Document:

Exhibit 10.1

 

EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS EIGHTH AMENDMENT
TO LOAN AND SECURITY AGREEMENT (“Amendment”), dated as of November 15, 2012 (the “Amendment Date”),
is between LAPOLLA INDUSTRIES, INC. (“Borrower”) and BANK OF
AMERICA, N.A., a national banking association (“Lender”).

RECITALS

 

Borrower and Lender
have entered into that certain Loan and Security Agreement dated as of August 31, 2010, as amended by the First Amendment to Loan
and Security Agreement dated as of November 10, 2010, the Second Amendment to Loan and Security Agreement dated as of March 14,
2011, the Third Amendment to Loan and Security Agreement dated as of May 11, 2011, the Fourth Amendment to Loan and Security
Agreement dated as of August 17, 2011, the Fifth Amendment to Loan and Security Agreement dated as of November 21, 2011, the Sixth
Amendment to Loan and Security Agreement dated as of April 16, 2012 and the Seventh Amendment to Loan and Security Agreement dated
as of June 29, 2012 (collectively, and as may hereafter be amended or otherwise modified, the “Loan Agreement”).

NOW, THEREFORE,
in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows effective as of the date hereof unless otherwise indicated:

ARTICLE 1

Definitions

 

Section 1.1Definitions.
Terms defined by the Loan Agreement, where used herein and not otherwise defined, shall have the same meanings herein as are prescribed
by the Loan Agreement, as amended hereby.

ARTICLE 2

Amendments

 

Section 2.1Amendment
to Section 1.1. Effective as of the Amendment Date, Section 1.1 of the Loan Agreement is
hereby amended as follows:

 

(a)The definition of “Basic
Reserve” in Section 1.1 of the Loan Agreement is hereby amended and restated to read as follows:

 

“Basic Reserve”:
an amount, determined as of any day, equal to $750,000.

 

(b)The definition
of “FCCR Satisfaction Date” is deleted.

 

Section 2.4Amendment
to Section 10.3.2. Effective as of the Amendment Date, Section 10.3.2 of the Loan Agreement is amended and
restated to read as follows:

10.3.2Fixed
Charge Coverage Ratio. Maintain a Fixed Charge Coverage Ratio equal to at least 1.00, tested monthly as of the last day of
each calendar month beginning on September 30, 2012 and continuing thereafter (a) with respect to any such test date on or before
June 30, 2013, for the period July 1, 2012 through such test date, and (b) thereafter, for the most recently completed
twelve calendar months.

ARTICLE 3

Conditions Precedent

 

Section 3.1Condition
Precedent. The effectiveness of Section 2.2 of this Amendment is subject to the satisfaction
of the following conditions precedent:

 

(a)Borrower
shall have delivered to Lender an executed original copy of this Amendment, in form and substance satisfactory to Lender, duly
executed by Borrower;

 

(b)after
giving effect to this Amendment, no Default or Event of Default shall be in existence; and

 

(c)all proceedings
taken in connection with the transactions contemplated by this Amendment and all documentation and other legal matters incident
thereto shall be satisfactory to Lender.

 

ARTICLE 4

Ratifications, Representations and Warranties

Section 4.1Ratifications.
The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth
in the Loan Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of the Loan Agreement
and the other Loan Documents are ratified and confirmed and shall continue in full force and effect. Borrower and Lender agree
that the Loan Agreement as amended hereby and the other Loan Documents shall continue to be legal, valid, binding and enforceable
in accordance with their respective terms.

Section 4.2Representations
and Warranties. Borrower hereby represents and warrants to Lender as follows: (a) no Default or Event of Default exists;
and (b) the representations and warranties set forth in the Loan Documents are true and correct on and as of the date hereof
with the same effect as though made on and as of such date except with respect to any representations and warranties limited by
their terms to a specific date.

Section 4.3WAIVER
AND RELEASE. TO INDUCE LENDER TO AGREE TO THE TERMS OF THIS AMENDMENT, EACH OBLIGOR (BY ITS EXECUTION BELOW) REPRESENTS AND
WARRANTS THAT AS OF THE DATE OF ITS EXECUTION OF THIS AMENDMENT THERE ARE NO CLAIMS OR OFFSETS AGAINST OR RIGHTS OF RECOUPMENT
WITH RESPECT TO OR DEFENSES OR COUNTERCLAIMS TO ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS AND IN ACCORDANCE THEREWITH IT:

(a)HEREBY WAIVES
ANY AND ALL SUCH CLAIMS, OFFSETS, RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE
DATE OF ITS EXECUTION OF THIS AMENDMENT AND

(b)HEREBY RELEASES
AND DISCHARGES LENDER, AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SHAREHOLDERS, AFFILIATES AND ATTORNEYS (COLLECTIVELY THE
"RELEASED PARTIES") FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, RIGHTS, CAUSES OF ACTION
OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, IN LAW OR EQUITY, WHICH ANY OBLIGOR EVER HAD, NOW HAS,
CLAIMS TO HAVE OR MAY HAVE AGAINST ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF AND FROM OR IN CONNECTION WITH THE LOAN
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY.

