Document:

usfd-ex41_6.htm

Exhibit 4.1

 

EXECUTION VERSION

FOURTH AMENDMENT

FOURTH AMENDMENT, dated as of November 30, 2017 (this “Amendment”), to the Credit Agreement referred to below, among US FOODS, INC., as the Borrower, the other Loan Parties party hereto, CITICORP NORTH AMERICA, INC. (“Citi”), as administrative agent (in such capacity, the “Administrative Agent”) and collateral agent (in such capacity, the “Collateral Agent”), and the Lenders and other financial institutions party hereto.  Capitalized terms are used herein as defined in Section 1 hereof.

RECITALS

WHEREAS, the Borrower is party to the Credit Agreement, dated as of May 11, 2011, by and among the Borrower, Citi as the Administrative Agent and Collateral Agent, and the Lenders and other financial institutions party thereto, as amended by the First Amendment, dated as of June 7, 2013 (the “First Credit Agreement Amendment”), as amended and restated by the Second Amendment, dated as of June 27, 2016, and as amended by the Third Amendment, dated as of February 17, 2017 (such Credit Agreement, as the same may be further amended, restated, modified and supplemented from time to time prior to the Fourth Amendment Effective Date (as defined below), the “Existing Credit Agreement”; the Existing Credit Agreement as amended pursuant to this Amendment, the “Credit Agreement”);

WHEREAS, the Borrower has requested that the Lenders effect certain amendments and modifications to the Existing Credit Agreement, including a repricing of the existing Initial Term Loans, all as described herein;

WHEREAS, each existing Term Loan Lender with respect to the Initial Term Loans (each, an “Existing Term Loan Lender”; the existing Initial Term Loans held by it, its “Existing Term Loan”) that executes and delivers a signature page to this Amendment (a “Consent”; each such Existing Term Loan Lender delivering a Consent, a “Continuing Term Lender” and the Initial Term Loans of such Continuing Term Lender, the “Repriced Term Loans”) will thereby agree to the terms of this Amendment;

WHEREAS, upon the Fourth Amendment Effective Date, each Person that is listed on the signature pages hereto as a “New Term Loan Lender” (each, a “New Term Loan Lender”) and the Administrative Agent have agreed, upon the terms and subject to the conditions set forth herein, that each such New Term Loan Lender will make Term Loans in an aggregate principal amount not to exceed the amount set forth opposite such New Term Loan Lender’s name under the heading “Additional Repriced Term Loan Commitment” on Schedule A hereto (as to each such New Term Loan Lender, its “Additional Repriced Term Loan Commitment”, and term loans made by each New Term Loan Lender in respect thereof, its “Additional Repriced Term Loans”);

 

Exhibit 4.1

 

EXECUTION VERSION

WHEREAS, the proceeds of the Additional Repriced Term Loans will be used by the Borrower to (i) repay in full the outstanding principal amount of the Existing Term Loans that are not continued as Repriced Term Loans hereunder and (ii) pay accrued interest on any of the foregoing and any related premiums, fees and expenses;

WHEREAS, the Additional Repriced Term Loans and the Repriced Term Loans will constitute one Tranche of Initial Term Loans and will otherwise have the terms as set forth in the Credit Agreement;

WHEREAS, the Borrower, the Continuing Term Lenders, the New Term Loan Lenders and the Administrative Agent are willing to agree to this Amendment on the terms set forth herein;

WHEREAS, the Borrower, the other Loan Parties and the Collateral Agent are party to a Guarantee and Collateral Agreement, dated as of May 11, 2011, as amended by the First Credit Agreement Amendment (the “Guarantee and Collateral Agreement”), and have agreed to provide certain acknowledgements and reaffirmations that the grant of security interests contained in the Guarantee and Collateral Agreement shall continue in full force and effect notwithstanding the terms of this Amendment and the effectiveness of the Credit Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

Section 1.Defined Terms; References.  

(a)Unless otherwise specifically defined herein, each term used herein that is defined in the Existing Credit Agreement has the meaning assigned to such term in the Existing Credit Agreement, provided that, if the definition of such term is amended hereby, then such term shall have the meaning assigned thereto in the Credit Agreement.  

(b)From and after the Fourth Amendment Effective Date, all references to the “Credit Agreement” in any Loan Document and all references in the Existing Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Existing Credit Agreement, shall, unless expressly provided otherwise, refer to the Credit Agreement.

