Document:

Document

Exhibit 10.1

AMENDMENT NO. 2 TO CREDIT AGREEMENT
AMENDMENT NO. 2 TO CREDIT AGREEMENT, dated as of April 29, 2020 (this “Agreement”), by and among Coty Inc., a Delaware corporation (the “Parent Borrower”), Coty B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands (the “Dutch Borrower”), the Lenders party hereto (which such Lenders constitute the Required TLA Lenders and the Required Revolving Lenders) and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).
RECITALS:
WHEREAS, reference is hereby made to the Amended and Restated Credit Agreement, dated as of April 5, 2018 (as amended by Amendment No. 1 to Credit Agreement, dated as of June 27, 2019, and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement” and, as amended by this Agreement, the “Credit Agreement”), by and among the Parent Borrower, the lenders from time to time party thereto and the Administrative Agent and Collateral Agent (capitalized terms used but not otherwise defined herein having the meanings provided in the Credit Agreement);
WHEREAS, the Parent Borrower has requested that the Required TLA Lenders and the Required Revolving Lenders amend the Credit Agreement pursuant to Section 10.02(b) of the Credit Agreement as set forth herein; and
NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1.Amendments to Credit Agreement.  Each of the parties hereto agrees that, effective on the Second Amendment Effective Date:
(a)Clause (B) of the definition of “Excluded Equity Interest” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:
(B) Equity Interests of any Person other than any Borrower or any wholly owned Material Subsidiary that is a Restricted Subsidiary directly owned by a Borrower or any Subsidiary Loan Party (other than any Equity Interests in King Kylie, LLC, a Delaware limited liability company, owned by any Loan Party)
(b)Section 7.01 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:
Section 7.01 Leverage Ratio
Solely with respect to the Revolving Facility and Term A Facility, until the Date of Full Satisfaction (solely with respect to the Revolving Facility and the Term A Facility), the Parent Borrower covenants and agrees with Lenders that as of the last 
        

day of each fiscal quarter commencing with the first full fiscal quarter following the Restatement Effective Date, the Parent Borrower shall not permit the Total Net Leverage Ratio for any Test Period set forth below to exceed the applicable level set forth below opposite such Test Period under the heading “Total Net Leverage Ratio”:
						
	Test Periods Ending	Total Net Leverage Ratio
	June 30, 2018	5.50 to 1.00
	September 30, 2018	5.50 to 1.00
	December 31, 2018	5.50 to 1.00
	March 31, 2019	5.25 to 1.00
	June 30, 2019	5.25 to 1.00
	September 30, 2019	5.25 to 1.00
	December 31, 2019	5.25 to 1.00
	March 31, 2020	5.25 to 1.00
	June 30, 2020	N/A (not tested)
	September 30, 2020	N/A (not tested)
	December 31, 2020	N/A (not tested)
	March 31, 2021	N/A (not tested)
	June 30, 2021	5.25 to 1.00
	September 30, 2021	5.25 to 1.00
	December 31, 2021	5.25 to 1.00
	March 31, 2022	5.00 to 1.00
	June 30, 2022	4.75 to 1.00
	September 30, 2022	4.50 to 1.00
	December 31, 2022	4.25 to 1.00
	March 31, 2023	4.00 to 1.00
	June 30, 2023	4.00 to 1.00

Notwithstanding the foregoing or anything to the contrary in any Loan Document:
(a)for the four fiscal quarters ended immediately following the closing of a Material Acquisition (including the fiscal quarter in which such Material Acquisition occurs), the applicable Total Net Leverage Ratio level for purposes of this Section 7.01 shall be the lesser of (x) 1.00:1.00 higher than the otherwise applicable level and (y) 5.95:1.00; provided, however, that, immediately after any such four fiscal quarter period, there shall be at least two consecutive fiscal quarters during which the Total Net Leverage Ratio shall be equal to or less than the applicable level set forth above opposite the applicable Test Period (irrespective of whether any other Material Acquisition has been consummated during such period);
(b)for the avoidance of doubt, compliance with the Financial Covenant shall not be required in the case of any fiscal quarter ending on June 30, 2020, September 30, 2020, December 31, 2020 or March 31, 2021; and

        

(c)it shall constitute a Financial Covenant Event of Default in the event that any Specified Event occurs at any time during the Waiver Period.
For purposes of this Section 7.01, the following terms shall have the meanings specified below:
“Available Cash Threshold” means (x) $350,000,000 or (y) following the receipt by the Parent Borrower or any Restricted Subsidiary of Net Proceeds in respect of any event described in clause (a) or (b) of the definition of the term “Prepayment Event” in an amount equal to or in excess of $250,000,000 in the aggregate for all such events during the Waiver Period, $500,000,000.
“Second Amendment” means that certain Amendment No. 2 to Credit Agreement, dated as of April 29, 2020, by and among the Parent Borrower, the Dutch Borrower, the Lenders party thereto (which such Lenders constituted the Required TLA Lenders and the Required Revolving Lenders at such time) and the Administrative Agent. 
“Second Amendment Effective Date” means April 29, 2020. 
“Specified Event” means, at any time during the Waiver Period, the occurrence of any of the following events, circumstances or conditions, in any such case, except with respect to such events, circumstances and conditions (if any) that the Required TLA Lenders and the Required Revolving Lenders expressly agree (in their sole discretion and in writing from time to time after the Second Amendment Effective Date) shall not constitute a “Specified Event” for purposes of this Section 7.01:
(a)the Parent Borrower shall allow the sum of (x) unrestricted cash and Cash Equivalents of the Parent Borrower and its Restricted Subsidiaries as determined in accordance with GAAP and (y)(i) the total Revolving Commitments minus (ii) the total Revolving Exposure, to be less than the Available Cash Threshold at any time (the “Minimum Liquidity Covenant”); 
(b)the Parent Borrower or any Restricted Subsidiary shall have received any Net Proceeds in respect of any event described in clause (a) or (b) of the definition of the term “Prepayment Event” in excess of $500,000,000 in the aggregate for all such events that are not applied to prepay Term Borrowings pursuant to Section 2.11(c) of this Agreement (without giving effect to the proviso thereto);
(c)any Borrower shall, or shall permit any Restricted Subsidiary to, create, incur or assume any Indebtedness that is secured by a Lien on the Collateral pursuant to clause (y) or (dd) of Section 6.01;
(d)the Parent Borrower shall incur any Incremental Facility pursuant to Section 2.20 of this Agreement;

        

