Document:

Filed by Bowne Pure Compliance

 

Exhibit
10.1

THIRD AMENDMENT TO CREDIT AGREEMENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into
as of March 13, 2008 by and among CONSOLIDATED GRAPHICS, INC., a Texas corporation (the
“Borrower”); each of the Lenders which is or may from time to time become a party to the
Credit Agreement (as defined below) (individually, a “Lender” and, collectively, the
“Lenders”), and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, acting as administrative agent
for the Lenders (in such capacity, together with its successors in such capacity, the
“Administrative Agent”).

RECITALS

A. The Borrower, the Lenders and the Administrative Agent executed and delivered that certain
Credit Agreement dated as of October 6, 2006, as amended by instruments dated as of January 2, 2007
and November 9, 2007. Said Credit Agreement, as amended, supplemented and restated, is herein
called the “Credit Agreement”. Any capitalized term used in this Amendment and not
otherwise defined shall have the meaning ascribed to it in the Credit Agreement.

B. The Borrower, the Lenders and the Administrative Agent desire to amend the Credit Agreement
in certain respects.

NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations
and warranties herein set forth, and further good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Borrower, the Lenders and the Administrative
Agent do hereby agree as follows:

SECTION 1. Amendments to Credit Agreement.

(a) Schedule 2.1(a) to the Credit Agreement is hereby amended to be identical to
Schedule 2.1(a) attached hereto.

(b) The definition of “Applicable Percentage” set forth in Section 1.1 of the
Credit Agreement is hereby amended to read in its entirety as follows:

“Applicable Percentage” shall mean, for any day, the rate per annum set
forth below opposite the applicable Level then in effect, it being understood that
the Applicable Percentage for (i) Revolving Loans which are Alternate Base Rate
Loans shall be the percentage set forth under the column “Alternate Base Rate Margin
for Revolving Loans”, (ii) Revolving Loans which are LIBOR Rate Loans shall be the
percentage set forth under the column “LIBOR Rate Margin for Revolving Loans and
Letter of Credit Fee”, (iii) the Commitment Fee shall be the percentage set forth
under the column “Commitment Fee” and (iv) the Letter of Credit Fee shall be the
percentage set forth under the column “LIBOR Rate Margin for Revolving Loans and
Letter of Credit Fee”:

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	LIBOR Rate Margin	 	 
	 	 	 	 	Alternate Base Rate	 	for Revolving Loans	 	 
	 	 	Leverage	 	Margin for	 	and Letter of	 	Commitment
	Level	 	Ratio	 	Revolving Loans	 	Credit Fee	 	Fee
	I
	 	< 1.00 to 1.0
	 	0%
	 	0.625%
	 	0.15%
	II
	 	< 1.50 to 1.0 but

3 1.00 to 1.0
	 	0%
	 	0.75%
	 	0.175%
	III
	 	< 2.00 to 1.0 but

3 1.50 to 1.0
	 	0%
	 	1.00%
	 	0.20%
	IV
	 	< 2.50 to 1.0 but

3 2.00 to 1.0
	 	0%
	 	1.25%
	 	0.25%
	V
	 	3 2.50 to 1.0
	 	0%
	 	1.50%
	 	0.275%

The Applicable Percentage shall, in each case, be determined and adjusted
quarterly on the date five (5) Business Days after the date on which the
Administrative Agent has received from the Borrower the quarterly financial
information and certifications required to be delivered to the Administrative Agent
and the Lenders in accordance with the provisions of Sections 5.1(b) and
5.2(b) (each an “Interest Determination Date”). Such Applicable
Percentage shall be effective from such Interest Determination Date until the next
such Interest Determination Date. After the Closing Date, if the Borrower shall
fail to provide the quarterly financial information and certifications in accordance
with the provisions of Sections 5.1(b) and 5.2(b), the Applicable
Percentage from such Interest Determination Date shall, on the date five (5)
Business Days after the date by which the Borrower was so required to provide such
financial information and certifications to the Administrative Agent and the
Lenders, be based on Level V until such time as such information and certifications
are provided, whereupon the Level shall be determined by the then current Leverage
Ratio.