Section 2.Consents etc.

(a)Each of the Continuing Term Lenders, the New Term Loan Lenders, the Administrative Agent and the Collateral Agent consents to and approves this Amendment and the amendments to the Existing Credit Agreement effected hereby.

 

Exhibit 4.1

 

EXECUTION VERSION

(b)Subject to the terms and conditions hereof, each New Term Loan Lender severally agrees to make in a single draw on the Fourth Amendment Effective Date, one or more Term Loans in Dollars to the Borrower in an aggregate principal amount not to exceed the amount set forth opposite such Term Loan Lender’s name on Schedule A hereto under the heading “Additional Repriced Term Loan Commitment,” as such amount may be adjusted or reduced pursuant to the terms hereof.  The Borrower shall provide the Administrative Agent notice prior to 9:30 A.M. (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion), New York City time (which notice shall be irrevocable after funding) on the Fourth Amendment Effective Date specifying the amount of the Additional Repriced Term Loans to be borrowed on the Fourth Amendment Effective Date.  Upon receipt of such notice the Administrative Agent shall promptly notify each applicable Lender thereof.  Each Lender having an Additional Repriced Term Loan Commitment will make the amount of its pro rata share of the Additional Repriced Term Loan Commitments available, in each case for the account of the Borrower at the office of the Administrative Agent specified in subsection 10.2 of the Existing Credit Agreement prior to 12:00 Noon, New York City time (or, if the time period for the Borrower’s delivery of notice was extended, such later time as agreed to by the Borrower and the Administrative Agent in its reasonable discretion), on the Fourth Amendment Effective Date in funds immediately available to the Administrative Agent.  

(c)Substantially concurrently with the issuance and funding of the Additional Repriced Term Loans, the Borrower shall prepay all of the Existing Term Loans that are not continued as Repriced Term Loans in an amount equal to the aggregate outstanding principal amount thereof, together with all accrued but unpaid interest on all of the Existing Term Loans (including interest on any Existing Term Loans that are continued as Repriced Term Loans).  The requirement to deliver a notice pursuant to subsection 3.4(a) of the Credit Agreement is hereby waived by the Lenders in connection with any prepayment of such Existing Term Loans on the Fourth Amendment Effective Date. The Lenders hereby agree to waive the requirements in subsection 3.8 of the Credit Agreement in connection with the funding of any Additional Repriced Term Loans on the Fourth Amendment Effective Date and the repayment of any Existing Term Loans that are not continued as Repriced Term Loans.

(d)Interest will accrue on the Repriced Term Loans and Additional Repriced Term Loans from and after the Fourth Amendment Effective Date.  The initial Interest Period applicable to the Repriced Term Loans and Additional Repriced Term Loans that are Eurocurrency Loans shall be the period identified by the Borrower in the borrowing notice relating to the Additional Repriced Term Loans referenced in subsection 2(b) above, which period may at the Borrower’s election be shorter than one month.

 

Exhibit 4.1

 

EXECUTION VERSION

Section 3.Amendments to the Credit Agreement.

(a)The Existing Credit Agreement is hereby amended to effect the foregoing and as follows:

(1)Subsection 1.1 of the Existing Credit Agreement is hereby amended by adding the following new definitions, to appear in proper alphabetical order:

“Adjustment Date”:  each date on or after the last day of the Borrower’s first fiscal quarter ended after the Fourth Amendment Effective Date that is the second Business Day following receipt by the Lenders of both (a) the financial statements required to be delivered pursuant to subsection 6.1(a) or 6.1(b), as applicable, for the most recently completed fiscal period and (b) the related Compliance Certificate required to be delivered pursuant to subsection 6.2(a) with respect to such fiscal period.

“Compliance Certificate”: as defined in subsection 6.2(a).

“Fourth Amendment”:  the Fourth Amendment, dated as of the Fourth Amendment Effective Date, among the Administrative Agent, the Collateral Agent, the Borrower and the Lenders party thereto.

	

	
“Fourth Amendment Effective Date”:  November 30, 2017.

