Document:

Exhibit 10.1

 

THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS THIRD AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter called this “Amendment”) is dated as of December 23,
2020, by and among RING ENERGY INC., a Nevada corporation (the “Borrower”), each of the Lenders which
is signatory hereto, and TRUIST BANK, successor by merger to SunTrust Bank, as Administrative Agent for the Lenders (in such capacity,
together with its successors in such capacity “Administrative Agent”) and as Issuing Bank under the Credit
Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower,
Administrative Agent and the Lenders are parties to that certain Amended and Restated Credit Agreement dated as of April 9,
2019, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of November 27, 2019, and
that certain Second Amendment to Amended and Restated Credit Agreement dated as of June 17, 2020 (as amended by this Amendment
and as further amended, modified or restated from time to time, the “Credit Agreement”), whereby upon
the terms and conditions therein stated the Lenders have agreed to make certain loans to the Borrower upon the terms and conditions
set forth therein;

 

WHEREAS, the Borrower
has requested that the Lenders amend the Credit Agreement as set forth below; and

 

WHEREAS, subject to
the terms and conditions hereof, the Lenders are willing to agree to the amendments to the Credit Agreement as set forth herein.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants and agreements herein contained, the parties to this Amendment hereby agree as follows:

 

SECTION 1.     Definitions.
Unless otherwise defined in this Amendment, each capitalized term used herein but not otherwise defined herein has the meaning
given such term in the Credit Agreement. The interpretive provisions set forth in Sections 1.2, 1.3 and 1.4 of the Credit Agreement
shall apply to this Amendment.

 

SECTION 2.     Amendments
to Credit Agreement. Effective on the Amendment Effective Date, the Credit Agreement is hereby amended as follows:

 

(a)            Section 1.1
of the Credit Agreement is amended by inserting the following definition in proper alphabetical order:

 

“Fall
2020 Borrowing Base Hedges” means, collectively, (a) Hedging Transactions at prices reasonably acceptable to the
Administrative Agent in respect of crude oil on 8,500 barrels per day for the period of January 1, 2021 to December 31,
2021 (which shall be apportioned in such period in a manner reasonably acceptable to the Administrative Agent); provided that not
less than 4,000 of such barrels per day shall be pursuant to Hedging Transactions in the form of commodity swap transactions and
(b) Hedging Transactions in the form of commodity swap transactions at prices reasonably acceptable to the Administrative
Agent in respect of crude oil on 4,000 barrels per day for the period of January 1, 2022 to December 31, 2022 (which
shall be apportioned in such period in a manner reasonably acceptable to the Administrative Agent).

 

     

     

    

 

(b)            Section 1.1
of the Credit Agreement is amended by deleting the following definitions: “Borrowing Base Deficiency Early Cure Amount”,
 “Delaware Basin Oil and Gas Properties”, and “Delaware Basin Oil and Gas Properties PSA”.

 

(c)            Section 5.21
of the Credit Agreement is amended and restated in its entirety as follows:

 

“Section 5.21     Fall
2020 Borrowing Base Hedges. The Borrower shall enter into all of the Fall 2020 Borrowing Base Hedges on or before
January 22, 2021 (which deadline may be extended by the Administrative Agent in its sole discretion for additional thirty
(30) day periods). After entering into any Fall 2020 Borrowing Base Hedges, the Borrower will thereafter maintain such Fall 2020
Borrowing Base Hedges in effect and not terminate or otherwise monetize such Fall 2020 Borrowing Base Hedges.”

 

(d)            Section 6.1
of the Credit Agreement is amended and restated in its entirety as follows:

 

“Section 6.1        Leverage
Ratio. Beginning with the fiscal quarter ending June 30, 2019, the Borrower will not, (a) as of the last
day of any fiscal quarter (other than the fiscal quarter ending September 30, 2020 and the fiscal quarter ending March 31,
2021), permit its Leverage Ratio to be greater than 4.0 to 1.0, (b) as of the last day of the fiscal quarter ending September 30,
2020, permit its Leverage Ratio to be greater than 4.75 to 1.0 and (c) as of the last day of the fiscal quarter ending March 31,
2021, permit its Leverage Ratio to be greater than 4.25 to 1.0.”