ARTICLE 5

Other Agreements

Section 5.1Survival
of Representations and Warranties. All representations and warranties made in this Amendment or any other Loan Document including
any Loan Document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the
other Loan Documents, and no investigation by Lender or any closing shall affect the representations and warranties or the right
of Lender to rely upon them.

Section 5.2Reference
to Loan Agreement. Each of the Loan Documents, including the Loan Agreement is hereby amended so that any reference in such
Loan Document to the Loan Agreement shall mean a reference to the Loan Agreement as amended hereby. This Amendment shall constitute
a Loan Document.

Section 5.3Expenses
of Lender. As provided in the Loan Agreement, Borrower agrees to pay on demand all costs and expenses incurred by Lender in
connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto,
including without limitation, the costs and fees of Lender's legal counsel.

Section 5.4Severability.
Each provision of this Amendment shall be interpreted in such manner as to be valid under Applicable Law. If any provision is found
to be invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the remaining provisions
of this Amendment shall remain in full force and effect.

Section 5.5GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS,
WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).

Section 5.6Successors
and Assigns. This Amendment is binding upon and shall inure to the benefit of Lender and Borrower and their respective successors
and assigns, except Borrower may not assign or transfer any of its rights or obligations hereunder without the prior written consent
of Lender. Any assignment in violation of this Section 5.6 shall be void.

Section 5.7Counterparts;
Facsimile or Electronic Signatures. This Amendment may be executed in counterparts, each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. This Amendment shall become effective when Lender has
received counterparts bearing the signatures of all parties hereto. Delivery of a signature page of this Amendment by telecopy
or other electronic means shall be effective as delivery of a manually executed counterpart of such agreement.

Section 5.8Headings.
The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

Section 5.9Entire
Agreement. Time is of the essence of this Amendment. This Amendment, the Loan Agreement, the other Loan Documents 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.

Executed effective as of
the Amendment Date.

 

 

BORROWER:

 

LAPOLLA INDUSTRIES, INC.

 

 

By:/s/ Michael T. Adams, EVP

Michael T. Adams, Executive Vice
President

 

 

LENDER:

 

BANK OF AMERICA, N.A.

 

 

By:H. Michael Wills

H. Michael Wills, Senior Vice PresidentExhibit 10.2

 

AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT

 

THIS AMENDMENT NO. 1 TO
NOTE PURCHASE AGREEMENT (this “Amendment”), dated as of November 15, 2012, is by and among LAPOLLA
INDUSTRIES, INC., a Delaware corporation (the “Debtor”), ENHANCED JOBS FOR TEXAS FUND, LLC,
a Delaware limited liability company, and ENHANCED CAPITAL TEXAS FUND, LP, a Texas limited partnership (together, the “Purchasers”).
Unless otherwise defined herein or the context otherwise requires, capitalized terms used herein shall have the meanings ascribed
thereto in the Note Purchase Agreement (as defined below).

 

WHEREAS, the Purchasers
have extended certain credit facilities in favor of the Debtor pursuant to that certain Note Purchase Agreement, dated as of June
29, 2012 by and between the Debtor and the Purchasers (the “Note Purchase Agreement”); and

 

WHEREAS, the Debtor
and the Purchasers have agreed, subject to the terms and conditions hereof, to amend the Note Purchase Agreement by (i) changing
certain covenants in the Note Purchase Agreement, and (ii) providing for the payment of an amendment fee in connection with this
amendment; and

 

NOW, THEREFORE,
in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                  
Amendment to Note Purchase Agreement.
Upon execution of this Amendment by the parties hereto and the satisfaction of the conditions precedent set forth in Section 2,
effective as of September 30, 2012, the Note Purchase Agreement is amended as follows:

(a)                
Section 1.1 is hereby amended by adding the definition of Amendment No. 1 to Note Purchase
Agreement as follows:

“Amendment No. 1 to Note
Purchase Agreement” means that certain Amendment No.1 to Note Purchase Agreement dated as of November 15, 2012 between
the parties hereto.