“Pricing Grid”: with respect to the Initial Term Loans:

			
	
Consolidated Secured Leverage Ratio

_________________________
	
Applicable Margin for 

ABR Loans

______________________
	
Applicable Margin for Eurocurrency Loans

_______________________

	
Greater than 1.75:1.00

 
	
1.50%
	
2.50%

	
Equal to or less than 1.75:1.00

 
	
1.25%
	
2.25%

(2)Subsection 1.1 of the Existing Credit Agreement is hereby further amended to amend the following definitions to read in their entirety as follows:

“Adjusted LIBOR Rate”: with respect to any Borrowing of Eurodollar Loans for any Interest Period, an interest rate per annum determined by the Administrative Agent to be equal to the higher of (i) (x) the LIBOR Rate for such Borrowing of Eurodollar Loans in effect for such Interest Period divided by (y) 1 minus the Statutory Reserves (if any) for such Borrowing of Eurodollar Loans for such Interest Period and (ii) (x) prior to the Fourth Amendment Effective Date, 0.75% and (y) on and after the Fourth Amendment Effective Date, 0.00%.

 

Exhibit 4.1

 

EXECUTION VERSION

“Applicable Margin”:  (A) (a) with respect to ABR Loans during the period from the Restatement Effective Date until the Third Amendment Effective Date, the rate per annum specified in this Agreement as in effect immediately prior to the Third Amendment Effective Date and (b) with respect to Eurocurrency Loans during the period from the Restatement Effective Date until the Third Amendment Effective Date, the rate per annum specified in this Agreement as in effect immediately prior to the Third Amendment Effective Date; (B) (a) with respect to ABR Loans during the period from the Third Amendment Effective Date until the Fourth Amendment Effective Date, 1.75% per annum and (b) with respect to Eurocurrency Loans during the period from the Third Amendment Effective Date until the Fourth Amendment Effective Date, 2.75% per annum; and (C) (a) with respect to ABR Loans during the period from the Fourth Amendment Effective Date until the first Adjustment Date, 1.50% per annum and (b) with respect to Eurocurrency Loans during the period from the Fourth Amendment Effective Date until the first Adjustment Date, 2.50% per annum.  The Applicable Margin will be adjusted on each Adjustment Date to the applicable rate per annum set forth under the heading “Applicable Margin for ABR Loans” or “Applicable Margin for Eurocurrency Loans” on the Pricing Grid which corresponds to the Consolidated Secured Leverage Ratio determined from the financial statements and Compliance Certificate relating to the end of the fiscal quarter immediately preceding such Adjustment Date.  If it is subsequently determined before the date on which all Loans of the applicable Tranche have been repaid, that the Consolidated Secured Leverage Ratio set forth in any Compliance Certificate delivered to the Administrative Agent is inaccurate for any reason and the result thereof is that the applicable Lenders received interest for any period based on an Applicable Margin that is less than that which would have been applicable had the Consolidated Secured Leverage Ratio been accurately determined, then, for all purposes of this Agreement, the “Applicable Margin” for any day occurring within the period covered by such Compliance Certificate shall retroactively be deemed to be the relevant percentage as based upon the accurately determined Consolidated Secured Leverage Ratio for such period, and any shortfall in the interest theretofore paid by the Borrower for the relevant period as a result of the miscalculation of the Consolidated Secured Leverage Ratio shall be deemed to be (and shall be) due and payable by the Borrower upon the date that is five Business Days after notice by the Administrative Agent to the Borrower of such miscalculation.  During or prior to such five Business Day period and thereafter, if the preceding sentence is complied with, the failure to previously pay such interest and the delivery of such inaccurate certificate shall not in and of themselves constitute a Default or Event of Default and no amounts shall be payable at the Default Rate in respect of any such interest.

In the event that the financial statements required to be delivered pursuant to subsection 6.1(a) or 6.1(b), as applicable, and the related Compliance Certificate required to be delivered pursuant to subsection 6.2(a), are not delivered when due, then:

(i)   if such financial statements and Compliance Certificate are delivered after the date such financial statements and Compliance Certificate were required to be delivered 

 

Exhibit 4.1

 

EXECUTION VERSION

(without giving effect to any applicable cure period) and the Applicable Margin increases from that previously in effect as a result of the delivery of such financial statements, then the Applicable Margin during the period from the date upon which such financial statements were required to be delivered (without giving effect to any applicable cure period) until the date upon which they actually are delivered shall, except as otherwise provided in clause (iii) below, be the Applicable Margin as so increased;