 

(e)            Section 7.4
of the Credit Agreement is amended as follows:

 

(1)         Section 7.4(g) of
the Credit Agreement is amended by inserting “and” at the end thereof.

 

(2)         Section 7.4(h) of
the Credit Agreement is amended by deleting the “; and” at the end thereof and replacing it with a period.

 

(3)         Section 7.4
of the Credit Agreement is amended deleting clause (i).

 

(f)             Section 7.6
of the Credit Agreement is amended as follows:

 

(1)         Section 7.6(c) of
the Credit Agreement is amended by deleting “(other than the Delaware Basin Oil and Gas Properties)” after the words
 “or any interest therein”.

 

(2)         Section 7.6
of the Credit Agreement is amended by deleting clause (d).

 

SECTION 3.     Borrowing
Base Scheduled Redetermination; Additional Adjustment. Effective on the Amendment Effective Date, the
Borrowing Base is decreased to $350,000,000 until the next redetermination or adjustment thereof pursuant to the Credit Agreement.
The Borrowing Base redetermination provided for by this Amendment is the Scheduled Redetermination for November 1, 2020,
which Schedule Redetermination was postponed to December 1, 2020 pursuant to that certain Consent, dated October 28,
2020, from Administrative Agent to the Borrower. This Amendment shall serve as a New Borrowing Base Notice under the Credit Agreement.

 

SECTION 4.     Conditions
of Effectiveness

 

(a)            This
Amendment shall become effective as of the date (the “Amendment Effective Date”) that each of the following
conditions precedent shall have been satisfied:

 

(1)         The
Administrative Agent shall have received (which may be by electronic transmission), in form and substance satisfactory to the Administrative
Agent, a counterpart of this Amendment which shall have been executed by the Administrative Agent, the Issuing Bank, the Lenders
and the Borrower (which may be by PDF transmission); and

 

     

     

    

 

(2)         Borrower
shall have paid all fees and expenses due to the Lenders and the Administrative Agent (including, but not limited to, reasonable
attorneys’ fees of counsel to the Administrative Agent), in each case, for which invoices were submitted at least one (1) Business
Day prior to the Amendment Effective Date; and

 

(3)         The
Administrative Agent shall be reasonably satisfied that the Borrower has entered into and is party to (x) Hedging Transactions
at prices reasonably acceptable to the Administrative Agent in respect of crude oil on not less than 8,500 barrels per day for
the period of January 1, 2021 to December 31, 2021 (which shall be apportioned in such period in a manner reasonably
acceptable to the Administrative Agent); provided that not less than 4,000 of such barrels per day shall be pursuant to Hedging
Transactions in the form of commodity swap transactions and (y) Hedging Transactions in the form of commodity swap transactions
at prices reasonably acceptable to the Administrative Agent in respect of crude oil on not less than 1,000 barrels per day for
the period of January 1, 2022 to December 31, 2022 (which shall be apportioned in such period in a manner reasonably
acceptable to the Administrative Agent).

 

(b)            Without
limiting the generality of the provisions of Sections 3.1 and 3.2 of the Credit Agreement, for purposes of determining compliance
with the conditions specified in Section 4(a), each Lender that has signed this Amendment (and its permitted
successors and assigns) shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other
matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative
Agent shall have received written notice from such Lender prior to the proposed Amendment Effective Date specifying its objection
thereto.

 

(c)            The
Administrative Agent shall notify the Borrower and the Lenders of the Amendment Effective Date.

 

SECTION 5.     Representations
and Warranties. The Borrower represents and warrants to Administrative Agent and the Lenders, with full knowledge
that such Persons are relying on the following representations and warranties in executing this Amendment, as follows:

 

(a)            It
has the organizational power and authority to execute, deliver and perform this Amendment, and all organizational action on the
part of it requisite for the due execution, delivery and performance of this Amendment has been duly and effectively taken.

 

(b)            The
Credit Agreement, as amended by this Amendment, the Loan Documents and each and every other document executed and delivered to
the Administrative Agent and the Lenders in connection with this Amendment to which it is a party constitute the legal, valid and
binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms except as enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally
or by equitable principles relating to enforceability.