(e)any Borrower shall, or shall permit any Restricted Subsidiary to, create, incur or assume any Lien on the Collateral pursuant to clause (p) (other than any security interests created, incurred or assumed to secure (i) Indebtedness permitted by clause (e) of Section 6.01 or (ii) Capital Lease Obligations, mortgage financings or purchase money indebtedness (including any industrial revenue bonds, industrial development bonds and similar financings) permitted by clause (t) of Section 6.01), (w) or (cc) of Section 6.02;
(f)any Borrower shall, or shall permit any Restricted Subsidiary to, make any Investment pursuant to clause (k), (p), (u), (v), (y) or (bb) of Section 6.04 that involves the acquisition of any Equity Interests in or other securities (including any option, warrant or other right to acquire any of the foregoing) of any other Person, or the purchase or other acquisition (in one transaction or a series of transactions) of any assets of any other Person constituting a business unit or all or substantially all of the assets of a division or branch of any Person; 
(g)any Borrower shall, or shall permit any Restricted Subsidiary to, make any Restricted Payment pursuant to clause (a)(ix), (a)(x), (a)(xi), (a)(xii) or (a)(xiv) of Section 6.07 (x) in cash to any JAB Affiliate or any other direct or indirect holder of any Equity Interests in the Parent Borrower or (y) that would result in the repurchase, retirement or other acquisition or retirement for value by the Parent Borrower or any Restricted Subsidiary of Equity Interests of the Parent Borrower or any Parent Company;
(h)the Parent Borrower shall fail to deliver, within five (5) Business Days of the end of each calendar month, a certificate of a Financial Officer of the Parent Borrower (i) certifying as to whether a Default, which has not previously been disclosed or which has not been cured, has occurred and, if such a Default is continuing, specifying the details thereof and any action taken or proposed to be taken with respect thereto and (ii) setting forth reasonably detailed calculations demonstrating compliance with the Minimum Liquidity Covenant; and/or
(i)notwithstanding anything in Section 5.02 to the contrary, the Parent Borrower shall, after a Responsible Officer of the Parent Borrower has obtained knowledge thereof, fail to furnish to the Administrative Agent prompt written notice (which in no event shall be later than one (1) Business Day following the date on which such knowledge is obtained) of a failure to satisfy the Minimum Liquidity Covenant.
“Waiver Period” means the period commencing with the Second Amendment Effective Date and ending on, but not including, April 1, 2021.
SECTION 2.Second Amendment Effective Date Conditions. This Agreement will become effective as of the date first written above (the “Second Amendment Effective Date”); provided that each of 

        

the following conditions shall have been satisfied (or waived) in accordance with the terms therein on or prior to such date: 
(i)Executed Agreement.  The Administrative Agent shall have received a counterpart of this Agreement signed on behalf of (i) the Parent Borrower and the Dutch Borrower, (ii) the Administrative Agent, (iii) the Required TLA Lenders and (iv) the Required Revolving Lenders.
(ii)Closing Certificate.  The Administrative Agent shall have received a certificate from a Responsible Officer of the Parent Borrower certifying (i) the representations and warranties set forth herein and in the Loan Documents are true and correct in all material respects with the same force and effect as if such representations and warranties had been made on and as of the Second Amendment Effective Date except to the extent that such representations and warranties relate specifically to another date; provided that any representation and warranty that is qualified as to materiality shall be true and correct in all respects (after giving effect to such qualification therein) and (ii) at the time of and immediately after giving effect to this Agreement, no Default or Event of Default shall exist or result therefrom.
(iii)No Default. At the time of and immediately after giving effect to this Agreement, no Default or Event of Default shall exist or result therefrom.
(iv)Fees and Expenses.  The Administrative Agent shall have received (i) for the account of each Term A Lender and Revolving Lender who has delivered a counterpart to this Agreement, an amendment fee in an amount equal to 0.25% of the aggregate principal amount of the Revolving Commitments and outstanding Term A Loans of such Lender paid by or on behalf of the Parent Borrower and (ii) all other expenses due and payable on or prior to the Second Amendment Effective Date, to the extent invoiced at least three (3) Business Days prior to the Second Amendment Effective Date (or such shorter period reasonably agreed by the Parent Borrower).
SECTION 3.Representations and Warranties.  By its execution of this Agreement, each Loan Party party hereto hereby represents and warrants that:
(i)Organization; Powers.  The Parent Borrower and each of its Restricted Subsidiaries (a) is validly existing under the laws of the jurisdiction of its organization or formation, except, in the case of a Restricted Subsidiary, where the failure to be so could not reasonably be expected to result in a Material Adverse Effect, (b) has all requisite power and authority to carry on its business as now conducted, except, in the case of a Restricted Subsidiary, where the failure to have such could not reasonably be expected to result in a Material Adverse Effect and (c) except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing (where relevant) in, its jurisdiction of organization or formation and every other jurisdiction where such qualification is required.
(ii)Authorization; Enforceability.  The Parent Borrower and each Loan Party has the corporate or other organizational power and authority to execute, deliver and carry out the terms and provisions of the Loan Documents to which it is a party and has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party.  This Agreement has been duly executed and delivered by the Parent Borrower and constitutes, and each other Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan Party, will constitute, a legal, valid and binding obligation of the Parent Borrower or such other Loan Party (as the case may be), enforceable in accordance with its terms, 

        

subject to applicable bankruptcy, insolvency, reorganization, moratorium, capital impairment, recognition of judgments, recognition of choice of law, enforcement of judgments or other similar laws or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law and other matters which are set out as qualifications or reservations as to matters of law of general application in any legal opinion delivered to the Administrative Agent in connection with the Loan Documents.
(iii)Governmental Approvals; No Conflicts.  The execution, delivery and performance of the Loan Documents: (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect, (ii) filings necessary to perfect Liens created under the Loan Documents and (iii) for consents, approvals, registrations, filing or other actions, the failure of which to obtain or make would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (b) will not violate (i) any applicable Law or regulation or (ii) in any material respect, the charter, by-laws or other organizational documents of the Parent Borrower or any of its Restricted Subsidiaries or any order of any Governmental Authority binding on such Person, (c) will not violate or result in a default under any material indenture, agreement or other instrument binding upon the Parent Borrower or any of its Restricted Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Parent Borrower or any of its Restricted Subsidiaries, and (d) will not result in the creation or imposition of any material Lien on any asset of the Parent Borrower or any of its Restricted Subsidiaries, except Liens created under and Liens permitted by the Loan Documents, and except to the extent such violation or default referred to in clause (b)(i) or (c) above could not reasonably be expected to result in a Material Adverse Effect.
SECTION 4.Reaffirmation of the Loan Parties. Each Loan Party party hereto hereby consents to the amendment of the Credit Agreement effected hereby and confirms and agrees that, notwithstanding the effectiveness of this Agreement, each Loan Document to which such Loan Party is a party is, and the obligations of such Loan Party contained in the Credit Agreement, this Agreement or in any other Loan Document to which it is a party are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects, in each case as amended by this Agreement.  For greater certainty and without limiting the foregoing, each Loan Party party hereto hereby confirms that the existing guarantees and/or security interests granted by such Loan Party in favor of the Administrative Agent for the benefit of the Secured Parties pursuant to the Loan Documents in the Collateral described therein shall continue to secure the obligations of the Loan Parties under the Credit Agreement and the other Loan Documents as and to the extent provided in the Loan Documents.
SECTION 5.Form of Compliance Certificate.  The parties hereto agree that the certificate of a Financial Officer of the Parent Borrower required to be delivered pursuant to clause (h) of the definition of “Specified Event” shall be substantially in the form attached hereto as Exhibit A.
SECTION 6.Amendment, Modification and Waiver.  This Agreement may not be amended, modified or waived except as permitted by Section 10.02 of the Credit Agreement. The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor, except as expressly provided herein, constitute a waiver or amendment of any provision of any of the Loan Documents.
SECTION 7.Entire Agreement.  This Agreement, the Credit Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent, the 

        

Collateral Agent or the Lenders, embody the final, entire agreement among the parties relating to the subject matter hereof and supersede any and all previous commitments, agreements, representations and understandings, whether oral or written, relating to the subject matter hereof and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto.  There are no unwritten oral agreements among the parties hereto.
SECTION 8.GOVERNING LAW.  This AGREEMENT shall be construed in accordance with and governed by the law of the State of New York.
SECTION 9.Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
SECTION 10.Counterparts; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Delivery of an executed counterpart of a signature page of this Agreement by email or other electronic means (including a “.pdf” or “.tif” file) shall be effective as delivery of a manually executed counterpart of this Agreement.  The words “execution,” “signed,” “signature,” and words of like import in this Agreement, any other Loan Document or any agreement entered into in connection therewith shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
SECTION 11.WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THE LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.
SECTION 12.Loan Document; Effect of Amendment.  On and after the Second Amendment Effective Date, this Agreement shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents (it being understood that for the avoidance of doubt this Agreement may be amended or waived solely by the parties hereto as set forth in Section 6 above).  Upon and after the execution 

        

of this Agreement by each of the parties hereto, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified hereby.
[Signature Pages Follow]

        

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first set forth above.

