Document:

Second amendment to Amended and Restated Loan Agreement

 Exhibit 10.38 
  
 SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT 
  
 THIS SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT (this “Amendment”) is made and entered into as of the 26th day of September, 2003, by and between FEATHERLITE, INC., a Minnesota corporation (“Borrower”), and U.S. BANK
NATIONAL ASSOCIATION “(Lender”). 
  
 WITNESSETH:

  
 WHEREAS, Borrower and Lender have heretofore entered into that
certain Amended and Restated Loan Agreement dated as of July 31, 2002 as amended by that certain First Amendment to Amended and Restated Loan Agreement dated February 18, 2003 (the “Loan Agreement”); all capitalized terms used and not
otherwise defined in this Amendment shall have the respective meanings ascribed to them in the Loan Agreement as amended by this Amendment)’ and 
  
 WHEREAS, Borrower and Lender desire to further amend the Loan Agreement in the manner hereinafter set forth; 
  
 NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender hereby agree as follows: 
  
 1. The word “and” is deleted from the end of Section 5.02(a)(ix) of the Loan Agreement and replaced with a semi-colon; the period at the end of
Section 5.02(a)(x) of the Loan Agreement is deleted and replaced with “, and”; and the following provision is added to the Loan Agreement as Section 5.01 (a)(xi)” 
  
 (xi) a floor plan line of credit to finance the purchase of motor coaches manufactured by Foretravel
Motorhomes, Inc., to be provided by Regions Bank in a principal amount of up to $3,000,000. 
  
 2. The definition “Borrowing Base” contained in Exhibit A to the Loan Agreement is hereby amended to provide as follow: 
  
 Borrowing Base shall mean, as of the date of any determination thereof, the sum of: 
  
 (a) (i) Eighty-five Percent (85%) if the Rate of Dilution of Borrower’s
Accounts is less than or equal to Five Percent (5%), (ii) Eighty Percent (80%) if the Rate of Dilution of Borrower’s Accounts is greater than Five Percent (5%) but less than or equal to Eight Percent (8%), (iii) Seventy-Five Percent (75%) if
the Rate of Dilution of Borrower’s Accounts is greater than Eight Percent (8%) but less than or equal to Ten Percent (10%) or (iv) Seventy-Percent (70%) if the Rate of Dilution of Borrower’s of Borrower as such date (less maximum discount,
credits and allowances which may be taken by or granted to Account Debtors in connection therewith and/or adjustments for reserves and allowances deemed appropriate by Lender in its good faith discretion); plus 
  

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 (b) the lesser of (i) the sum as of such date of (x) Thirty Percent (30%) of that portion of the Eligible
Inventory of Borrower consisting of raw materials, plus (y) Seventy Percent (70%) of that portion of the Eligible Inventory of Borrower consisting of work-in-process, sub-assembly, finished goods and used trailers, all valued at the lower of cost or
market in accordance with GAAP, or (ii) $12,000,000.00. 
  
 3. The
period at the end of sub-section (h) in the definition of “Permitted Liens” contained in Exhibit A to the Loan Agreement is deleted and replaced with “,and”, and the following provision is added as sub-section (i) in the
definition of “Permitted Liens” contained in Exhibit A to the Loan Agreement: 
  
 (i) Liens granted in favor of Regions Bank in connection with the Indebtedness permitted in Section 5.01(a)(xi). 
  
 4. Pursuant to Borrower’s request, Lender hereby waives the existing
Events of Default under the Loan Agreement caused by (i) borrower’s failure to have a Consolidated Fixed Charge Coverage Ratio of at least 1.05 to 1.00 as of the end of its fiscal quarters ending December 31, 2002 and March 31, 2003 as required
by Subsection 5.01(o)(i) of the Loan Agreement, and (ii) Borrower’s failure to have Consolidated EBITDA of at least $9,000,000 during its fiscal year ended December 31, 2002 as required by Subsection 5.01(o)(iii) of the Loan Agreement.

  
 5. Borrower hereby agrees to pay Lender a nonrefundable
amendment fee in the amount of $8,000.00 (the “Fee) contemporaneously with the execution of this Amendment. 
  
 6. All references in the Loan Agreement to “this Agreement” and any other references of similar import shall henceforth mean the Loan Agreement
as amended by this Amendment. 
  
 7. Except to the extent
specifically amended by this Amendment, all of the terms, provisions, conditions, covenants, representations and warranties contained in the Loan Agreement shall be and remain in full force and effect and the same are hereby ratified and confirmed.

