Document:

Exhibit 10.22

 

FOURTH AMENDMENT TO NOTE PURCHASE
AGREEMENT

 

This FOURTH
AMENDMENT TO NOTE PURCHASE AGREEMENT dated as of March 24, 2005 (this “Amendment”),
among AFFINITY GROUP, INC. (the “Borrower”), THE GUARANTORS PARTY HERETO
(the “Guarantors”), THE NOTEHOLDERS PARTY HERETO (the “Noteholders”),
CANADIAN IMPERIAL BANK OF COMMERCE, as Syndication Agent (the “Syndication
Agent”), CANADIAN IMPERIAL BANK OF COMMERCE (“CIBC”), as
Administrative Agent (the “Administrative Agent”), and GENERAL ELECTRIC
CAPITAL CORPORATION, as Documentation Agent (the “Documentation Agent”
and together with the Administrative Agent and the Syndication Agent, the “Agents”).

 

WHEREAS, the Note
Purchase Agreement (as defined below) provides that the Noteholders may make
Term Loans to the Borrower;

 

WHEREAS, the
Credit Parties wish to amend the Note Purchase Agreement to reflect the
formation of a new holding company as the sole shareholder of the Borrower;

 

WHEREAS, the new
holding company will issue senior notes due 2012 and the parties wish to amend
the Note Purchase Agreement to reflect such issuance; and

 

WHEREAS, the
parties wish to amend certain provisions of the Note Purchase Agreement to
remove certain provisions that no longer apply;

 

NOW, THEREFORE, in
consideration of the foregoing and the agreements contained herein, the parties
hereby agree as follows:

 

1.             Reference to Note Purchase Agreement. 
Reference is made to the Senior Secured Floating Rate Note
Purchase Agreement dated as of June 24, 2003, as amended by the First Amendment
to the Note Purchase Agreement dated as of February 18, 2004, the Second
Amendment to the Note Purchase Agreement dated as of June 30, 2004 and the
Third Amendment to the Note Purchase Agreement dated as of November 12, 2004,
among the Borrower, the Guarantors, the Noteholders, the Syndication Agent, the
Administrative Agent and the Documentation Agent (as amended on or prior to the
date hereof and as it may be further amended or amended and restated from time
to time, the “Note Purchase Agreement”). 
Capitalized terms used herein which are defined in the Note Purchase
Agreement have the same meanings herein as therein, except to the extent that such meanings are amended hereby.

 

2.             Amendments to Note Purchase Agreement.  The Credit Parties, the Noteholders, and the
Agents agree that the Note Purchase Agreement is hereby amended, effective as
of the date hereof, as follows:

 

 

Amendments
Related to the Issuance of the Holding Company Notes:

 

(a)           Clause
(b) of the definition of “Cash Interest Expense” is hereby deleted and replaced
by the following:

 

(b) the amount of Restricted
Junior Payments made to the Holding Company pursuant to Section 7.6(a)(i)
during such period unless such Restricted Junior Payment is made with the
proceeds of distributions or other payments made by FRH to CWFR in respect of
the FRH Preferred Equity Interest and is subsequently distributed by CWFR to
the Borrower

 

(b)           The
definition of Credit Party is hereby deleted and replaced by the following:

 

“Credit Parties”
means (a) the Borrower and (b) its Subsidiaries other than CWFR.

 

(c)           The
definitions of Holding Company, Holding Company Collateral Documents and
Holding Company Notes are hereby deleted and replaced by the following:

 

“Holding Company”
means Affinity Group Holding, Inc., a Delaware corporation which holds all the
outstanding capital stock of the Borrower.

 

“Holding Company
Collateral Documents” means the Nonrecourse Guaranty and Pledge Agreement
executed and delivered by the Holding Company on the Fourth Amendment Date
substantially in the form of Exhibit A annexed hereto,
as such agreement may be amended, supplemented or otherwise modified from time
to time.

 

“Holding Company Notes”
means the Holding Company’s unsecured Senior Notes due 2012 issued pursuant to
the Holding Company Notes Indenture in an aggregate principal amount not in
excess of the principal amount of the Holding Company Notes issued on the date
of initial issuance of the Holding Company Notes (plus any paid in kind
interest) which notes are not guaranteed by any of the Credit Parties.

 

(d)           The
following definitions are hereby added to Section 1.1 in alphabetical order:

 

“Asset Sale” has
the meaning given to that term in the FRH Preferred.

 

“CWFR” means CWFR
Capital Corp., a Wholly Owned Subsidiary of CWI, Inc.

 

“FRH” means
FreedomRoads Holding Company, LLC, a Minnesota limited liability company, all
the common equity of which is held by the Stephen Adams Trust and certain
minority holders and all the preferred equity of which is held by CWFR.

 

“FRH Restricted
Distribution” means any distribution by FRH to its members with respect to
their membership interests other than (a) distributions to CWFR with respect to
the FRH Preferred Equity Interest and (b) distributions to members in respect
of tax obligations to the extent permitted by the terms of the FRH Preferred.

 

 

“FRH Preferred”
means the rights and preferences of the preferred membership interest in FRH as
adopted by the Board of Governors of FRH on the date of issuance of the Holding
Company Notes.

 

“FRH Preferred Equity
Interest” means the membership interest in FRH having the rights and
preferences of the FRH Preferred.

 

“Liquidation Payment”
has the meaning given to that term in the FRH Preferred and includes any
payment made on account of the FRH Preferred Equity Interest as a result of a
redemption made pursuant to Section 5 of the FRH Preferred.

 

“Holding Company Notes
Indenture” means the Indenture dated as of the Fourth Amendment Date
between the Holding Company and The Bank of New York, as Trustee, as
supplemented or amended from time to time but excluding any supplement or
amendment which increases the interest rate or any premium applicable to the
Holding Company Notes, increases the principal amount outstanding of the
Holding Company Notes or creates sinking fund or other principal payment or
offer to purchase requirements.

 

(e)           The
last sentence of Section 2.10(b)(iii) is hereby
deleted and replaced by the following:

 

Notwithstanding the preceding sentence or anything
herein to the contrary if and to the extent that any Net Cash Payments would
otherwise be required to be used to repay the Senior Subordinated Notes or the
Holding Company Notes or purchase or repurchase any notes issued under the
Senior Subordinated Notes Indenture or the Holding Company Notes Indenture, the
Borrower shall prepay the Loans and reduce the Commitments as provided in
clause (B) above.

 

(f)            Section
6.2 is hereby amended to add the following clause (g):

 

(g)           the
occurrence of any default under the Holding Company Notes Indenture or the
Senior Subordinated Notes Indenture or the receipt of any notice delivered by
the trustee pursuant to the Holding Company Notes Indenture or the Senior
Subordinated Notes Indenture (and a copy of such notice shall be delivered to
the Administrative Agent).

 

(g)           Section
7.5(a) is hereby amended by adding the following new clause (ix):

 

(ix) the Investment by CWI, Inc. on or about the date
of issuance of the Holding Company Notes in the equity capital of CWFR in an
aggregate amount equal to the amount of the proceeds of the capital
contribution made to the Borrower by the Holding Company on the date of
issuance of the Holding Company Notes.