(c) The second sentence of Section 2.1(a) of the Credit Agreement is hereby amended to
read in its entirety as follows:

For purposes hereof, the aggregate amount available hereunder shall be THREE HUNDRED
THIRTY-FIVE MILLION DOLLARS ($335,000,000) (as such aggregate amount may be reduced
from time to time as provided in Section 2.5, the “Revolving Commitment
Amount”).

(d) Section 2.5(c) of the Credit Agreement is hereby amended to read in its entirety as
follows:

(c) Intentionally Left Blank.

 

2

 

(e) Section 5.9(a) of the Credit Agreement is hereby amended to read in its entirety
as follows:

(a) Leverage Ratio. The Leverage Ratio shall be less than or equal to
(i) as of the last day of each fiscal quarter of the Borrower and its Subsidiaries
during the period from and after March 13, 2008 through and including March 31,
2009, 3.00 to 1.00, (ii) as of the last day of each fiscal quarter of the Borrower
and its Subsidiaries during the period from and after April 1, 2009 through
September 30, 2009, 2.75 to 1.00 and (ii) as of the last day of each fiscal quarter
of the Borrower and its Subsidiaries thereafter, 2.50 to 1.0.

(f) Section 6.6(c) of the Credit Agreement is hereby amended to read in its entirety
as follows:

(c) enter into any transaction or series of transactions for the purposes of
acquiring all or a substantial portion of the assets, property and/or Capital Stock
of any Person other than, so long as no Default or Event of Default shall have
occurred and be continuing or would result therefrom on a Pro Forma Basis, the
acquisition by any Credit Party of all or a majority of the Capital Stock or other
ownership interest in (or all or a substantial portion of the assets, property
and/or operations of) any Person provided that (i) such acquisition is of a
Person in the same or a similar line of business and (ii) the Borrower shall comply
with the requirements of Section 5.2(e) hereof.

SECTION 2. Co-Lead Arranger. Wells Fargo Bank, National Association is hereby named
as Co-Lead Arranger and Syndications Agent with respect to the Credit Agreement.

SECTION 3. Ratification. Except as expressly amended by this Amendment, the Credit
Agreement and the other Credit Documents shall remain in full force and effect. None of the
rights, title and interests existing and to exist under the Credit Agreement are hereby released,
diminished or impaired, and the Borrower hereby reaffirms all covenants, representations and
warranties in the Credit Agreement.

SECTION 4. Expenses. The Borrower shall pay to the Administrative Agent all
reasonable fees and expenses of its legal counsel incurred in connection with the execution of this
Amendment.

SECTION 5. Certifications. The Borrower hereby certifies that (a) no material adverse
change in the assets, liabilities, financial condition, business or affairs of the Borrower has
occurred and (b) subject to the waiver set forth herein, no Default or Event of Default has
occurred and is continuing or will occur as a result of this Amendment.

 

3

 

SECTION 6. Miscellaneous. This Amendment (a) shall be binding upon and inure to the
benefit of the Borrower, the Lenders and the Administrative Agent and their respective successors,
assigns, receivers and trustees; (b) may be modified or amended only by a writing signed by the
required parties; (c) shall be governed by and construed in accordance with the laws of the State of Texas and the United States of America; (d) may be executed in several
counterparts by the parties hereto on separate counterparts, and each counterpart, when so executed
and delivered, shall constitute an original agreement, and all such separate counterparts shall
constitute but one and the same agreement and (e) together with the other Credit Documents,
embodies the entire agreement and understanding between the parties with respect to the subject
matter hereof and supersedes all prior agreements, consents and understandings relating to such
subject matter. The headings herein shall be accorded no significance in interpreting this
Amendment.