  
 8. This Amendment shall be binding upon and inure to the
benefit of Borrower and Lender and their respective successors and assigns, except that Borrower may not assign, transfer or delegate any of its rights or obligations under the Loan Agreement as amended by this Amendment 
  
 9. Borrower hereby represents and warrants to Lender that: 
  
 (a) the execution, delivery and performance by Borrower of
this Amendment are with the corporate powers of borrower, have been duly authorized by all necessary corporate action and require no action by or in respect of, consent of or filing or recording with, any governmental or regulatory body,
instrumentality, authority, agency or official or any other Person; 
  
 (b) the execution, delivery and performance by Borrower of this Amendment do not conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under or result in any violation
of, the terms of the Articles of Incorporation or by-Laws of Borrower, any applicable law, rule, regulation, order, writ, judgment or decree of any court for 

  

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governmental or regulatory body, instrumentality authority, agency or official or any agreement, document or instrument to which Borrower is a party or by
which Borrower or any of its Property is bound or to which Borrower of any of its Property is subject; 
  
 (c) This Amendment has been duly executed and delivered by Borrower and constitutes the legal, valid and binding obligation of Borrower
enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency or similar laws affecting the enfor4cement of creditor’s rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); 
  
 (d) all of the representations and warranties made by Borrower and/or any other Obligor in the Loan Agreement and/or in any other
Transaction Document are true and correct in all material respects on and as of the date of this Amendment as if made on and as of the date of this Amendment; and 
  
 (e) as of the date of this Amendment, no Default or Event of Default under or within the meaning of the Loan
Agreement has occurred and is continuing. 
  
 10. In the event of
any inconsistency or conflict between this Amendment and the Loan Agreement, the terms, provisions and conditions contained in this Amendment shall govern and control. 
  
 11. Notwithstanding any provision contained in this Amendment to the contrary, this Amendment shall not be effective unless
and until Lender shall have received: 
  
 (a)
this Amendment, duly executed by Borrower; 
  
 (b) a Consent of Participant, duly executed by LaSalle Bank National Association; 
  
 (c) a Certificate of Authority executed by the Secretary of Borrower; and 
  
 (d) the Fee 
  
 12. This Amendment shall be governed by and construed in accordance with the substantive laws of the State of Missouri (without reference to conflict of
law principles). 
  
 13. ORAL AGREEMENTS OR COMMITMENTS TO LAN
MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT BORROWER AND LENDER FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS REACHED BY BORROWER
AND LENDER COVERING SUCH MATTERS ARE CONTAINED IN THE LAON AGREEMENT AS AMENDED BY THIS AMENDMENT AND THE OTHER TRANSACTION DOCUMENTS, WHICH LOAN AGREEMENT AS AMNEDED BY THIS AMENDMENT AND OTHER TRANSACTION DOCUMENTS ARE A COMPLETE AND EXCLUSIVE
STATEMENT OF THE AGREEMENTS BETWEEN BORROWER AND LENDER, EXCEPT AS BORROWER AND LENDER MAY LATER AGREE IN WRITING TO MODIFY THEM. 
  

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 IN WITNESS WHEREOF, Borrower and Lender have executed this Second Amendment to Loan Agreement as of the date first above
written. 
  

	
	 Featherlite, Inc,

	
	 By /s/ Conrad Clement

	

	 Title: President and CEO

  

	
	 U.S. Bank Association

	
	 By: Robin Van Meter

	 Title: Vice President

  
 CONSENT OF
PARTICIPANT 
  
 The undersigned, in its capacity as the
“Participant” under that certain Loan Participation Agreement dated as of October 8, 1998, by and between the undersigned and U.S. Bank National Association, formerly known as Firstar Bank Milwaukee, N.A. (“Lender”), relating to
Featherlite, Inc., a Minnesota corporation (“Borrower”), as amended (as so amended, the “Participation Agreement”), hereby: 
  

	 	(a)	Consents to the terms, provision and conditions contained in that certain Second Amendment to Amended and Restated Loan Agreement dated as of September 26, 2003 (the “
Amendment”), subject to Participants receipt of $4,000.00 representing its portion of the Fee referenced in the Amendment; and 

  

	 	(b)	Acknowledges and agrees that all references in the Participation Agreement to the “Revolving Loan Agreement” and any other references of similar import shall henceforth
mean the Amended and Restated Loan Agreement as amended by the Amendment; and 

  

	 	(c)	Acknowledges and agrees that the Participation Agreement is in full force and effect on the date hereof and the same is hereby ratified and confirmed. 

  
 Executed as of the 26th day of September, 2003. 
  