COTY INC.
By:    /s/ Pierre-Andre Terisse      
        Name: Pierre-Andre Terisse
        Title: Chief Financial Officer and Chief   Operating Officer

COTY B.V.
By:    /s/ Christian Bruechle      
        Name: Christina Bruechle
        Title: Director

[Signature Page to Amendment No. 2]

JPMORGAN CHASE BANK, N.A., 
as Administrative Agent, Term A Lender and Revolving Lender
By:    /s/ Tony Yung      
        Name: Tony Yung
        Title: Executive Director

[Signature Page to Amendment No. 2]

MIZUHO BANK LTD.,
as Revolving Lender

By:    /s/ Tracy Rahn   
        Name: Tracy Rahn
        Title: Executive Director

MIZUHO BANK LTD.,
as Term A Lender

By:    /s/ Tracy Rahn   
        Name: Tracy Rahn
        Title: Executive Director

[Signature Page to Amendment No. 2]

ING Bank N.V., Dublin Branch,
as a Revolving Lender

By:    /s/ Barry Fehily    
        Name: Barry Fehily
        Title: Managing Director

By:    /s/ Sean Hassett    
        Name: Sean Hassett
        Title:Director
[Signature Page to Amendment No. 2]

HSBC Bank USA, National Association

as Revolving Lender

By:    /s/ Jaime Mariano   
        Name: Jaime Mariano
        Title: Senior Vice President #21440

HSBC Bank USA, National Association

as Term A Lender

By:    /s/ Jaime Mariano   
        Name: Jaime Mariano
        Title: Senior Vice President #21440
[Signature Page to Amendment No. 2]

Fifth Third Bank, National Association

as Revolving Lender

By:    /s/ Jose A. Rosado   
        Name: Jose A. Rosado
        Title: Senior Vice President 

Fifth Third Bank, National Association

as Term A Lender

By:    /s/ Jose A. Rosado   
        Name: Jose A. Rosado
        Title: Senior Vice President 
[Signature Page to Amendment No. 2]

PT. Bank Negara Indonesia (Perero), Tbk New York Agency,
as a Term A Lender

By:    /s/ Jerry Phillips    
        Name: Jerry Phillips
        Title: Relationship Manager

By:    /s/ Aidil Azhar    
        Name: Aidil Azhar
        Title: General Manager
[Signature Page to Amendment No. 2]

North Westerly CLO IV 2013 B.V.,
as  Term A Lender

By:    /s/ Joanna Nicolaou    
        Name: Joanna Nicolau
        Title: Associate Director

By:    /s/ Stuart Pirrie    
        Name: Stuart Pirrie
        Title: Director
[Signature Page to Amendment No. 2]

LANDESBANK BADEN-WURTTEMBERG, ACTING THROUGH ITS NEW YORK BRANCH,
as  Revolving Lender

By:    /s/ Simone Ehmann   
        Name: Simone Ehmann
        Title: Director

By:    /s/ Ralf Enders     
        Name: Ralf Enders
        Title: Executive Director

LANDESBANK BADEN-WURTTEMBERG, ACTING THROUGH ITS NEW YORK BRANCH,
as Term A Lender

By:    /s/ Simone Ehmann   
        Name: Simone Ehmann
        Title: Director

By:    /s/ Ralf Enders     
        Name: Ralf Enders
        Title: Executive Director
[Signature Page to Amendment No. 2]

Credit Industriel et Commercial,
New York Branch,
as  Revolving Lender

By:    /s/ Gary Weiss    
        Name: Gary Weiss
        Title: Managing Director

By:    /s/ Clifford Abramsky   
        Name: Clifford Abramsky
        Title: Managing Director

Credit Industriel et Commercial,
New York Branch,
as Term A Lender

By:    /s/ Gary Weiss    
        Name: Gary Weiss
        Title: Managing Director

By:    /s/ Clifford Abramsky   
        Name: Clifford Abramsky
        Title: Managing Director
[Signature Page to Amendment No. 2]

TriState Capital Bank,
as Term A Lender

By:    /s/ Ellen Frank   
        Name: Ellen Frank
        Title: Senior Vice President

[Signature Page to Amendment No. 2]

First Commercial Bank, Ltd., a Republic of China acting through its Los Angeles Branch
as Term A Lender

By:    /s/ Sophia Yu-Shu Cheng   
        Name: Sophia Yu-Shu Cheng
        Title: SAVP & Deputy General Manager

[Signature Page to Amendment No. 2]

Taiwan Business Bank, Los Angeles Branch
as Term A Lender

By:    /s/ Cindy Lin   
        Name: Cindy Lin
        Title: Deputy General Manage
[Signature Page to Amendment No. 2]

DEUTSCHE BANK AG NEW YORK BRANCH,
as Revolving Lender

By:    /s/ Ming K. Chu    
        Name: Ming K. Chu
        Title: Director

By:    /s/ Annie Chung   
        Name: Annie Chung
        Title: Director

DEUTSCHE BANK AG NEW YORK BRANCH,
as Term A Lender

By:    /s/ Ming K. Chu    
        Name: Ming K. Chu
        Title: Director

By:    /s/ Annie Chung   
        Name: Annie Chung
        Title: Director
[Signature Page to Amendment No. 2]

MUFG BANK LTD.,
as Revolving Lender

By:    /s/ Liwei Liu    
        Name: Liwei Liu
        Title: Vice President

MUFG BANK LTD.,
as Term A Lender

By:    /s/ Liwei Liu    
        Name: Liwei Liu
        Title: Vice President
[Signature Page to Amendment No. 2]

Santander Bank, N.A.
as Revolving Lender

By:    /s/Carolina Gutierrez    
        Name: Carolina Gutierrez
        Title: Vice President

By:    /s/Zara Kamal    
        Name: Zara Kamal
        Title: Vice President

Santander Bank, N.A.,
as Term A Lender

By:    /s/Carolina Gutierrez    
        Name: Carolina Gutierrez
        Title: Vice President

By:    /s/Zara Kamal    
        Name: Zara Kamal
        Title: Vice President
[Signature Page to Amendment No. 2]

TD BANK N.A.,
as Revolving Lender

By:    /s/ Matt Waszmer   
        Name: Matt Waszmer
        Title: Senior Vice President

TD BANK N.A.,
as Term A Lender

By:    /s/ Matt Waszmer   
        Name: Matt Waszmer
        Title: Senior Vice President
[Signature Page to Amendment No. 2]

UNICREDIT BANK AG, NEW YORK BRANCH,
as Revolving Lender

By:    /s/Fabio Della Malva   
        Name: Fabio Della Malva
        Title: Managing Director

By:    /s/Laura Shelmerdine                              
Name: Laura Shelmerdine
Title: Associate Director
UNICREDIT BANK AG, NEW YORK BRANCH