 

(h)           Section
7.6 is amended as follows:

 

 

(i)            Clause
(a)(i) is hereby deleted and replaced with the
following:

 

(i) commencing on the third anniversary of the date of
issuance of the Holding Company Notes, so long as no Default shall have
occurred or be continuing or shall be caused thereby the Borrower may declare
and make Restricted Junior Payments to the Holding Company in amounts equal to
the cash interest payments to the holders of the Holding Company Notes in
accordance with, and only to the extent required by, the Holding Company Notes
Indenture; provided that the Credit Parties shall
be in pro forma compliance with the financial covenants set forth in Section
7.9 assuming such Restricted Junior Payment had been made at the beginning of
the most recently ended period of four fiscal quarters of the Credit Parties as
shown on a Compliance Certificate (in form and substance satisfactory to the
Administrative Agent) delivered to the Administrative Agent prior to the making
of any such Restricted Junior Payment; provided further that
the amount of each such Restricted Junior Payment permitted under this clause
(i) shall be reduced by the amount of any FRH Restricted Distribution,

 

(ii)           Clause
(a)(iii) is hereby deleted and replaced with the
following:

 

(iii) so long as no
Default shall have occurred or be continuing or shall be caused thereby, the
Borrower may make Restricted Junior Payments to the Holding Company (A) in an
amount equal to a Liquidation Payment paid to CWFR in respect of an Asset Sale
or in connection with a voluntary redemption of the FRH Preferred Equity
Interest to provide funds to the Holding Company to redeem Holding Company
Notes in accordance with the Holding Company Notes Indenture; provided that the Credit Parties shall be in pro forma
compliance with the financial covenants set forth in Section 7.9 assuming such
Restricted Junior Payment had been made at the beginning of the most recently
ended period of four fiscal quarters of the Credit Parties as shown on a
Compliance Certificate (in form and substance satisfactory to the
Administrative Agent) delivered to the Administrative Agent prior to the making
of any such Restricted Junior Payment, and (B) in an aggregate amount not in
excess of $100,000 in any fiscal year to provide funds to the Holding Company
to pay administrative expenses and costs of registration of the Holding Company
Notes,

 

(i)            The
proviso to Section 7.7 is hereby amended by adding the following new clause (vi):

 

(vi)          CWI may
make the Investment permitted by Section 7.5(a)(ix).

 

(j)            The
proviso to Section 7.8 is hereby amended by deleting clause (vi)
and replacing it with the following new clause (vi):

 

(vi) the foregoing shall not
apply to restrictions and conditions contained in (A) the Senior Subordinated
Notes or the Senior Subordinated Notes Indenture or (B) the Holding Company
Notes or the Holding Company Notes Indenture.

 

(k)           The
following Sections 7.17 and 7.18 are hereby added to Article VII:

 

 

7.17        Restrictions
on the Holding Company.  The Holding
Company Collateral Documents shall provide that the Holding Company will not
engage in any business activities other than ownership of all the outstanding
equity of the Borrower and ongoing activities related to the outstanding
Holding Company Notes and will not create, incur, assume or permit to exist any
Indebtedness other than the Holding Company Notes in an aggregate principal
amount not in excess of the principal amount of the Holding Company Notes
issued on the date of initial issuance thereof (plus any notes issued to pay
interest thereon in accordance with the Holding Company Notes Indenture).  The Holding Company Collateral Documents
shall provide that the Holding Company will not consent to any modification,
amendment, supplement or waiver of the Holding Company Notes Indenture without
the prior consent of the Required Senior Lenders.

 

7.18        Restrictions
on CWFR.  (a) The Credit Parties will
not permit CWFR to (i) engage in any business activities or create, incur,
assume or permit to exist any Indebtedness other than ownership of the FRH
Preferred Equity Interest and ongoing activities related thereto, (ii) agree to
any amendment, modification, supplement or waiver to any of the terms of the
FRH Preferred or any agreement which limits or restricts the rights of the
members of FRH without, in each case, the prior consent of the Administrative
Agent, (iii) assign, sale, dispose, pledge or otherwise transfer any of the FRH
Preferred Equity Interest unless, as a result thereof, the Credit Parties have
received an amount at least equal to the Liquidation Payment, or (iv) agree to
the filing of any voluntary bankruptcy petition or similar filing by FRH
without the prior consent of the Required Senior Lenders.

 

(b)           Upon
the receipt by CWFR of any distribution, Liquidation Payment or other payment
from FRH, the Credit Parties shall cause CWFR to distribute such distribution,
Liquidation Payment or other payment to CWI, Inc., and such distribution,
Liquidation Payment or other payment shall be distributed by the Credit Parties
to the Borrower.

 

(l)            Section
8.1(m)(vi) is hereby deleted and replaced by the
following:

 

(vi)          a Change of Control will be deemed to have occurred under
the Senior Subordinated Notes Indenture or the Holding Company Notes Indenture;

 

(m)          Section
8.1(r) is hereby deleted and replaced by the following:

 

(r)            a
default or an event of default shall have occurred under the notes or indenture
in respect of (i) the Senior Subordinated Notes or the Senior Subordinated
Notes Indenture or (ii) the Holding Company Notes or the Holding Company Notes
Indenture, which default or event of default entitles the holders of such notes
to accelerate the maturity of the indebtedness thereunder.

 

 

Clean Up
Amendments:

 

(n)           The
following definitions are hereby added to Section 1.1 in alphabetical order:

 

“Fourth Amendment Date”
means March 24, 2005.

 

(o)           All
references to “Holding Company Notes Borrower Refinancing Indebtedness” are
hereby deleted and replaced with “Senior Subordinated Notes.”

 

(p)           Clause
(a)(ii) of the definition of “Consolidated Total
Leverage Ratio” is hereby deleted and replaced by “[Reserved].”

 

(q)           The
following definitions are hereby deleted in their entirety, “Holding Company
Notes Borrower Refinancing Indebtedness,” “Holding Company Notes Borrower
Refinancing Payment,” “Holding Company Notes Call,” “Holding Company Notes
Refunding,” “Holding Company Notes Tender Offer,” “Intercompany Merger,” and “Redemption
Notice.”

 

(r)            Clause
(iii) of the definition of “Net Cash Payments” is hereby amended by deleting
the following parenthetical, “(or the Holding Company with respect to any
Holding Company Notes Refinancing Indebtedness).”

 

(s)           The
definition of Parent is hereby deleted and replaced by the following:

 

“Parent” means AGI
Holding Corp., a Delaware corporation which holds all the outstanding capital
stock of the Holding Company.

 

(t)            Section
2.7(a), 2.9(a) and (b) are hereby amended by deleting the second paragraph of
each such subsection.

 

(u)           Section
2.10(b)(ii) is hereby amended by deleting the
parenthetical, “(or in the case of Holding Company Notes Refinancing
Indebtedness, by the Holding Company)” in the two instances it occurs in such
paragraph.

 

(v)           Sections
2.10(b)(v), (vi) and (viii) are hereby deleted and
replaced by “[Reserved].”

 

(w)          Clause
(ii) of Section 4.6(a) is hereby deleted and replaced with the following:

 

(ii)           that involve any of the Basic Documents or the Transactions.

 

(x)            Clause
(y) of each of Sections 6.1(a) and (b) are hereby deleted and replaced with the
following, “(y) earlier of the date the Holding Company’s or the Borrower’s
financial statements of the type referred to in clause (i) below are required
to be filed with the Securities and Exchange Commission:”

 

(y)           Section
6.15 is hereby deleted.

