Document:

Exhibit

Exhibit 10.6
EXECUTION COPY

  

FOURTH AMENDMENT TO 
THIRD AMENDED AND RESTATED CREDIT AGREEMENT
Dated as of August 16, 2017
among
PLAINS MARKETING, L.P.

and

PLAINS MIDSTREAM CANADA ULC,

as Borrowers,
PLAINS ALL AMERICAN PIPELINE, L.P.,
as Guarantor
BANK OF AMERICA, N.A., 
as Administrative Agent and Swing Line Lender,
BANK OF AMERICA, N.A. and WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as L/C Issuers
and
The Other Lenders Party Hereto
CITIBANK, N.A. and SOCIÉTÉ GÉNÉRALE, 
as Co-Syndication Agents,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
CITIGROUP GLOBAL MARKETS INC. and SOCIÉTÉ GÉNÉRALE,
as
Joint Lead Arrangers and Joint Bookrunners

Senior Secured
Hedged Inventory Facility

FOURTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
THIS FOURTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of the 16th day of August, 2017, is by and among PLAINS MARKETING, L.P., a Texas limited partnership (the “Company”), PLAINS MIDSTREAM CANADA ULC, a British Columbia unlimited liability company (“PMCULC”; and together with the Company, the “Borrowers” and each individually, a “Borrower”), PLAINS ALL AMERICAN PIPELINE, L.P., as guarantor, BANK OF AMERICA, N.A., as Administrative Agent and an L/C Issuer, WELLS FARGO BANK, NATIONAL ASSOCIATION, as an L/C Issuer, and the Lenders party hereto.
W I T N E S S E T H:
WHEREAS, Borrowers, Administrative Agent, certain of the L/C Issuers and certain of the Lenders entered into that certain Third Amended and Restated Credit Agreement dated as of August 19, 2011, as amended by that certain First Amendment to Third Amended and Restated Credit Agreement dated as of June 27, 2012, that certain Second Amendment to Third Amended and Restated Credit Agreement dated as of August 16, 2013 and that certain Third Amendment to Third Amended and Restated Credit Agreement dated as of August 11, 2016 (as heretofore amended, the “Original Agreement”) for the purposes and consideration therein expressed; and
WHEREAS, Merrill Lynch, Pierce, Fenner & Smith, Incorporated (“MLPFS”) and the other joint lead arrangers and joint bookrunners, have, at the Company’s request, syndicated and arranged for an extension of the maturity date set forth in, and other amendments to, the Original Agreement, and pursuant thereto, the Borrowers, Administrative Agent, L/C Issuers and the Lenders party hereto desire to amend the Original Agreement for the purposes described herein;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein and in the Original Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:
ARTICLE I. — Definitions and References
§ 1.1.    Terms Defined in the Original Agreement.  Unless the context otherwise requires or unless otherwise expressly defined herein, the terms defined in the Credit Agreement shall have the same meanings whenever used in this Amendment.
§ 1.2.    Other Defined Terms.  Unless the context otherwise requires, the following terms when used in this Amendment shall have the meanings assigned to them in this § 1.2.
“Amendment” means this Fourth Amendment to Third Amended and Restated Credit Agreement.
“Amendment Effective Date” has the meaning specified in § 3.1 of this Amendment.
“Credit Agreement” means the Original Agreement as amended hereby.