By:    /s/Fabio Della Malva   
        Name: Fabio Della Malva
        Title: Managing Director

By:    /s/Laura Shelmerdine                               
Name: Laura Shelmerdine
Title: Associate Director
[Signature Page to Amendment No. 2]

ZAIS CLO 1, Limited 
As Term A Lender

By:    /s/John Veidis   
        Name: John Veidis
        Title: Director

[Signature Page to Amendment No. 2]

ZAIS CLO 3, Limited 
As Term A Lender

By:    /s/John Veidis   
        Name: John Veidis
        Title: Director

[Signature Page to Amendment No. 2]

ZAIS CLO 5, Limited 
As Term A Lender

By:    /s/John Veidis   
        Name: John Veidis
        Title: Director
[Signature Page to Amendment No. 2]

ZAIS CLO 7, Limited 
As Term A Lender

By:    /s/John Veidis   
        Name: John Veidis
        Title: Director
[Signature Page to Amendment No. 2]

ZAIS CLO 8, Limited 
As Term A Lender

By:    /s/John Veidis   
        Name: John Veidis
        Title: Director
[Signature Page to Amendment No. 2]

HSBC BANK AUSTRALIA LIMITED
as a Term A Lender

By:    /s/ Nadia Ladak    
        Name: Nadia Ladak
        Title: Power-of-Attorney/Country Head of  International Subsidiaries

[Signature Page to Amendment No. 2]

BARINGS CLO LTD. 2013-I,
as a Term A Lender
By Barings LLC as Collateral Manager

By:    /s/ Jeffrey Stuart   
        Name: Jeffrey Stuart
        Title:   Director

[Signature Page to Amendment No. 2]

SUMITOMO MITSUI BANKING CORPORATION
as Revolving Lender

By:    /s/ Katie Lee   
        Name: Katie Lee
        Title: Director

SUMITOMO MITSUI BANKING CORPORATION
as Term A Lender

By:    /s/ Katie Lee   
        Name: Katie Lee
        Title: Director
[Signature Page to Amendment No. 2]

M&G Conservative European Loan Fund Limited
as a Term A Lender

By:    /s/ Aditi Rao    
        Name: Aditi Rao
        Title: Authorised Signatory

[Signature Page to Amendment No. 2]

Citibank, N.A.,
as Revolving Lender

By:    /s/ Bob Kane    
        Name: Bob Kane
        Title: Managing Director

Citibank, N.A.,
as Term A Lender

By:    /s/ Bob Kane    
        Name: Bob Kane
        Title: Managing Director

[Signature Page to Amendment No. 2]

INTESA SANPAOLO S.p.A., New York Branch,
as Revolving Lender 

By:    /s/ Alessandro Toigo    
        Name: Alessandro Toigo
        Title: Head of Corporate Desk

By:    /s/Anne Culver   
        Name: Anne Culver
        Title: Relationship Manager

INTESA SANPAOLO S.p.A., New York Branch,
as a Revolving Lender and a Term A Lender

By:    /s/ Alessandro Toigo    
        Name: Alessandro Toigo
        Title: Head of Corporate Desk

By:    /s/Anne Culver   
        Name: Anne Culver
        Title: Relationship Manager
[Signature Page to Amendment No. 2]

Z Capital Credit Partners CLO 2015-1 Ltd, 
as Term A Lender

By: Z Capital CLO Management L.L.C., its Portfolio Manager

By:    /s/ Mark Punda    
        Name: Mark Punda
        Title: Authorized Person

[Signature Page to Amendment No. 2]

ING BANK, A BRANCH OF ING-DiBa AG,
as a Term A Lender

By:    /s/ W. Jansen    
        Name: Wouter Jansen 
        Title:  Director

By:    /s/ Mariusz Lyp    
        Name: Mariusz Lyp
        Title: Credit Risk Management
[Signature Page to Amendment No. 2]

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
as Revolving Lender 

By:    /s/ Gordon Yip   
        Name: Gordon Yip
        Title:  Director

By:    /s/ Jill Wong   
        Name: Jill Wong
        Title: Director

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
as Term A Lender

By:    /s/ Gordon Yip   
        Name: Gordon Yip
        Title:  Director

By:    /s/ Jill Wong   
        Name: Jill Wong
        Title: Director

[Signature Page to Amendment No. 2]

CQS Credit Multi Asset Fund, a sub-fund of CQS Global Funds (Ireland) plc, 
as Term A Lender

By:    /s/Sarah Higgins                            
Name: Sarah Higgins
        Title: Authorised Signatory

[Signature Page to Amendment No. 2]

VIRTUS SEIX FLOATING RATE HIGH INCOME FUND,
as  Term A Lender

By: Seix Investment Advisors LLC, as Subadviser

By:    /s/ Deirdre A. Dillon   
        Name: Deirdre A. Dillon, Esq
        Title:  Chief Compliance Officer

[Signature Page to Amendment No. 2]

BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
NEW YORK BRANCH,
as a Revolving Lender/Term A Lender

By:    /s/ Cara Younger    
        Name: Cara Younger
        Title: Executive Director
By:    /s/ Miriam Trautman    
        Name: Miriam Trautman
        Title: Senior Vice President
[Signature Page to Amendment No. 2]

Elevation CLO 2015-4, Ltd,
as Term A Lender

By:    /s/ Sanjai Bhonsle    
        Name: Sanjai Bhonsle
        Title: Partner, Portfolio Manager

[Signature Page to Amendment No. 2]

Bank of America, N.A.,
as Revolving Lender

By:    /s/ Casey Cosgrove    
        Name: Casey Cosgrove
        Title: Director

Bank of America, N.A.,
as Term A Lender

By:    /s/ Casey Cosgrove    
        Name: Casey Cosgrove
        Title: Director
[Signature Page to Amendment No. 2]

Bank of Montreal,
as  Revolving Lender

By:    /s/ Tom Woolgar                 
Name: Tom Woolgar
        Title: Managing Director

By:    /s/ Scott Matthews                
Name: Scott Matthews
        Title: Managing Director
[Signature Page to Amendment No. 2]

Bank of Montreal,
as  Revolving Lender

By:    /s/ Joan Murphy               
Name: Joan Murphey
        Title: Managing Director

Bank of Montreal,
as  Term A Lender

By:    /s/ Joan Murphy               
Name: Joan Murphey
        Title: Managing Director
[Signature Page to Amendment No. 2]

Landesbank Hessen-Thuringen Girozentrale
as  Revolving Lender

By:    /s/ Bjorn Abels             
Name: Bjorn Abels
        Title: Executive Director

By:    /s/ Klaus Schuler            
Name: Klaus Schuler
        Title: Managing Director

Landesbank Hessen-Thuringen Girozentrale
as  Term A Lender

By:    /s/ Bjorn Abels             
Name: Bjorn Abels
        Title: Executive Director

By:    /s/ Klaus Schuler            
Name: Klaus Schuler
        Title: Managing Director

[Signature Page to Amendment No. 2]

AMMC CLO 15, Limited as Term A Lender

By: American Money Management Corp, as Collateral Manager

By:    /s/ David P. Meyer             
Name: David P. Meyer
        Title: Senior Vice President

[Signature Page to Amendment No. 2]

Morgan Stanley Bank International Limited
As Term A Lender

By:    /s/ Robbie Dunsmore             
Name: Robbie Dunsmore
        Title: Authorised Signatory