 

(z)            Section
7.1(f) is hereby deleted and replaced with the following:

 

 

(f)            Senior
Subordinated Notes in an aggregate principal amount not in excess of
$200,000,000; and

 

(aa)         Section
7.4(e) is hereby deleted in its entirety.

 

(bb)         Clause
(a)(iv) of section 7.6 are hereby deleted in their
entirety and replaced with “[Reserved].”

 

(cc)         Section
8.1(m)(ii) is hereby amended by deleting the phrase “prior
to the Intercompany Merger.”

 

(dd)         Section
8.1(m)(v) is hereby deleted and replaced by the following:

 

(v)           the Holding Company shall cease to own, directly or
indirectly, at least 90% of the outstanding capital stock of the Borrower; or

 

(ee)         Section
8.1(o) is hereby amended by deleting the parenthetical, “(or after the
Intercompany Merger, the Parent).”

 

3.             No Default; Representations and Warranties, etc.  The Credit Parties hereby confirm that: (a)
the representations and warranties of the Credit Parties contained in Article 4
of the Note Purchase Agreement are true on and as of the date hereof as if made
on such date; (b) the Credit Parties are in compliance in all material respects
with all of the terms and provisions set forth in the Note Purchase Agreement
on their part to be observed or performed thereunder; and (c) after giving
effect to this Amendment, no Event of Default, nor any event which with the
giving of notice or expiration of any applicable grace period or both would constitute
such an Event of Default, shall have occurred and be continuing.

 

Each of the Credit
Parties represents and warrants to the Noteholders and the Administrative
Agent, as to itself and each other Credit Party, that (i) no Credit Party is or
shall be liable for the repayment of the Holding Company Notes as a borrower
and guarantor nor does any Credit Party provide collateral to secure the
repayment of the Holding Company Notes, (ii) the incurrence by the Holding
Company of the Holding Company Notes pursuant to the Holding Company Notes
Indenture does not violate, breach or cause a default under the Senior
Subordinated Notes Indenture and (iii) none of the transactions described in
this Amendment violate, breach or cause a default under the Senior Subordinated
Notes Indenture and the Loans and the other obligations of the Credit Parties
under the Note Purchase Agreement as amended hereby and under the other Loan
Documents shall continue to constitute “Senior Indebtedness” and “Designated
Senior Indebtedness” under and as defined in the Senior Subordinated Notes
Indenture.

 

4.             Conditions to this Amendment. This Amendment shall not
become effective until the date on which each of the following conditions is
satisfied or waived in writing by the Required Senior Lenders:

 

(a)           Counterparts
of Amendment.  The Administrative
Agent shall have received from the Credit Parties and the Required Senior
Lenders either (i) a counterpart of this Amendment signed on behalf of the
Noteholders which are parties to the Note Purchase Agreement and an

 

 

amendment to the Credit Agreement
signed on behalf of the Lenders which are parties to the Note Purchase
Agreement or (ii) written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of this
Amendment) that such parties have signed counterparts of such Amendments.

 

(b)           Holding
Company, CWFR and FRH Organizational Matters.  The Administrative Agent shall have received
such documents and certificates as the Administrative Agent or Special Counsel
may reasonably request relating to the organization, existence and good
standing of the Holding Company, CWFR and FRH, the authorization of the
transactions described in this Amendment and any other legal matters relating
to such Persons, this Amendment, the other Loan Documents or such transactions,
all in form and substance reasonably satisfactory to the Administrative Agent
and its counsel.

 

(c)           Holding
Company Notes Offering. The terms of the Holding Company Notes and the
Holding Company Notes Indenture shall be satisfactory to the Administrative
Agent and the Administrative Agent shall have received a certificate of a
Financial Officer of the Borrower, in form and substance satisfactory to the
Administrative Agent, certifying (i) that the Borrower has received, on the
date of issuance of the Holding Company Notes, a cash capital contribution in
an aggregate amount not less than the amount of the proceeds of the Holding
Company Notes less the amount of transaction expenses, (ii) such cash capital
contribution has been contributed by the Borrower to Camping World, Inc., (iii)
such cash capital contribution has been contributed by Camping World, Inc. to
CWI, Inc., (iv) CWI, Inc. has made the Investment in CWFR permitted by Section
7.5(a)(ix), and (v) CWFR has invested such amount in the FRH Preferred Equity
Interest.

 

(d)           Amendment
to Holding Company Collateral Documents. 
The Holding Company shall have executed the Holding Company Collateral
Documents in form and substance satisfactory to the Administrative Agent.

 

(e)           Senior
Subordinated Notes Indenture.  The
Administrative Agent shall have received a certificate of a Financial Officer
of the Borrower, in form and substance satisfactory to the Administrative
Agent, certifying that the transactions described in this Amendment, including,
without limitation the formation of the Holding Company, the issuance of the
Holding Company Notes, the formation of CWFR, and the FRH Preferred Equity
Interest, in each case, will not violate or result in a default under the
Senior Subordinated Notes Indenture (including, without limitation,
certification (and calculations in reasonable detail) as to the satisfaction of
the requirements set forth in the Senior Subordinated Notes Indenture for
designating CWFR an unrestricted subsidiary under the Senior Subordinated Notes
Indenture and that such transactions shall not violate or result in a default
under Sections 4.11, 4.16, 4.23 or 4.24 of the Senior Subordinated Notes
Indenture and no Change of Control (as defined in the Senior Subordinated Notes
Indenture) shall be caused by such transactions).

 

(f)            Pledge
of CWFR.  Pursuant to an amendment to
the Pledge Agreement, CWI shall have pledged to the Administrative Agent for
the benefit of the Senior Lenders, all the outstanding equity of CWFR.

 

 

(g)           Certificate
on Holding Company Notes Indenture. 
The Administrative Agent shall have received a certificate, dated the
Effective Date and signed by the President, a Vice President or a Financial
Officer of the Borrower, certifying that the obligations of the Credit Parties
with respect to the Loans and Letters of Credit and with respect to the Term B2
Loans are, in each case, permitted to be incurred and secured by the assets of
the Credit Parties as “Permitted Indebtedness” under the Holding Company Notes
Indenture.

 

(h)           CWFR
Covenant.  CWFR shall have entered
into an agreement with the Administrative Agent pursuant to which CWFR
covenants that it will not agree to the filing of any voluntary bankruptcy
petition or similar filing by FRH without the prior consent of the Required
Senior Lenders.

 

(i)            Other
Documents.  The Administrative Agent
shall have received such other documents as any Agent or Special Counsel shall
have reasonably requested.

 

(j)            Expenses.  The Administrative Agent shall have received
all fees and other amounts due and payable on or prior to the date hereof,
including, to the extent invoiced, all reasonable expenses, including legal
fees and disbursements incurred by the Administrative Agent in connection with
this Amendment and the transactions contemplated hereby and the reimbursement
or payment of all other out-of-pocket expenses required to be reimbursed or
paid by the Borrower under the Note Purchase Agreement.