 

(c)            This
Amendment does not and will not conflict with any provisions of any of the articles or certificate of incorporation, bylaws, and
other organizational and governing documents of the Borrower.

 

     

     

    

 

(d)            No
approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary
or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower of this Amendment.

 

(e)            At
the time of and immediately after giving effect to this Amendment, the representations and warranties of the Borrower contained
in Article IV of the Credit Agreement or in any other Loan Document are true and correct in all material respects (other than
those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case
such representations and warranties shall be true and correct in all respects), except that any representation and warranty which
by its terms is made as of a specified date shall be required to be so true and correct in all material respects only as of such
specified date.

 

(f)            At
the time of and immediately after giving effect to this Amendment, no Default, Event of Default or Borrowing Base Deficiency exists.

 

(g)            Since
December 31, 2019, there has been no event or circumstance which has had or could reasonably be expected to have a Material
Adverse Effect.

 

(h)            As
of the Amendment Effective Date, notwithstanding any provision in any Collateral Document to the contrary, no Building (as defined
in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation)
included in the definition of “Mortgaged Property” or “collateral” or similar definition in any Collateral
Document and no Building or Manufactured (Mobile) Home is encumbered by any Collateral Document. As used in this paragraph, “Building”
means any Building or Manufactured (Mobile) Home, in each case as defined in the applicable Flood Insurance Regulations); and “Flood
Insurance Regulations” means (I) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor
statute thereto, (II) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto,
(III) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or
recodified from time to time, and (IV) the Flood Insurance Reform Act of 2004 and any regulations promulgated thereunder.

 

SECTION 6.     Miscellaneous.

 

(a)            Reference
to the Credit Agreement. Upon the effectiveness hereof, on and after the date hereof, each reference in the Credit Agreement
to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import,
shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b)            Effect
on the Credit Agreement; Ratification. Except as specifically amended by this Amendment, the Credit Agreement shall remain
in full force and effect and is hereby ratified and confirmed. By its acceptance hereof, the Borrower hereby ratifies and confirms
each Loan Document to which it is a party in all respects, after giving effect to the amendments set forth herein.

 

(c)            Extent
of Amendments. Except as otherwise expressly provided herein, the Credit Agreement and the other Loan Documents are not
amended, modified or affected by this Amendment. The Borrower hereby ratifies and confirms that (i) except as expressly amended
hereby, all of the terms, conditions, covenants, representations, warranties and all other provisions of the Credit Agreement remain
in full force and effect, (ii) each of the other Loan Documents are and remain in full force and effect in accordance with
their respective terms, and (iii) the Collateral and the Liens on the Collateral securing the Obligations are unimpaired by
this Amendment and remain in full force and effect.

 

     

     

    

 

(d)            Loan
Documents. The Loan Documents, as such may be amended in accordance herewith, are and remain legal, valid and binding obligations
of the parties thereto, enforceable in accordance with their respective terms. This Amendment is a Loan Document.

 

(e)            Claims.
As additional consideration to the execution, delivery, and performance of this Amendment by the parties hereto and to induce Administrative
Agent and Lenders to enter into this Amendment, the Borrower represents and warrants that, as of the date hereof, it does not know
of any defenses, counterclaims or rights of setoff to the payment of any Obligations of the Borrower to Administrative Agent, Issuing
Bank or any Lender.

 

(f)             Execution
and Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile or pdf shall be
equally as effective as delivery of a manually executed counterpart.

 

(g)            Governing
Law. This Amendment and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise)
based upon, arising out of or relating to this Amendment and the transactions contemplated hereby and thereby shall be construed
in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the State of
Texas.

 

(h)            Headings.
Section headings in this Amendment are included herein for convenience and reference only and shall not constitute a part
of this Amendment for any other purpose.