[Signature Page to Amendment No. 2]

EXECUTED by
BARINGS EURO CLO 2014-1 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory

EXECUTED by
BARINGS EURO CLO 2014-2 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory

EXECUTED by
BARINGS EURO CLO 2019-1DAC
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory

[Signature Page to Amendment No. 2]

EXECUTED by
BARINGS EURO CLO 2018-3 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory

EXECUTED by
BARINGS EURO CLO 2016-1 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory

EXECUTED by
BARINGS EURO CLO 2017-1 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory
[Signature Page to Amendment No. 2]

EXECUTED by
BARINGS EURO CLO 2018-2 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory

BARINGS EURO CLO 2019-2 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory

EXECUTED by
BARINGS EURO CLO 2018-1 B.V.
acting by its Collateral Manager
BARINGS (U.K.) LIMITED

As a Term A Lender
acting by its authorised signatory

By:    /s/ Stuart Mathieson             
Name: Stuart Mathieson
        Title: Authorised Signatory
[Signature Page to Amendment No. 2]Document

Exhibit 10.10

LOAN MODIFICATION AGREEMENT AND
AMENDMENT TO LOAN DOCUMENTS
THIS LOAN MODIFICATION AGREEMENT AND AMENDMENT TO LOAN DOCUMENTS (this “Agreement”) is effective as of the 30th day of April, 2020, by and among CONSTRUCTION PARTNERS INC., a Delaware corporation (“Construction Partners”); WIREGRASS CONSTRUCTION COMPANY, INC., an Alabama corporation (“Wiregrass Construction”); FSC II, LLC, a North Carolina limited liability company (“FSC”); C. W. ROBERTS CONTRACTING, INCORPORATED, a Florida corporation (“Roberts Contracting”); EVERETT DYKES GRASSING CO., INC., a Georgia corporation (“Everett Dykes” and together with Wiregrass Construction, FSC, and Roberts Contracting, the “Original Borrowers”); THE SCRUGGS COMPANY, a Georgia corporation (“Scruggs Company” and together with the Original Borrowers and Construction Partners, the “Borrowers”); BBVA USA, a bank organized under the laws of the State of Alabama, formerly known as Compass Bank, as agent for the Lenders and as a Lender and Issuing Bank (referred to herein as “Agent”); and BANK OF AMERICA, N.A., a national banking association, as a Lender (“Bank of America”).  Each of Agent and Bank of America shall be referred to herein as a “Lender” and collectively, “Lenders.”  
P R E A M B L E
WHEREAS, Original Borrowers, Construction Partners Holdings, Inc., a Delaware corporation (“Holdings”) and Fred Smith Construction, Inc. a North Carolina corporation (“Fred Smith Construction”), together with certain other entities that hereafter may become borrowers or guarantors under the Credit Agreement, including Scruggs Company, have entered into a Credit Agreement dated June 30, 2017 (as at any time amended, modified, supplemented or restated, including by (a) that certain Loan Modification Agreement and Amendment to Loan Documents dated as of November 14, 2017, (b) that certain Loan Modification Agreement and Amendment to Loan Documents dated as of December 31, 2017, (c) that certain Loan Modification Agreement and Amendment to Loan Documents dated as of May 15, 2018, (d) that certain Loan Modification Agreement and Amendment to Loan Documents dated as of August 30, 2019, (e) that certain Loan Modification Agreement and Amendment to Loan Documents dated as of October 1, 2019, (f) that certain Loan Modification Agreement and Amendment to Loan Documents dated October 18, 2019, but effective October 1, 2019, and (g) that certain Loan Modification Agreement and Amendment to Loan Documents dated December 31, 2019, the “Credit Agreement”), with Agent, in its capacity as “Agent” and “Lender” thereunder, and certain other Lenders a party thereto, pursuant to which Agent and Lenders agreed to extend to Borrowers a revolving line of credit in the maximum principal amount of $30,000,000, subject to the terms and conditions contained therein and as such revolving line may be increased from time to time (the “Line of Credit”) and a term loan in the original principal amount of $50,000,000, which was subsequently increased by an additional $32,000,000 (as detailed below), subject to the terms and conditions contained therein, and such term loan may be increased from time to time (the “Term Loan” and together with the Line of Credit, the “Loans”);
WHEREAS, the Loans are evidenced by the Notes and the other Loan Documents, as defined in the Credit Agreement; 
WHEREAS, Construction Partners joined the Credit Agreement, as a “Guarantor” pursuant to that certain Loan Modification Agreement and Amendment to Loan Documents dated as of November 14, 2017; 
WHEREAS, Scruggs Company joined the Credit Agreement, Notes and the other Loan Documents as a “Borrower” pursuant to that certain Loan Modification Agreement and Amendment to Loan Documents dated May 15, 2018 (the “May 2018 Modification”);   
WHEREAS, the amount of the Term Loan was increased by an additional $22,000,000, pursuant to the May 2018 Modification;
WHEREAS, ServisFirst Bank assigned all of its outstanding Revolver Advances, outstanding Term Loan Advances, participations in LC Obligations, and Revolver Commitments to Agent pursuant to that certain Assignment and Assumption Agreement dated August 30, 2019;
WHEREAS, Agent assigned (i) a principal amount of $2,000,000.00 of the outstanding Revolver Advances held by Agent, a principal amount of $17,880,000.00 of the outstanding Term Loan Advances held by Agent, $4,230,590.41 of participations of Agent in LC Obligations, a principal amount of $12,000,000.00 of Agent’s Revolver Commitment, and 40% of Agent’s portion of the total Term Loan Commitments, if any, to Bank of America pursuant to that certain Assignment and Assumption Agreement dated October 1, 2019;
WHEREAS, the amount of the Term Loan was increased by an additional $10,000,000, pursuant to that certain Loan Modification Agreement and Amendment to Loan Documents dated October 1, 2019;

WHEREAS, Holdings merged into Construction Partners, and in connection therewith, Construction Partners assumed the obligations of Holdings under the Credit Agreement and Loan Documents and became a “Borrower” under the Credit Agreement pursuant to that certain Loan Modification Agreement and Amendment to Loan Documents Dated December 31, 2019 (the “December 2019 Modification”);
WHEREAS, Fred Smith Construction merged into FSC, and in connection therewith, FSC assumed the obligations of Fred Smith Construction under the Credit Agreement, as set forth in the December 2019 Modification; 
WHEREAS, capitalized terms used herein but not otherwise defined shall have the meaning given to such term in the Credit Agreement; and
WHEREAS, the Borrowers, the Agent and Lenders have agreed that the Loans shall be modified, and that the Loan Documents shall be amended as set forth below.
A G R E E M E N T
NOW, THEREFORE, the parties, intending to be legally bound hereby, agree as follows, notwithstanding anything in the Loan Documents to the contrary:
A.        Commitment Fee.  Borrowers shall pay to Agent a fee in the amount of $45,000.00 (100% of which shall be allocated to Agent), which shall be deemed earned as of the date of this Agreement, and shall be paid immediately upon execution of this Agreement.
B.         Additional Term Loan Advance.  Borrowers have requested that Agent and Lenders increase the aggregate Term Loan Commitment by an additional $18,000,000 in accordance with Section 2.10(b) of the Credit Agreement.  As of the date hereof, the outstanding principal balance of the Term Loan Advances is $50,600,000, BBVA USA’s portion of which is $30,360,000.  Agent (in its capacity as Agent and Lender) has agreed to increase the Term Loan Commitment by $18,000,000 on the terms and conditions set forth herein and in the Credit Agreement, and accordingly, BBVA USA’s Term Loan Commitment shall be increased by $18,000,000.  As of the date hereof and including the increased Term Loan Commitment referenced in the following sentence, the outstanding principal balance of BBVA USA’s Term Loan Advances is $48,360,000, and the outstanding principal balance of Bank of America’s Term Loan Advances is $20,240,000.  On the date of this Agreement, Agent agrees on the terms and conditions set forth herein and in the Credit Agreement to fund a Term Loan Advance to Borrowers in the amount of Agent’s increased Term Loan Commitment.  Such advance shall be on the same terms and conditions related to the Term Loan Advances as set forth in the Credit Agreement, as amended hereby, including without limitation, Section 2.01(b).  Borrowers hereby represent, warrant and covenant that the additional Term Loan Advances made in connection herewith shall be used solely to fund Acquisitions, including, without limitation, (i) the replenishment of funds used in connection with Acquisitions completed subsequent to the last day of the Borrowers’ most recently completed fiscal year and (ii) additional working capital investments in businesses and operations acquired by the applicable Borrowers through previously completed Acquisitions.   
C.         Amendment of Credit Agreement.  The Credit Agreement shall be and is hereby amended as set forth below:
(i)         The following definition shall be added to the Credit Agreement:
"Applicable Floor Rate" means, with respect to any type of Advance other than Term Loan Advances made prior to April 30, 2020, the applicable floor rate set forth in the column below:
									