 

4

 

NOTICE PURSUANT TO TEX. BUS. & COMM. CODE §26.02

THE CREDIT AGREEMENT, AS AMENDED BY THIS AMENDMENT, AND ALL OTHER CREDIT DOCUMENTS EXECUTED BY
ANY OF THE PARTIES PRIOR HERETO OR SUBSTANTIALLY CONCURRENTLY HEREWITH CONSTITUTE A WRITTEN LOAN
AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

IN WITNESS WHEREOF, the Borrower, the Lenders and the Administrative Agent have caused this
Amendment to be signed by their respective duly authorized officers, effective as of the date first
above written.

	 	 	 	 	 
	 	CONSOLIDATED GRAPHICS, INC.,

a Texas corporation

 	 
	 	By:  	/s/ Jon C. Biro
 	 
	 	 	Jon C. Biro, 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, NATIONAL

ASSOCIATION, as Administrative Agent and as a Lender

 	 
	 	By:  	/s/ Gail Waggoner
 	 
	 	 	Name:  	Gail Waggoner 	 
	 	 	Title:  	Sr. Vice President 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
 	 
	 	By:  	/s/ H.M.Sultanik
 	 
	 	 	Name:  	H.M. Sultanik 	 
	 	 	Title:  	Vice President 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Julie Castano
 	 
	 	 	Name:  	Julie Castano 	 
	 	 	Title:  	Vice President 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ De Von Lang
 	 
	 	 	Name:  	De Von Lang 	 
	 	 	Title:  	Corporate Banking Officer 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Michael R. Quiray
 	 
	 	 	Name:  	Michael R. Quiray 	 
	 	 	Title:  	Vice President 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	RBS CITIZENS, N.A.

 	 
	 	By:  	/s/ Brian H. Gallagher
 	 
	 	 	Name:  	Brian H. Gallagher 	 
	 	 	Title:  	Vice President 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 	 
	 	By:  	/s/ D. Barnell
 	 
	 	 	Name:  	D. Barnell 	 
	 	 	Title:  	V.P. & Manager 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	BANK OF TEXAS, N.A.

 	 
	 	By:  	/s/ Edward H. Braddock
 	 
	 	 	Name:  	Edward H. Braddock 	 
	 	 	Title:  	Senior Vice President 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 
	 	AMEGY BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Laif Aeseth
 	 
	 	 	Name:  	Laif Aeseth 	 
	 	 	Title:  	Sr. Vice President 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

The undersigned hereby join in this Amendment to evidence their consent to execution by Borrower of
this Amendment, to confirm that each Credit Document now or previously executed by the undersigned
applies and shall continue to apply to the Credit Agreement, as amended hereby, to acknowledge that
without such consent and confirmation, Banks would not execute this Amendment and to join in the
notice pursuant to Tex. Bus. & Comm. Code §26.02 set forth above.