 

SECTION 7.     NO
ORAL AGREEMENTS. THE RIGHTS AND OBLIGATIONS OF EACH OF THE PARTIES TO THE LOAN DOCUMENTS SHALL BE DETERMINED
SOLELY FROM WRITTEN AGREEMENTS, DOCUMENTS, AND INSTRUMENTS, AND ANY PRIOR ORAL AGREEMENTS BETWEEN SUCH PARTIES ARE SUPERSEDED
BY AND MERGED INTO SUCH WRITINGS. THIS AMENDMENT AND THE OTHER WRITTEN LOAN DOCUMENTS EXECUTED BY THE BORROWER, ADMINISTRATIVE
AGENT, ISSUING BANK AND/OR LENDERS REPRESENT THE FINAL AGREEMENT BETWEEN SUCH PARTIES, AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
SUCH PARTIES.

 

SECTION 8.     No
Waiver. The Borrower hereby agrees that no Event of Default and no Default has been waived or remedied by the execution
of this Amendment by the Administrative Agent or any Lender. Nothing contained in this Amendment nor any past indulgence by the
Administrative Agent, Issuing Bank or any Lender, nor any other action or inaction on behalf of the Administrative Agent, Issuing
Bank or any Lender, (i) shall constitute or be deemed to constitute a waiver of any Defaults or Events of Default which may
exist under the Credit Agreement or the other Loan Documents, or (ii) shall constitute or be deemed to constitute an election
of remedies by the Administrative Agent, Issuing Bank or any Lender, or a waiver of any of the rights or remedies of the
Administrative Agent, Issuing Bank or any Lender provided in the Credit Agreement, the other Loan Documents, or otherwise
afforded at law or in equity.

 

Signatures Pages Follow

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

 

	 	RING ENERGY INC.,
	 	as Borrower
	 	 
	 	 
	 	By:	 /s/ William R. Broaddrick
	 	 	William R. Broaddrick
	 	 	Vice President and Chief Financial Officer

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	TRUIST BANK, SUCCESSOR BY MERGER TO SUNTRUST BANK,
	 	as Administrative Agent, as Issuing Bank and as a Lender
	 	 
	 	By:	/s/ Benjamin L. Brown
	 	 	Name:	Benjamin L. Brown
	 	 	Title:	 Director

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	BBVA USA,
	 	as a Lender
	 	 
	 	By:	 /s/ Julia Barnhill
	 	 	Name:	Julia Barnhill
	 	 	Title:	Vice President

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	IBERIABANK,
	 	as a Lender
	 	 
	 	By:	 /s/ W. Bryan Chapman
	 	 	Name:	 W. Bryan Chapman
	 	 	Title:	Market President-Energy Lending

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	BMO HARRIS BANK, N.A.,
	 	as a Lender
	 	 
	 	By:	/s/ Hill Taylor
	 	 	Name:	Hill Taylor
	 	 	Title:	Vice President

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	Canadian Imperial Bank of Commerce, New York Branch,
	 	as a Lender
	 	 
	 	By:	 /s/ Donovan C. Broussard
	 	 	Name:	Donovan C. Broussard
	 	 	Title:	Authorized Signatory
	 	 
	 	By:	 /s/ Jacob W. Lewis
	 	 	Name:	Jacob W. Lewis
	 	 	Title:	Authorized Signatory

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	KeyBank National Association,
	 	as a Lender
	 	 
	 	By:	/s/ George E. McKean
	 	 	Name:	George E. McKean
	 	 	Title:	Senior Vice President

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	Zions Bancorporation, N.A. dba Amegy Bank,
	 	as a Lender
	 	 
	 	By:	/s/ John Moffitt
	 	 	Name:	 John Moffitt
	 	 	Title:	Senior Vice President

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	U.S. Bank National Association,
	 	as a Lender
	 	 
	 	By:	/s/ Bruce Hernandez
	 	 	Name:	Bruce Hernandez
	 	 	Title:	 Senior Vice President

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	Cadence Bank,
	 	as a Lender
	 	 
	 	By:	/s/ Anthony Blanco
	 	 	Name:	Anthony Blanco
	 	 	Title:	Senior Vice President

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.

