

AMENDMENT NO. 1 TO
  AMENDED AND RESTATED CREDIT AGREEMENT

 

AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT, dated October 9, 2012, by and among Dollar General Corporation, a Tennessee corporation (the “Parent Borrower”), the Subsidiary Borrowers parties thereto (the “Subsidiary Borrowers”, and together with Parent Borrower, collectively, “Borrowers” and individually, a “Borrower”), the lending institutions from time to time parties hereto (each a “Lender” and, collectively, the “Lenders”), Wells Fargo Bank, National Association, as administrative agent (in such capacity, “Administrative Agent”) and collateral agent, Citibank, N.A., HSBC Bank, USA, National Association,  and Bank of America, N.A., as Syndication Agents, Wells Fargo Capital Finance, LLC, Barclays Bank PLC, Citigroup Global Markets Inc., Goldman Sachs Lending Partners LLC, HSBC Bank, USA, National Association,  J.P. Morgan Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Joint Lead Arrangers and Bookrunners, and Barclays Bank PLC, Goldman Sachs Lending Partners LLC, and J.P. Morgan Chase Bank, N.A., as Documentation Agents.

 

W  I  T  N  E  S  S  E  T  H :

 

WHEREAS, Parent Borrower and Subsidiary Borrowers have entered into financing arrangements with Administrative Agent and Lenders pursuant to which Lenders have made and may make loans and advances and provide other financial accommodations to Borrowers as set forth in the Amended and Restated Credit Agreement, dated March 15, 2012, by and among Borrowers, Administrative Agent, Lenders and the other parties thereto (as the same now exists and is amended and supplemented pursuant hereto and may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Credit Agreement”) and the other Credit Documents (as defined therein); and

 

WHEREAS, Borrowers have requested that Administrative Agent and Lenders agree to certain amendments to the Credit Agreement as set forth below, and Administrative Agent and Lenders are willing to agree to such amendments, subject to the terms and conditions herein; and

 

WHEREAS, by this Amendment No. 1, Borrowers, Administrative Agent and Lenders desire and intend to evidence such amendments;

 

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

 

1.     Definitions.

 

(a) Additional Definitions.  As used herein or in any of the other Credit Documents, the following terms shall have the meanings given to them below, and the Credit Agreement shall be deemed and is hereby amended to include, in addition and not in limitation, the following definitions:

 

 

(i)    “Amendment No. 1” shall mean this Amendment No. 1 to Amended and Restated Credit Agreement by and among Borrowers, Administrative Agent, Lenders and the other parties thereto, as amended, modified, supplemented, extended, renewed, restated or replaced.

 

(ii)   “Amendment No. 1 Effective Date” shall mean October 9, 2012.

 

(b) Interpretation.  For purposes of this Amendment No. 1, unless otherwise defined herein, all capitalized terms used herein shall have the respective meanings assigned to such terms in the Credit Agreement.

 

2.     Limitation on Dividends.  The Parent Borrower, the other Credit Parties and the Required Lenders each agree that on the Amendment No. 1 Effective Date, Section 10.6 of the Credit Agreement shall be amended by (i) deleting the word “and” at the end of clause (h) thereof, (ii) replacing the “.” at the end of clause (i) thereof with “; and” and (iii) inserting the following new clause (j) therein immediately after clause (i) thereof as follows:

 

“ (j) the Parent Borrower may (or may pay dividends to permit any direct or indirect parent thereof to) repurchase, redeem or otherwise acquire shares of its Stock or Stock Equivalents on or about the Amendment No. 1 Effective Date; provided that the aggregate cash consideration paid in respect of all such repurchases, redemptions and acquisitions shall not exceed $250,000,000;”

 

3.     Representations and Warranties.  Each Borrower and Guarantor hereby represents and warrants to Administrative Agent and Lenders the following (which shall survive the execution and delivery of this Amendment No. 1):

 

(i)    This Amendment No. 1 has been duly authorized, executed and delivered by all necessary action on the part of each of the Borrowers and Guarantors which is a party hereto and is in full force and effect as of the date hereof.