(ii)  if such financial statements and Compliance Certificate are delivered after the date such financial statements and Compliance Certificate were required to be delivered and the Applicable Margin decreases from that previously in effect as a result of the delivery of such financial statements, then such decrease in the Applicable Margin shall not become applicable until the date upon which the financial statements and Compliance Certificate actually are delivered; and

(iii)  if such financial statements and Compliance Certificate are not delivered prior to the expiration of the applicable cure period, then, effective upon such expiration, for the period from the date upon which such financial statements and Compliance Certificate were required to be delivered (after the expiration of the applicable cure period) until two Business Days following the date upon which they actually are delivered, the Applicable Margin shall be 1.50% per annum, in the case of ABR Loans and 2.50% per annum, in the case of Eurocurrency Loans, it being understood that the foregoing shall not limit the rights of the Administrative Agent and the Lenders set forth in Section 8).”

“Initial Term Loan”:  any Term Loan made pursuant to subsection 2.1(a), the Second Amendment, the Third Amendment and the Fourth Amendment; and collectively, the “Initial Term Loans”.

“Initial Term Loan Commitment”:  as to any Lender, (x) prior to the Third Amendment Effective Date, its obligation to make Initial Term Loans to the Borrower pursuant to subsection 2.1(a) and the Second Amendment in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule A under the heading “Term Loan Commitment”, (y) on and after the Third Amendment Effective Date and prior to the Fourth Amendment Effective Date, its obligation to make Initial Term Loans to the Borrower pursuant to subsection 2.1(a) and the Third Amendment in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule A to the Third Amendment under the heading “Additional Repriced Term Loan Commitment”, and (z) on and after the Fourth Amendment Effective Date, its obligation to make Initial Term Loans to the Borrower pursuant to subsection 2.1(a) and the Fourth Amendment in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule A to the Fourth Amendment under the heading “Additional Repriced Term Loan Commitment” in each case as such amount 

 

Exhibit 4.1

 

EXECUTION VERSION

may be adjusted or reduced pursuant to the terms hereof and thereof.  The original aggregate amount of the Initial Term Loan Commitment on the Restatement Effective Date is $2,200.0 million.

(3)Subsection 2.5(e) of the Existing Credit Agreement is hereby amended to read in its entirety as follows:

“(e)Notwithstanding any provision of this Agreement to the contrary, for purposes of this Agreement, including the provisions of this subsection 2.5, (x) after giving effect to the transactions contemplated by the Second Amendment, the Second Incremental Term Loan Commitments (as defined in the Second Amendment) shall constitute Initial Term Loan Commitments hereunder (and shall not constitute Incremental Term Loan Commitments or Incremental Commitments hereunder) and the Second Incremental Term Loans (as defined in the Second Amendment) shall constitute Initial Term Loans hereunder (and shall not constitute Incremental Term Loans or Incremental Loans hereunder), (y) after giving effect to the transactions contemplated by the Third Amendment, the Additional Repriced Term Loan Commitments (as defined in the Third Amendment) shall constitute Initial Term Loan Commitments hereunder (and shall not constitute Incremental Term Loan Commitments or Incremental Commitments hereunder) and the Repriced Term Loans and Additional Repriced Term Loans (each as defined in the Third Amendment) shall constitute Initial Term Loans hereunder (and shall not constitute Incremental Term Loans or Incremental Loans hereunder) and (z) after giving effect to the transactions contemplated by the Fourth Amendment, the Additional Repriced Term Loan Commitments (as defined in the Fourth Amendment) shall constitute Initial Term Loan Commitments hereunder (and shall not constitute Incremental Term Loan Commitments or Incremental Commitments hereunder) and the Repriced Term Loans and Additional Repriced Term Loans (each as defined in the Fourth Amendment) shall constitute Initial Term Loans hereunder (and shall not constitute Incremental Term Loans or Incremental Loans hereunder).”