 

     

     

    

 

	 	CrossFirst Bank,
	 	as a Lender
	 	 
	 	By:	 /s/ Chris Cardoni
	 	 	Name:	Chris Cardoni
	 	 	Title:	 President, Energy Bank

 

Signature Page to Amendment to Amended
and Restated Credit Agreement

Ring
Energy, Inc.SECOND AMENDMENT TO CREDIT AGREEMENT
​
THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of December 23, 2020 to the Credit Agreement referenced below is by and among HURCO COMPANIES, INC., an Indiana corporation (the “Company”), HURCO B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands, with its seat (zetel) in Amsterdam, the Netherlands, with its registered office at Prins Bernhardplein 200, 1097 JB Amsterdam, the Netherlands and registered with the Dutch Chamber of Commerce (Kamer van Koophandel) under number 34114350 (the “Netherlands Borrower” and, together with the Company, the “Borrowers” and each a “Borrower”), the Guarantors party hereto and BANK OF AMERICA, N.A. (the “Lender”).
​
W I T N E S E T H
​
WHEREAS, credit facilities have been extended to the Borrowers pursuant to the Credit Agreement (as amended, modified, supplemented and extended from time to time, the “Credit Agreement”) dated as of December 31, 2018 among the Company, the Netherlands Borrower, the Guarantors from time to time party thereto and the Lender; and 
​
WHEREAS, the Borrowers have requested certain modifications to the Credit Agreement, and the Lender has agreed to the requested modifications on the terms set forth herein.
​
NOW, THEREFORE, IN CONSIDERATION of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
​
1.Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement.
​
2.Amendments to the Credit Agreement.  The Credit Agreement is hereby amended as follows: 
​
(a)The following definitions in Section 1.01 of the Credit Agreement are hereby amended and restated in their entireties to read as follows: 
​
“Applicable Rate” means, for any day, the following rates per annum: 
​
(a)with respect to Eurocurrency Rate Loans and Letter of Credit Fees, 1.25%; and 
​
(b)with respect to Base Rate Loans, 0.00%.
​
“Maturity Date” means December 31, 2021; provided, however, that if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day. 
​
(b)The following new definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows:

“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto. 
​
“LIBOR Replacement Date” has the meaning specified in Section 3.03(b). 
​
“LIBOR Screen Rate” means the LIBOR quote on the applicable screen page the Lender designates to determine LIBOR (or such other commercially available source providing such quotations as may be designated by the Lender from time to time).
​
“LIBOR Successor Rate” has the meaning specified in Section 3.03(b).
​
“LIBOR Successor Rate Conforming Changes” means, with respect to any LIBOR Successor Rate, any conforming changes to this Agreement, including changes to the definition of Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other technical, administrative or operational matters (including, for the avoidance of doubt, the definition of Business Day, timing of borrowing requests or prepayment, conversion or continuation notices and length of lookback periods) as may be appropriate, in the discretion of the Lender, to reflect the adoption and implementation of such LIBOR Successor Rate and to permit the administration thereof by the Lender in a manner substantially consistent with market practice (or, if the Lender determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Lender determines is reasonably necessary in connection with the administration of this Agreement and any other Loan Document).
​
“Pre-Adjustment Successor Rate” has the meaning specified in Section 3.03(b).
​
“Related Adjustment” means, in determining any LIBOR Successor Rate, the first relevant available alternative set forth in the order below that can be determined by the Lender applicable to such LIBOR Successor Rate: 
​
(A)the spread adjustment, or method for calculating or determining such spread adjustment, that has been selected or recommended by the Relevant Governmental Body for the relevant Pre-Adjustment Successor Rate (taking into account the interest period, interest payment date or payment period for interest calculated and/or tenor thereto) and which adjustment or method (x) is published on an information service as selected by the Lender from time to time in its reasonable discretion or (y) solely with respect to Term SOFR, if not currently published, which was previously so recommended for Term SOFR and published on an information service acceptable to the Lender; or
 ​