 

(ii)   The execution, delivery and performance of this Amendment No. 1 (a) is within each Borrower’s and Guarantor’s corporate or limited liability company powers and (b) is not in contravention of law or the terms of any Borrower’s or Guarantor’s certificate or articles of incorporation, by laws, or other organizational documentation, or any indenture, agreement or undertaking to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound.

 

4.     Condition Precedent.  The amendments contained herein shall only be effective upon the receipt by Administrative Agent of counterparts of this Amendment No. 1, duly authorized, executed and delivered by (a) the Borrowers and each other Credit Party and (b) the Required Lenders.

 

5.       Effect of this Amendment.  Except as expressly amended pursuant hereto, no other changes or modifications to the Credit Documents are intended or implied, and, in all other respects, the Credit Documents are hereby specifically ratified, restated and confirmed by all parties hereto as of the effective date hereof.  To the extent that any provision of the Credit

 

2

 

Agreement or any of the other Credit Documents are inconsistent with the provisions of this Amendment No. 1, the provisions of this Amendment No. 1 shall control.

 

6.       Further Assurances.  Borrowers and Guarantors shall execute and deliver such additional documents and take such additional action as may be reasonably requested by Administrative Agent to effectuate the provisions and purposes of this Amendment No. 1.

 

7.       Governing Law.  The validity, interpretation and enforcement of this Amendment No. 1 and any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

 

8.       Binding Effect.  This Amendment No. 1 shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

 

9.       Headings.  The headings listed herein are for convenience only and do not constitute matters to be construed in interpreting this Amendment No. 1.

 

10.     Counterparts.  This Amendment No. 1 may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment No. 1 by telefacsimile or other electronic method of transmission (including by email with “pdf”) shall have the same force and effect as the delivery of an original executed counterpart of this Amendment No. 1.  Any party delivering an executed counterpart of this Amendment No. 1 by telefacsimile or other electronic method of transmission shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of such agreement.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed and delivered by their authorized officers as of the day and year first above written.

 

	
 
    	
DOLLAR   GENERAL CORPORATION, as Parent Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle 
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DG   RETAIL, LLC, as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John W. Feray 
    
	
 
    	
Name:
    	
John.   W. Feray
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOLGENCORP,   LLC, as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOLGENCORP   OF NEW YORK, INC., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle 
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOLGENCORP   OF TEXAS, INC., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John W. Feray 
    
	
 
    	
Name:
    	
John.   W. Feray
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

	
 
    	
DG   TRANSPORTATION, INC., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Executive Vice President and Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DG   LOGISTICS, LLC, as Subsidiary Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Executive Vice President and Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SOUTH   BOSTON HOLDINGS, INC., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SUN-DOLLAR,   L.P., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Vice   President and Chief Financial Officer of South Boston Holdings, Inc.,   its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
DG   PROMOTIONS, INC., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John W. Feray 
    
	
 
    	
Name:
    	
John. W. Feray
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial Officer
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
DOLLAR   GENERAL PARTNERS, as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Executive Vice President and Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DC   FINANCIAL, LLC, as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer of Dollar General Corporation, its   sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DG   STRATEGIC I, LLC, as Subsidiary Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Executive Vice President and Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DG   STRATEGIC II, LLC, as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Tehle 
    
	
 
    	
Name:
    	
David M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer of Dollar General Corporation, its   sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOLGEN   MIDWEST, LLC, as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John W. Feray 
    
	
 
    	
Name:
    	
John. W. Feray
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial Officer
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

	
 
    	
DOLGEN   I, INC., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOLGEN   II, INC., as Subsidiary Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RETAIL   RISK SOLUTIONS, LLC, as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Vice   President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SOUTH   BOSTON FF&E, LLC, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Vice   President and Chief Financial Officer of Sun-Dollar, L.P., its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOLGEN   CALIFORNIA, LLC, as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John W. Feray
    
	
 
    	
Name:
    	
John.   W. Feray
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

	
 
    	
DG   ECOMMERCE, LLC, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle 
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DG   STRATEGIC VI, LLC, as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John W. Feray 
    
	
 
    	
Name:
    	
John.   W. Feray
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DG   STRATEGIC VII, LLC, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John W. Feray 
    
	
 
    	
Name:
    	