A&A AMALGAMATED PRINTING ENTERPRISES, INC.,

     a California corporation,

AGS CUSTOM GRAPHICS, INC.,

     a Maryland corporation,

AMERICAN LITHOGRAPHERS, INC.,

     a California corporation,

APPLE GRAPHICS, INC.,

     a California corporation,

AUSTIN PRINTING COMPANY, INC.,

     a Georgia corporation,

AUTOMATED GRAPHIC IMAGING/COPY

     CENTER, INC., a District of Columbia corporation,

AUTOMATED GRAPHIC SYSTEMS, LLC,

     a Maryland limited liability company,

BIGINK MAILING & FULFILLMENT COMPANY,

     a Kansas corporation,

BRIDGETOWN PRINTING CO.,

     an Oregon corporation,

BYRUM LITHOGRAPHING CO.,

     an Ohio corporation,

CDS PUBLICATIONS, INC.,

     an Oregon corporation,

CGML GENERAL PARTNER, INC.,

     a Delaware corporation,

CGML, LLC,

     a Delaware limited liability company,

CGX CALIFORNIA CONTRACTORS, INC.,

     a California corporation

CGXMEDIA, INC.,

     a Texas corporation

CHAS. P. YOUNG COMPANY,

     a Texas corporation,

CHAS. P. YOUNG COMPANY, INC.,

     a New York corporation,

CLEAR VISIONS, INC.,

     a Texas corporation,

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

COLUMBIA COLOR, INC.,

     a California corporation,

CONSOLIDATED CARQUEVILLE PRINTING

     COMPANY, an Illinois corporation

CONSOLIDATED GRAPHICS CALIFORNIA,

     a California corporation,

CONSOLIDATED GRAPHICS DEVELOPMENT

     COMPANY, a Delaware corporation,

CONSOLIDATED GRAPHICS INTERNATIONAL,

     INC., a Delaware corporation,

CONSOLIDATED GRAPHICS SERVICES,

     INC., a Delaware corporation,

CONSOLIDATED GRAPHICS PROPERTIES, INC.,

     a Texas corporation,

CONSOLIDATED GRAPHICS PROPERTIES II,

     INC., a Texas corporation,

COPY-MOR, INC.,

     an Illinois corporation,

COURIER PRINTING COMPANY,

     a Tennessee corporation,

DIGITAL DIRECT, INC.,

     a Pennsylvania corporation,

DIRECT COLOR, INC.,

     a California corporation,

EAGLE PRESS, INC.,

     a California corporation,

EASTWOOD PRINTING CORPORATION,

     a Colorado corporation,

ELECTRIC CITY PRINTING COMPANY,

     a South Carolina corporation,

EMERALD CITY GRAPHICS, INC.,

     a Washington corporation,

FITTJE BROS. PRINTING CO.,

     a Colorado corporation,

FREDERIC PRINTING COMPANY,

     a Colorado corporation,

GARNER PRINTING COMPANY,

     an Iowa corporation,

GEYER PRINTING COMPANY, INC.,

     a Pennsylvania corporation,

GILLILAND PRINTING, INC.

     a Kansas corporation,

GRAPHCOM LLC,

     a Georgia limited liability company,

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

GRAPHIC COMMUNICATIONS, INC.,

     a California corporation,

GRAPHIC TECHNOLOGY OF MARYLAND, INC.,

     a Maryland corporation,

GRAPHION, INC.,

     a California corporation,

GRITZ-RITTER GRAPHICS, INC.,

     a Colorado corporation,

GROVER PRINTING COMPANY,

     a Texas corporation,

GSL FINE LITHOGRAPHERS,

     a California corporation,

GULF PRINTING COMPANY,

     a Texas corporation,

H & N PRINTING & GRAPHICS, INC.,

     a Maryland corporation,

HEATH PRINTERS, INC.