(4)Subsection 3.4(a) of the Existing Credit Agreement is hereby amended by amending the last two sentences thereof to read in their entirety as follows:

“If at any time after the Fourth Amendment Effective Date and on or prior to the six-month anniversary thereof, the Borrower pursuant to this subsection 3.4(a) makes an optional prepayment in full of the Initial Term Loans pursuant to a Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the ratable account of each Lender, a prepayment premium of 1.00% of the aggregate principal amount of Initial Term Loans being prepaid.  If at any time 

 

Exhibit 4.1

 

EXECUTION VERSION

after the Fourth Amendment Effective Date and on or prior to the six-month anniversary thereof any Lender is replaced pursuant to subsection 10.1(g) or 10.1(h) in connection with any amendment of this Agreement (including in connection with any refinancing transaction permitted under subsection 10.6(g) to replace the Initial Term Loans) that results in a Repricing Transaction, such Lender (and not any Person who replaces such Lender pursuant to subsection 10.1(g) or 10.1(h)) shall receive a fee equal to 1.00% of the principal amount of the Initial Term Loans of such Lender assigned to a replacement Lender pursuant to subsection 10.1(g) or 10.1(h).”

(5)Subsection 6.2(a) of the Existing Credit Agreement is hereby amended to read in its entirety as follows:

“(a)   concurrently with the delivery of the financial statements and reports referred to in subsections 6.1(a) and 6.1(b), a certificate signed by a Responsible Officer of the Borrower (a “Compliance Certificate”) (i) stating that, to the best of such Responsible Officer’s knowledge, the Borrower and its Subsidiaries during such period has observed or performed all of its covenants and other agreements, and satisfied every condition, contained in this Agreement or the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of any Default or Event of Default, except, in each case, as specified in such certificate and (ii) setting forth the Consolidated Secured Leverage Ratio as of the last day of the applicable fiscal year or fiscal quarter then ended; provided that to the extent the Borrower notifies the Administrative Agent in writing that such Compliance Certificate contains material nonpublic information concerning the Borrower, such Compliance Certificate shall be made available only to Lenders who have indicated an intention to receive material nonpublic information concerning the Borrower;”

Section 4.Reaffirmation of the Guarantee and Collateral Agreement.  The Guarantee and Collateral Agreement, including the guaranty of the Obligations, the grants of Liens on the Collateral to secure the Obligations, and the covenants and agreements contained therein, is hereby acknowledged and reaffirmed and shall continue in full force and effect.  Notwithstanding the terms of this Amendment and the effectiveness of the Credit Agreement, the Guarantee and Collateral Agreement and all of the Collateral described therein do and shall continue to secure the payment of all Obligations of the Loan Parties under the Loan Documents, in each case, as amended by this Amendment.

Section 5.Representations and Warranties.  In order to induce the Lenders to enter into this Amendment and to either continue their Existing Term Loans as Repriced Term Loans and/or make Additional Repriced Term Loans, the Borrower and (as to subsections 5(a) and 5(b) below) each other Loan Party represents and warrants to each Lender that as of the Fourth Amendment Effective Date:

 

Exhibit 4.1

 

EXECUTION VERSION

(a)the execution, delivery and performance by such Loan Party of this Amendment are within such Loan Party’s corporate or other organizational powers, have been duly authorized by all necessary corporate or other organizational action of such Loan Party, and will not (i) violate any Requirement of Law or Contractual Obligation of such Loan Party in any respect that would reasonably be expected to have a Material Adverse Effect or (ii) result in, or require, the creation or imposition of any Lien (other than Permitted Liens) on any of such Loan Party’s properties or revenues pursuant to any such Requirement of Law or Contractual Obligation;

(b)this Amendment constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law); and

(c)after giving effect to this Amendment, all representations and warranties of the Borrower contained in the Existing Credit Agreement are true and correct in all material respects on and as of the Fourth Amendment Effective Date, except to the extent that any such representations and warranties expressly relate to a given date, in which case they were true and correct in all material respects as of such date.

Section 6.Conditions to Effectiveness.  The agreements and amendments set forth in Sections 2 and 3 of this Amendment shall become effective on the date (the “Fourth Amendment Effective Date”) that each of the following conditions shall have been satisfied:

(a)Counterparts.   The Administrative Agent shall have received (i) a counterpart of this Amendment executed by each of the Loan Parties, (ii) a counterpart of this Amendment (or Consent in the form attached hereto) executed by Continuing Term Lenders who in the aggregate constitute Required Lenders and (iii) a counterpart of this Amendment (or Consent in the form attached hereto) executed by each New Term Loan Lender; 

(b)Corporate Certificates and Authorizations.  The Administrative Agent shall have received customary secretary’s certificates related to organizational documents, resolutions and officer incumbency, as well as good standing certificates (or similar document to the extent relevant in the applicable jurisdiction of organization), with respect to each Loan Party;