John.   W. Feray
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DG   STRATEGIC VIII, LLC, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle 
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer of Dollar General Corporation, its   sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RETAIL   PROPERTY INVESTMENTS, LLC, as Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David M. Tehle 
    
	
 
    	
Name:
    	
David   M. Tehle
    
	
 
    	
Title:
    	
Vice   President and Chief Financial Officer
    

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
DOLGEN   III, INC., as Subsidiary Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert R. Stephenson
    
	
 
    	
Name:
    	
Robert   R. Stephenson
    
	
 
    	
Title:
    	
Assistant   Secretary
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Collateral Agent,   Swingline Lender, Letter of Credit Issuer and a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jason B. Searle
    
	
 
    	
Name:
    	
Jason   B. Searle
    
	
 
    	
Title:
    	
Director
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

	
 
    	
JPMORGAN   CHASE BANK N.A.,
    
	
 
    	
as   a Documentation Agent and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sarah L. Freedman
    
	
 
    	
Name:
    	
Sarah   L. Freedman
    
	
 
    	
Title:
    	
Executive   Director
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
KEYBANK   NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Allen Blickensderfer
    
	
 
    	
Name:
    	
Allen   Blickensderfer
    
	
 
    	
Title:
    	
AVP
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
REGIONS   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis Alexander
    
	
 
    	
Name:
    	
Louis   Alexander
    
	
 
    	
Title:
    	
Attorney   in Fact
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
SIEMENS   FINANCIAL SERVICES, INC.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey B. Iervese
    
	
 
    	
Name:
    	
Jeffrey   B. Iervese
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SIEMENS   FINANCIAL SERVICES, INC.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Finore
    
	
 
    	
Name:
    	
John   Finore
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
SUNTRUST   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nigel Fabien
    
	
 
    	
Name:
    	
Nigel   Fabien
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
TD   BANK, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey Saperstein
    
	
 
    	
Name:
    	
Jeffrey   Saperstein
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Carol Anderson
    
	
 
    	
Name:
    	
Carol   Anderson
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   a Syndication Agent and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Matthew Potter
    
	
 
    	
Name:
    	
Matthew   Potter
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
BARCLAYS   BANK PLC,
    
	
 
    	
as   a Documentation Agent and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alicia Borys
    
	
 
    	
Name:
    	
Alicia   Borys
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
BRANCH   BANKING AND TRUST COMPANY,
   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   R. Andrew Beam
    
	
 
    	
Name:
    	
R.   Andrew Beam
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
COMPASS   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Sheff
    
	
 
    	
Name:
    	
Michael   Sheff
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
BANK   OF MONTREAL,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael W. Scolaro
    
	
 
    	
Name:
    	
Michael   W. Scolaro
    
	
 
    	
Title:
    	
Managing   Director
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
CAPITAL   ONE LEVERAGE FINANCE CORP., 
   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Furst
    
	
 
    	
Name:
    	
Thomas   F. Furst
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
CITIBANK,   N.A.,
    
	
 
    	
as   a Syndication Agent and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas M. Halsch
    
	
 
    	
Name:
    	
Thomas   M. Halsch
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
CITICORP   NORTH AMERICA, INC.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas M. Halsch
    
	
 
    	
Name:
    	
Thomas   M. Halsch
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
CITY   NATIONAL BANK, a national banking
   association, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brent Phillips
    
	
 
    	
Name:
    	
Brent   Phillips
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
FIFTH   THIRD BANK, an Ohio banking 
   corporation, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa R. Cook
    
	
 
    	
Name:
    	
Lisa   R. Cook
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
FIRST   TENNESSEE BANK NATIONAL ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Drew Rodgers
    
	
 
    	
Name:
    	
Drew   Rodgers
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
GOLDMAN   SACHS LENDING PARTNERS LLC,
    
	
 
    	
as   a Documentation Agent and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michelle Latzoni
    
	
 
    	
Name:
    	
Michelle   Latzoni
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
HSBC   BANK, USA, NATIONAL ASSOCIATION,
    
	
 
    	
as   a Syndication Agent and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Gingue
    
	
 
    	
Name:
    	
Brian   Gingue
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

 

 

	
 
    	
RBS   CITIZENS BUSINESS CAPITAL,
    
	
 
    	
a   division of RBS Asset Finance, Inc.,
    
	
 
    	
a   subsidiary of RBS Citizens, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Ganann
    
	
 
    	
Name:
    	
Michael   Ganann
    
	
 
    	
Title:
    	
Senior   Vice PresidentOctober 12, 2012 8K Exhibit 10.1

 Exhibit 10.1 
 

SEPARATION AGREEMENT AND RELEASE

This Separation Agreement and Release ("Agreement") is made by and between Todd L. Zelek
("Employee") and Cavtiation Technologies, Inc., a Nevada corporation (the "Company") (collectively referred to as the "Parties" or
individually referred to as a "Party").