	

Level	Consolidated
Leverage
Ratio
	

Applicable
Floor Rate

	I	< 1.25 to 1.00	2.20%
	II	> 1.25 to 1.00 but < 1.60 to 1.00
	2.40%
	III	> 1.60 to 1.00 but < 2.00 to 1.00
	2.50%
	IV	> 2.00 to 1.00
	2.70%

Until June 30, 2020, the Applicable Floor Rate shall be determined as if Level I were applicable.  The Applicable Floor Rate shall be subject to increase or decrease upon receipt by Agent pursuant to Section 5.01(b) of the financial statements and corresponding Compliance Certificate for the Fiscal Quarter ending immediately prior to the period covered by such financial statements, which change shall be effective on the first day of the calendar month following receipt of such financial statements and corresponding Compliance Certificate.  If, by the first day of a month, any financial statement or 

Compliance Certificate due in the preceding month has not been received, then, at the option of Agent or Required Lenders, the Applicable Floor Rate shall be determined as if Level IV were applicable, from such day until the first day of the calendar month following actual receipt.  Agent shall have the right to re-calculate the Applicable Floor Rate at any time or from time to time if it determines that data received by it from Borrowers concerning any component of the Consolidated Leverage Ratio was incorrect when made, and Agent shall be entitled in connection therewith to charge and collect upon making such determination any additional interest that would have been earned by Lenders.
(ii)        The definition of “LIBOR” as set forth in Section 1.01 shall be deleted in its entirety, and the following new definition shall be inserted in place thereof:
“LIBOR”:  For each Interest Period, a rate per annum obtained by dividing (a) the London Interbank Offered Rate, as determined by ICE Benchmark Administration Limited (or any successor or substitute therefor acceptable to Agent) for U.S. dollar deposits for such Interest Period as obtained by Agent from Reuters, Bloomberg or another commercially available source as may be designated by Agent from time to time (the “Screen Rate”), two (2) Business Days before the first day of such Interest Period, by (b) a number equal to 1.00 minus the LIBOR Reserve Percentage.  Notwithstanding the foregoing, LIBOR shall not in any event be less than zero percent (0.00%). 
(iii)       The definition of “Term Loan Note” as set forth in Section 1.01 shall be amended to include, without limitation, that certain Amendment to Term Loan Note executed by Borrowers and Agent in connection herewith.
(iv)       The definition of “Term Loan Recourse Amount” set forth in Section 1.01 shall be deleted in its entirety and the following new definition shall be inserted in place thereof:
“Term Loan Recourse Amount” means, with respect to each Borrower set forth below, the following amounts:

            Wiregrass Construction:            $ 22,000,000.00
            FSC:                                         $ 34,000,000.00
            Roberts Contracting:                 $ 24,000,000.00
            Everett Dykes:                         $   4,500,000.00
            Scruggs Company:                   $ 28,000,000.00  
(v)        The following new Section 1.05 shall be added to the Credit Agreement
SECTION 1.05.           Notification and Limitation of Liability - LIBOR and Related Matters.  The interest rate on Euro-Dollar Advances is determined by reference to LIBOR, which is derived from the London Interbank Offered Rate, and the London Interbank Offered Rate is currently administered by ICE Benchmark Administration Limited (“IBA”).  The U.K. Financial Conduct Authority announced in July 2017 that, after December 31, 2021, it would no longer persuade or compel contributing banks to make rate submissions to IBA.  As a result, it is possible that the London Interbank Offered Rate may no longer be available after such date or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on Euro-Dollar Advances. Section 9.01 provides a mechanism for (a) determining an alternative rate of interest in the event that LIBOR (or any then-current Benchmark, as defined in Section 9.01) or any component thereof is no longer available or in the other circumstances set forth in that Section and (b) modifying this Agreement to give effect to such alternative rate of interest.  Neither the Agent nor BBVA USA individually, nor any Affiliate of BBVA USA, warrants or accepts any responsibility for, or shall have any liability with respect to, (i) the administration or submission of, or any other matter related to, the London Interbank Offered Rate, LIBOR (or any component thereof) or any such other Benchmark (or any component thereof) or, in each case, with respect to any alternative or successor rate thereto or replacement rate thereof, including, without limitation, whether any such alternative, successor or replacement reference rate, as it may or may not be adjusted pursuant to this Agreement, will have the same value as, or be economically equivalent to, LIBOR or any such other Benchmark that is replaced, or (ii) the effect, implementation or composition of any Benchmark Replacement Conforming Changes, as defined in Section 9.01.  References herein to a component of, or a published component used in the calculation of, LIBOR are deemed to include the Screen Rate.      
(vi)       Section 2.06(c) shall be deleted in its entirety and the following new Section 2.06(c) shall  be inserted in place thereof:
(c)        The principal amount of the Term Loan Advances shall be repaid in installments on each Quarterly Payment Date commencing on June 30, 2020, each in the amount of $2,500,000; provided, however, that the entire amount of the outstanding Term Loan Advances shall be due and payable in full on the Term Loan Maturity Date.