     a Washington corporation

HERITAGE GRAPHICS, INC.,

     a Texas corporation,

IMAGE SYSTEMS, INC.,

     a Wisconsin corporation,

IRONWOOD LITHOGRAPHERS, INC.,

     an Arizona corporation,

KELMSCOTT COMMUNICATIONS LLC,

     a Delaware limited liability company,

KEYS PRINTING COMPANY,

     a South Carolina corporation,

LINCOLN PRINTING CORPORATION,

     an Indiana corporation,

MARYLAND COMPOSITION.COM, INC.,

     a Maryland corporation,

MAXIMUM GRAPHICS, INC.,

     a Minnesota corporation,

MAXWELL GRAPHIC ARTS, INC.,

     a New Jersey corporation,

MCKAY PRESS, INC.,

     a Michigan corporation,

MERCURY PRINTING COMPANY, INC.,

     a Tennessee corporation,

MERCURY WEB PRINTING, INC.,

     a Kansas corporation,

METROPOLITAN PRINTING SERVICES, INC.,

     an Indiana corporation,

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

MOBILITY, INC.,

     a Virginia corporation,

MOUNT VERNON PRINTING COMPANY,

     a Maryland corporation,

MULTIPLE IMAGES PRINTING, INC.,

     an Illinois corporation,

NIES/ARTCRAFT, INC.,

     a Missouri corporation,

PICCARI PRESS, INC.,

     a Pennsylvania corporation,

PRECISION LITHO, INC.,

     a California corporation,

PRIDE PRINTERS, INC.,

     a Massachusetts corporation,

PRINTING CONTROL SERVICES, INCORPORATED,

     a Washington corporation,

PRINTING CORPORATION OF AMERICA,

     a Maryland corporation,

PRINTING, INC.,

     a Kansas corporation,

RUSH PRESS, INC.,

     a California corporation,

S&S GRAPHICS, LLC,

     a Maryland limited liability company,

S&S GRAPHICS PROPERTY, LLC,

     a Delaware limited liability company,

SPANGLER GRAPHICS, LLC,

     a Kansas limited liability company,

SPANGLER GRAPHICS PROPERTY, LLC,

     a Kansas limited liability company,

STORTERCHILDS PRINTING CO., INC.,

     a Florida corporation,

SUPERB PRINTING COMPANY,

     a Texas corporation,

SUPERIOR COLOUR GRAPHICS, INC.,

     a Michigan corporation,

TEWELL WARREN PRINTING COMPANY,

     a Colorado corporation,

THE ETHERIDGE COMPANY,

     a Michigan corporation,

THE CYRIL-SCOTT COMPANY,

     an Ohio corporation,

THE GRAPHICS GROUP, INC.,

     a Texas corporation,

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

THE HENNEGAN COMPANY,

     a Kentucky corporation,

THE JARVIS PRESS, INC.,

     a Texas corporation,

THE JOHN C. OTTO COMPANY, INC.,

     a Massachusetts corporation,

THE PIKES PEAK LITHOGRAPHIC CO.,

     a Colorado corporation,

THE PRINTERY, INC.,

     a Wisconsin corporation,

THEO. DAVIS SONS, INCORPORATED,

     a North Carolina corporation,

THOUSAND OAKS PRINTING AND

     SPECIALTIES, INC., a California corporation,

TUCKER PRINTERS, INC.,

     a Texas corporation,

TULSA LITHO COMPANY,

     an Oklahoma corporation,

TURSACK INCORPORATED,

     a Pennsylvania corporation,

VALCOUR PRINTING, INC.,

     a Missouri corporation,

WALNUT CIRCLE PRESS, INC.,

     a North Carolina corporation,

WATERMARK PRESS, LTD.,

     a California corporation,

WENTWORTH CORPORATION,

     a South Carolina corporation,

WESTERN LITHOGRAPH COMPANY,

     a Texas corporation,

WESTLAND PRINTERS, INC.,

     a Maryland corporation,

WETZEL BROTHERS, LLC,

     a Wisconsin limited liability company,

WOODRIDGE PRESS, INC.,

     a California corporation,

	 	 	 	 	 
	 	 	 
	 	By:  	                     /s/ Jon C. Biro
 	 
	 	 	Jon C. Biro, 	 
	 	 	Executive Vice President

of each of the foregoing 	 
	 

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

	 	 	 	 	 	 	 
	 	 	SERCO FORMS, LLC,

a Kansas limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	BIGINK MAILING & FULFILLMENT COMPANY, a Kansas
corporation, and MERCURY WEB PRINTING, INC., a
Kansas corporation, Members
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jon C. Biro
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Jon C. Biro,
	 

	 	 	 	 	 	Executive Vice President
	 

	 	 	 	 	 	of each of the foregoing
	 
	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS MANAGEMENT,
LTD.,
a Texas limited partnership,
	 
	 	 	 	 	 	 
	 	 	By:	 	CGML GENERAL PARTNER, INC., a Delaware
corporation, sole general partner of Consolidated
Graphics Management, Ltd.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jon C. Biro
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Jon C. Biro,
	 

	 	 	 	 	 	Executive Vice President
	 
	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS DEVELOPMENT
LLC,
a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	CONSOLIDATED GRAPHICS

DEVELOPMENT COMPANY,

a Delaware corporation, Member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jon C. Biro
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Jon C. Biro,
	 

	 	 	 	 	 	Executive Vice President

Unnumbered signature page to Third Amendment to Credit Agreement

for Consolidated Graphics, Inc.

