Document:

Exhibit 10(a) 8KA

		

			 

		

		
			Exhibit 10(a)
		

		
			SECOND AMENDMENT TO CREDIT AGREEMENT
		

		
			THIS SECOND AMENDMENT TO CREDIT AGREEMENT dated as of May 13, 2015 (this “Amendment”), is entered into among WD-40 COMPANY, a Delaware corporation (the “Borrower”), the Guarantors identified on the signature pages hereto (together with the Borrower, each a “Loan Party” and collectively the “Loan Parties”) and BANK OF AMERICA, N.A. (the “Lender”).  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement (defined below).
		

		
			RECITALS
		

		
			A.The Loan Parties and the Lender entered into that certain Credit Agreement dated as of June 17, 2011 (as amended and modified from time to time, the “Credit Agreement”).
		

		
			B.The parties hereto have agreed to amend the Credit Agreement as provided herein.
		

		
			C.In consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows.
		

		
			AGREEMENT
		

		
			1.Amendments.
		

			
	
			
				 (a)
			

			
	
			
			Section 1.01 of the Credit Agreement is amended by adding the following definitions thereto in the appropriate alphabetical order:

		
			 
		

		
			“Autoborrow Agreement” has the meaning specified in Section 2.02(d).
		

		
			 
		

		
			“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).
		

		
			 
		

		
			“Consolidated Funded Indebtedness” means, as of any date of determination with respect to the Company and its Subsidiaries on a consolidated basis, without duplication, the sum of:  (a) all obligations for borrowed money (including the Obligations) and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (b) the maximum amount available to be drawn under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments; (c) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business); (d) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by the Company or a Subsidiary (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by the Company or such Subsidiary or is limited in recourse; (e) all Attributable Indebtedness; (f) all Guarantees with respect to Indebtedness of the types specified in clauses (a) through (e) above of another Person; and (g) all Indebtedness of the types referred to in clauses (a) through (f) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which the Company or any Subsidiary is a general partner or joint venturer, except to the extent that Indebtedness is expressly made non-recourse to such Person.
		

		
			 
		

		
			“Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA for the most recently completed four fiscal quarters to (b) Consolidated Interest Charges for the most recently completed four fiscal quarters.
		

		
			 
		

		
			“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the most recently completed four fiscal quarters.
		

		
			 
		

		

		

		 

		

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		“Designated Jurisdiction” means any country or territory to the extent that such country or territory itself is the subject of any Sanction.
		

		
			 
		

		
			“Excluded Swap Obligation” means, with respect to any Loan Party, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Loan Party of, or the grant under a Loan Document by such Loan Party of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such Loan Party’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to Section 4.10 and any and all guarantees of such Loan Party’s Swap Obligations by other Loan Parties) at the time the Guaranty of such Loan Party, or grant by such Loan Party of a security interest, becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a Master Agreement governing more than one Swap Contract, such exclusion shall apply to only the portion of such Swap Obligation that is attributable to Swap Contracts for which such Guaranty or security interest is or becomes illegal.
		

		
			 
		

		
			“LIBOR Daily Floating Rate” means a fluctuating rate of interest which can change on each Business Day.  The rate will be adjusted on each Business Day to equal the London Interbank Offered Rate (or a comparable or successor rate which is approved by the Lender) for Dollar deposits for delivery on the date in question for a one month term beginning on that date.  The Lender will use the London Interbank Offered Rate as published by Bloomberg (or other commercially available source providing quotations of such rate as selected by the Lender from time to time) as determined at approximately 11:00 a.m. London time two (2) London Banking Days prior to the date in question, as adjusted from time to time in the Lender’s sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs.  If such rate is not available at such time for any reason, then the rate will be determined by such alternate method as reasonably selected by the Lender.  If at any time the LIBOR Daily Floating Rate is less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
		

		
			 
		

		
			“Master Agreement” has the meaning specified in the definition of “Swap Contract.”
		

		
			 
		

		
			“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
		

		
			 
		

		
			“Qualified ECP Guarantor” means, at any time, each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another Person to qualify as an “eligible contract participant” at such time under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
		

		
			 
		

		
			“Sanction(s) “ means any sanction administered or enforced by the United States Government, including OFAC, the United Nations Security Council, the European Union, Her Majesty’s Treasury (“HMT”) or other relevant sanctions authority.
		

		
			 
		

		
			“Second Amendment Effective Date” means May 13, 2015.
		

		
			 
		

		
			“Specified Loan Party” has the meaning specified in Section 4.10.
		

		
			 
		

		
			“Sublimit 1” has the meaning specified in Section 2.02(d).
		

		
			 
		

		
			“Sublimit 2” has the meaning specified in Section 2.02(d).
		

		
			 
		

		
			“Swap Obligation” means with respect to any Loan Party any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.
		