(B)the spread adjustment that would apply (or has previously been applied) to the fallback rate for a derivative transaction referencing the ISDA Definitions (taking into account the interest period, interest payment date or payment period for interest calculated and/or tenor thereto).
​
“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York. 
​
“Scheduled Unavailability Date” has the meaning specified in Section 3.03(b). 
​
“SOFR” with respect to any Business Day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York’s website (or any successor source) at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day and, in each case, that has been selected or recommended by the Relevant Governmental Body. 
​
“Term SOFR” means the forward-looking term rate for any period that is approximately (as determined by the Lender) as long as any of the Interest Period options set forth in the definition of “Interest Period” and that is based on SOFR and that has been selected or recommended by the Relevant Governmental Body, in each case as published on an information service as selected by the Lender from time to time in its reasonable discretion.
​
(c)Section 3.03 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
​
3.03Inability to Determine Rates.
​
(a)If in connection with any request for a Eurocurrency Rate Loan or a conversion to or continuation thereof, the Lender determines that (a)  deposits (whether in Dollars or an Alternative Currency) are not being offered to banks in the applicable offshore interbank market for such currency for the applicable amount and Interest Period of such Eurocurrency Rate Loan, (b) (x) adequate and reasonable means do not exist for determining the Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative Currency) or in connection with an existing or proposed Base Rate Loan and (y) the circumstances described in Section 3.03(b)(i) do not apply, (c) a fundamental change has occurred in the foreign exchange or interbank markets with respect to such Alternative Currency (including, without limitation, changes in national or international financial, political or economic conditions or currency exchange rates or exchange controls) or (d) the Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan does not adequately and fairly reflect the cost to the Lender of funding such Eurocurrency Rate Loan, the Lender will promptly so notify the Company.  Thereafter, (i) the obligation of the Lender to make or maintain Eurocurrency Rate Loans in the affected currency or currencies shall be suspended (to the extent of the affected 

Eurocurrency Rate Loans or Interest Periods), and (ii) in the event of a determination described in the preceding sentence with respect to the Eurocurrency Rate component of the Base Rate, the utilization of the Eurocurrency Rate component in determining the Base Rate shall be suspended, in each case until the Lender revokes such notice.  Upon receipt of such notice, the Borrowers may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans in the affected currency or currencies (to the extent of the affected Eurocurrency Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein. Notwithstanding the foregoing, in the case of such pending request, the Lender, in consultation with the Company, may establish an alternative interest rate for funding Loans in the applicable currency and amount, and with the same Interest Period as the Loan requested to be made, converted or continued, as the case may be in which case, such alternative rate of interest shall apply with respect to such Loans.
​
(b)Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, if the Lender determines (which determination shall be conclusive absent manifest error), or the Company notifies the Lender that the Company has determined, that:
​
(i)adequate and reasonable means do not exist for ascertaining LIBOR for any Interest Period hereunder or any other tenors of LIBOR, including, without limitation, because the LIBOR Screen Rate is not available or published on a current basis and such circumstances are unlikely to be temporary; or 
​
(ii)the administrator of the LIBOR Screen Rate or a Governmental Authority having or purporting to have jurisdiction over the Lender or such administrator has made a public statement identifying a specific date after which LIBOR or the LIBOR Screen Rate shall no longer be made available, or used for determining the interest rate of loans, provided that, at the time of such statement, there is no successor administrator that is satisfactory to the Lender, that will continue to provide LIBOR after such specific date (such specific date, the “Scheduled Unavailability Date”); or
​
(iii)the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over such administrator has made a public statement announcing that all Interest Periods and other tenors of LIBOR are no longer representative; or
​
(iv)commercial loans currently being executed, or that include language similar to that contained in this Section 3.03, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR:
​
then, in the case of clauses (i)-(iii) above, on a date and time determined by the Lender (any such date, the “LIBOR Replacement Date”), which date shall be at the end of an Interest Period or on the relevant interest payment date, as applicable, for interest calculated and shall occur reasonably promptly upon the occurrence of any of the events or circumstances under clauses (i), (ii) or (iii) above and, solely with respect to clause (ii) above, no later than the Scheduled Unavailability Date, LIBOR will be replaced hereunder 