 

 

 

SCHEDULE 2.1(a)

SCHEDULE OF LENDERS AND

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	Revolving	 	LOC	 	LOC
	 	 	Committed	 	Commitment	 	Committed	 	Commitment
	Lender	 	Amount	 	Percentage	 	Amount	 	Percentage
	JPMorgan Chase Bank, N.A.
	 	$	69,677,500.00	 	 	 	20.7992537	 	 	$	4,159,850.74	 	 	 	20.7992537	 
	Wells Fargo Bank, National
Association
	 	$	69,677,500.00	 	 	 	20.7992537	 	 	$	4,159,850.74	 	 	 	20.7992537	 
	Bank of America, N.A.
	 	$	66,129,000.00	 	 	 	19.7400000	 	 	$	3,948,000.00	 	 	 	19.7400000	 
	Comerica Bank
	 	$	30,000,000.00	 	 	 	8.9552239	 	 	$	1,791.044.78	 	 	 	8.9552239	 
	Wachovia Bank, National
Association
	 	$	25,000,000.00	 	 	 	7.4626866	 	 	$	1,492,537.32	 	 	 	7.4626866	 
	RBS Citizens, N.A.
	 	$	25,000,000.00	 	 	 	7.4626866	 	 	$	1,492,537.32	 	 	 	7.4626866	 
	The Bank of Tokyo-Mitsubishi
UFJ, Ltd.
	 	$	25,000,000.00	 	 	 	7.4626866	 	 	$	1,492,537.32	 	 	 	7.4626866	 
	Bank of Texas, N.A.
	 	$	14,516,000.00	 	 	 	4.3331343	 	 	$	866,626.86	 	 	 	4.3331343	 
	Amegy Bank National Association
	 	$	10,000,000.00	 	 	 	2.9850746	 	 	$	597,014.92	 	 	 	2.9850746	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total:
	 	$	335,000,000.00	 	 	 	100.0000000	%	 	$	20,000,000.00	 	 	 	100.0000000	%Filed by Bowne Pure Compliance

 

Exhibit 10.12

PROMISSORY NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal
	 	Loan Date
	 	Maturity
	 	Loan No
	 	Call/Coll	 	Account	 	Officer	 	 
	$500,000.00
	 	11-01-2007
	 	11-01-2008
	 	6824
	 	 
	 	 
	 	BLD
	 	Initials

References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	RBC Life Sciences, Inc.
	 	Lender:
	 	Independent Bank of Texas
	 

	 	2301 Crown Court
	 	 	 	P. O. Box 167099
	 

	 	Irving, TX 75038
	 	 	 	Irving, TX 75016-7099
	 

	 	 	 	 	 	(972) 870-9300

					
	 	 	 	 	 
	Principal
Amount: $500,000.00

	 	Initial Rate: 7.750%
	 	Date of Note: November 1, 2007

PROMISE TO PAY. RBC Life Sciences, Inc (“Borrower”) promises to pay to Independent Bank of Texas
(“Lender”), or order, in lawful money of the United States of America, the principal amount of
Five Hundred Thousand & 00/100 Dollars ($500,000.00) or so much as may be outstanding, together
with interest on the unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each advance or maturity, whichever
occurs first.

CHOICE OF USURY CEILING AND INTEREST RATE. The interest rate on this Note has been implemented
under the “Weekly Ceiling” as referred to in Sections 303.002 and 303.003 of the Texas Finance
Code. The terms, including the rate, or index, formula, or provision of law used to compute the
rate on the Note, will be subject to revision as to current and future balances, from time to
time by notice from Lender in compliance with Section 303.103 of the Texas Finance Code.