 

5.             Miscellaneous.

 

(a)           Except
to the extent specifically amended or waived hereby, the Note Purchase
Agreement, the Loan Documents and all related documents shall remain in full
force and effect.  Whenever the terms or
sections amended hereby shall be referred to in the Note Purchase Agreement,
Loan Documents or such other documents (whether directly or by incorporation
into other defined terms), such defined terms shall be deemed to refer to those
terms or sections as amended by this Amendment. 
The foregoing waivers shall apply solely to the provisions of the Note
Purchase Agreement specified herein for the periods and purposes specified
herein.  Nothing herein shall be deemed
to constitute a modification, amendment or waiver of any other term or
condition of the Note Purchase Agreement.

 

(b)           This
Amendment may be executed in any number of counterparts, each of which, when
executed and delivered, shall be an original, but all counterparts shall
together constitute one instrument.

 

(c)           This
Amendment shall be governed by the laws of the Commonwealth of Massachusetts
and shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

 

[The remainder of this page is
intentionally left blank.]

 

 

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment which shall be deemed
to be a sealed instrument as of the date first above written.

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
  AFFINITY GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas F.
  Wolfe

  	
   

  
	
   

  	
  Name:

  	
  Thomas F. Wolfe

  
	
   

  	
  Title:

  	
  Senior Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUBSIDIARIES/GUARANTORS

  
	
   

  	
   

  
	
   

  	
  AFFINITY ADVERTISING, LP

  
	
   

  	
   

  
	
   

  	
  By: VBI, INC., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas F.
  Wolfe

  	
   

  
	
   

  	
  Name:

  	
  Thomas F. Wolfe

  
	
   

  	
  Title:

  	
  Senior Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
					

 

 

	
   

  	
  AFFINITY BROKERAGE, INC.

  
	
   

  	
  AFFINITY ROAD AND TRAVEL CLUB, INC.

  
	
   

  	
  ARU, INC.

  
	
   

  	
  CAMP COAST TO COAST, INC.

  
	
   

  	
  CAMPING REALTY, INC.

  
	
   

  	
  CAMPING WORLD, INC.

  
	
   

  	
  CAMPING WORLD INSURANCE SERVICES OF

  NEVADA, INC.

  
	
   

  	
  CAMPING WORLD INSURANCE SERVICES OF

  TEXAS, INC.

  
	
   

  	
  COAST MARKETING GROUP, INC.

  
	
   

  	
  CWI, INC.

  
	
   

  	
  CW MICHIGAN, INC.

  
	
   

  	
  EHLERT PUBLISHING GROUP, INC.

  
	
   

  	
  GOLF CARD INTERNATIONAL CORP.

  
	
   

  	
  GOLF CARD RESORT SERVICES, INC.

  
	
   

  	
  GSS ENTERPRISES, INC.

  
	
   

  	
  POWER SPORTS MEDIA, INC.

  
	
   

  	
  TL ENTERPRISES, INC.

  
	
   

  	
  VBI, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas F. Wolfe

  	
   

  
	
   

  	
  Name:

  	
  Thomas F. Wolfe

  
	
   

  	
  Title:

  	
  Senior Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
					

 

 

	
   

  	
  ADMINISTRATIVE AGENT and

  
	
   

  	
  SYNDICATION AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CANADIAN IMPERIAL BANK OF COMMERCE, as

  Administrative Agent and Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan Rabinowitz

  	
   

  
	
   

  	
  Name: 

  	
  Jonathan
  Rabinowitz

  
	
   

  	
  Title: 

  	
  Executive Director

  CIBC WorldMarkets Corp. As AgentExhibit 10.23

 

PREFERRED MEMBERSHIP INTEREST

UNIT SUBSCRIPTION AGREEMENT

 

THIS PREFERRED MEMBERSHIP
INTEREST UNIT SUBSCRIPTION AGREEMENT (this “Agreement”)
is made as of March 24, 2005, by and between FreedomRoads Holding Company, LLC,
a Minnesota limited liability company (the “Company”) and CWFR Capital
Corp., a Delaware corporation (the “Preferred Member”).

 

WHEREAS, the Preferred Member is
a subsidiary of CWI, Inc., a Kentucky corporation (“Camping World”), the
owner and operator of Camping World retail supercenters throughout the United
States which supercenters provide, inter alia, parts,
accessories and related goods and service to recreational vehicle users;

 

WHEREAS, FreedomRoads, LLC, a
Minnesota limited liability company and a wholly-owned subsidiary of the
Company (“FreedomRoads”), owns and operates a nationwide network of
recreational vehicle dealerships and proposes, inter alia, to
expand such network with a view to being the largest network of recreational
vehicle dealerships in the United States;

 

WHEREAS,
Camping World seeks to locate its retail supercenters next to recreational
vehicle dealerships with a view to enhancing Camping World’s retail traffic
through a dealer alliance program;

 

WHEREAS, the
Company seeks funds to, inter alia,
expand its network of nationwide recreational vehicle dealerships;

 

WHEREAS, the
Preferred Member has determined that making
an investment in the Company is in the best interests of the Preferred Member
and the Preferred Member desires to make an investment in the Company on
the terms set forth in this Agreement;

 

WHEREAS, the
Articles of Organization of the Company provide that the Board of Governors of
the Company may establish or designate one or more classes or series of units
of membership interest in the Company and may fix the relative rights and
preferences of each such class or series;

 

WHEREAS, the
Board of Governors of the Company has established a class of units of
membership interest in the Company having the rights and preferences set forth
on Exhibit A attached hereto (the “Preferred Membership Interest”) and
has authorized the issuance of the Preferred Units described in such Exhibit A;
and

 

WHERAS, the
Company wishes to issue all of the Preferred Units to the Preferred Member, and
the Preferred Member wishes to subscribe for and acquire all of the Preferred
Units, all on the terms and conditions set forth in this Agreement.

 

 

NOW, THEREFORE, in order to
implement the foregoing and in consideration of the mutual representations,
warranties, covenants and agreements contained herein, the parties hereto agree
as follows:

 

1.             Definitions.

 

1.1           Acquired
Preferred Units.  The term “Acquired
Preferred Units” means 88,200 Preferred Units, constituting all of the
Preferred Units.

 

1.2           Amended
Membership Interest Schedule.  The
term “Amended Membership Interest Schedule” is defined in Section 2.3 (a) of
this Agreement.

 

1.3           Agreement.  The term “Agreement” has the meaning set
forth in the opening paragraph of this Agreement.

 

1.4           Camping
World.  The term “Camping World” has
the meaning set forth in the recitals to this Agreement.

 

1.5           Closing.  The term “Closing” means the consummation of
the issuance and acquisition of the Preferred Membership Interest against
payment of the Subscription Price by the Preferred Member.

 

1.6           Closing
Date.  The term “Closing Date” means
the date on which the Closing occurs.

 

1.7           Company.  The term “Company” has the meaning set forth
in the opening paragraph of this Agreement.

 

1.8           FreedomRoads.  The term “FreedomRoads” has the meaning set
forth in the recitals to this Agreement.

 

1.9           GAAP.  The term “GAAP” means generally accepted
accounting principles consistently applied as in effect in the United States
from time to time.

 

1.10         Material
Adverse Effect.  The term “Material
Adverse Effect” has the meaning set forth in Section 3.1(a) of this Agreement.

 

1.11         Member
Control Agreement.  The term “Member
Control Agreement” means the Member Control Agreement of the Company by and
among the Company and the members of the Company other than the Preferred
Member.

 

1.12         Person.  The term “Person” means any individual,
corporation, partnership, limited liability company, trust, joint stock
company, business trust, unincorporated association, joint venture,
governmental authority or other entity of any nature whatsoever.