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The following definitions contained in Section 1.01 of the Credit Agreement are amended and restated to read as follows:

		

		

		 

		

			 

		

		

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		“Applicable Rate” means, as of any date of determination, the following percentages per annum:
		

			
					
						 

					
						Letter of Credit Fee

					
					
						 

					
						Prime Rate 

					
						Loans

					
					
						 

					
						LIBOR Rate Loans

					
					
						 

					
						Commitment 

					
						Fee

				
	
					
						0.85%

					
					
						0.00%

					
					
						0.85%

					
					
						0.125%

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			“Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus the following to the extent deducted in calculating such Consolidated Net Income: (a) Consolidated Interest Charges for such period, (b) the provision for federal, state, local and foreign income taxes payable for such period, (c) the amount of depreciation and amortization expense for such period, (d) any impairment charges related to goodwill and other intangible assets and (e) non-cash stock-based compensation expense.
		

		
			 
		

		
			“Guarantors” means, collectively (a) each Domestic Subsidiary of the Company identified as a “Guarantor” on the signature pages hereto, (b) each other Person that joins as a Guarantor pursuant to Section 7.13 or otherwise, and (c) with respect to (i) Obligations owing by the Designated Borrowers, (ii) Obligations under any Swap Contract, (iii) Obligations under any Treasury Management Agreement and (iv) any Swap Obligation of a Specified Loan Party (determined before giving effect to Sections 4.01 and 4.10) under the Guaranty, the Company, and (d) the successors and permitted assigns of the foregoing.
		

		
			 
		

		
			“Interest Period” means, as to each LIBOR Rate Loan, the period commencing on the date such LIBOR Rate Loan is disbursed or converted to or continued as a LIBOR Rate Loan and ending on the date one, two, three, six or twelve months thereafter, as selected by the applicable Borrower in its Loan Notice.  The first day of an Interest Period must be a Business Day.  The last day of the Interest Period and the actual number of days during the Interest Period will be determined by the Lender using the practices of the London inter-bank market.
		

		
			 
		

		
			“Letter of Credit Sublimit” means an amount equal to the lesser of (a) Sublimit 2 of the Revolving Commitment and (b) $10,000,000.  The Letter of Credit Sublimit is part of, and not in addition to, Sublimit 2 under the Revolving Commitment. 
		

		
			 
		

		
			“LIBOR Rate” means for any Interest Period with respect to any LIBOR Rate Loan, a rate per annum determined by the Lender to be equal to the quotient obtained by dividing (i) the London Interbank Offered Rate for such LIBOR Rate Loan for such Interest Period by (ii) one minus the LIBOR Reserve Percentage for such LIBOR Rate Loan for such Interest Period.  In no event shall the LIBOR Rate be less than 0% per annum.
		

		
			 
		

		
			“Loan Documents” means (a) this Agreement, (b) each Note, (c) each Issuer Document, (d) each Joinder Agreement, (e) each Designated Borrower Joinder Agreement, (f) any agreement creating or perfecting rights in Cash Collateral and (g) any Autoborrow Agreement.
		

		
			 
		

		
			“London Interbank Offered Rate” means for any Interest Period with respect to a LIBOR Rate Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable successor rate, as published by Bloomberg (or such other commercially available source providing such quotations as designated by the Lender from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest.
		

		
			 
		

		
			“Maturity Date” means May 13, 2020; provided,  however, that, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.
		

		
			 
		

		

		

		 

		

			 

		

		

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		“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. The foregoing shall also include (a) all obligations under any Swap Contract between any Loan Party or any Subsidiary and the Lender or any Affiliate of the Lender and (b) all obligations under any Treasury Management Agreement between any Loan Party or any Subsidiary and the Lender or any Affiliate of the Lender; provided,  however, that the “Obligations” of a Loan Party shall exclude any Excluded Swap Obligations with respect to such Loan Party.
		

		
			 
		

		
			“Revolving Commitment” means the Lender’s obligation to make Revolving Loans to the Borrowers pursuant to Section 2.01 in an aggregate principal amount at any one time outstanding not to exceed ONE HUNDRED AND FIFTY MILLION DOLLARS ($150,000,000).
		

		
			 
		

			
	
			
				 (c)
			

			
	
			
			Section 2.01 of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			Subject to the terms and conditions set forth herein, the Lender agrees to make loans (each such loan, a “Revolving Loan”) to the Borrowers in Dollars or in one or more Alternative Currencies from time to time on any Business Day during the Availability Period; provided,  however, that after giving effect to any Borrowing of Revolving Loans, (i) the Total Revolving Outstandings shall not exceed the Revolving Commitment.  Within the limits of the Revolving Commitment, and subject to the other terms and conditions hereof, the Borrowers may borrow under this Section 2.01, prepay under Section 2.05, and reborrow under this Section 2.01.  Revolving Loans may be Prime Rate Loans or LIBOR Rate Loans, as further provided herein, or may be made pursuant to an Autoborrow Agreement as contemplated in Section 2.02(d).
		