PAYMENT. Borrower will pay this loan in full immediately upon Lender’s demand. If no demand is
made, Borrower will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on November 1, 2008. In addition. Borrower will pay regular monthly payments of
all accrued unpaid interest due as of each payment date, beginning December 1, 2007, with all
subsequent interest payments to be due on the same day of each month after that. Unless
otherwise agreed or required by applicable law, payments will be applied first to any accrued
unpaid interest; then to principal; and then to any unpaid collection costs. The annual interest
rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual
interest rate over a year of 360 days, multiplied by the outstanding principal balance,
multiplied by the actual number of days the principal balance is outstanding, unless such
calculation would result in a usurious rate, in which case interest shall be calculated on a per
diem basis of a year of 365 or 366 days, as the case may be. Borrower will pay Lender at Lenders
address shown above or at such other place as Lender may designate in writing. Notwithstanding
any other provision of this Note, Lender will not charge interest on any undisbursed loan
proceeds. No scheduled payment, whether of principal or interest or both, will be due unless
sufficient loan funds have been disbursed by the scheduled payment date to justify the payment.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time
based on changes in an independent index which is the Wall Street Prime Rate as Published in The
Wall Street Journal (the “Index”). The Index is not necessarily the lowest rate charged by
Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may
designate a substitute index after notifying Borrower. Lender will tell Borrower the current
Index rate upon Borrower’s request. The interest rate change will not occur more often than each
day. Borrower understands that Lender may make loans based on other rates as well. The Index
currently is 7.750% per annum. The interest rate to be applied prior to maturity to the unpaid
principal balance during this Note will be at a rate equal to the Index, resulting in an initial
rate of 7.750% per annum. NOTICE: Under no circumstances will the interest rate on this Note be
more than (except for any higher default rate or Post Maturity Rate shown below) the lesser of
18.000% per annum or the maximum rate allowed by applicable law. For purposes of this Note, the
“maximum rate allowed by applicable law” means the greater of (A) the maximum rate of interest
permitted under federal or other law applicable to the indebtedness evidenced by this Note, or
(B) the ‘”Weekly Ceiling” as referred to in Sections 303.002 and 303.003 of the Texas Finance
Code.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned
fully as of the date of the loan and will not be subject to refund upon early payment (whether
voluntary or as a result of default), except as otherwise required by law. Except for the
foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it
is due. Prepayment in full shall consist of payment of the remaining unpaid principal balance
together with all accrued and unpaid interest and all other amounts, costs and expenses for
which Borrower is responsible under this Note or any other agreement with Lender pertaining to
this loan, and in no event will Borrower ever be required to pay any unearned interest. Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s
obligation to continue to make payments of accrued unpaid interest. Rather, early payments will
reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid in
full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may
accept it without losing any of Lender’s rights under this Note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written communications concerning
disputed amounts, including any check or other payment instrument that indicates that the
payment constitutes “payment in full” of the amount owed or that is tendered with other
conditions or limitations or as full satisfaction of a disputed amount must be mailed or
delivered to: Independent Bank of Texas, P. O. Box 167099 Irving, TX 75016-7099.

 

 

 

PROMISSORY NOTE

					
	Loan No.: 6824
	 	(Continued)
	 	Page 2

POST MATURITY RATE. The Post Maturity Rate on this Note is the lesser of (A) the maximum rate
allowed by law or (B) 18.000% per annum. Borrower will pay interest on all sums due after final
maturity, whether by acceleration or otherwise, at that rate.

LENDER’S RIGHTS. Upon default, Lender may declare the entire indebtedness, including the unpaid
principal balance under this Note, all accrued unpaid interest, and all other amounts, costs and
expenses for which Borrower is responsible under this Note or any other agreement with Lender
pertaining to this loan, immediately due, without notice, and then Borrower will pay that
amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire an attorney to help collect this Note if Borrower
does not pay, and Borrower will pay Lender’s reasonable attorneys’ fees. Borrower also will pay
Lender all other amounts Lender actually incurs as court costs, lawful fees for filing,
recording, releasing to any public office any instrument securing this Note; the reasonable cost
actually expended for repossessing, storing, preparing for sale, and selling any security; and
fees for noting a lien on or transferring a certificate of title to any motor vehicle offered as
security for this Note, or premiums or identifiable charges received in connection with the sale
of authorized insurance.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent
not preempted by federal law, the laws of the State of Texas without regard to its conflicts of
law provisions. This Note has been accepted by Lender in the State of Texas.

