Document:

exv10w26

 

Exhibit 10.26

SIXTH AMENDMENT OF

LOAN AGREEMENT

     THIS SIXTH AMENDMENT OF LOAN AGREEMENT (“Amendment”) is made this 7th day of November, 2006 by
Summit Hotel Properties, LLC, a South Dakota limited liability company (“Borrower”) and First
National Bank of Omaha, a national banking association (“Bank”) and amends that certain Loan
Agreement dated July 20, 2004 between Borrower and Bank (“Loan Agreement”).

     WHEREAS, pursuant to the Loan Agreement and the other Loan Documents, Bank extended to
Borrower a Line of Credit in the maximum principal amount of $18,000,000.00 more fully described in
the Loan Agreement;

     WHEREAS, The Summit Group, Inc. issued its Guaranty dated of even date with the Loan Agreement
(“Guaranty”) in support of the Line of Credit and Borrower’s obligations under the Loan Agreement
and other Loan Documents, with such Guaranty secured by the Collateral defined in that certain
Pledge Agreement dated of even date with the Loan Agreement (“Pledge Agreement”) executed by The
Summit Group, Inc. in favor of Bank;

     WHEREAS, pursuant to that certain First Amendment of Loan Agreement dated October 1, 2004 and
under the terms and conditions thereof, Borrower requested and Bank advanced the Boise Acquisition
Advance;

     WHEREAS, under the terms of that certain Second Amendment of Loan Agreement dated June of 2005
and under the terms and conditions thereof, the maximum principal amount available under the Line
of Credit was increased to $25,000,000.00, and Borrower was permitted to use Advances to construct
improvements to Property acquired by Borrower;

     WHEREAS, under the terms of that certain Third Amendment of Loan Agreement dated August 24,
2005, the Termination Date was extended to June 24, 2007; and

     WHEREAS, under the terms of that certain Fourth Amendment of Loan Agreement dated March 1,
2006, the maximum principal amount available under the Line of Credit was increased to
$30,000,000.00, West Bank became a participant in the Line of Credit and the Loan Agreement was
otherwise amended as provided for therein; and

     WHEREAS, under the terms of that certain Fifth Amendment of Loan Agreement dated April 12,
2006, the Line of Credit was permitted to be used to support the issuance, for the account of
Borrower, of letters of credit;

     WHEREAS, under the terms of this Amendment, Borrower has requested and Bank has agreed to
extend the Termination Date, to decrease the interest rate applicable to the Line of Credit as
provided for below, to release the Guaranty and to otherwise amend the Loan Agreement as provided
for below.

     NOW, THEREFORE, in consideration of the amendments to the Loan Agreement provided for below,
the mutual covenants herein and other good and valuable consideration, the sufficiency and receipt
of which is hereby acknowledged, the parties agree to amend the Loan Agreement as follows:

 

 

     1. Capitalized terms used herein shall have the meaning given to such terms in the Loan
Agreement, unless specifically defined herein.

     2. Section 1.1 of the Loan Agreement is hereby amended by deleting the reference to June 24,
2007 as the Termination Date and inserting in lieu thereof June 24, 2008. Any other reference in
the Loan Agreement and the other Loan Documents to the Termination Date shall be amended consistent
with the foregoing.

     3. Section 1.6 of the Loan Agreement entitled “Interest” is hereby deleted in its entirety and
the following is inserted in lieu thereof:

     1.6. Interest. The principal balance of each Acquisition Advance shall bear
interest at a variable per annum rate equal to three quarters of one percent (3/4%) below the
National Base Rate. The principal balance of each Equity Advance shall bear interest at a
variable per annum rate equal to one half of one percent (1/2%) below the National Base Rate.
The principal balance of each Working Capital Advance shall bear interest at a variable
per annum rate equal to one half of one percent (1/2%) below the National Base Rate.
Interest on Advances shall be payable monthly, in arrears. Accrued interest shall also be
payable at maturity, whether by acceleration or otherwise. Interest shall be calculated on
the number of days outstanding based upon a year consisting of three hundred and sixty
(360) days. The principal balance of the Advances shall bear interest after default or
maturity at a variable per annum rate of four percent (4%) in excess of the National Base
Rate, but not to exceed the maximum rate allowed by law. National Base Rate means the per
annum rate of interest announced by Lender from time to time as its prime rate of interest,
which when used to compute the rate of interest hereunder shall change as of the day
immediately following the date of any change in said National Base Rate. No representation
is made that the National Base Rate is the best, lowest or a favored rate of interest.

To the extent necessary or applicable, the other Loan Documents are hereby amended consistent with
the foregoing.