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ARTICLE II. — Amendments
§ 2.1.    Definitions.  
(a)Collateral.  The definition of “Collateral” in Section 1.01 of the Original Agreement is hereby amended by adding the following new sentence at the end thereof:
In no event shall Collateral include any Subject Inventory, corresponding Swap Contracts with respect thereto, and Subject Receivables that are the subject of Collateral Intermediary Transactions permitted pursuant to Section 7.08.
(b)Collateral Value.  The definition of “Collateral Value” in Section 1.01 of the Original Agreement is hereby amended by adding the following new sentence at the end thereof:
In no event shall any Subject Inventory, any corresponding Swap Contracts with respect thereto or Subject Receivables be included in the calculation of Collateral Value.
(c)New Defined Terms.  Section 1.01 of the Original Agreement is hereby amended by adding the following new defined terms in appropriate alphabetical order, to read as follows:
“Commodity Intermediary” means (i) any Lender, any Affiliate of any Lender that engages in Commodity Intermediary Transactions, or other nationally recognized institution engaged in transactions of such type, or (ii) any other institution that engages in Commodity Intermediary Transactions that is reasonably acceptable to the Administrative Agent.
“Commodity Intermediary Transaction” means a transaction or series of transactions (whether reflected in a single agreement or a set of related agreements) under which a Commodity Intermediary buys from Borrower and/or sells to Borrower or third parties Subject Inventory, and in addition, may enter into Swap Contracts with respect to such Subject Inventory (including for hedging and/or risk mitigation purposes) and/or provide additional financial accommodations based on Subject Receivables, and in connection therewith (i) the Administrative Agent releases any Liens securing the Obligations on Subject Inventory, such Swap Contracts and Subject Receivables, and (ii) Borrower grants a Lien on Subject Inventory, corresponding Swap Contracts with respect thereto, and Subject Receivables (if any) in favor of such Commodity Intermediary to secure the obligations of Borrower to such Commodity Intermediary arising under such Commodity Intermediary Transaction.
“Subject Inventory” means any portion of Borrower’s Petroleum Product inventory identified by Borrower as subject to a Commodity Intermediary Transaction.
“Subject Receivables” means Receivables arising from the sale of Subject Inventory.
§ 2.2.    Liens.  The reference to “Liens, other than Liens permitted by Section 7.01” in Section 5.07 of the Original Agreement is hereby amended to refer instead to “Liens, other than Liens permitted by Section 7.01 and Liens granted in connection with Commodity Intermediary Transactions permitted pursuant to Section 7.08”.

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§ 2.3.    Collateral Documents.  The reference to “(excluding tank bottoms and pipeline linefill of such Borrower)” in Section 5.13 of the Original Agreement is hereby amended to refer instead to “(excluding tank bottoms, pipeline linefill and Subject Inventory of such Borrower)”.
§ 2.4.    Covenant to Give Security.  The reference to “(excluding tank bottoms, pipeline linefill and other Petroleum Products inventory of such Borrower)” in Section 6.12 of the Original Agreement is hereby amended to refer instead to “(excluding tank bottoms, pipeline linefill, other Petroleum Products inventory and Subject Inventory of such Borrower)”.
§ 2.5.    Dispositions.  The reference to “except in the ordinary course of business on ordinary trade terms” in Section 7.03 of the Original Agreement is hereby amended to refer instead to “except (i) in the ordinary course of business on ordinary trade terms and (ii) in connection with Commodity Intermediary Transactions permitted pursuant to Section 7.08”.
§ 2.6.    Commodity Intermediary Transactions.  Article VII of the Original Agreement is hereby amended by adding a new Section 7.08 at the end thereof, to read as follows:
7.08    Commodity Intermediary Transactions.  Enter into any Commodity Intermediary Transaction, unless:
(a)    The aggregate value of the maximum volume of Subject Inventory and Subject Receivables shall not exceed an amount equal to the lesser of (i) $500 million and (ii) 20% of the value of all of Borrower’s Petroleum Product inventory and all of Borrower’s Receivables therefrom at such time; provided that, in the case of a Commodity Intermediary Transaction that is documented under a master or framework agreement and contemplates an ongoing series of transactions, such calculation shall be made only at the commencement of a Commodity Intermediary Transaction and each time thereafter that the maximum volume of Subject Inventory is increased by Borrower and the applicable Commodity Intermediary;
(b)    Borrower shall (i) notify the Administrative Agent of the specific locations of Subject Inventory, certifying that no Petroleum Product inventory constituting Collateral is stored or located at any such location, and any corresponding Swap Contracts with respect thereto; provided that in the case of a Commodity Intermediary Transaction that is documented under a master or framework agreement and contemplates an ongoing series of transactions, the foregoing requirement shall be satisfied by Borrower providing such notice to the Administrative Agent at the inception of such Commodity Intermediary Transaction and upon (A) the addition of any new locations at which Subject Inventory is stored or located or (B) any such location at which Subject Inventory ceases to be stored or located, and (ii) expressly identify any Subject Receivables as such in Borrower’s records;
(c)    In connection with any requested release of Collateral with respect to Subject Inventory, any corresponding Swap Contracts with respect thereto and any Subject Receivables, Borrower shall certify that after giving effect to such release, the Collateral Value shall exceed Total Outstandings;
(d)    With respect to any release of Petroleum Product inventory constituting Collateral in connection with a Commodity Intermediary Transaction, such release shall be 