 

(b)                
Section 2.11 is hereby added to the Note Purchase Agreement in its entirety as follows:

Section 2.11“Amendment
Fee” As of September 30, 2012, an amendment fee of $44,000 is added to the outstanding principal amount of the Notes,
pro rata based on the outstanding balances on the Notes as of such date.”

 

(c)                
Section 7.18 of the Note Purchase Agreement is hereby amended and restated in its entirety
as follows:

Section 7.18Minimum EBITDA.
The Borrower shall not permit its EBITDA for the three (3) months ending on the last day of each month set forth below to be less
than the corresponding amount set forth below for such period:

	Three Month Period Ended	Minimum EBITDA
	September 30 2012	$300,628
	October 31, 2012	$420,219
	November 30, 2012	$433,546
	December 31, 2012	$343,046
	January 31, 2013	$254,742
	February 28, 2013	$232,294
	March 31, 2013	$242,601
	April 30, 2013	$343,071
	May 31, 2013	$443,729
	June 30, 2013	$557,116
	July 31, 2013	$634,895
	August 31, 2013	$672,864
	September 30, 2013	$678,102
	October 31, 2013	$677,211
	November 30, 2013	$666,118
	December 31, 2013	$650,555
	January 31, 2014	$382,783
	February 28, 2014	$540,919
	March 31, 2014	$590,273
	April 30, 2014	$810,590
	May 31, 2014	$1,019,513
	June 30, 2014	$1,213,378

 

(d)                
Section 7.19 of the Note Purchase Agreement is hereby amended and restated in its entirety
as follows:

Section 7.1Fixed Charge Coverage
Ratio. Maintain a Fixed Charge Coverage Ratio equal to at least 1.00:1.00, tested monthly as of the last day of each calendar
month beginning on September 30, 2012 and continuing thereafter (a) with respect to any such test date on or before June 30, 2013,
for the period July 1, 2012 through such test date, and (b) thereafter, for the most recently completed twelve calendar months.

 

2.                  
Conditions Precedent. This Amendment
shall not take effect until such time as it is fully executed by the parties and each of the following conditions have been satisfied:

(a)                
The Debtor has delivered a secretary certificate attaching the resolutions or consent of the
board of directors of Debtor, authorizing the execution of this amendment by the Debtor, in form reasonably satisfactory to the
Purchasers.

(b)                
The Senior Lender has executed an acknowledgment to this Amendment or delivered in writing
to the Purchasers written consent to the Amendment, in form reasonably satisfactory to the Purchasers.

3.                  
Loan Documents Generally. All references
to the Note Purchase Agreement in the Loan Documents and any other documents evidencing, securing or otherwise relating to the
credit extended by Purchasers in favor of Debtor shall mean the Note Purchase Agreement and as modified hereby and this Amendment
shall itself constitute a Loan Document. 

4.                  
Representations and Warranties. The
Debtor hereby represents and warrants to the Purchasers that:

 

(i)                  
No Default or Event of Default will exist after giving pro forma effect to this Amendment,
the consent contained herein and the transactions contemplated by and consented to in this Amendment; 

(ii)                
Giving effect to this Amendment, the representations and warranties set forth in the Note
Purchase Agreement are, subject to the limitations set forth therein, true and correct in all material respects as of the date
hereof (except for those which expressly relate to an earlier date) and each of such representations
and warranties (except to the extent such representations and warranties expressly relate to an earlier date) together with each
of the representations and warranties contained in this Amendment shall be true and correct on and as of the date of consummation
of the transactions contemplated by and consented to in this Amendment, as if such representations and warranties were made on
such date;

(iii)               
The Debtor has the organizational power and authority to execute and deliver this Amendment
and to perform its obligations hereunder and has taken all necessary organizational action to authorize the execution, delivery
and performance by it of this Amendment; and

(iv)              
The Debtor has duly executed and delivered this Amendment, and this Amendment constitutes
its legal, valid and binding obligation enforceable in accordance with its terms. 

5.                  
Amendment; No Implied Waiver. This
Amendment shall be limited precisely as written and shall not operate as a consent to any other action or inaction by the Debtor,
or as a waiver or amendment of any right, power, or remedy of the Purchasers under the Note Purchase Agreement or the other Loan
Documents nor constitute a consent to any action or inaction, or a waiver or amendment of any provision contained in the Note Purchase
Agreement and the other Loan Documents except as specifically provided herein.