RECITALS

WHEREAS, Employee was employed by the Company as the Company's Chairman and  Chief Executive Officer;

WHEREAS, Employee signed an Confidential Information and Invention Assignment Agreement with the Company on October 10,
2012  (the "Confidentiality Agreement");

WHEREAS, the Company granted Employee an option to purchase 10,000,000 shares of Company common stock at an exercise
price of $0.03 per share  (the "Options ").

WHEREAS, the Employee terminated his employment with the Company effective October 12, 2012 (the "Termination Date");
and

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions,
petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but
not limited to, any and all claims arising out of or in any way related to Employee's employment with or separation from the
Company.

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as
follows:

1. Consideration.

a. Payment. The parties acknowledge that the Employee has accrued earned but unpaid salary and
other compensation in the amount of $203,843.97 . through October 12, 2012  The parties agree that the Employee shall be paid  his
accrued  salary and bonuses in an amount equal to that paid to any other  Company employees in that particular month for their
previously accrued salaries.  In all cases above, each payment shall reduce the accrued amount owed to Employee until Employee
shall have an outstanding balance of zero dollars owed.  The payments shall be processed in accordance with the Company's normal
payroll practices.  If executives of the Company are awarded cash bonuses after October 1, 2012, executives will be paid only after all
accrued salary and benefits (set forth in 1(b) have been paid to the Employee.  If for some reason an executive is paid an accrued
amount that is in excess of that received by other executives, Employee will receive that higher amount.

b. Accrued Benefits. The parties acknowledge that Employee has accrued $16,500 in unpaid
employee benefits.  These benefits shall be repaid in a flat amount  equal to the same accrued amount paid to any other  Company
employees in a particular month as payment for accrued benefits. 

c. Warant. As consideration for extending the terms of the Employee Loan, the Company will grant
Executive a warrant to purchase 7,500,000 shares of Common Stock at an exercise price of $0.05 per share and the Employee will
immediately forfeit 10,000,000 Options that were  previously  granted to Employee.   The warrant shall contain cashless exercise
provisions and have a 10 year term.

d. Restricted Stock. The Company has previously issued the Employee 2,000,000 shares of restricted
common stock.  The Employee will return the 2,000,000 shares to the Company for cancellation along with medallion stock powers.
This stock will be returned as soon as the Employee receives the warrant mentioned above in Section 1(c). .  

e.Employee Loan. The parties acknowledge that the Employee has previously loaned the Company
the sum of $100,000.00 which, with interest, has accumulated to a total of $109,000.00 (the "Employee Loan").  The
Company may not incur new indebtedness that is senior to the Employee loan without repaying the Employee Loan in full.  The parties
agree on the following repayment plan for the Employee loan

1.  Accrued interest of $9,000.00 will be repaid at a rate of $3,000.00 per month during the months of October,
November and December of 2012;

2.  Continuing interest at a rate of $1,250 per month (15% per annum) will be paid monthly in arrears on the first
day of each month beginning November 1, 2012.

3.  If the Company receives cash in any month (regardless of source) in excess of $125,000 per month, the
Company will make a principal reduction payment on the Employee Note in an amount equal to 25% of the cash received in that month
in excess of $125,000.00 (the "Excess Cash").

4. The balance of the Employee Note which is left over after all Excess Cash reductions shall become fully due
and payable on October 1, 2013.  If the Employee Note is not paid in full prior to October 1, 2013, the Employee shall have the right to
convert the outstanding principal amounts into shares of the Company's Common Stock at a conversion price per share equal to the
lowest closing price of the Company's Common Stock in the 30 days prior to conversion multiplied by 0.6. Also, if the Employee Note is
not paid in full prior to October 1, 2013, other terms and conditions may be renegotiated if both parties agree. 