	
	
	 /s/ Steven Buford, Vice President

	

	 LaSalle Bank National Association

  

 4 Of 4First Amendment Agreement

 Exhibit 10.2 
  
 FIRST AMENDMENT AGREEMENT 
  
 THIS FIRST AMENDMENT AGREEMENT (this “First Amendment”) is entered into as of April 9, 2004 by and
between Factory Card Outlet of America Ltd., an Illinois corporation (“Borrower”), the lenders signatory hereto (“Lenders”) and Wells Fargo Retail Finance II, LLC (formerly known as Wells Fargo Retail Finance, LLC),
as agent for the Lenders (in such capacity, “Agent”). 
  
 Introduction 
  
 Borrower, Agent and Lenders are
parties to the Loan and Security Agreement dated as of April 9, 2002 (as amended hereby and as further amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Lender has
agreed to make certain revolving credit advances and to provide certain other financial accommodations to Borrower. 
  
 Borrower and Agent are also parties to the Fee Letter dated as of April 9, 2002 (the “Fee Letter”) pursuant to which Borrower has agreed
to pay Lender certain fees in connection with the transactions contemplated by the Loan Agreement. 
  
 Borrower has requested certain amendments to the Loan Agreement and the Fee Letter. Agent and Lenders are willing to so amend the Loan Agreement and the
Fee Letter on the terms and conditions set forth herein. 
  
 NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties signatory hereto agree as follows.

  
 1. Amendments to the Loan Agreement. 
  
 (a) Section 1.1 of the Loan Agreement is hereby amended as follows:

  
 (i) The definition of “Applicable Prepayment
Premium” is hereby amended and restated in its entirety as follows: 
  
 “Applicable Prepayment Premium” means, as of any date of determination, an amount equal to (a) during the period of time from and including the date of the execution and delivery of this Agreement up
to and including April 2, 2004, 1.5% times the sum of (i) the Maximum Revolver Amount, plus (ii) 102% of the aggregate amount of all undrawn Letters of Credit on the date immediately prior to the date of determination, (b) during the
period of time from April 3, 2004 up to and including April 4, 2005, 1.0% times the sum of (i) the Maximum Revolver Amount, plus (ii) 102% of the aggregate amount of all undrawn Letters of Credit on the date immediately prior to the
date of determination, and (c) after April 4, 2005, $0. 

 (ii) The definition of “Base Rate Margin” is hereby amended and restated in its
entirety as follows: 
  
 “Base Rate
Margin” means 0.0%. 
  
 (iii) The definition
of “Eligible In-Transit Inventory” is hereby amended by inserting the words “provided, however, that if such Qualified Letter of Credit is a documentary Letter of Credit, the aggregate amount of such Inventory does not
exceed $10,000,000 (ten million dollars),” to the end of clause (a) of such definition. 
  
 (iv) The definition of “LIBO Rate Margin” is hereby amended and restated in its entirety as follows: 
  
 “LIBO Rate Margin” means 2.25%. 

 
 (v) The definition of “Loan Documents” is
hereby amended by inserting the words “the First Amendment,” after the words “means this Agreement,” in such definition. 
  
 (vi) The definition of “Maximum Revolver Amount” is hereby amended and restated in its entirety as follows: 
  
 “Maximum Revolver Amount” means
$30,000,000. 
  
 (vii) The following new
definitions are hereby inserted in the appropriate alphabetical order as follows: 
  
 “Seasonal Line” means, as of any date of determination, Advances made under clause (1) of Section 2.1(a)(B)
in excess of Advances that would be permitted under clause (2) of Section 2.1(a)(B) on such date. 
  
 “First Amendment” means the First Amendment to Loan and Security Agreement dated as of April 9, 2004 by and between
Borrower and the Lender. 
  
 “Total
Average Daily Balance” means, for any month, the sum of (a) the average Daily Balance of Advances that were outstanding during such month, plus (b) the average Daily Balance of the Letter of Credit Usage during such month.

  
 (b) Section 2.1(a)(B) of the Loan Agreement is hereby
amended and restated in its entirety as follows: 
  

	 	“(B)	 (1) during the Seasonal Period, the lesser of (i) 70% of the Cost value of Eligible Inventory plus 50% of the Cost value of Eligible In-Transit Inventory or (ii)
90% of the then-extant Net Retail Liquidation Value of Eligible Inventory plus 90% of the then-extant Net Retail Liquidation Value of Eligible In-Transit Inventory, or (2) at all other times during the term of this 

  

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Agreement, the lesser of (i) 65% of the Cost value of Eligible Inventory plus 50% of the Cost value of Eligible In-Transit Inventory or (ii) 85% of the
then-extant Net Retail Liquidation Value of Eligible Inventory plus 85% of the then-extant Net Retail Liquidation Value of Eligible In-Transit Inventory.” 