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effective with respect to such Petroleum Product inventory provided that, subject to clause (a) of this Section 7.08, such Petroleum Product inventory is stored or located at a specified location where either (A) only Subject Inventory is stored or located or (B) only such Petroleum Product inventory (and no other Petroleum Product inventory constituting Collateral) is stored or located.  Immediately upon the termination of (A) the Commodity Intermediary Transaction regarding such Subject Inventory or (B) the Borrower’s relationship with the applicable Commodity Intermediary, all Petroleum Product inventory stored or located at such location shall thereafter constitute Collateral;
(e)    Subject Inventory shall not be commingled with any Collateral at any time;
(f)    No corresponding Swap Contract with respect to Subject Inventory shall be (i) pursuant to or governed by any ISDA Master Agreement governing any Swap Contracts with respect to any Collateral, (ii) subject to netting with respect to any Swap Contract with respect to any Collateral, or (iii) secured by any Collateral;
(g)    Upon the sale to any third party (other than a Commodity Intermediary) of any Subject Inventory (or corresponding Subject Receivable (if any)), Borrower shall promptly pay to the applicable Commodity Intermediary the corresponding account payable with respect thereto;
(h)    Following the occurrence and during the continuance of any Event of Default, all proceeds of the sale of Subject Inventory or any Subject Receivables shall be segregated by Borrower from its other funds, held in a segregated deposit account and not commingled with any other funds of Borrower; and
(i)    Borrower shall enter into an intercreditor agreement in form and substance satisfactory to the Administrative Agent in all respects with any Commodity Intermediary party to any Commodity Intermediary Transaction.
Each Lender hereby authorizes the Administrative Agent to enter into amendments to the Security Documents, in form and substance satisfactory to the Administrative Agent, to evidence the foregoing and consents to each such amendment.
ARTICLE IIA. — Extension of Maturity Date
§ 2A.1.      Extension of Maturity Date.  With respect to the Company’s request pursuant to Section 2.14 of the Credit Agreement to extend the Maturity Date applicable to each Lender for one additional year from the Existing Maturity Date (the “Extension”), Administrative Agent has notified the Company of the Extending Lenders and Non-Extending Lenders with respect thereto as set forth on Schedule A attached hereto.  Subject to the satisfaction of the conditions precedent set forth in Article III:
(a)    Effective as of August 16, 2017, the Maturity Date with respect to each such Extending Lender is August 16, 2020;
(b)    the Existing Maturity Date of August 16, 2019 shall remain in effect with respect to each such Non-Extending Lender; and

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(c)    the parties hereto agree that with respect to the Extension, the certification by the Company required by Section 2.14(f) of the Credit Agreement is hereby satisfied by the Company’s execution and delivery of this Amendment.
ARTICLE III. — Conditions of Effectiveness
§ 3.1.    Amendment Effective Date.  This Amendment shall become effective as of the date first written above (the “Amendment Effective Date”), upon the satisfaction of the following conditions precedent:
(a)The Administrative Agent’s receipt of the following, each of which shall be originals, telecopies or other electronic copies (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, if applicable, each dated the Amendment Effective Date (or, in the case of certificates of governmental officials, a recent date before the Amendment Effective Date and in the case of financial statements, the date or period of such financial statements) and each in form and substance reasonably satisfactory to the Administrative Agent:
(i)executed counterparts of this Amendment, sufficient in number for distribution to the Administrative Agent, each Lender, each Borrower and PAA;
(ii)    such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents delivered pursuant to this § 3.1 to which such Loan Party is a party;
(iii)    such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party and General Partner is duly organized or formed, and that each Borrower is validly existing and in good standing in its jurisdiction of organization, issued by the appropriate authorities of such jurisdiction;
(iv)    favorable opinions of (A) Richard McGee, Esq., General Counsel for Borrowers and PAA, (B) Baker Botts L.L.P., special Texas and New York counsel to Borrowers and PAA, and (C) Patterson Adams LLP, special Canadian counsel to PMCULC, addressed to the Administrative Agent and each Lender; 
(v)    a certificate signed by a Responsible Officer of the Company certifying (A) that the conditions specified in Section 4.02(a), (b) and (d) of the Credit Agreement have been satisfied (and in the case of said Section 4.02(d), if no Request for Credit Extension is made on the Amendment Effective Date, then determined in respect to then Outstanding Amount of Obligations, if any, of each Borrower), (B) that there has been no event or circumstance since December 31, 2016 that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect, and (C) the current PAA Debt Ratings; and