5. the Company has the right to pre-pay the loan at any time.

6.  Should the Company enter into any new financing arrangement, the Employee will have the option of
exchanging the remaining principal of the Employee Note for a similar instrument with the terms and conditions of that new financing.

2. Indemnification of Employee.  Employee will be entitled to Indemnification inaccordance with
Company bylaws and Nevada law and the Company's D&O policy.  The Company shall pay all legal fees incurred be Employee in
defending a third party lawsuit where the Employee is named as a consequence of his participation as an officer and director of the
Company, except as limited by law and public policy. 

3. Release of Claims. Employee agrees that the foregoing consideration represents settlement in full of
all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents,
investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and
subsidiaries, and predecessor and successor corporations and assigns (collectively, the "Releasees"). Employee, on his own behalf
and on behalf of his respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees
from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty,
obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or
unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have
occurred up until and including the Effective Date of this Agreement, including, without limitation:

a. any and all claims relating to or arising from Employee's employment relationship with the Company and the
termination of that relationship;

b. any and all claims relating to, or arising from, Employee's right to purchase, or actual purchase of shares of
stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty
under applicable state corporate law, and securities fraud under any state or federal law;

c. any and all claims for wrongful discharge of employment; termination in violation of public policy;
discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing,
both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional
misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices;
defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and
disability benefits;

d. any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII
of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990;
the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the
Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining
Notification Act; the Family and Medical Leave Act; the Sarbanes-Oxley Act of 2002; the California Family Rights Act; the California
Labor Code; the California Workers' Compensation Act; and the California Fair Employment and Housing Act;

e. any and all claims for violation of the federal or any state constitution;

f. any and all claims arising out of any other laws and regulations relating to employment or employment
discrimination;

g. any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other
tax treatment of any of the proceeds received by Employee as a result of this Agreement; and

h. any and all claims for attorneys' fees and costs.

Employee agrees that the release set forth in this section will be and remain in effect in all respects as a
complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement.
This release does not release claims that cannot be released as a matter of law, including, but not limited to, Employee's right to file a
charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal
administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company
(with the understanding that any such filing or participation does not give Employee the right to recover any monetary damages against
the Company; Employee's release of claims herein bars Employee from recovering such monetary relief from the Company).

4. Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that he is waiving and
releasing any rights he may have under the Age Discrimination in Employment Act of 1967 ("ADEA"), and that this waiver and release
is knowing and voluntary. Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the
ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release is in
addition to anything of value to which Employee was already entitled. Employee further acknowledges that he has been advised by this
writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has twenty-one (21) days within which to
consider this Agreement; (c) he has seven (7) days following his execution of this Agreement to revoke this Agreement; (d) this
Agreement will not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes
Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose
any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law. In the event Employee signs this
Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that he has
freely and voluntarily chosen to waive the time period allotted for considering this Agreement.

5. California Civil Code Section 1542. Employee acknowledges that he has been advised to consult
with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release
of unknown claims, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER
MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

Employee, being aware of said code section, agrees to expressly waive any rights he may have thereunder, as
well as under any other statute or common law principles of similar effect.

6. No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions
pending in his name, or on behalf of any other person or entity, against the Company or any of the other Releasees. Employee also
represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company
or any of the other Releasees.

7. Confidentiality. Employee agrees to maintain in complete confidence the existence of this
Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as
"Separation Information"). Except as required by law, Employee may disclose Separation Information only to his immediate family
members, the Court in any proceedings to enforce the terms of this Agreement, Employee's attorney(s), and Employee's accountant
and any professional tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax
treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties. Employee
agrees that he will not publicize, directly or indirectly, any Separation Information.

8. Trade Secrets and Confidential Information/Company Property. Employee reaffirms and agrees to
observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of
the Company's trade secrets and confidential and proprietary information, and nonsolicitation of Company employees. Employee's
signature below constitutes his certification under penalty of perjury that he has returned all documents and other items provided to
Employee by the Company, developed or obtained by Employee in connection with his employment with the Company, or otherwise
belonging to the Company.