CHOICE OF VENUE. If there is a lawsuit, and if the transaction evidenced by this Note occurred
in Dallas County, Borrower agrees upon Lender’s request to submit to the jurisdiction of the
courts of Dallas County, State of Texas.

DISHONORED CHECK CHARGE. Borrower will pay a processing fee of $25.00 if any check given by
Borrower to Lender as a payment on this loan is dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. However, this does not include any IRA or Keogh accounts, or any trust
accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any
and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be
requested orally by Borrower or as provided in this paragraph. All oral requests shall be
confirmed in writing on the day of the request. All communications, instructions, or directions
by telephone or otherwise to Lender are to be directed to Lender’s office shown above. The
following person or persons are authorized to request advances and authorize payments under the
line of credit until Lender receives from Borrower, at Lender’s address shown above, written
notice of revocation of such authority: Steven E. Brown, Vice President, CFO of RBC Life
Sciences, Inc. Borrower agrees to be liable for all sums either: (A) advanced in accordance with
the instructions of an authorized person or (B) credited to any of Borrower’s accounts with
Lender. The unpaid principal balance owing on this Note at any time may be evidenced by
endorsements on this Note or by Lender’s internal records, including daily computer print-outs.
This revolving line of credit shall not be subject to Ch. 346 of the Texas Finance Code.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of
Lender and its successors and assigns.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest
of the Note. Borrower does not agree or intend to pay, and Lender does not agree or intend to
contract for, charge, collect, take, reserve or receive (collectively referred to herein as “charge
or collect”), any amount in the nature of interest or in the nature of a fee for this loan, which
would in any way or event (including demand, prepayment, or acceleration) cause Lender to charge or
collect more for this loan than the maximum Lender would be permitted to charge or collect by
federal law or the law of the State of Texas (as applicable). Any such excess interest or
unauthorized fee shall, instead of anything stated to the contrary, be applied first to reduce the
principal balance of this loan, and when the principal has been paid in full, be refunded to
Borrower. The right to accelerate maturity of sums due under this Note does not include the right
to accelerate any interest which has not otherwise accrued on the date of such acceleration, and
Lender does not intend to charge or collect any unearned interest in the event of acceleration. All
sums paid or agreed to be paid to Lender for the use, forbearance or detention of sums due to
hereunder shall, to the extent permitted by applicable law, be amortized, prorated, allocated and
spread throughout the full term of the loan evidenced by this Note until payment in full so that
the rate or amount of interest on account of the loan evidenced hereby does not exceed the
applicable usury ceiling. Lender may delay or forgo enforcing any of its rights or remedies under
this Note without losing them. Borrower and any other person who signs, guarantees or endorses this
Note, to the extent allowed by law, waive presentment, demand for payment, notice of dishonor,
notice of intent to accelerate the maturity of this Note, and notice of acceleration of the
maturity of this Note. Upon any change in the terms of this Note, and unless otherwise expressly
stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker
or endorser, shall be released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender’s security interest in the collateral
without the consent of or notice to anyone. All such parties also agree that Lender may modify this
loan without the consent of or notice to anyone other than the party with whom the modification is
made. The obligations under this Note are joint and several.

 

 

 

PROMISSORY NOTE

					
	Loan No.: 6824
	 	(Continued)
	 	Page 2

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING
THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

RBC LIFE SCIENCES, INC

	 	 	 	 	 
	By:

	 	/s/ Steven E. Brown	 	 
	 

	 	 	 	 
	 

	 	Steven E. Brown, Vice
President,
 CFO of RBC Life Sciences, Inc

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