     4. Section 7.2(c) of the Loan Agreement is hereby deleted in its entirety.

     5. Section 4.2 of the Loan Agreement is hereby amended by adding a new subsection (h) to
Section 4.2 of the Loan Agreement as follows:

     “(h) Company shall provide Lender with a copy of any Appraisal Report of the Property acquired
with an Equity Advance within ten (10) days after Borrower’s receipt of such report.”

     6. Effective on the date of this Amendment, Bank hereby agrees to release the Guaranty and the
Collateral securing the Guaranty under the Pledge Agreement and the Guaranty and Pledge Agreement
shall be of no further force or effect.

     7. Except as modified and amended herein, all other terms, provisions, conditions and
obligations imposed under the terms of the Loan Agreement and the other Loan Documents shall remain
in full force and effect and are hereby ratified and affirmed by Borrower. To the extent
necessary, the other Loan Documents are hereby amended to be consistent with the terms of this
Amendment.

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     8. Borrower certifies and reaffirms by its execution hereof that the representations and
warranties set forth in the Loan Agreement and the other Loan Documents are true as of this date,
and that no Event of Default under the Loan Agreement or any other Loan Document, and no event
which, with the giving of notices or passage of time or both, would become such an Event of
Default, has occurred as of execution hereof.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on the date first
written above.

	 	 	 	 	 	 	 
	 	 	FIRST NATIONAL BANK OF OMAHA	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Marc. T. Wisdom	 	 
	 	 	 	 	 
	 

	 	By:
	 	Marc T. Wisdom	 	 
	 

	 	Title:
	 	Second Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	SUMMIT HOTEL
PROPERTIES, LLC, 
a South
Dakota limited liability company, 
by its
Company Manager, 
THE SUMMIT GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kerry W. Boekelheide
 

Kerry W. Boekelheide,
	 	 
	 

	 	 	 	President	 	 

4exv10w37

 

Exhibit 10.37

December 29, 2006

General
Electric Capital Corporation

500 West Monroe

Chicago, Illinois 60661

     Re: GE Capital Fee Letter

Gentlemen:

     Reference is hereby made to that certain Fifth Amended and Restated Credit Agreement, dated as
of December 29, 2006 (as amended, restated or otherwise modified from time to time, the “Credit
Agreement”) by and among General Electric Capital Corporation (individually, “GE
Capital”) as Agent and a Lender, Wilsons Leather Holdings Inc., as Borrower
(“Borrower”) and the other Credit Parties and Lenders signatory thereto from time to time.
All defined terms herein shall have the respective meanings given to them in the Credit Agreement.

     In addition to any fees or other amounts payable by Borrower to GE Capital or Agent under the
terms of the Credit Agreement, Borrower agrees to pay to GE Capital or Agent the following fees:

     (1) If Term Loan B is prepaid or repaid for any reason on or after the date hereof, Borrower
shall, at the time of such payment or prepayment, pay to GE Capital as liquidated damages and
compensation for the costs of being prepared to make Term Loan B available (i) in the case of a
prepayment on or after the date hereof but on or prior to June 30, 2008, an amount equal to one
percent (1.00%) multiplied by the principal amount of Term Loan B then being prepaid or repaid,
(ii) in the case of a prepayment after June 30, 2008 but on or prior to June 30, 2009, an amount
equal to one half percent (0.50%) multiplied by the principal amount of Term Loan B then being
prepaid or repaid and (iii) in the case of a prepayment after June 30, 2009, an amount equal to
zero dollars ($0) (the “Term Loan B Prepayment Fee”). The parties hereto agree that this
Section (1) replaces and supercedes Section (1) of that certain Letter Agreement dated as of April
27, 2004 between GE Capital and the Borrower, as replaced and superseded by Section (1) of that
certain Letter Agreement dated as of March 2, 2005 between GE Capital and the Borrower and as
subsequently replaced and superseded by Section (1) of that certain Letter Agreement dated as of
January 31, 2006 between GE Capital and the Borrower.

     (2) On the Closing Date, an arrangement fee to Agent in an amount equal to $202,500.

 

 

General Electric Capital Corporation

December 29, 2006

Page 2

     The fees set forth above shall be deemed fully earned on the date of required payment thereof
and shall be non-refundable when paid.

[Signature Page Follows]

 

 

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	WILSONS LEATHER HOLDINGS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stacy A. Kruse
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Financial Officer and Treasurer	 	 

ACCEPTED AND AGREED:

GENERAL ELECTRIC CAPITAL CORPORATION

	 	 	 	 	 
	By:

	 	/s/ Kristina M. Miller	 	 
	 

	 	 

Its Duly Authorized Signatory
	 	 

[Signature Page To GE Capital Fee Letter]

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