  
 (c) Section 2.6(a) of the Loan Agreement is hereby amended by deleting the second paragraph of such Section
2.6(a) in its entirety. 
  
 (d) Section 2.11(a) of the
Loan Agreement is hereby amended and restated in its entirety as follows: 
  
 “(a) Unused Line Fee. On the first day of each month during the term of this Agreement, an unused line fee in an amount equal to: 
  
 (i) if the Total Average Daily Balance for the immediately preceding month is less than or equal to
$20,000,000, the sum of (A) 0.10% per annum times $10,000,000 plus (B) 0.25% per annum times the result of (x) $20,000,000 less (y) such Total Average Daily Balance, and 
  
 (ii) if the Total Average Daily Balance for the immediately
preceding month is greater than $20,000,000, 0.10% per annum times the result of (x) the Maximum Revolver Amount less (y) such Total Average Daily Balance.” 
  
 (e) Section 3.4 of the Loan Agreement is hereby amended by deleting the words “April 9, 2005 (the
“Maturity Date”)” and inserting in lieu thereof the words “April 9, 2007 (the “Maturity Date”)”. 
  
 (f) Section 7.21(a) of the Loan Agreement is hereby amended by adding the following new sentence to the end of such Section 7.21(a):

  
 “The foregoing Minimum EBITDA covenant shall not be
tested for a given month if Excess Availability is greater than or equal to $10,000,000 at all times during such month.” 
  
 (g) Schedule C-1 to the Loan Agreement is hereby amended by deleting such Schedule C-1 in its entirety and substituting therefor the
Schedule C-1 attached to this First Amendment. 
  
 2.
Amendment to Fee Letter. The Fee Letter is hereby amended by deleting numbered paragraph 4 thereof and inserting in lieu thereof the following new numbered paragraph 4: 
  
 “4. Seasonal Advance Rate Increase Fee. In any calendar year during the term of the Loan
Agreement, if at any time during the Seasonal Period for such year Advances are made on the Seasonal Line, the Borrower shall pay the Agent a seasonal advance rate increase fee of $10,000, which fee shall be fully earned and payable on the date the
first such Advance is made.” 
  

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 3. Acknowledgment of Payment. Agent acknowledges that Borrower has paid, and Agent has received,
all amounts owing by Borrower to Agent in respect of fees pursuant to numbered paragraph 2 of the Fee Letter, and Agent agrees that Borrowers is not obligated to pay Agent, and Agent is not entitled to receive, any additional amounts in respect of
such fees. 
  
 4. Conditions Precedent to First Amendment.
The satisfaction of each of the following, unless waived or deferred by Agent, in its sole discretion, shall constitute conditions precedent to the effectiveness of this First Amendment and each and every provision hereof: 
  
 (a) Agent shall have received this First Amendment fully executed by each of
the parties hereto; 
  
 (b) The representations and warranties in
this First Amendment, the Loan Agreement as amended hereby and the other Loan Documents shall be true and correct in all respects on and as of the date hereof, as though made on such date (except to the extent that such representations and
warranties relate solely to an earlier date); 
  
 (c) No Event of
Default shall have occurred and be continuing on the date hereof, nor shall any Default or Event of Default result from the consummation of the transactions contemplated herein; 
  
 (d) No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the
consummation of the transactions contemplated herein shall have been issued and remain in force by any court or other governmental authority against Borrower, Agent or any Lender; and 
  
 (e) Agent shall have received a First Amendment fee of $25,000. 
  
 (f) Agent shall have received payment in full of its out-of-pocket expenses
(including reasonable attorneys’ fees and expenses) incurred in connection with the Loan Agreement and this First Amendment. 
  
 5. Representations and Warranties. Borrower hereby represents and warrants to Agent and Lenders that: 
  
 (a) The execution, delivery, and performance of this First Amendment and the
Loan Agreement are within Borrower’s corporate powers, have been duly authorized by all necessary corporate action, and do not, and will not, contravene in any material respect any provision of any material Requirement of Law or material
obligation of Borrower; 
  
 (b) This First Amendment has been duly
executed and delivered by Borrower; 
  
 (c) This First Amendment
and the Loan Agreement constitute Borrower’s legal, valid, and binding obligation, enforceable against Borrower in accordance with its terms; 
  

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 (d) Borrower is in compliance with all of the terms and provisions set forth in the Loan Agreement and
each of the other Loan Documents, as amended hereby, on its part to be observed or performed on or prior to the date hereof; 
  
 (e) No Default or Event of Default has occurred and is continuing; and 
  
 (f) Since January 31, 2004, no Material Adverse Change has occurred. 
  