 

6.                  
Reaffirmation of Debtor Obligations; Other Acknowledgement and Consents.
The Debtor hereby:

(a)                
Agrees that it is truly and justly indebted to the Purchasers for all of the Debtor’s
obligations under the Note Purchase Agreement and the other Loan Documents without defense, offset or counterclaim of any kind
whatsoever and reaffirms and admits the validity and enforceability of the Note Purchase Agreement and the Loan Documents to which
it is a party and the liens upon and security interests in the collateral which were granted pursuant to the Loan Documents to
which it is a party;

(b)                
Consents to the execution and delivery of this Amendment by the Debtor and to the terms and
conditions set forth herein and any other waivers, consents or amendments which the Purchasers deems appropriate;

(c)                
Agrees to be bound by the terms and conditions of the Note Purchase Agreement as amended or
modified by this Amendment; 

(d)                
Acknowledges and agrees that all obligations of the Debtor under the Note Purchase Agreement,
as amended and modified by this Amendment, and the other Loan Documents pursuant to which the Debtor grants any security to the
Purchasers, are secured pursuant to the Loan Documents and all references in the Loan Documents to the secured obligations or language
of similar meaning shall hereafter be deemed to include the Debtor’s obligations to the Purchasers under the Note Purchase
Agreement, as modified by this Amendment and the other instruments, documents and agreements executed and delivered pursuant hereto
or in connection herewith; and

(e)Notwithstanding any prior
disregard of any of the terms of the Note Purchase Agreement or any of the Loan Documents, agrees that the terms of the Note Purchase
Agreement and each of the Loan Documents shall be strictly adhered to on and after the date hereof in accordance with the terms
hereof.

7.                  
Further Assurances. The Debtor will
execute such additional documents as are reasonably requested by the Purchasers to reflect the terms and conditions of this Amendment
and will cause to be delivered such agreements, certificates, legal opinions and other documents as are reasonably required by
the Purchasers. 

8.                  
Counterparts/Telecopy. This Amendment
may be executed by the parties hereto in several counterparts, each of which shall be deemed to be original and all of which shall
constitute together but one and the same agreement. Delivery of executed counterparts of this Amendment by telecopy shall be effective
as an original and shall constitute a representation that an original shall be delivered.

9.                  
Governing Law/Consent to Jurisdiction/Waiver of Jury Trial.
THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK AND THE
PARTIES HERETO HEREBY CONSENT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE
UNITED STATES DISTRICT COURT OF THE 2ND CIRCUIT, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION BROUGHT TO
ENFORCE ANY RIGHTS UNDER THIS AGREEMENT AND ANY RELATED DOCUMENT OR INSTRUMENT. EACH OF THE PARTIES HERETO HEREBY WAIVES THE RIGHT
TO TRIAL BY JURY IN ANY ACTION, SUIT, COUNTERCLAIM OR PROCEEDING ARISING OUT OF OR RELATED TO THIS AMENDMENT.

10.               
Survival. All warranties, representations
and covenants made by Debtor herein, or in any agreement referred to herein or in any certificate, document or other instrument
delivered by it or on its behalf under this Amendment, shall be considered to have been relied upon by the Purchasers. All statements
in any such certificate or other instrument shall constitute warranties and representations by Debtor hereunder. All warranties,
representations, and covenants made by Debtor hereunder or under any other agreement or instrument shall be deemed continuing until
the payment in full, in cash, and indefeasible satisfaction of all obligations and any other obligations of Purchasers and any
commitment of Purchasers to extend credit to Debtor shall have been irrevocably terminated.

     

     

    

IN WITNESS WHEREOF, the Debtor
and the other parties listed below have caused this Amendment to be duly executed as of the day and year first above written.

 

DEBTOR:

 

LAPOLLA INDUSTRIES, INC.

 

 

By:/s/ Michael T. Adams, EVP

Michael T. Adams, Executive Vice President

 

 

 

AGENT AND PURCHASER:

 

ENHANCED CAPITAL TEXAS FUND, LP

By: Enhanced Capital Texas Fund GP,
LLC

 

By:/s/ Barry Osherow

Name: Barry Osherow

Title:

 

 

 

PURCHASER:

 

ENHANCED JOBS FOR TEXAS FUND, LLC

 

By:/s/ Barry Osherow

Name: Barry Osherow

Title:

 

 

 

CONSENTED TO BY SENIOR CREDITOR:

 

BANK OF AMERICA, N.A.

 

 

By:/s/ H. Michael Wills

Name: H. Michael Wills

Title: Senior Vice President

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