 

1.13         Preferred
Member.  The term “Preferred Member”
has the meaning set forth in the opening paragraph of this Agreement.

 

 

1.14         Preferred
Unit.  The term “Preferred Unit” is
defined in Exhibit A attached hereto.

 

1.15         Preferred
Membership Interest.  The term “Preferred
Membership Interest” has the meaning set forth in the recitals to this
Agreement.

 

1.16         Securities
Act.  The term “Securities Act” means
the Securities Act of 1933, as amended, and all rules and regulations promulgated
thereunder, as the same may be amended from time to time.

 

1.17         Subscription
Price.  The term “Subscription Price”
is defined in Section 2.2 of this Agreement.

 

2.             Subscription for
and Issuance of Preferred Units.

 

2.1           Issuance
of the Preferred Units.  At the
Closing, upon the terms and subject to the conditions set forth in this
Agreement, the Company shall issue to the Preferred Member, and the Preferred
Member shall acquire from the Company, the Acquired Preferred Units against
payment at the Closing of the Subscription Price by wire transfer of
immediately available funds to one or more accounts specified by the Company.

 

2.2           Subscription
Price.  The aggregate price to be
paid by the Preferred Member for the Acquired Preferred Units (the “Subscription
Price”) is $81,005,000.00.

 

2.3           Closing
Events.  At the Closing, the parties
hereto shall consummate the following Closing transactions:

 

(a)           The
Company shall amend Schedule A to the Member Control Agreement to reflect the
issuance of the Preferred Units to the Preferred Member (Schedule A to the
Member Control Agreement, as so amended, is referred to herein as the “Amended
Membership Interest Schedule”).  The
Preferred Units are not certificated and the amendment of Schedule A to the
Member Control Agreement shall constitute issuance of the Preferred Units; and

 

(b)           The
Preferred Member shall pay the Subscription Price to the Company as set forth
in Section 2.1 of this Agreement.

 

(c)           Each of
the parties hereto shall execute such other and further documents and
certificates as the other may reasonably request to vest the Preferred
Membership Interest in the Preferred Member and to otherwise effect the intent
hereof.

 

3.             Representations
and Warranties.

 

3.1           Representations and Warranties of the Company.  The
Company represents and warrants to and agrees with the Preferred Member that:

 

 

(a)           The Company and each of its subsidiaries has
been duly formed and is validly existing in good standing as a corporation,
partnership or limited liability company, as the case may be, under the laws of
its jurisdiction of organization or formation with the requisite corporate or
other power and authority to own its properties and conduct its business as now
conducted and is duly qualified to do business as a foreign corporation in good
standing in all jurisdictions where the ownership or leasing of its properties
or the conduct of its business requires such qualification, except where the
failure to be so qualified would not, individually or in the aggregate, have a
material adverse effect on the general affairs, management, business, condition
(financial or other), properties, prospects or results of operations of the
Company and its subsidiaries, taken as a whole (any such event, a “Material
Adverse Effect”); as of the Closing Date, the Company will have the
authorized, issued and outstanding membership interests as set forth in the
Amended Membership Interest Schedule; all of the Acquired Preferred Units have
been duly authorized and validly issued, are fully paid and nonassessable and
were not issued in violation of any preemptive or similar rights and are owned
free and clear of all liens, encumbrances, equities and restrictions (other
than those imposed by the Securities Act and the state securities or “Blue Sky”
laws); no options, warrants or other rights to purchase from the Company or any
subsidiary, agreements or other obligations of the Company or any subsidiary to
issue or other rights to convert any obligation into, or exchange any
securities for, membership interests or other ownership interests in the
Company or any subsidiary are outstanding and no holder of membership interests
or other ownership interests in the Company or any subsidiary is entitled to
have such membership interest registered under the Securities Act; and the
Acquired Preferred Units constitute all of the Preferred Units issued or
authorized for issuance.

 

(b)           The Company has the requisite power and
authority to execute, deliver and perform its obligations under this
Agreement.  This Agreement has been duly
and validly authorized by the Company and constitutes a valid and legally
binding agreement of the Company, enforceable against the Company in accordance
with its terms.  The issuance of the Acquired
Preferred Units has been duly and validly authorized by the Company and, when
paid for by the Preferred Member in accordance with the terms hereof, the
Acquired Preferred Units will have been duly issued and delivered and will
constitute valid and legally binding obligations of the Company, entitled to
the benefits of the Amended Membership Interest Schedule and enforceable
against the Company in accordance with its terms.

 

(c)           No consent, approval, authorization, license,
qualification, exemption or order of any court or governmental agency or body
or third party is required for the performance of this Agreement or for the
consummation by the Company of any of the transactions contemplated hereby.

 

(d)           Neither the Company nor any of its
subsidiaries is (i) in violation of its articles of organization, member
control agreement, operating agreement, limited liability company agreement (or
similar organizational document), (ii) in breach or violation of any statute,
judgment, decree, order, rule or regulation applicable to it or any of its properties
or assets, which breach or violation would, individually or in the aggregate,
have a Material Adverse Effect, or (iii) in default in (and no event has
occurred that with notice or passage of time, or both, would constitute a
default), has received any notice or claim of any such default or has knowledge
of any breach of or in the performance or observance of any obligation,
agreement, covenant or condition contained in this Agreement or any other
contract, indenture, mortgage, deed of trust, loan agreement, note, lease,
license, franchise

 

 

agreement, permit, certificate or agreement or instrument to which it
is a party or to which it is subject, which default or breach would,
individually or in the aggregate, have a Material Adverse Effect.

 

(e)           The execution, delivery and performance by
the Company of this Agreement and the consummation by the Company of the
transactions contemplated hereby and the fulfillment of the terms hereof will
not (i) violate, conflict with or constitute or result in a breach of or a
default under (or an event that, with notice or lapse of time, or both, would
constitute a breach of or a default under) any of (A) the terms or provisions
of any contract, indenture, mortgage, deed of trust, loan agreement, note,
lease, license, franchise agreement, permit, certificate or agreement or
instrument to which the Company or any of its subsidiaries is a party or to
which any of their respective properties or assets are subject, (B) the
articles of organization, member control agreement, operating agreement,
limited liability company agreement (or similar organizational document) of the
Company or any of its subsidiaries, or (C) any statute, judgment, decree,
order, rule or regulation of any court or governmental agency or other body applicable
to the Company or its subsidiaries or any of their respective properties or
assets or (ii) result in the imposition of any lien upon or with respect
to any of the properties or assets now owned or hereafter acquired by the
Company or any of its subsidiaries, which violation, conflict, breach, default
or lien would, individually or in the aggregate, have a Material Adverse Effect.

 

(f)            The financial statements of the Company and
its subsidiaries provided to the Preferred Member present fairly the consolidated
financial position, results of operations and cash flows of such entities at
the dates and for the periods to which they relate and have been prepared in
accordance with GAAP.

 

(g)           There is not pending or, to the best
knowledge of the Company, threatened any action, suit, proceeding, inquiry or
investigation, governmental or otherwise, to which any of the Company or any of
its subsidiaries is a party, or to which their respective properties or assets
are subject, before or brought by any court, arbitrator or governmental agency
or body, that, if determined adversely to the Company or any such subsidiary
would, individually or in the aggregate, have a Material Adverse Effect or that
seeks to restrain, enjoin, prevent the consummation of or otherwise challenge
the transactions contemplated hereby or the issuance of Preferred Units.