		
			 
		

		
			The Company shall have the right, upon at least ten Business Days’ prior written notice to the Lender, to request an increase to the Revolving Commitment by up to $25,000,000 in the aggregate in one or more increases, at any time prior to the date that is six months prior to the Maturity Date, subject, however, in any such case, to satisfaction of the following conditions precedent:
		

		
			 
		

			
	
			
				 (i)
			the Lender shall have consented to such increase and shall have received all necessary internal approvals;

		
			 
		

			
	
			
				 (ii)
			no Default shall have occurred and be continuing on the date on which such increase is to become effective;

		
			 
		

			
	
			
				 (iii)
			the representations and warranties set forth in Article VI shall be true and correct on and as of the date on which such increase is to become effective, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date; and

		
			 
		

			
	
			
				 (iv)
			the Lender shall have received all documents (including resolutions of the board of directors of the Loan Parties) it may reasonably request relating to the corporate or other necessary authority for such increase and the validity of such increase, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the Lender.

		
			 
		

		
			In the event that the Lender is not able to provide any such increase, the Company may seek to obtain such increase from another bank that would qualify as Eligible Assignee and is reasonably acceptable to the Lender.  Such institution shall execute and deliver such documentation evidencing its commitment and its obligations under this Agreement in form and substance acceptable to the Lender, and the Lender and the Loan Parties shall enter into an 
		

		 

		

			 

		

		

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		amendment to this Agreement as is necessary to accommodate multiple lenders in accordance with the Lender’s legal, operational and administrative requirements.
		

		
			 
		

			
	
			
				 (d)
			

			
	
			
			Section 2.02(c) of the Credit Agreement is hereby amended to read as follows and a new Section 2.02(d) is hereby added to the Credit Agreement to read as follows:

		
			 
		

		
			(c)Except as otherwise provided herein, a LIBOR Rate Loan may be continued or converted only on the last day of the Interest Period for such LIBOR Rate Loan.  During the existence of an Event of Default, no Loans may be converted to or continued as LIBOR Rate Loans with an Interest Period greater than one month without the consent of the Lender and the Lender may demand that any or all of the then outstanding LIBOR Rate Loans denominated in Dollars be converted immediately to Prime Rate Loans.
		

		
			 
		

		
			(d) Autoborrow.  Notwithstanding anything contained herein to the contrary, in order to facilitate borrowings of Revolving Loans in Dollars by the Company, in its capacity as a Borrower, the Company and the Lender may mutually agree to, and are hereby authorized to, enter into an autoborrow agreement in form and substance satisfactory to the Lender (the “Autoborrow Agreement”) providing for the automatic advance by the Lender to the Company of Revolving Loans in Dollars under the conditions set forth in such Autoborrow Agreement, which shall be in addition to the conditions set forth herein.  At any time an Autoborrow Agreement is in effect, (i) the Revolving Commitment shall be divided into two sublimits as follows:  (A) “Sublimit 1” shall be the amount of the Revolving Commitment that is subject to such Autoborrow Agreement (as specified therein) and (B) “Sublimit 2” shall be the amount of the Revolving Commitment that is not subject to such Autoborrow Agreement; (ii)  the requirements for Revolving Loan borrowings set forth herein shall not apply to Revolving Loan borrowings under Sublimit 1, and all such Revolving Loan borrowings and repayments shall be made in accordance with the Autoborrow Agreement; and (iii)  the requirements for Revolving Loan borrowings set forth herein shall apply to Revolving Loan borrowings under Sublimit 2.
		

		
			 
		

			
	
			
				 (e)
			

			
	
			
			Subclause (y) appearing in Section 2.03(a)(i) of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			(y) the Total Revolving Outstandings shall not exceed Sublimit 2 under the Revolving Commitment
		

		
			 
		

			
	
			
				 (f)
			

			
	
			
			A new Section 2.05(c) is hereby added to the Credit Agreement to read as follows:

		
			 
		

		
			(c)Autoborrow.  
		

		
			 
		

		
			Notwithstanding anything to the contrary in this Agreement, if any time an Autoborrow Agreement is in effect, prepayments of the Revolving Loans made pursuant thereto shall be made in accordance with the terms of such Autoborrow Agreement.  The Borrowers shall also make such prepayments as are necessary so that the Total Revolving Outstandings attributable to Sublimit 2 (as described in Section 2.02(d)) do not exceed Sublimit 2.
		

		
			 
		

			
	
			
				 (g)
			

			
	
			
			Subclause (iv) appearing in Section 2.06 of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			(iv) if, after giving effect to any reduction of the Revolving Commitment the Letter of Credit Sublimit exceeds the amount of Sublimit 2 of the Revolving Commitment, the Letter of Credit Sublimit shall be automatically reduced by the amount of such excess
		

		
			 
		

			
	
			
				 (h)
			

			
	
			
			Section 2.08(a) of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			(a)Subject to the provisions of subsection (b) below, (i) each LIBOR Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the sum of the LIBOR Rate for such Interest Period plus the Applicable Rate plus 
		

		 

		

			 

		

		

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		(in the case of a LIBOR Rate Loan which is lent from the applicable Lender’s Office in the United Kingdom or a Participating Member State) the Mandatory Cost; (ii) each Prime Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Prime Rate plus the Applicable Rate; and (iii) each Revolving Loan made pursuant to an Autoborrow Agreement shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the LIBOR Daily Floating Rate plus the Applicable Rate applicable to LIBOR Rate Loans.
		