(vii)      Section 2.07(b) shall be deleted in its entirety and the following new Section 2.07(b) shall be inserted in place thereof:
(b)        Each Euro-Dollar Advance shall bear interest on the outstanding principal amount thereof, during each Interest Period from the date such Advance is made until it becomes due, at a rate per annum equal to the sum of (1) the Applicable Margin plus (2) LIBOR for the Interest Period selected by Borrower Agent; provided, however in no event shall the interest rate hereunder with respect to any Advance (other than Term Loan Advances made prior to April 30, 2020) be less than the Applicable Floor Rate.  For the avoidance of doubt, the Applicable Floor Rate shall not apply to Term Loan Advances made prior to April 30, 2020.  
(viii)     Section 9.01 shall be shall be deleted in its entirety and the following new Section 2.06(c) shall be inserted in place thereof:
            Section 9.01.           Ineffective Interest Rate; Benchmark Replacement.
          (a)        If the Agent shall have determined with respect to LIBOR or any other then-current Benchmark that (i) adequate and reasonable means do not exist for ascertaining such Benchmark, (ii) such Benchmark does not adequately and fairly reflect the effective cost to the Lenders of making or maintaining an Advance based on such Benchmark, or (iii) the making, maintenance or funding of an Advance based on such Benchmark has been made impractical or unlawful, then, and in any such event (unless such event constitutes a Benchmark Transition Event), Agent may so notify Borrowers and as of the date of such notification (y) any request hereunder for the conversion of any Advance to, or continuation of any Advance as, an Advance based on such Benchmark shall be ineffective and any such Advance shall be continued as or converted to, as the case may be, a Base Rate Advance and (z) if any request is made hereunder for an Advance based on such Benchmark, such Advance shall be made as a Base Rate Advance, in each case unless and until Agent shall have determined that such circumstances shall no longer exist and shall have revoked such notice. 
            (b)        Notwithstanding anything to the contrary in this Agreement or any other Loan Document, if, with respect to LIBOR or any other then-current Benchmark, the Agent shall have determined that:
            (i)         the circumstances set forth in Section 9.01(a)(iii) have arisen and such circumstances are unlikely to be temporary; or
         (ii)        the administrator for such Benchmark (or for a published component used in the calculation thereof) (the “Administrator”) has discontinued its administration and publication of such Benchmark (or such component), permanently or indefinitely, provided that, at the time of such discontinuation, there is no successor administrator that will continue to provide such Benchmark (or such component); or 
            (iii)       a public statement or publication of information has been made by or on behalf of the Administrator announcing that the Administrator has ceased or will cease to provide such Benchmark (or a published component used in the calculation thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component); or
            (iv)       a public statement or publication of information has been made by or on behalf of the regulatory supervisor for the Administrator, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the Administrator, a resolution authority with jurisdiction over the Administrator or a court or an entity with similar insolvency or resolution authority over the Administrator, which states that the Administrator has ceased or will cease to provide such Benchmark (or a published component used in the calculation thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark (or such component); or
            (v)        a public statement or publication of information has been made by or on behalf of the regulatory supervisor for the Administrator announcing that such Benchmark (or a published component used in the calculation thereof) is no longer representative; or
         (vi)       syndicated credit facilities similar to the credit facility or facilities under this Agreement being executed at such time, or that include language similar to that contained in this Section 9.01(b), are being executed or amended, as the case may be, to incorporate or adopt a new benchmark interest rate to replace such Benchmark (or a published component used in the calculation thereof) and (in the case of this clause (vi)) the Agent has elected to treat such circumstance as a Benchmark Transition Event hereunder,

(each of clauses (i) through (vi) above being referred to herein as a “Benchmark Transition Event”) then the Agent and the Borrowers may amend this Agreement to replace LIBOR or such other then-current Benchmark, as applicable, with a Benchmark Replacement.  Notwithstanding anything to the contrary in Section 11.05, any such amendment with respect to a Benchmark Transition Event (A) pursuant to any of clauses (i) through (v) above will become effective without any further action or consent of any other party to this Agreement at 5:00 p.m. Houston, Texas time on the fifth (5th) Business Day after the Agent has posted or otherwise made available such proposed amendment to all Lenders and the Borrowers so long as the Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders or (B) pursuant to clause (vi) above will become effective without any further action or consent of any other party to this Agreement on the date that Lenders comprising the Required Lenders have delivered to the Agent written notice that such Required Lenders accept such amendment.  No replacement of a Benchmark with a Benchmark Replacement pursuant to this Section 9.01(b) will occur prior to the applicable Benchmark Transition Start Date.  
            In connection with the implementation of a Benchmark Replacement, the Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.
            The Agent will promptly notify the Borrowers and the Lenders of (i) any occurrence of a Benchmark Transition Event and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Agent or Lenders pursuant to this Section 9.01, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 9.01.
            Upon notice to the Borrowers by the Agent in accordance with Section 11.01 of the commencement of a Benchmark Unavailability Period and until a Benchmark Replacement shall be determined in accordance with this Section 9.01(b), (y) any request hereunder for the conversion of any Advance to, or continuation of any Advance as, an Advance based on the then-current Benchmark shall be ineffective and any such Advance shall be continued as or converted to, as the case may be, a Base Rate Advance, and (z) if any request is made hereunder for an Advance based on the then-current Benchmark, such Advance  shall be made as a Base Rate Advance.    
            (c)        For purposes of this Section 9.01:
“Administrator” has the meaning specified in Section 9.01(b).
“Benchmark” means LIBOR or a Benchmark Replacement that is in effect hereunder, as applicable.
“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate that has been selected by Agent and the Borrowers giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body and/or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the then-current Benchmark (or any applicable component thereof) for syndicated credit facilities similar to the credit facility or facilities hereunder denominated in Dollars and (b) the Benchmark Replacement Adjustment (which, in each case, may include a rate that is published on an information service as selected by the Agent from time to time, and may be updated periodically); provided that the Benchmark Replacement shall incorporate or be subject to any floor corresponding to any floor on or related to the Benchmark that is being replaced; provided, further, that any Benchmark Replacement must be administratively feasible as determined by Agent.
“Benchmark Replacement Adjustment” means, with respect to any replacement under this Agreement of the then-current Benchmark with an alternative benchmark rate for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Agent and the Borrowers giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark (or any applicable component thereof) with an alternative benchmark rate, as applicable, by the Relevant Governmental Body  

or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark (or any applicable component thereof) with an alternative benchmark rate, as applicable, at such time for U.S. syndicated credit facilities denominated in Dollars (which, in each case, may include an adjustment or method for calculating or determining such an adjustment that is published on an information service as selected by the Agent from time to time, and may be updated periodically).
“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Interest Period,” the definition of “LIBOR Reserve Percentage” (it being understood that such a factor may be applied in respect of a Benchmark Replacement), or the timing and frequency of determining rates and making payments of interest and other administrative matters) that the Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Agent decides is reasonably necessary in connection with the administration of this Agreement).
“Benchmark Replacement Date” means the earlier to occur of the following events with respect to the then-current Benchmark (or any applicable component thereof):
(a)        in the case of clause (i) of Section 9.01(b), the date selected by the Agent; or
(b)        in the case of clauses (ii), (iii) or (iv) of Section 9.01(b), the later of:
(i)         the date of the public statement or publication of information referenced therein (if applicable) and
(ii)        the date on which the Administrator permanently or indefinitely ceases to provide such Benchmark (or component); or
(c)        in the case of clause (v) of Section 9.01(b), the date of the public statement or publication of information referenced therein; or
(d)        in the case of clause (vi) of Section 9.01(b), the date specified by the Agent by notice to the Borrowers and the Lenders.
“Benchmark Transition Event” has the meaning specified in Section 9.01(b). 
“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event pursuant to any of clauses (i) through (v) of Section 9.01(b), the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of a Benchmark Transition Event pursuant to clause (vi) of Section 9.01(b), the date specified by the Agent by notice to the Borrowers and the Lenders.
“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to any then-current Benchmark and solely to the extent that such Benchmark has not been replaced with a Benchmark Replacement, the period (y) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes under this Agreement and the other Loan Documents in accordance with Section 9.01(b) and (z) ending at the time that a Benchmark Replacement has replaced such Benchmark for all purposes under this Agreement and the other Loan Documents pursuant to Section 9.01(b).
“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 or any successor thereto. 