(c)Legal Opinions. The Administrative Agent shall have received written opinions of (i) Debevoise & Plimpton LLP, counsel to the Loan Parties, and (ii) Richards, Layton & Finger PA, Delaware counsel to the Loan Parties, each addressed to the Administrative Agent, Collateral Agent, each Continuing Term Lender and each New Term Loan Lender, dated the 

 

Exhibit 4.1

 

EXECUTION VERSION

Fourth Amendment Effective Date, in form and substance reasonably satisfactory to the Administrative Agent; 

(d)PATRIOT Act and Anti-Money Laundering.  The Administrative Agent shall have received, at least three days prior to the Fourth Amendment Effective Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act, as has been reasonably requested in writing at least 10 days prior to the Fourth Amendment Effective Date by the Administrative Agent; 

(e)Borrowing Notice.  The Administrative Agent shall have received a notice in respect of the Additional Repriced Term Loans as required by Section 2(b) of this Amendment; and

(f)Prepayment. Substantially concurrently with the issuance and funding of the Term Loans by New Term Loan Lenders on the Fourth Amendment Effective Date, Borrower shall prepay all of the Existing Term Loans (other than the Repriced Term Loans) in an amount equal to the aggregate outstanding principal amount thereof, and will pay all accrued but unpaid interest on all of the Existing Term Loans, in accordance with Section 2(c) of this Amendment.

The Administrative Agent shall give prompt notice in writing to the Borrower of the occurrence of the Fourth Amendment Effective Date.  The making of the Additional Repriced Term Loans by the New Term Loan Lenders shall conclusively be deemed to constitute an acknowledgement by the Administrative Agent and each New Term Loan Lender, and an agreement of the parties hereto, that each of the conditions precedent set forth in Section 6 hereof shall have been satisfied in accordance with its respective terms.

Section 7.Expenses.  The Borrower shall pay all reasonable out-of-pocket expenses of the Administrative Agent incurred in connection with the preparation, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, if any (including the reasonable fees, disbursements and other charges of Cahill Gordon & Reindel LLP, counsel for the Administrative Agent).

Section 8.Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or any other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

Section 9.Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED 

 

Exhibit 4.1

 

EXECUTION VERSION

BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

Section 10.Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

Section 11.Effect of Amendment.   

(a)On and after the Fourth Amendment Effective Date, the rights and obligations of the parties to the Existing Credit Agreement shall be governed by the Credit Agreement, it being understood that those rights and obligations that are specified in the Existing Credit Agreement as surviving a termination of that agreement shall survive in accordance with their respective terms and without prejudice and remain in full force and effect.

(b)Each Loan Party reaffirms its obligations under the Loan Documents to which it is party and the validity, enforceability and perfection of the Liens granted by it pursuant to the Security Documents.  Each of the Loan Parties hereby consents to this Amendment and confirms that all obligations of such Loan Party under the Loan Documents to which such Loan Party is a party shall continue to apply to the Credit Agreement.  The parties hereto acknowledge and agree that the amendment of the Credit Agreement pursuant to this Amendment and all other Loan Documents amended and/or executed and delivered in connection herewith shall not constitute a novation of the Credit Agreement and the other Loan Documents as in effect prior to the Fourth Amendment Effective Date. 

(c)This Amendment shall constitute a Loan Document for purposes of the Credit Agreement.

[Remainder of Page Intentionally Left Blank]

 

 

Exhibit 4.1

 

EXECUTION VERSION

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

US FOODS, INC.

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

E & H Distributing, LLC

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

Great North Imports, LLC

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

Trans-Porte, Inc.

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

US Foods Culinary Equipment & Supplies, LLC

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

 

Exhibit 4.1

 

EXECUTION VERSION

FIRST COURSE, LLC

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

fRESH uNLIMITED, INC.

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

bay-n-gulf, INC.

By:/s/ Dirk J. Locascio
Name:  Dirk J. Locascio
Title:  Chief Financial Officer

 

 

Exhibit 4.1

 

EXECUTION VERSION

CITICORP NORTH AMERICA, INC., as Administrative Agent and Collateral Agent

By:/s/ Matthew Bashaw
Name:  Matthew Bashaw
Title:  Vice President

 

 

 

 

 

Exhibit 4.1

 

EXECUTION VERSION

CITIBANK, N.A., as New Term Loan Lender

By:/s/ Matthew Bashaw
Name:  Matthew Bashaw
Title:  Vice President

 

 

Exhibit 4.1

 

EXECUTION VERSION

Schedule A

Additional Repriced Term Loan Commitments

 

		
	
Additional Term Lender
	
Additional Repriced Term Loan Commitment

	
CITIbank, n.a.
	