		
			 
		

			
	
			
				 (i)
			

			
	
			
			The last sentence of Section 2.09 of the Credit Agreement is hereby deleted.

		
			 
		

			
	
			
				 (j)
			

			
	
			
			A new Section 4.10 is hereby added to the Credit Agreement to read as follows:

		
			 
		

		
			4.10Keepwell.  
		

		
			 
		

		
			Each Loan Party that is a Qualified ECP Guarantor at the time the Guaranty in this Article IV by any Loan Party that is not then an “eligible contract participant” under the Commodity Exchange Act (a “Specified Loan Party”) or the grant of a security interest under the Loan Documents by any such Specified Loan Party, in either case, becomes effective with respect to any Swap Obligation, hereby  jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Loan Party with respect to such Swap Obligation as may be needed by such Specified Loan Party from time to time to honor all of its obligations under the Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Article IV voidable under applicable Debtor Relief Laws, and not for any greater amount).  The obligations and undertakings of each Qualified ECP Guarantor under this Section shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full.  Each Loan Party intends this Section to constitute, and this Section shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Specified Loan Party for all purposes of the Commodity Exchange Act.
		

		
			 
		

			
	
			
				 (k)
			

			
	
			
			Section 5.02 of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			5.02Conditions to all Credit Extensions.
		

		
			 
		

		
			The obligation of the Lender to honor any Request for Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of LIBOR Rate Loans) is subject to the following conditions precedent: 
		

		
			 
		

		
			(a)The representations and warranties of the Loan Parties contained in Article VI or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date.
		

		
			 
		

		
			(b)No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds thereof.
		

		
			 
		

		
			(c)The Lender shall have received a Request for Credit Extension in accordance with the requirements hereof.
		

		
			 
		

		
			(d)In the case of a Credit Extension to be denominated in an Alternative Currency, there shall not have occurred any change in national or international financial, political or economic conditions or currency exchange rates or exchange controls which in the reasonable opinion of the Lender would make it impracticable for such Credit Extension to be denominated in the relevant Alternative Currency.
		

		
			 
		

		

		

		 

		

			 

		

		

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		(e)If the applicable Borrower is a Designated Borrower, such Borrower shall have been designated as a Designated Borrower pursuant to Section 2.13.
		

		
			 
		

		
			Each Request for Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of LIBOR Rate Loans) submitted by a Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 5.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension.
		

		
			 
		

			
	
			
				 (l)
			

			
	
			
			A new Section 6.21 is hereby added to the Credit Agreement to read as follows:

		
			 
		

		
			6.21OFAC; Anti-Corruption Laws.
		

		
			 
		

		
			(a)None of the Loan Parties, nor any of their Subsidiaries, nor, to the knowledge of the Loan Parties and their Subsidiaries, any director, officer, employee, agent, affiliate or representative thereof, is an individual or entity that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced by any other relevant sanctions authority or (iii) located, organized or resident in a Designated Jurisdiction.
		

		
			 
		

		
			(b)The Loan Parties and their Subsidiaries have conducted their businesses in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.
		

		
			 
		

			
	
			
				 (m)
			

			
	
			
			A new Section 7.15 is hereby added to the Credit Agreement to read as follows:

		
			 
		

		
			7.15Anti-Corruption Laws.
		

		
			 
		

		
			Conduct its businesses in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions and maintain policies and procedures designed to promote and achieve compliance with such laws.
		

		
			 
		

			
	
			
				 (n)
			

			
	
			
			Section 8.06(d) of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			(d)so long as no Default exists immediately prior and after giving effect thereto, the Company may repurchase shares of its capital stock in an aggregate amount not to exceed $125,000,000 during the period from and including the Second Amendment Effective Date to the Maturity Date.
		

		
			 
		

			
	
			
				 (o)
			

			
	
			
			Section 8.11(b) of the Credit Agreement is hereby amended to read as follows and a new Section 8.11(c) is hereby added to the Credit Agreement to read as follows:

		
			 
		

		
			(b)Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the end of any fiscal quarter of the Company to be greater than 3.00 to 1.00.
		

		
			 
		

		
			(c)Consolidated Interest Coverage Ratio.  Permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the Company to be less than 3.00 to 1.00.
		

		
			 
		

			
	
			
				 (p)
			

			
	
			
			The first sentence of Section 8.15 of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			Permit Consolidated Capital Expenditures to exceed (a) $8,200,000 for the fiscal year ending August, 31, 2015 and (b) $7,500,000 for each fiscal year thereafter.
		

		
			 
		

			
	
			
				 (q)
			

			
	
			
			A new Section 8.17 is hereby added to the Credit Agreement to read as follows:

		

		

		 

		

			 

		

		

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			8.17Sanctions; Anti-Corruption Laws.
		