 6. Reaffirmation. Borrower further reaffirms all of its obligations,
as amended hereby, under the Loan Agreement, as amended hereby, and each of the other Loan Documents. 
  
 7. Effect on Loan Agreement. The Loan Agreement and the Fee Letter, each as amended hereby, shall be and remain in full force and effect in
accordance with their respective terms and hereby are ratified and confirmed in all respects. The execution, delivery, and performance of this First Amendment shall not operate as a waiver of or, except as expressly set forth herein, as an amendment
of, any right, power, or remedy of the Agent or the Lenders under the Loan Agreement or the Fee Letter, each as in effect prior to the date hereof. 
  
 8. Further Assurances. Borrower shall execute and deliver all agreements, documents, and instruments, each in form and substance satisfactory to
the Agent, and take all actions as the Lender may reasonably request from time to time, to perfect and maintain the perfection and priority of the security interest in the Collateral held by the Agent, for the benefit of Lenders, and to fully
consummate the transactions contemplated under this First Amendment and the Loan Agreement, as amended hereby. 
  
 9. No Novation; Entire Agreement. This First Amendment evidences solely the amendment of the terms and provisions of Borrower’s obligations
under the Loan Agreement and the Fee Letter and is not a novation or discharge thereof. There are no other understandings, express or implied, between the Lender Group and Borrower regarding the subject matter hereof. 
  
 10. Choice of Law. The validity of this First Amendment, its
construction, interpretation and enforcement, and the rights of the parties hereunder, shall be determined under, governed by, and construed in accordance with the laws of The Commonwealth of Massachusetts without regard to conflicts of laws
principles. 
  
 11. Counterparts; Telefacsimile Execution.
This First Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered shall be deemed an original, and all of which, when taken together, shall constitute
one and the same instrument. Delivery of an executed counterpart of a signature page to this First Amendment by telefacsimile shall be as effective as delivery of a manually executed counterpart of this First Amendment. Any party delivering an
executed counterpart of this First Amendment by telefacsimile also shall deliver a manually executed counterpart of this First Amendment but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and
binding effect of this First Amendment. 
  

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 12. Definitions and Construction. 
  
 (a) Capitalized terms used but not otherwise defined herein shall have the respective meanings given to such terms in the
Loan Agreement, as amended hereby. 
  
 (b) This First Amendment is
a Loan Document. This First Amendment shall be construed collectively with each of the Loan Agreement and the Fee Letter, and if any term, provision or condition of any of such documents is inconsistent with or contradictory to any term, provision
or condition of any other such document, the terms, provisions and conditions of this First Amendment shall supersede and control the terms, provisions and conditions of the Loan Agreement and the Fee Letter, as applicable. Upon and after the
effectiveness of this First Amendment, (a) each reference in the Loan Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Loan Agreement, and each reference
in the other Loan Documents to “the Loan Agreement”, “thereunder”, “therein”, “thereof” or words of like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as modified
and amended hereby and (b) each reference in the Fee Letter to “the Fee Letter”, “this Fee Letter”, “hereunder”, “herein”, “hereof” or words of like import referring to the Fee Letter, and each
reference in the other Loan Documents to “the Fee Letter”, “thereunder”, “therein”, “thereof” or words of like import referring to the Fee Letter, shall mean and be a reference to the Fee Letter as modified
and amended hereby. 
  
 (c) Except to the extent expressly amended
hereby, the Loan Agreement, the Fee Letter and all other Loan Documents shall be unaffected hereby, shall continue in full force and effect and are hereby in all respects ratified and confirmed. The Loan Agreement, the Fee Letter and all other Loan
documents, as amended hereby shall constitute the legal, valid, binding and enforceable obligations of Borrower to Agent and/ or Lenders, as applicable. 
  

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

			
	BORROWERS:
	
	FACTORY CARD OUTLET OF AMERICA LTD.
		
	By:	 	 /s/ James D. Constantine

	 	 	James D. Constantine,
	 	 	Executive Vice President and Chief Financial Officer
	
	AGENT AND LENDER:
	
	WELLS FARGO RETAIL
	FINANCE II, LLC, as Agent and Lender
		
	By:	 	 /s/ Robert C. Chakarian

	 	 	Robert C. Chakarian,
	 	 	Vice President

  
 [Signature Page
to First Amendment] 

 Schedule C-1 
  
 Commitments 
  

			
	 Lender

	  	Revolver
Commitment

	Wells Fargo Retail Finance II, LLC	  	$30,000,000
	 	  	

	Total:	  	$30,000,000

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