and under any Loan Document with, subject to the proviso below, the first available alternative set forth in the order below for any payment period for interest calculated that can be determined by the Lender, in each case, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document (the “LIBOR Successor Rate”; and any such rate before giving effect to the Related Adjustment, the “Pre-Adjustment Successor Rate”):
​
(x)Term SOFR plus the Related Adjustment; and
​
(y) SOFR plus the Related Adjustment; 
​
and in the case of clause (iv) above, on the fifth Business Day after the Lender provides notice to the Company of the occurrence of the circumstances described in clause (iv) above, LIBOR under this Agreement and under any other Loan Document shall be replaced in accordance with the definition of “LIBOR Successor Rate;
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provided that, if the Lender determines that Term SOFR has become available, is administratively feasible for the Lender and would have been identified as the Pre-Adjustment Successor Rate in accordance with the foregoing if it had been so available at the time that the LIBOR Successor Rate then in effect was so identified, and the Lender notifies the Borrowers of such availability, then from and after the beginning of the Interest Period, relevant interest payment date or payment period for interest calculated, in each case, commencing no less than thirty (30) days after the date of such notice, the Pre-Adjustment Successor Rate shall be Term SOFR and the LIBOR Successor Rate shall be Term SOFR plus the relevant Related Adjustment.
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The Lender will promptly (in one or more notices) notify the Company of (x) any occurrence of any of the events, periods or circumstances under clauses (i) through (iii) above, (y) a LIBOR Replacement Date and (z) the LIBOR Successor Rate.
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Any LIBOR Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Lender, such LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Lender.
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Notwithstanding anything else herein, if at any time any LIBOR Successor Rate as so determined would otherwise be less than 0%, the LIBOR Successor Rate will be deemed to be 0% for the purposes of this Agreement and the other Loan Documents.
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In connection with the implementation of a LIBOR Successor Rate, the Lender will have the right to make LIBOR Successor Rate Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such LIBOR Successor Rate Conforming Changes will become effective without any further action or consent of any other party to this Agreement; provided that, with respect to any such amendment effected, the Lender shall provide each such amendment implementing such LIBOR Successor Rate Conforming Changes to the Company reasonably promptly after such amendment becomes effective.