		
			 
		

		
			(a) Directly or indirectly, use any Credit Extension or the proceeds of any Credit Extension, or lend, contribute or otherwise make available such Credit Extension or the proceeds of any Credit Extension to any Person, to fund any activities of or business with any Person, or in any Designated Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by the Lender of Sanctions.
		

		
			 
		

		
			(b)Directly or indirectly use the proceeds of any Credit Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 or other similar anti-corruption legislation in other jurisdictions.
		

		
			 
		

			
	
			
				 (r)
			

			
	
			
			Section 9.01(l) of the Credit Agreement is hereby deleted and Section 9.01(k) of the Credit Agreement is hereby amended to read as follows:

		
			 
		

		
			(k)Change of Control.  There occurs any Change of Control.
		

		
			2.Effectiveness; Conditions Precedent.  This Amendment shall be effective, as of the date hereof, upon satisfaction of the following conditions precedent:
		

		
			 
		

		
			(a)The Lender shall have received copies of this Amendment duly executed by the Loan Parties.
		

		
			 
		

		
			(b)The Lender shall have received (i) such resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the Loan Parties as the Lender may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which each Loan Party is a party; (ii) a certificate from the Responsible Officers of the Loan Parties certifying that the Organization Documents delivered on the Closing Date have not changed and are in full force an effect and (iii) such documents and certifications as the Lender may reasonably require to evidence that  each Loan Party is duly organized or formed, and is validly existing, in good standing and qualified to engage in business in its state of organization.
		

		
			 
		

		
			(c)Receipt by the Lender of a favorable opinion of legal counsel to the Loan Parties in form and substance reasonably satisfactory to the Lender.
		

		
			 
		

		
			(d)Receipt by the Lender of all fees and expenses owed by the Loan Parties to the Lender.
		

		
			(e)The Borrower shall have paid all reasonable fees, charges and disbursements of counsel to the Lender in connection with this Amendment (directly to such counsel if requested by the Lender).
		

		
			 
		

		
			4.Ratification of Loan Documents.  Each Loan Party acknowledges and consents to the terms set forth herein and agrees that this Amendment does not impair, reduce or limit any of its obligations under the Loan Documents.  This Amendment is a Loan Document.
		

		
			5.Authority/Enforceability.  Each Loan Party represents and warrants as follows:
		

		
			(a)It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.
		

		
			(b)This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligations, enforceable in accordance with its terms.
		

		
			(c)No consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party is required in connection with the execution, 
		

		 

		

			 

		

		

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		delivery or performance by such Person of this Amendment, or, if such consent is required, it has been obtained.
		

		
			(d)The execution and delivery of this Amendment does not (i) violate, contravene or conflict with any provision of its Organization Documents or (ii) materially violate, contravene or conflict with any Laws applicable to it or any of its Subsidiaries.
		

		
			6.Representations and Warranties of the Loan Parties.  Each Loan Party represents and warrants that after giving effect to this Amendment (a) the representations and warranties of the Loan Party set forth in Article VI of the Credit Agreement are true and correct in all material respects as of the date hereof,  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, and (b) no event has occurred and is continuing which constitutes a Default.
		

		
			7.Counterparts/Telecopy-pdf.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of executed counterparts of this Amendment by telecopy or pdf shall be effective as an original.
		

		
			8.Governing Law.  This Amendment and the rights and obligations of the parties hereunder shall be governed by and construed and interpreted in accordance with the laws of the state of California.
		

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

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						BORROWER:

					
					
						 

					
					
						WD-40 COMPANY,

					
						a Delaware corporation

				
	
					
						 

					
					
						 

					
					
						By: /s/ JAY W. REMBOLT

				
	
					
						 

					
					
						 

					
					
						Name: Jay W. Rembolt

					
						Title:  Vice President, Finance, Treasurer and Chief Financial Officer

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						GUARANTORS:

					
					
						 

					
					
						WD-40 Manufacturing Company,

					
						a California corporation

					
						 

				
	
					
						 

					
					
						 

					
					
						By: /s/ JAY W. REMBOLT

				
	
					
						 

					
					
						 

					
					
						 

					
						Name: Jay W. Rembolt

					
						Title:  Vice President, Finance, Treasurer and Chief Financial Officer

					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						HPD LABORATORIES, INC.,

					
						a Delaware corporation

					
						 

				
	
					
						 

					
					
						 

					
					
						By: /s/ JAY W. REMBOLT

				
	
					
						 

					
					
						 

					
					
						Name: Jay W. Rembolt

					
						Title:  Vice President, Finance, Treasurer and Chief Financial Officer

					
						 

				
	
					
						 

					
					
						 

					
					
						HEARTLAND CORPORATION,

					
						a Kansas corporation

					
						 

				
	
					
						 

					
					
						 

					
					
						By: /s/ JAY W. REMBOLT

				
	
					
						 

					
					
						 

					
					