 

(h)           The Company and its subsidiaries own or
possess adequate licenses or other rights to use all patents, trademarks,
service marks, trade names, copyrights and know-how that are necessary to
conduct their respective businesses. 
None of the Company or any of its subsidiaries has received any notice
of infringement of or conflict with (or knows of any such infringement of or
conflict with) asserted rights of others with respect to any patents,
trademarks, service marks, trade names, copyrights or know-how that, if such
assertion of infringement or conflict were sustained, would, individually or in
the aggregate, have a Material Adverse Effect.

 

(i)            The Company and each of its subsidiaries
possesses all licenses, permits, certificates, consents, orders, approvals and
other authorizations from, and has made all declarations and filings with, all
federal, state, local and other governmental authorities, all self-regulatory
organizations and all courts and other tribunals presently required or
necessary to own or lease, as the case may be, and to operate its respective
properties and to carry on its respective businesses as now or proposed to be
conducted, except where the failure to obtain such permits would not,
individually or in the aggregate, have a Material Adverse Effect; the Company
and each of its subsidiaries has fulfilled and

 

 

performed all of its obligations with respect to such permits and no
event has occurred that allows, or after notice or lapse of time would allow,
revocation or termination thereof or results in any other material impairment
of the rights of the holder of any such permit; and neither the Company nor any
of its subsidiaries has received any notice of any proceeding relating to
revocation or modification of any such permit, except where such revocation or
modification would not, individually or in the aggregate, have a Material
Adverse Effect.

 

(j)            The Company and each of its subsidiaries has
filed all necessary federal, state and foreign income and franchise tax
returns, except where the failure to so file such returns would not,
individually or in the aggregate, have a Material Adverse Effect, and have paid
all taxes shown as due thereon; and other than tax deficiencies that the
Company or any subsidiary is contesting in good faith and for which adequate
reserves have been provided in accordance with generally accepted accounting
principles, there is no tax deficiency that has been asserted against the
Company or any subsidiary that would, individually or in the aggregate, have a
Material Adverse Effect.

 

(k)           Neither the Company nor any of its
subsidiaries or any of such entities’ governors, directors, officers,
employees, agents or controlling persons has taken, directly or indirectly, any
action designed, or that might reasonably be expected, to cause or result,
under the Securities Act.

 

(l)            Neither the Company nor any of its
subsidiaries or any of their respective Affiliates (as defined in Rule 501(b)
of Regulation D under the Securities Act) directly, or through any agent,
(i) sold, offered for sale, solicited offers to buy or otherwise
negotiated in respect of any “security” (as defined in the Securities Act) that
would require the registration under the Securities Act or (ii) engaged in
any form of general solicitation or general advertising (as those terms are
used in Regulation D under the Securities Act) in connection with the
offering of the Preferred Units or in any manner involving a public offering
within the meaning of Section 4(2) of the Securities Act.  It is not necessary in connection with the
offer, sale and delivery of the Acquired Preferred Units to the Preferred
Member in the manner contemplated by this Agreement to register any of the
Acquired Preferred Units under the Securities Act.

 

(m)          The Company and each of its subsidiaries
carries insurance (including self-insurance) in such amounts and covering such
risks as in its reasonable determination is adequate for the conduct of its
business and the value of its properties.

 

(n)           The Company and each of its subsidiaries (i) makes
and keeps accurate books and records and (ii) maintains internal accounting
controls that provide reasonable assurance that (A) transactions are executed
in accordance with management’s authorization, (B) transactions are recorded as
necessary to permit preparation of its financial statements and to maintain
accountability for its assets, (C) access to its assets is permitted only in
accordance with management’s authorization and (D) the reported accountability
for its assets is compared with existing assets at reasonable intervals.

 

3.2           Representations and Warranties of the
Preferred Member.  The Preferred Member represents and warrants
to and agrees with the Company that:

 

 

(a)           Organization
and Power.  The Preferred Member is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, with full power and authority to enter into this
Agreement and perform its obligations hereunder.

 

(b)           Authorization.  The execution, delivery and performance of
this Agreement by the Preferred Member and the consummation by the Preferred
Member of the transactions contemplated hereby have been duly and validly
authorized by all requisite company action on the part of the Preferred Member,
and no other proceedings on its part are necessary to authorize the execution,
delivery or performance of this Agreement. 
This Agreement has been duly executed and delivered by the Preferred Member,
and this Agreement constitutes a valid and binding obligation of the Preferred
Member, enforceable in accordance with its terms and conditions.  The Preferred Member need not give any notice
to, make any filing with, or obtain any authorization, consent or approval of
any government or governmental agency in order to consummate the transactions
contemplated by this Agreement.

 

(c)           Noncontravention.  Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions contemplated hereby,
will violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which the Preferred Member is subject or any
provision of its charter or bylaws or conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify, or cancel, or require any notice
under any agreement, contract, lease, license, instrument, or other arrangement
to which Investors is a party or by which it is bound or to which any of its
assets is subject.

 

(d)           Investment.  The Preferred Member is not acquiring the
Acquired Preferred Units with a view to or for sale in connection with any
distribution thereof within the meaning of the Securities Act.

 

4.             Certain Covenants.  The
Company covenants and agrees with the Preferred Member that, for so long as any
of the Preferred Units remain outstanding,

 

(a)           Financial
Statements.  The Company shall at all
times maintain and shall cause its subsidiaries to at all times maintain
complete and accurate books of account and records.  The Company shall maintain and shall cause its
subsidiaries to maintain a standard system of accounting and will furnish the
following statements and reports to the Preferred Member at the Company’s’
expense:

 

(i)            Within 120
days after the end of each fiscal year of the Company, audited consolidated
financial statements of the Company, in each case together with all notes
thereto, prepared in reasonable detail in accordance with GAAP, together with
an opinion, based on an audit using United States generally accepted auditing
standards, by independent certified public accountants of national reputation selected
by the Company, stating that such financial statements have been so
prepared.  The consolidated financial
statements of the Company shall contain a balance sheet as of the end of such
fiscal year and a statement of operations, cash flows and members’ equity for
such fiscal year, each setting forth in comparative form the corresponding
figures for the preceding fiscal year. 
Within ten days of request by the Preferred Member, the Company shall
mail to the Preferred Member a copy of any final letter issued by

 

 

the
Company’s independent accountants concerning the Company’s financial or
accounting systems or controls, including all “management letters,” and any
final letter issued by the Company’s legal counsel providing information to the
independent accountants concerning litigation and related matters relevant to
the accountants’ fiscal year review.

 

(ii)           Within 45
days after the end of each fiscal quarter, the Company’s consolidated balance
sheet as of the end of such fiscal quarter and a consolidated statement of
operations and consolidated statement of cash flows for such fiscal quarter and
for the period from the beginning of the then current fiscal year to the end of
such fiscal quarter, setting forth in each case, figures for the corresponding periods
in the preceding fiscal year, all in reasonable detail and prepared in
accordance with GAAP, without footnotes, subject to changes resulting from normal
or recurring year-end adjustments.