            (ix)       Schedule 1.01 (Collateral Locations) attached to the Credit Agreement shall be amended to include the additional information set forth on Schedule 1.01 attached hereto.
D.        Post-Closing Obligation.  Borrowers hereby covenant and agree to deliver to Agent within thirty (30) days after the date of this Agreement fully executed landlord subordination agreements, in form and substance reasonably acceptable to Agent, for the leased locations set forth on Schedule 1.01 attached hereto.
E.         Effect on Loan Documents.  Each of the Loan Documents shall be deemed amended as set forth hereinabove and to the extent necessary to carry out the intent of this Agreement.  Without limiting the generality of the foregoing, each reference in the Loan Documents to the “Note”, the “Credit Agreement”, or any other “Loan Documents” shall be deemed to be references to said documents, as amended hereby.  Except as expressly set forth herein, all of the Loan Documents shall remain in full force and effect in accordance with their respective terms, and all of the remaining terms and provisions of the Loan Documents are hereby ratified and confirmed.  Borrowers agree that the Loan Documents shall continue to evidence, secure, guarantee or relate to, as the case may be, the Loans.  
F.         Representations and Warranties.  Each representation and warranty contained in the Loan Documents is hereby reaffirmed as of the date hereof.  The Borrowers hereby represent, warrant and certify to Lenders that no Event of Default or any condition or event that, with notice or lapse of time or both, would constitute an Event of Default, has occurred and is continuing under any of the Loan Documents or the Loan, and that Borrowers have no offsets or claims against any Lender arising under, related to, or connected with the Loan, the Credit Agreement or any of the other Loan Documents.  
G.        Additional Documentation; Expenses.  If requested by Agent, Borrowers shall provide to Agent (i) certified resolutions properly authorizing the transactions contemplated hereby and the execution of this Agreement and all other documents and instruments being executed in connection herewith and (ii) all other documents and instruments required by Agent, all in form and substance satisfactory to Agent.  Borrowers shall pay any recording and all other expenses incurred by Agent and Borrowers in connection with the modification of the Loans and any other transactions contemplated hereby, including, without limitation, any applicable title or other insurance premiums, survey costs, legal expenses, recording fees and taxes.
H.        Release of Claims.  The Borrowers acknowledge and confirm their obligations to the Lenders for repayment of the Loans and indebtedness evidenced by the Notes (the “Indebtedness”).  The Borrowers (and in the case of Construction Partners, on behalf of itself and Holdings, and in the case of FSC, on behalf of itself and Fred Smith Construction) further acknowledge and represent that they have no defense, counterclaim, offset, cross-complaint, claim or demand of any kind or nature whatsoever (collectively, the “Loan Defenses”) that can be asserted to reduce or eliminate all or any part of their liability to repay the Indebtedness to the Lenders.  To the extent that any such Loan Defenses exist, and for and in consideration of the Lenders’ commitments contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, they are hereby fully, forever and irrevocably released.
By their execution below, for and in consideration of the Lenders’ commitments contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the Borrowers, for themselves (and in the case of Construction Partners, for itself and Holdings, and in the case of FSC, for itself and Fred Smith Construction) and for their respective successors, executors, heirs, administrators, and assigns, each hereby acknowledge and agree that neither the Lenders nor any of their officers, directors, employees, agents, servants, representatives, attorneys, loan participants, successors, successors-in-interest, predecessors-in-interest and assigns (hereinafter referred to collectively as the “Released Parties”) have interfered with or impaired the acquisition, collection, use, ownership, disposition, disbursement, leasing or sale of any of the collateral that secures the Loan (the “Collateral”), and that the Borrowers do not have any claim of any nature whatsoever, at law, in equity or otherwise, against the Released Parties, or any of them, as a result of any acts or omissions of the Released Parties, or any of them, under the Loan Documents or in connection with the Loans or the Collateral prior to and including the date hereof.  Each of the Borrowers, for themselves (and in the case of Construction Partners, for itself and Holdings, and in the case of FSC, for itself and Fred Smith Construction) and for their respective successors, executors, heirs, administrators, and assigns, hereby unconditionally waive and release the Released Parties, and forever discharge the Released Parties, of and from and against any and all manner of action, suits, claims, counterclaims, causes of action, offsets, deductions, breach or breaches, default or defaults, debts, dues, sums of money, accounts, deposits, damages, expenses, losses, liabilities, costs, expenses, any and all demands whatsoever and compensation of every kind and nature, past, present, and future, known or unknown (herein collectively, “Claims”) that the Borrowers or any of the Borrowers’ successors, successors-in-interest, heirs, executors, administrators, or assigns, or any one of them, can or now have or may have at any time hereafter against the Released Parties, or any of them, by reason of any matter, cause, transaction, occurrence or omission whatsoever, that happened or has happened on or before the date of this Agreement, on account of or arising from or that is connected in any manner whatsoever with the Loans, the Indebtedness, the Collateral, the Loan Documents, any related documents, or any and all collateral that has served or is serving as security for the Loans or the Loan Documents, or that is related to any and all transactions and dealings with or among Lenders and the Borrowers, or any other matter or thing that has occurred before the signing of the Agreement, known or unknown.  Any and all such Claims are hereby declared to be satisfied and settled, and the Borrowers, for themselves (and in 

the case of Construction Partners, for itself and Holdings, and in the case of FSC, for itself and Fred Smith Construction) and for their respective successors, executors, heirs, administrators, and assigns, each hereby discharge the Released Parties from any liability with respect to any and all such Claims.
I.          Waiver of Trial by Jury.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTION CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
J.          Counterparts.  This document may be executed in any number of identical counterparts, each of which for all purposes is deemed an original, and all of which constitute collectively one (1) document and agreement, but in making proof of this document, it shall not be necessary to produce or account for more than one such counterpart, and counterpart pages may be combined into one single document.
This Agreement is intended to take effect as a sealed instrument.   

[Remainder of page intentionally left blank; signature page to follow.]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, under seal, by their respective Responsible Officers effective as of the day and year first above written.
						
	CONSTRUCTION PARTNERS, INC., 
	WIREGRASS CONSTRUCTION COMPANY, INC., 

	a Delaware corporation	an Alabama corporation
		
	By:  /s/ R. Alan Palmer
Name: R. Alan Palmer
Title: Vice President
	By:  /s/ R. Alan Palmer
Name: R. Alan Palmer
Title: Vice President

		
	C. W. ROBERTS CONTRACTING, INCORPORATED, 
	FSC II, LLC,

	a Florida corporation	a North Carolina limited liability company
		
	By:  /s/ R. Alan Palmer
Name: R. Alan Palmer
Title: Vice President 
	By:  /s/ R. Alan Palmer
Name: R. Alan Palmer
Title: Vice President 

		
	EVERETT DYKES GRASSING CO., INC.,
	THE SCRUGGS COMPANY,

	a Georgia corporation	a Georgia corporation
		
	By:  /s/ R. Alan Palmer
Name: R. Alan Palmer
Title: Vice President 
	By:  /s/ R. Alan Palmer
Name: R. Alan Palmer
Title: Vice President

 
									
			BBVA USA, as Agent, Issuing Bank and a Lender

			By:  /s/ John D. Brown

			Name: John D. Brown
			Title: Senior Vice President

									
			BANK OF AMERICA, N.A., as a Lender

			By: /s/ Matthew Johnston   

			Name: Matthew Johnston
			Title: Senior Vice President

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