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(vi)    such other assurances, certificates, documents, consents or opinions as the Administrative Agent may reasonably require.
(b)All consents, licenses and approvals required in connection with the execution, delivery and performance by each Loan Party and the validity against each Loan Party of this Amendment and each of the other Loan Documents to which it is a party shall have been obtained and shall be in full force and effect.
(c)There shall not have occurred during the period from December 31, 2016 through and including the Amendment Effective Date (i) any event or condition that has had or could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, or (ii) any action, suit, investigation, proceeding, claim or dispute pending or, to the knowledge of PAA, threatened in writing, at law, in equity, in arbitration or before any Governmental Authority, by or against PAA or any of its Subsidiaries or against any of their properties or revenues that either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
(d)Any fees due MLPFS, Administrative Agent or any Lender, including any arrangement fees, agency fees and upfront fees, and any expenses incurred by MLPFS and Administrative Agent, in each case, as agreed in writing by the Company, required to be paid on or before the Amendment Effective Date shall have been paid.
(e)The Company shall have paid all reasonable fees, charges and disbursements of counsel to the Administrative Agent to the extent invoiced prior to the Amendment Effective Date.
For purposes of determining compliance with the conditions specified in this § 3.1, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Amendment Effective Date specifying its objection thereto and the Administrative Agent hereby agrees to promptly provide the Company with a copy of any such notice received by the Administrative Agent.
ARTICLE IV. — Representations and Warranties
§ 4.1.    Representations and Warranties of the Company.  In order to induce Administrative Agent, L/C Issuers and Lenders to enter into this Amendment, the Company represents and warrants to Administrative Agent, L/C Issuers and each Lender that:
(a)The representations and warranties of (i) the Company (and PMCULC, solely as to itself) contained in Article V of the Credit Agreement and (ii) each Loan Party in any other Loan Document are true and correct in all material respects on and as of the Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and except that the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement.
(b)No Default has occurred and is continuing as of the Amendment Effective Date.

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ARTICLE V. — Miscellaneous
§ 5.1.    Ratification of Agreements.  The Original Agreement, as hereby amended, is hereby ratified and confirmed in all respects.  The Loan Documents, as they may be amended or affected by this Amendment, are hereby ratified and confirmed in all respects by each Borrower and PAA.  Any reference to the Original Agreement in any Loan Document shall be deemed to refer to the Credit Agreement.   Upon and after the effectiveness hereof, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended hereby.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Administrative Agent, any L/C Issuer or any Lender under the Credit Agreement or any other Loan Document nor constitute a waiver of any provision of the Credit Agreement or any other Loan Document.
§ 5.2.    Ratification of PAA Guaranty and Collateral Documents.  PAA, by its signature hereto, represents and warrants that PAA has no defense to the enforcement of the PAA Guaranty, and that according to its terms the PAA Guaranty will continue in full force and effect to guaranty each Borrower’s Obligations and the other amounts described in the PAA Guaranty following execution of this Amendment.  Each Borrower, Administrative Agent, L/C Issuers and Lenders each acknowledges and agrees that any and all Obligations of such Borrower are secured indebtedness under, and are secured by, each and every Collateral Document with respect to the Collateral pledged thereunder by such Borrower.  The Company hereby re-pledges, re-grants and re-assigns a security interest in and lien on every asset of such Borrower described as Collateral in any Collateral Document.
§ 5.3.    Loan Documents.  This Amendment is a Loan Document, and all provisions in the Credit Agreement pertaining to Loan Documents apply hereto.
§ 5.4.    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
§ 5.5.    Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Amendment.
§ 5.6.    ENTIRE AGREEMENT.  THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.
		
	BORROWERS:
	PLAINS MARKETING, L.P.,

as the Company and a Borrower
By:    PLAINS GP LLC,
its general partner

By:    /s/ Sharon S. Spurlin    
Name: Sharon S. Spurlin
Title: Vice President and Treasurer

PLAINS MIDSTREAM CANADA ULC,
as PMCULC and  a Borrower

By:    /s/ Sharon S. Spurlin    
Name: Sharon S. Spurlin
Title: Vice President and Treasurer

		
	PAA:
	PLAINS ALL AMERICAN PIPELINE, L.P.