 

(b)           Other
Information and Inspections.  The
Company shall furnish to the Preferred Member any information that the
Preferred Member from time to time reasonably requests concerning any provision
or condition of this Agreement or any matter in connection with the business
and operations of the Company or its subsidiaries.  During normal business hours, upon written
notice, the Company shall permit a representative of the Preferred Member to
visit and inspect any of the properties of the Company or its subsidiaries, to
examine and make abstracts from any of their respective books and records and
to discuss their respective affairs, finances and accounts with their
respective executive officers and independent public accountants, all at
reasonable times, but no more than once per fiscal quarter.  Upon request, but no more than once per fiscal
quarter, the Company shall make such respective executive officers available to
report to the Preferred Member or such other Persons as designated by the
Preferred Member on the respective affairs, finances and accounts of the Company
and such subsidiaries.

 

(c)           Notice
of Material Events.  The Company
shall notify the Preferred Member (i) promptly of the existence of an
event or condition that is reasonably likely to result in a Material Adverse
Effect, (ii)  promptly of the acceleration of the maturity of any debt
owed by the Company or any of its subsidiaries having an outstanding principal
balance of $1 million or more, (iii)  promptly of any claim asserted
against the Company or any of its subsidiaries or with respect to the Company’s
or any of its subsidiaries’ properties that is reasonably likely to have a
Material Adverse Effect and (iv) promptly of the filing of any suit or
proceeding against the Company or any of its subsidiaries in which an adverse
decision would be reasonably likely to have a Material Adverse Effect.

 

(d)           Maintenance
of Properties.  The Company shall,
and shall cause its subsidiaries to, maintain, preserve, protect and keep all
property material to the conduct of their business in good working condition
and in compliance with all applicable laws, rules and regulations (except for
such non-compliance as would not, individually or in the aggregate, have a
Material Adverse Effect), and will from time to time make all repairs, renewals
and replacements needed to enable the business and operations carried on in
connection therewith to be promptly and advantageously conducted in all
material respects.

 

(e)           Maintenance
of Existence and Qualifications.  The
Company shall, and shall cause each of its subsidiaries to, maintain and
preserve their corporate existence and their rights,

 

 

franchises and privileges
in full force and effect in all material respects and shall qualify to do
business as a foreign corporation in all states or jurisdictions where required
by applicable law, except where the failure so to maintain, preserve or qualify
would not have a Material Adverse Effect.

 

(f)            Insurance.
 The Company shall keep or cause to be
kept, and shall cause each of its subsidiaries to keep or cause to be kept,
insured by financially sound and reputable insurers, all property of a character
usually insured by similar Persons engaged in the same or similar businesses. The
Company shall, and shall cause each of its subsidiaries to, at all times
maintain insurance against their liability for injury to persons or property,
which insurance shall be by financially sound and reputable insurers.

 

(g)           Compliance
with Agreements and Law.  The Company
shall, and shall cause each of its subsidiaries to, perform all obligations
they are required to perform under the terms of each indenture, mortgage, deed
of trust, security agreement, lease, franchise, agreement, contract or other instrument
or obligation to which they are a party or by which they or any of their
properties are bound, except for such non-performance as would not,
individually or in the aggregate, have a Material Adverse Effect.  The Company shall, and shall cause each of
its subsidiaries to, conduct their business and affairs in compliance with all
laws, regulations and orders applicable thereto, except for such noncompliances
as would not, individually or in the aggregate, have a Material Adverse Effect.

 

(h)           Indemnity.  The Company agrees to indemnify the Preferred
Member and its direct and indirect shareholders and affiliates and the
respective officers, directors, representatives, agents and employees of the
Preferred Member and its direct and indirect shareholders and affiliates (each
of the foregoing being referred to as an “indemnified party”), upon demand,
from and against any and all liabilities, obligations, claims, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements
(including reasonable fees of attorneys, accountants, experts and advisors) of
any kind or nature whatsoever that to any extent (in whole or in part) may be
imposed on, incurred by, or asserted against an indemnified party growing out
of, resulting from or in any other way associated with the purchase or
ownership of the Acquired Preferred Units and the transactions and events
associated herewith or contemplated herein, other than (A) taxes imposed upon
amounts received by the Preferred Member hereunder, and (B) as result of a
breach of a representation, warranty or covenant contained in Section 3.2
hereof or other breach by the Preferred Member of the terms hereof.  Each party will cooperate with the other in resolving
or attempting to resolve any claim and will permit the other party access to
all books and records which might be useful for such purpose, during normal
business hours and at the place, where the same are normally kept, full right
to make copies thereof or extracts therefrom at the cost of the copying party.

 

(i)            Best
Efforts.  The Company will use its
best efforts to do and perform all things required to be done and performed by
it under this Agreement prior to or after the Closing Date and to satisfy all
conditions precedent on its part to the obligations of the Preferred Member.

 

5.             Miscellaneous.

 

5.1           Binding
Effect.  The provisions of this
Agreement shall be binding upon and accrue to the benefit of the parties hereto
and their respective successors and assigns.

 

 

5.2           Amendment;
Waiver.  This Agreement may be
amended only by a written instrument signed by the parties hereto.  No waiver by any party hereto of any of the
provisions hereof shall be effective unless set forth in a writing executed by
the party so waiving.

 

5.3           Governing
Law.  This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Delaware applicable to contracts made and to be performed therein.

 

5.4           Integration. 
This Agreement and the documents referred to herein or delivered
pursuant hereto which form a part hereof contain the entire understanding of
the parties with respect to the subject matter hereof and thereof.  There are no restrictions, agreements,
promises, representations, warranties, covenants or undertakings with respect
to the subject matter hereof other than those expressly set forth herein and
therein.  This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

 

5.5           Counterparts. 
This Agreement may be executed in separate counterparts (including by
means of telecopied signature pages), and by different parties on separate
counterparts each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

 

5.6           Rights
Cumulative; Waiver.  The rights and
remedies of the parties hereto shall be cumulative and not exclusive of any rights
or remedies which either would otherwise have hereunder or at law or in equity
or by statute, and no failure or delay by either party in exercising any right
or remedy shall impair any such right or remedy or operate as a waiver of such
right or remedy, nor shall any single or partial exercise of any power or right
preclude such party’s other or further exercise or the exercise of any other
power or right.  The waiver by any party
hereto of a breach of any provision of this Agreement shall not operate or be
construed as a waiver of any preceding or succeeding breach and no failure by
either party to exercise any right or privilege hereunder shall be deemed a
waiver of such party’s rights or privileges hereunder or shall be deemed a
waiver of such party’s rights to exercise the same at any subsequent time or
times hereunder.

 

5.7           No
Third Party Beneficiaries.  This
Agreement is solely for the benefit of the parties hereto and their respective
successors and assigns, and no provision of this Agreement shall be deemed to
create or confer upon any other person any remedy, claim, liability,
reimbursement, cause of action or other right whatsoever.

 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be duly executed all as of
the date and year first above written.

 

 

	
   

  	
  FREEDOMROADS HOLDING

  
	
   

  	
  COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marcus A. Lemonis

  	
   

  
	
   

  	
  Its: Chairman and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  CWFR CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas F. Wolfe

  	
   

  
	
   

  	
  Its: Senior Vice President and Chief Financial
  Officer

  
					

 

 

EXHIBIT A

 

Rights and Preferences

of

Preferred Membership Interest

 

Unless otherwise defined in this Exhibit A,
capitalized terms used herein have the meanings given them in the Member
Control Agreement of the Company.  The
rights and preferences of the Preferred Membership Interest are as follows:

 

1.             Capital
Contribution and Face Amount.  The “Capital
Contribution” for the Preferred Membership Interest shall be $918.42 per
Preferred Unit.  The “Face Amount” for
the Preferred Membership Interest shall be $1,000 per Preferred Unit.