If the events or circumstances of the type described in Section 3.03(b)(i)-(iii) have occurred with respect to the LIBOR Successor Rate then in effect, then the successor rate thereto shall be determined in accordance with the definition of “LIBOR Successor Rate.”
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(c)Notwithstanding anything to the contrary herein, (i) after any such determination by the Lender or receipt by the Lender of any such notice described under Section 3.03(b)(i)-(iii), as applicable, if the Lender determines that none of the LIBOR Successor Rates is available on or prior to the LIBOR Replacement Date, (ii) if the events or circumstances described in Section 3.03(b)(iv) have occurred but none of the LIBOR Successor Rates is available, or (iii) if the events or circumstances of the type described in Section 3.03(b)(i)-(iii) have occurred with respect to the LIBOR Successor Rate then in effect and the Lender determines that none of the LIBOR Successor Rates is available, then in each case, solely for the purpose of replacing LIBOR or any then current LIBOR Successor Rate in accordance with this Section 3.03 at the end of any Interest Period, relevant interest payment date or payment period for interest calculated, as applicable, Lender may designate by prior notice to the Company  another alternate benchmark rate to be effective under this Agreement on the fifth Business Day following notice, giving due consideration to any evolving or then existing convention for similar Dollar denominated commercial credit facilities for such alternative benchmarks and, in each case, including any Related Adjustments and any other mathematical or other adjustments to such benchmark giving due consideration to any evolving or then existing convention for similar Dollar denominated commercial credit facilities for such benchmarks, which adjustment or method for calculating such adjustment shall be published on an information service as selected by the Lender from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such alternative rate and adjustments shall constitute a LIBOR Successor Rate. 
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(d)If, at the end of any Interest Period, relevant interest payment date or payment period for interest calculated, no LIBOR Successor Rate has been determined in accordance with clauses (b) or (c) of this Section 3.03 and the circumstances under clauses (b)(i) or (b)(iii) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Lender will promptly so notify the Company. Thereafter, (x) the obligation of the Lender to make or maintain Eurocurrency Rate Loans shall be suspended, (to the extent of the affected Eurocurrency Rate Loans, Interest Periods, interest payment dates or payment periods), and (y) the Eurocurrency Rate component shall no longer be utilized in determining the Base Rate, until the LIBOR Successor Rate has been determined in accordance with clauses (b) or (c). Upon receipt of such notice, a Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans (to the extent of the affected Eurocurrency Rate Loans, Interest Periods, interest payment dates or payment periods) or, failing that, will be deemed to have converted such request into a request for a committed Borrowing of Base Rate Loans (subject to the foregoing clause (y)) in the amount specified therein.  
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(d)A new Section 7.14 is hereby added to the Credit Agreement to read as follows: 
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7.14Liquidity. 
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At all times that the sum of (i) the Total Revolving Outstandings plus (ii) the Dollar Equivalent amount of the aggregate principal amount of all loan or other credit extensions made by the Lender (or its Affiliates) to Subsidiaries of the Company organized under the laws of China or Taiwan (such sum amount, the “Specified Outstanding Amount”) exceeds $25,000,000, the Company will not permit the amount of unrestricted cash-on-hand of the Company and its Subsidiaries to be less than the Specified Outstanding Amount.
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3.Conditions Precedent.  This Amendment shall become effective as of the date hereof upon:
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(a)receipt by the Lender of this Amendment properly executed by the Loan Parties and the Lender;
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(b)receipt by the Lender of a certificate of a Responsible Officer dated the date hereof, certifying as to the Organization Documents of each Loan Party and all necessary action to authorize, including the resolutions of the governing body of each Loan Party, the good standing (to the extent applicable), existence or its equivalent of each Loan Party and of the incumbency (including specimen signatures) of the Responsible Officers of each Loan Party;
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(c)receipt by the Lender of all “know your customer” or Beneficial Ownership information relating to the Company and its Subsidiaries as it shall request; and
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(d)payment of the reasonable fees and expenses of counsel to the Lender.
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4.Amendment is a “Loan Document”.  This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including, without limitation, all such references in the representations and warranties in the Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment.
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5.Representations and Warranties; No Default.  Each Loan Party represents and warrants to the Lender that, on and as of the date hereof, immediately after giving effect to this Amendment, (a) each of the representations and warranties of each Loan Party contained in Article V of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection therewith, are true and correct in all material respects (or, if qualified by materiality or material or Material Adverse Effect, in all respects), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and (b) no Default exists.
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6.Reaffirmation of Obligations.  Each Loan Party (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment and all documents, agreements and instruments executed in connection with this Amendment do not operate to reduce or discharge such Loan Party’s obligations under the Loan Documents.
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7.No Other Changes.  Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in full force and effect.
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8.Counterparts; Delivery.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of this Amendment by facsimile or other electronic imaging means shall be effective as an original.
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9.Governing Law.  This Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of New York.
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[SIGNATURE PAGES FOLLOW]
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Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.
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BORROWERS:HURCO COMPANIES, INC.
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By: /s/ Michael Doar​ ​
Name: Michael Doar
Title: Chief Executive Officer
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HURCO B.V.
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By: /s/ Sonja K. McClelland​ ​
Name: Sonja K. McClelland
Title: Managing Director and Authorized Representative
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GUARANTORS:HURCO INTERNATIONAL HOLDINGS, INC.
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By: /s/ Sonja K. McClelland​ ​
Name: Sonja K. McClelland
Title: Secretary/Treasurer
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MILLTRONICS USA, INC.
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By: /s/ Sonja K. McClelland​ ​
Name: Sonja K. McClelland
Title: Secretary/Treasurer
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MACHINERY SALES CO. LLC
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By: /s/ Sonja K. McClelland​ ​
Name: Sonja K. McClelland
Title: Manager 
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HURCO MIDWEST LLC
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By: /s/ Sonja K. McClelland​ ​
Name: Sonja K. McClelland
Title: Secretary/Treasurer
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PROCOBOTS LLC
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By: /s/ Sonja K. McClelland​ ​
Name: Sonja K. McClelland
Title: Manager 
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LENDER:BANK OF AMERICA, N.A.,
as Lender
By: /s/ Matthew Doye​ ​
Name: Matthew Doye
Title: Senior Vice President

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