						 

					
						Name: Jay W. Rembolt

					
						Title:  Vice President, Finance, Treasurer and Chief Financial Officer

					
						 

				
	
					
						 

					
					
						 

					
					
						WD-40 BIKE COMPANY LLC,

					
						a Delaware limited liability company

					
						 

				
	
					
						 

					
					
						 

					
					
						By: /s/ JAY W. REMBOLT

				
	
					
						 

					
					
						 

					
					
						 

					
						Name: Jay W. Rembolt

					
						Title:  Vice President, Finance, Treasurer and Chief Financial Officer

					
						 

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
						 

					
						 

				
	
					
						LENDER:

					
					
						 

					
					
						bank of america, n.a.,

					
						as a Lender

					
						 

				
	
					
						 

					
					
						 

					
					
						By: /s/ CHRISTOPHER  D. PANNACCIULLI

				
	
					
						 

					
					
						 

					
					
						 

					
						Name: Christopher D. Pannacciulli

					
						Title:  Senior Vice PresidentEXHIBIT (10)(171)

 

NEITHER THIS SECURITY NOR THE
SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES ARE RESTRICTED AND MAY NOT
BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE HARBOR
THEREFROM.

 

	No.	 	US $25,000.00

 

ATTITUDE
DRINKS INCORPORATED 

 

PROMISSORY NOTE DUE JULY 31, 2016

 

THIS Note is a duly authorized issuance
of up to $25,000.00 of ATTITUDE DRINKS INCORPORATED, a Delaware corporation and located at 712 U.S. Highway 1, Suite #200, North
Palm Beach, Florida 33408 (the "Company") designated as its Note, pursuant to the Consulting Agreement entered into by
the Company and the Holder as of July 19, 2012.

 

FOR VALUE RECEIVED,
the Company promises to pay to SOUTHRIDGE PARTNERS II, LP, the registered holder hereof (the "Holder"), the principal
sum of twenty five thousand and 00/100 Dollars (US $25,000.00) on July 31, 2016 (the "Maturity Date"). The principal
of this Note is payable at the option of the Holder at any time after the Maturity Date, in shares of the Company's common stock,
$.00001 par value per share ("Common Stock") as set forth below, or in United States dollars, at the address last appearing
on the Note Register of the Company as designated in writing by the Holder. The Company will pay the outstanding principal amount
of this Note in cash on the Maturity Date to the registered holder of this Note. The forwarding of such wire transfer shall constitute
a payment hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented
by such check or wire transfer plus any amounts so deducted.

 

This Note is subject to the following additional provisions:

 

1.          The
Note is issuable in denominations of Ten Thousand Dollars (US$10,000) and integral multiples thereof, provided that the number
of shares to be issued upon conversion is a minimum of 3,000 (unless if at the time of election to convert the number of shares
of Common Stock issuable upon conversion is less than 3,000). The Note is exchangeable for an equal aggregate principal amount
of Note of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be made
for such registration or transfer or exchange.

 

    	1

    	 

    

 

2.          The
Holder of this Note is entitled any time after the Maturity Date, subject to the following provisions, to convert all
or a portion of the principal amount of this Note into shares of Common Stock at a conversion price for each share of Common
Stock equal to the Current Market Price multiplied by eighty percent (80%) (the "Conversion Price"). "Current
Market Price" means the average of the closing bid prices for the Common Stock as reported by Bloomberg, LP or, if not
so reported, as reported on the over-the-counter market, for the five (5) trading days ending on the trading day immediately
before the relevant Conversion Date (as defined below). The amount of shares issuable pursuant to a conversion shall equal
the principal amount (or portion thereof) of the Note to be converted, divided by the Conversion Price.

 

Conversion shall be
effectuated by surrendering the Note to the Company, accompanied by or preceded by facsimile or other delivery to the Company
of the form of conversion notice attached hereto as Exhibit A, executed by the Holder evidencing such Holder's intention to convert
a specified portion hereof No fractional shares of Common Stock or scrip representing fractions of shares will be issued on conversion,
but the number of shares issuable shall be rounded to the nearest whole share. The date on which notice of conversion is given
(the "Conversion Date") shall be deemed to be the date on which the Holder faxes or otherwise delivers the conversion
notice ("Notice of Conversion"), substantially in the form annexed hereto as Exhibit A, duly executed, to the Company.
Facsimile delivery of the Notice of Conversion shall be accepted by the Company at facsimile number                 )
ATTN: Chief Financial Officer. Certificates representing Common Stock upon conversion will be delivered within three (3) business days from the Conversion Date. ("Delivery Date")

 

The Company understands
that a delay in the issuance of the Shares of Common Stock beyond the Delivery Date (as defined in this Section) could result in
economic loss to the Holder. As compensation to the Holder for such loss, the Company agrees to pay late payments to the Holder
for late issuance of Shares upon Conversion, unless the delay is due to causes beyond the reasonable control of the Company or
the Transfer Agent, in accordance with the following schedule (where "No. Business Days Late" refers to the number of
business days which is beyond three (3)) business days after the Delivery Date):'