$91,913,949.53

 

 

 

 

ANNEX I

CONSENT (this “Consent”) to the Fourth Amendment, dated as of November         , 2017 (the “Amendment”), to the Credit Agreement, dated as of May 11, 2011, as amended on June 7, 2013, as amended and restated on June 27, 2016, and as amended on February 17, 2017, and as the same may be further amended, supplemented, waived or otherwise modified prior to the date hereof, among the Borrower, the Lenders, the Administrative Agent, and the other institutions party thereto, including but not limited to the amendments to the Existing Credit Agreement pursuant to Section 2 and 3 of the Amendment.  Capitalized terms used but not defined in this Consent are used as defined in the Amendment.

The undersigned Continuing Term Lender hereby irrevocably and unconditionally approves and consents to the Amendment as a party thereto and elects to continue all Existing Term Loans held by such Continuing Term Lender (or such lesser amount as the Borrower may approve, as notified to such Continuing Term Lender by or on behalf of the Lead Arrangers) as Repriced Term Loans.

IN WITNESS WHEREOF, the undersigned has caused this Consent to be executed and delivered by a duly authorized officer as of the date first written above.

___________________________________,
as a Lender (type name of the legal entity)

	
By:  
	

Name:  
Title:  

If a second signature is necessary:

	
By:  
	

Name:  
Title:  

 

 

 

 

[Signature Page – Consent to Fourth Amendment to USF Term Loan Credit Agreement]Exhibit 4.1

 

 

 

	Number of Shares: 2,666,667	Date of Grant: November 15, 2017

 

OPTION TO PURCHASE
SHARES

OF COMMON STOCK

 

THIS CERTIFIES
THAT, for value received, W. James Tozer, Jr., or his assignee, if any, (collectively, the "Holder") is entitled to purchase
from The Coretec Group, Inc., an Oklahoma corporation (the "Company"), Two Million Six Hundred Thousand Six Hundred Sixty
Severn (2,666,667) shares of the fully paid and nonassessable, restricted Rule 144 common stock (as adjusted from time to time
pursuant to the provisions of this Option) (the "Shares") of the Company on the following terms and conditions and for
the price set forth in this Option during the period commencing on the "Date of Grant", as shown above, and continuing
for the Option Period, as defined herein.

 

The stock
purchase right represented by this Option may be exercised by Holder from time to time, in part or in whole, and only during the
period between the Date of Grant of this Option and November 15, 2018 (the "Option Period"). The price to be paid for
the Shares to be purchased under this Option shall be $0.0375 per share (the "Option Exercise Price").

 

This Option
shall be exercised by delivery to the Company of (a) written notice of exercise stating the number of Shares being
purchased (in whole shares only) and such other information as is set forth on the form of the "Notice of Exercise"
attached hereto as Exhibit A, (b) a check or cash in the amount of the Option Exercise Price of the Shares covered by the notice,
and (c) the written investment representation as provided for herein.

 

Holder represents
to the Company that Holder has had access to the financial statements or books and records of the Company, has had the opportunity
to ask questions of the Company concerning its business, operations and financial condition, and to obtain additional information
reasonably necessary to verify the accuracy of such information. Holder further represents that the Holder is an accredited investor
as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended.

 

Unless and
until the Shares represented by this Option are registered under the Securities Act, all certificates representing the Shares and
any certificates subsequently issued in substitution therefor and any certificate for any securities issued pursuant to any stock
split, share reclassification, stock dividend or other similar capital event shall bear legends in substantially the following
form:

 

THESE SECURITIES
HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER THE SECURITIES ACT OF 1933 (THE 'SECURITIES ACT) OR UNDER THE APPLICABLE
OR SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT
TO EXEMPTIONS THEREFROM,

 

and such other legend or legends as the
Company and its counsel deem necessary or appropriate.