9. No Cooperation. Employee agrees that he will not knowingly encourage, counsel, or assist any
attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by
any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA
waiver in this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order,
and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. If approached by anyone for
counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints
against any of the Releasees, Employee will state no more than that he cannot provide counsel or assistance.

10. Nondisparagement. Employee agrees to refrain from any disparagement, defamation, libel, or
slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the
Releasees.

11. Breach. In addition to the rights provided in the "Attorneys' Fees" section below, Employee
acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Employee
challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of any provision of the
Confidentiality Agreement will entitle the Company immediately to recover and/or cease providing the consideration provided to
Employee under this Agreement and to obtain damages, except as provided by law.

12. No Admission of Liability. Employee understands and acknowledges that this Agreement
constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee. No action taken by the
Company hereto, either previously or in connection with this Agreement, will be deemed or construed to be (a) an admission of the truth
or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to
Employee or to any third party.

13. Costs. The Parties will each bear their own costs, attorneys' fees, and other fees incurred in
connection with the preparation of this Agreement.

14. Indemnification. Employee agrees to indemnify and hold harmless the Company from and against
any and all loss, costs, damages, or expenses, including, without limitation, attorneys' fees or expenses incurred by the Company
arising out of the breach of this Agreement by Employee, or from any false representation made herein by Employee, or from any
action or proceeding that may be commenced, prosecuted, or threatened by Employee or for Employee's benefit, upon Employee's
initiative, direct or indirect, contrary to the provisions of this Agreement. Employee further agrees that in any such action or proceeding,
this Agreement may be pled by the Company as a complete defense, or may be asserted by way of counterclaim or cross-claim.

15. Authority. The Company represents and warrants that the undersigned has the authority to act on
behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.
Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to
bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or
assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

16. No Representations. Employee represents that he has had an opportunity to consult with an
attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Employee has not relied
upon any representations or statements made by the Company that are not specifically set forth in this Agreement.

17. Severability. In the event that any provision or any portion of any provision hereof or any surviving
agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or
void, this Agreement will continue in full force and effect without said provision or portion of provision.

18. Attorneys' Fees. Except with regard to a legal action challenging or seeking a determination in
good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its
rights under this Agreement, the prevailing Party will be entitled to recover its costs and expenses, including the costs of mediation,
arbitration, litigation, court fees, and reasonable attorneys' fees incurred in connection with such an action.

19. Entire Agreement. This Agreement represents the entire agreement and understanding between
the Company and Employee concerning the subject matter of this Agreement and Employee's employment with and separation from
the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and
understandings concerning the subject matter of this Agreement and Employee's relationship with the Company, with the exception of
the Confidentiality Agreement and the  warrant Agreement.

20. No Oral Modification. This Agreement may only be amended in a writing signed by Employee and the Company.

21. Governing Law. This Agreement will be governed by the laws of the State of California, without regard for choice-of-
law provisions. The Parties consent to personal and exclusive jurisdiction and venue in the State of California.

22. Effective Date. Employee understands that this Agreement will be null and void if not executed by him within 48 hours
of the date set forth on the first page.   This Agreement will become effective on the eighth (8th) day after Employee signed this
Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the "Effective
Date").

23. Counterparts. This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile
will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the
undersigned.

24. Voluntary Execution of Agreement. Employee understands and agrees that he executed this Agreement voluntarily,
without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his
claims against the Company and any of the other Releasees. Employee acknowledges that:

a. he has read this Agreement;

b. he has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or
has elected not to retain legal counsel;

c. he understands the terms and consequences of this Agreement and of the releases it contains; and

d. he is fully aware of the legal and binding effect of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

	 	 	 	 	
/s/ Todd L. Zelek

	 	 	 	 	
Todd L. Zelek, an individual

	   
	   
	   

	
Dated:  October 12, 2012
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	

 
	 	 
	 	 	 	 	
CAVITATION TECHNOLOGIES, INC.

	   
	   
	   
	   

	
Dated:  October 12, 2012
	 	 	 	
By
	 	
/s/ Igor Gorodnitsky

	 	 	 	 	 	 	
Igor Gorodnitsky

	 	 	 	 	 	 	
President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]