 

	 	 	Late Payment For Each $10,000	 
	 	 	of Note Principal or Interest	 
	No. Business Days Late	 	Amount Being Converted	 
	 	 	 	 
	1	 	$	100	 
	2	 	$	200	 
	3	 	$	300	 
	4	 	$	400	 
	5	 	$	500	 
	6	 	$	600	 
	7	 	$	700	 
	8	 	$	800	 
	9	 	$	900	 
	10	 	$	1,000	 
	>10	 	$1,000+$200 for each Business Day Late beyond 10 days	 

 

    	2

    	 

    

 

The Company shall pay
any payments incurred under this Section in immediately available funds upon demand as the Holder's remedy for such delay. Furthermore,
in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect
delivery of such shares of Common Stock by close of business on the Delivery Date, unless such failure is due to causes beyond
the Company's reasonable control or that of its Transfer Agent, the Holder will be entitled to revoke the relevant Notice of Conversion
by delivering a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective
positions immediately prior to delivery of such Notice of Conversion; provided, however, that an amount equal to any payments contemplated
by this Section which have accrued through the date of such revocation notice shall remain due and owing to the Converting Holder
notwithstanding such revocation.

 

If, by the relevant
Delivery Date, the Company fails, unless such failure is due to causes beyond the Company's reasonable control or that of its Transfer
Agent, for any reason to deliver the Shares to be issued upon conversion of the Note and after such Delivery Date, the Holder of
the Note being converted (a "Converting Holder") purchases, in an arm's-length open market transaction or otherwise,
shares of Common Stock (the "Covering Shares") in order to make delivery in satisfaction of a sale of Common Stock by
the Converting Holder (the "Sold Shares"), which delivery such Converting Holder anticipated to make using the Shares
to be issued upon such conversion (a "Buy-In"), the Converting Holder shall have the right, to require the Company to
pay to the Converting Holder, in addition to and not in lieu of the amounts due hereunder (but in addition to all other amounts
contemplated in other provisions of the Transaction Agreements, and not in lieu of any such other amounts), the Buy-In Adjustment
Amount (as defined below). The "Buy-hi Adjustment Amount" is the amount equal to the excess, if any, of (x) the Converting
Holder's total purchase price (including brokerage commissions, if any) for the Covering Shares over (y) the net proceeds (after
brokerage commissions, if any) received by the Converting Holder from the sale of the Sold Shares. The Company shall pay the Buy-In
Adjustment Amount to the Company in immediately available funds immediately upon demand by the Converting Holder. By way of illustration
and not in limitation of the foregoing, if the Converting Holder purchases shares of Common Stock having a total purchase price
(including brokerage commissions) of $11,000 to cover a Buy-1n with respect to shares of Common Stock it sold for net proceeds
of $10,000, the Buy-In Adjustment Amount which Company will be required to pay to the Converting Holder will be $1,000.

 

    	3

    	 

    

 

In
lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Company's Transfer
Agent is participating in the Depository Trust Company ("DTC") Fast Automated Securities Transfer program, upon request
of the Holder and its compliance with the provisions contained in this paragraph, so long as the certificates therefore do not
bear a legend and the Holder thereof is not obligated to return such certificate for the placement of a legend thereon, the Company
shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to
the Holder by crediting the account of Holder's Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.

 

The
Holder of the Note shall be entitled to exercise its conversion privilege with respect to the Note notwithstanding the commencement
of any case under 11 U.S.C. §101 et seq. (the "Bankruptcy Code"). In
the event the Company is a debtor under the Bankruptcy Code, the Company hereby waives, to the fullest extent permitted, any rights
to relief it may have under 11 U. S .C. §362 in respect of such holder's conversion privilege. The Company hereby waives,
to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. §362 in respect of the conversion of the
Note.

 

3.          This
Note has been issued subject to investment representations of the original purchaser hereof and may be transferred or exchanged
only in compliance with the Securities Act of 1933, as amended (the "Act"), and other applicable state and foreign securities
laws. In the event of any proposed transfer of this Note, the Company may require, prior to issuance of a new Note in the name
of such other person, that it receive reasonable transfer documentation including legal opinions that the issuance of the Note
in such other name does not and will not cause a violation of the Act or any applicable state or foreign securities laws. Prior
to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this
Note is duly registered on the Company's Note Register as the owner hereof for the purpose of receiving payment as herein provided
and for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected by
notice to the contrary.

 

4.          No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct obligation of
the Company.

 

5.          The
Holder of the Note, by acceptance hereof, agrees that this Note is being acquired for investment and that such Holder will not
offer, sell or otherwise dispose of this Note or the shares of Common Stock issuable upon conversion thereof except under circumstances
which will not result in a violation of the Act or any applicable state Blue Sky or foreign laws or similar laws relating to the
sale of securities.