 

    1 

     

    

  

Within twenty
days of the delivery to the Company of a Notice of Exercise of Option, the Company shall deliver to Holder the certificate representing
the Shares to which the Notice of exercise relates, free from all liens and charges, and duly endorsed to Holder. The Shares issued
upon the exercise of this Option will, upon issuance pursuant to the terms and conditions herein, be duly authorized, validly issued,
fully paid and nonassessable.

 

If the Company
at any time while this Option remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Option exist, into a different number of securities of the same class, the number of shares covered by this Option
shall be proportionately decreased or increased in the case of a split, subdivision or combination, effective at the close of business
on the date the split, subdivision or combination becomes effective.

 

The rights applicable
to the Shares purchasable hereunder are set forth in the Company's Certificate of Incorporation, as amended through the Date of
Grant. The Company shall promptly provide Holder with any restatement, amendment, modification or waiver of the Certificate of
Incorporation promptly after the same has been made.

 

No holder of this
Option, by virtue of this Option alone, shall be entitled to vote or receive dividends or be deemed the holder of the Shares for
any purpose, nor shall any provision contained herein be construed to confer upon the holder of this Option, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until this
Option shall have been exercised as provided herein and the Shares purchasable upon the exercise hereof shall have become deliverable,
as provided herein. Each party shall bear its respective tax consequences of the grant or exercise of this Option.

 

This Option and any
provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against
which enforcement of the same is sought.

 

Any notice, request,
communication or other document required or permitted to be given or delivered to Holder or the Company shall be delivered or sent
by certified or registered mail, postage prepaid, to Holder at the address on the records of the Company on the date of same or
to the Company at 6804 South Canton Avenue; Suite 150, Tulsa, OK 74136, Tulsa, Oklahoma.

 

This Option shall
be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of Oklahoma
without regard to its conflicts of law principles. Holder and the Company submit to the exclusive jurisdiction of the federal and
state courts sitting in Tulsa, Oklahoma, for any action relating to this Option.

 

In case any one or more of the covenants
and agreements contained in this Option shall have been breached, Holder (in the case of a breach by the Company), or the Company
(in the case of a breach by Holder), may proceed to protect and enforce its rights by suit in equity and by action at law, including,
but not limited to, an action for damages as a result of any such breach and an action for specific performance of any such covenant
or agreement contained in this Option. In the event an action or proceeding is brought to enforce any provision of this Option,
the prevailing party shall be entitled to recover its reasonable attorney's fees and costs from the other party.

 

This Option constitutes the entire
agreement between the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements,
representations, and undertakings of the parties, whether oral or written, with respect to such subject matter. There are no third
party beneficiaries of this Option.

 

    2 

     

    

 

 

IN WITNESS WHEREOF,
the undersigned caused this Option to be executed as of the date first indicated above.

 

	COMPANY:	 
	

                                                                            The
Cortec Group, Inc.
	 
	 	 	 
	 	 	 
	By:		 
	Name:  	Michael Kraft	 
	Title: 	Chief Executive Officer	 

 

HOLDER:

W.
James Tozer, Jr.

 

__________________________

 

    3 

     

    

 

 

Exhibit A

 

NOTICE OF EXERCISE

 

 

 

The Coretec Group,
Inc.

 

Re: Stock Option

 

1)              
Notice is hereby given pursuant to my Stock Option issued on November 15, 2017, that I elect to purchase the number of shares
set forth below at the exercise price set forth in my Option:

 

Stock
Option Agreement dated: November 15, 2017.

 

Number
of shares being purchased:_________

 

Exercise
Price: $0.0375/share

 

A
check in the amount of the aggregate price of the shares being purchased is attached.

 

I
hereby confirm that such shares are being acquired by me for my own account for investment purposes, and not with a view to, or
for resale in connection with, any distribution thereof. I will not sell or dispose of my Shares in violation of the Securities
Act of 1933, as amended, or any applicable federal or state securities laws. Further, I understand that the exemption from taxable
income at the time of exercise is dependent upon my holding such stock for the periods prescribed by the laws of the United States
and of any applicable State.

 

I
understand that the certificate representing the Option Shares will bear a restrictive legend within the contemplation of the
Securities Act and as required by such other state or federal law or regulation applicable to the issuance or delivery of the
Option Shares.

 

I
agree to provide to the Company such additional documents or information as may be required by the Company in connection with
this exercise of my Option.

 

	 	By:	 
	 		(signature)
	 	 	 
	 	Name:	 

 

    4

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