 

2.             Voting
Rights.   The holders of Preferred
Units (the “Preferred Holders”) shall be entitled to veto any action of the
Members or the Board of Governors affecting the rights and preferences
applicable to the Preferred Membership Interest.  The Company shall not voluntarily commence
any proceeding or file any petition seeking liquidation, organization or other
relief under any federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect without the prior consent of the
Preferred Holders.  The Preferred Holders
shall not have other voting rights in the Company.

 

3.             Distributions.  The Preferred Holders shall be entitled to
receive, when and as declared by the Board of Governors from any source legally
available therefor, cash in an amount equal to the Preferred Return.  Any portion of the Preferred Return not paid
shall accumulate and shall be compounded semi-annually until paid.  

 

4.             Liquidation
Preference.  In the event of any
voluntary dissolution, liquidation, partial liquidation or winding up of the
Company, after due payment or provision for payment of the debts and other
liabilities of the Company, the Preferred Holders shall be entitled to receive
from the net assets an amount (the “Liquidation Payment”) equal to the Face Amount
plus distributions accumulated and unpaid pursuant to Section 3 above.

 

5.             Redemption.

 

A.            Voluntary
Redemption.  The Company shall, on
any date, have the option of redeeming and retiring the Preferred Membership Interest
by payment to the Preferred Holders of an amount equal to the Liquidation
Payment.

 

B.            Mandatory
Redemption.  The Company shall redeem
the Preferred Membership Interests contemporaneously with the closing of an
Asset Sale.

 

C.            Asset
Sales.  In case at any time (i) there
shall be any capital reorganization or

 

 

reclassification of the
Membership Interests or consolidation or merger of the Company with or into
another entity; (ii) there shall occur a sale of a material amount of assets of
the Company (including shares of stock of any entity owned by the Company) to
an unaffiliated entity (other than sales of inventory and similar assets of the
Company in the ordinary course of business); (iii) if theretofore transferred
to an affiliate, there shall occur (a) a sale of such assets by such affiliate
to an unaffiliated entity, (b) a capital reorganization or reclassification of
the ownership of such affiliate, (c) the consolidation or merger of such
affiliate with or into another entity, (d) a distribution in respect of any
such assets or (e) a voluntary or involuntary dissolution or winding up of any
such assets or such affiliate; or (v) there shall be a voluntary or involuntary
dissolution or winding up of the Company (each of the foregoing events constituting,
for purposes hereof, an “Asset Sale”), the Company shall be deemed to have been
liquidated and the Preferred Holders shall be paid an amount equal to the
Liquidation Payment.

 

D.            Terms
of Redemption.  The redemption price
for each Preferred Unit under any subsection of this Section 5 shall be equal
to the Liquidation Payment as of the date of redemption and shall be paid by
the Company in cash.  The Company shall
give notice by mail of redemptions to the Preferred Holders at least five
calendar days prior to any date of redemption. 
Such notice (i) shall specify the date of redemption, and (ii) shall be
addressed to the Preferred Holders at the Preferred Holders’ address as shown
on the records of the Company.

 

If the Company
deposits, on or prior to any date fixed for redemption of the Preferred
Membership Interest, with any bank or trust company having capital and surplus
of at least $50,000,000 as a trust fund, an amount equal to the Liquidation
Payment with instructions and authority to such bank or trust company to pay
the Liquidation Payment on or after the date fixed for redemption or prior
thereto, then, upon the surrender of any certificates (or other evidence of the
issuance of the Preferred Membership Interest), from and after the date of such
deposit, and notwithstanding that the termination of the Preferred Membership
Interest shall not have been memorialized by an appropriate amendment to the
governing instruments for the Company, the Preferred Membership Interest shall
no longer be deemed to be outstanding and all rights with respect thereto shall
forthwith cease and terminate, except only the rights of the Preferred Holders
to receive from such bank or trust company at any time after the date of such
deposit, the amount of the Liquidation Payment so deposited, without
interest.  Any funds so deposited and
unclaimed at the end of three years from such redemption date shall be released
or repaid to the Company, after which the sole right of the Preferred Holders
shall be to receive payment of the Liquidation Payment from the Company.

 

6.             Restricted
Distributions.  The Company shall not
make a Restricted Distribution except in accordance with this Section 6.  As of any date (a “Distribution Date”) on
which the Company proposes to make a Restricted Distribution, the Company may
make the Restricted Distribution only to the extent the amount of the
Restricted Distribution does not exceed (a) 50% of the amount equal to (i) the
Company’s Net Profit for the period from January 1, 2005 to the Distribution
Date (the “Calculation Period”) less (ii) the aggregate amount of Permitted Tax
Distributions theretofore made during the Calculation Period, less (b) the
aggregate amount of Restricted Distributions theretofore made during the
Calculation Period.  The provisions of
this Section 6 shall not prohibit Permitted Tax Distributions or distributions
to the Preferred Holders with respect to the Preferred Membership Interest.

 

 

7.             Transfers.  By acceptance of the Preferred Membership
Interest, each Preferred Holder agrees not to sell, give, pledge, assign or
otherwise transfer any Preferred Unit held by such Preferred Holder.  The provisions of Article V and Article VI of
the Member Control Agreement do not apply to the Preferred Membership Interest.

 

8.             Definitions.  As used herein the following terms have the
meanings given to them hereinbelow:

 

“Disproportionate
Distribution” means that portion of a distribution made by the Company to the
Members other than the Preferred Holder that was not made in proportion to the
Percentage of Financial Rights of the Members.

 

“GAAP” means
generally accepted accounting principles consistently applied as in effect in
the United States from time to time.

 

“Net Profit”
means, for any period, the aggregate amount of the net income for such period
of the Company and all entities that are required in accordance with GAAP to be
consolidated with the Company for financial statement purposes, as such net
income is determined in accordance with GAAP consistently applied.

 

“Permitted Tax
Distributions” means, for any year, cash distributions to Members aggregating
an amount equal to (a) the sum of (i) the highest marginal individual federal
income tax rate plus (ii) an assumed individual state tax rate of 10%, times
(b) taxable income of the Company (based on reasonable estimates made by the
Company during the year of the amount of taxable income that is to be reported
on the Company’s partnership tax return for such year).

 

“Preferred Return”
means an amount equal to (a) 10.875% per annum on the Face Amount from the date
of issuance of the Preferred Membership Interest to the date of redemption,
less (b) the amount of any capital contribution made directly or indirectly to
the Preferred Holder (or to the direct or indirect parent company of the
Preferred Holder) by a Member other than the Preferred Holder from the proceeds
of a Disproportionate Distribution.

 

“Preferred Unit”
means a unit of Preferred Membership Interest in the Company having the rights
and preferences set forth herein.

 

“Restricted
Distribution” means any distribution to Members with respect to a Membership
Interest other than (a) distributions to the Preferred Holders with respect to
the Preferred Membership Interest and (b) Permitted Tax Distributions.

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