 

6.          This
Note shall be governed by and construed in accordance with the laws of the State of Connecticut. Each of the parties consents to
the jurisdiction of the federal or state courts whose districts encompass any part of the State of Connecticut in connection with
any dispute arising under this Note and hereby waives, to the maximum extent permitted by law, any objection, including any objection
based on forum non coveniens, to the bringing of any such proceeding in such jurisdictions.

 

    	4

    	 

    

 

Each of the parties hereby
waives the right to a trial by jury in connection with any dispute arising under this Note.

 

7.          The
following shall constitute an "Event of Default":

 

		a.	The Company shall default in the payment of principal and interest on this Note and same shall
continue for a period of five (5) days; or

 

		b.	Any of the representations or warranties made by the Company herein, in any certificate or financial
or other written statements heretofore or hereafter furnished by the Company in connection with the execution and delivery of this
Note shall be false or misleading in any material respect at the time made; or

 

		c.	The Company shall fail to perform or observe, in any material respect, any other covenant, term,
provision, condition, agreement or obligation of any Note and such failure shall continue uncured for a period of thirty (30) days
after written notice from the Holder of such failure; or

 

		d.	The Company fails to authorize or to cause its Transfer Agent to issue shares of Common Stock upon
exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or to
cause its Transfer Agent to transfer any certificate for shares of Common Stock issued to the Holder upon conversion of this Note
and when required by this Note, and such transfer is otherwise lawful, or fails to remove any restrictive legend on any certificate
or fails to cause its Transfer Agent to remove such restricted legend, in each case where such removal is lawful, as and when required
by this Note, the Agreement, and any such failure shall continue uncured for ten (10) business days; or

 

		e.	The Company shall (1) admit in writing its inability to pay its debts generally as they mature;
(2) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or (3) apply for or consent to
the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; or

 

		f.	A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part
of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or

 

		g.	Any governmental agency or any court of competent jurisdiction at the instance of any governmental
agency shall assume custody or control of the whole
or any substantial portion of the properties or assets of the Company and shall not be dismissed within sixty (60) days thereafter;
or

 

    	5

    	 

    

 

		h.	Any money judgment, writ or warrant of attachment, or similar process in excess of Two Hundred Thousand
($200,000) Dollars in the aggregate shall be entered or filed against the Company or any of its properties or other assets and
shall remain unpaid, unvacated, unbonded or unstayed for a period of sixty (60) days or in any event later than five (5) days prior
to the date of any proposed sale thereunder; or

 

Bankruptcy, reorganization, insolvency
or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall
be instituted by or against the Company and, if instituted against the Company, shall not be dismissed within sixty (60) days after
such institution or the Company shall by any action or answer approve of; consent to, or acquiesce in any such proceedings or admit
the material allegations of, or default in answering a petition filed in any such proceeding; or

 

The Company shall have its Common
Stock suspended or delisted from an exchange or over-the-counter market from trading for in excess of five trading days.

 

Then, or at any time
thereafter, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which
waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holders sole discretion,
the Holder may consider all obligations under this Note immediately due and payable within five (5) days of notice, without presentment,
demand, protest or notice of any kinds, all of which are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately enforce any and all of the Holders rights and remedies
provided herein or any other rights or remedies afforded by law.

 

8.          The
Holder may not convert this Note to the extent such conversion would result in the Holder, together with any affiliate thereof,
beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder)
in excess of 9.999% of the then issued and outstanding shares of Common Stock held by such Holder after application of this Section.
Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold at the time of
a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in excess of 9.999%
of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the Holder
or an affiliate thereof; the Holder shall have the authority and obligation to determine whether the restriction contained in
this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained
in this Section applies, the determination of which portion of the principal amount of Note are convertible shall be the responsibility
and obligation of the Holder. If the Holder has delivered a Conversion Notice for a principal amount of Note that would result
in the issuance of in excess of the permitted amount hereunder, without regard to any other shares that the Holder or its affiliates
may beneficially own, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum principal
amount permitted to be converted on such Conversion Date and, at the option of the Holder, either retain any principal amount
tendered for conversion in excess of the permitted amount hereunder for future conversions or return such excess principal amount
to the Holder. The provisions of this Section may be waived by a Holder (but only as to itself and not to any other Holder) upon
not less than 65 days prior notice to the Company. Other Holders shall be unaffected by any such waiver.

 

    	6

    	 

    

 

9.          Nothing
contained in this Note shall be construed as conferring upon the Holder the right to vote or to receive dividends or to consent
or receive notice as a shareholder in respect of any meeting of shareholders or any rights whatsoever as a shareholder of the
Company, unless and to the extent converted in accordance with the terms hereof.

 

IN WITNES
S WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized.

 

Dated: March 1, 2015

 

	 	ATTITUDE DRINKS INCORPORATED
	 	 
	 	/s/ Roy G. Warren
	 	By:  Roy G. Warren
	 	Title  President and CEO

 

	ATTESTOR	 
	 	 	 
	By:	/s/ Debra L. Lieblong	 
	Name: 	Debra L. Lieblong

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