By:    PAA GP LLC, its general partner
By:    PLAINS AAP, L.P., its sole member
By:    PLAINS ALL AMERICAN GP LLC,
its general partner

By:    /s/ Sharon S. Spurlin    
Name: Sharon S. Spurlin
Title: Vice President and Treasurer

S-1    PMLP 4th Amendment

		
	LENDER PARTIES:
	BANK OF AMERICA, N.A.,

Administrative Agent

By:    /s/ Anthea Del Biaco    
Name: Anthea Del Bianco
Title:   Vice President

BANK OF AMERICA, N.A.,
a Lender, Swing Line Lender and an L/C Issuer

By:    /s/ Christopher Dibiase    
Name: Christopher Dibiase
Title:   Director

CITIBANK, N.A., Lender

By:    /s/ Gabriel Juarez    
Name: Gabriel Juarez
Title:   Vice President

SOCIÉTÉ GÉNÉRALE, Lender

By:    /s/ Michiel V. M. Van Der Voort    
Name: Michiel V. M. Van Der Voort
Title:   Managing Director

BNP PARIBAS, Lender

By:    /s/ Joe Onischuk    
Name: Joe Onischuk
Title:   Managing Director

By:    /s/ Reginal Crichlow    
Name: Reginal Crichlow
Title:   Vice President

S-2    PMLP 4th Amendment

DNB CAPITAL LLC,
Lender

By:    /s/ Jamie Grubb    
Name: Jamie Grubb
Title:   Vice President

By:    /s/ Kelton Glasscock    
Name: Kelton Glasscock
Title:   Senior Vice President

JPMORGAN CHASE BANK, N.A., Lender

By:    /s/ Stephanie Balette    
Name: Stephanie Balette
Title:   Authorized Officer

MIZUHO BANK, LTD., Lender

By:    /s/ Leon Mo    
Name: Leon Mo
Title:   Authorized Signatory

WELLS FARGO BANK, NATIONAL ASSOCIATION, Lender and an L/C Issuer

By:    /s/ Douglas McDowell    
Name: Douglas McDowell
Title:   Managing Director

BANK OF MONTREAL, Lender

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

S-3    PMLP 4th Amendment

BARCLAYS BANK PLC, Lender

By:    /s/ Christopher Aitkin    
Name: Christopher Aitkin
Title:   Assistant Vice President

 
CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK AGENCY, Lender

By:    /s/ Trudy Nelson    
Name: Trudy Nelson
Title:   Authorized Signatory

By:    /s/ Richard Antl    
Name: Richard Antl
Title:   Authorized Signatory

COMPASS BANK, Lender

By:    /s/ Mark H. Wolf    
Name: Mark H. Wolf
Title:   Senior Vice President

MORGAN STANLEY BANK, N.A., Lender

By:    /s/ Michael King    
Name: Michael King
Title:   Authorized Signatory

ROYAL BANK OF CANADA, Lender, 
and further agrees, pursuant to Section 2.14 of the 
Credit Agreement, to extend its Maturity Date from 
August 16, 2018 to August 16, 2020

By:    /s/ Kristan Spivey    
Name:  Kristan Spivey
Title:   Authorized Signatory

S-4    PMLP 4th Amendment

SUMITOMO MITSUI BANKING CORPORATION, Lender

By:/s/ James D. Weinstein    
Name: James D. Weinstein
Title:   Managing Director

SUNTRUST BANK, Lender

By:/s/ Chulley Bogle    
Name: Chulley Bogle
Title:   Vice President

THE BANK OF NOVA SCOTIA, Lender

By:/s/ Mark Sparrow    
Name: Mark Sparrow
Title:   Director

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
Lender

By:/s/ Stephen W. Warfel    
Name: Stephen W. Warfel
Title:   Managing Director

UBS AG, STAMFORD BRANCH, Lender

By:        
Name:
Title:

By:        
Name:
Title:

S-5    PMLP 4th Amendment

DEUTSCHE BANK AG NEW YORK BRANCH, Lender

By:    /s/ Ming K Chu    
Name: Ming K Chu
Title:   Director

By:    /s/ Virginia Cosenza    
Name: Virginia Cosenza
Title:   Vice President

FIFTH THIRD BANK, Lender

By:    /s/ Larry Hayes    
Name: Larry Hayes
Title:   Director

By:    /s/ Charles Ritchie    
Name: Charles Ritchie
Title:   Vice President

ING CAPITAL LLC, Lender

By:    /s/ Cheryl LaBelle    
Name: Cheryl LaBelle
Title:   Managing Director

By:    /s/ Hans Beekmans    
Name: Hans Beekmans
Title:   Director

PNC BANK, NATIONAL ASSOCIATION, Lender

By:    /s/ Stephen Monto    
Name: Stephen Monto
Title:   SVP

S-6    PMLP 4th Amendment

REGIONS BANK, Lender

By:    /s/ David Valentine    
Name: David Valentine
Title:   Managing Director

U.S. BANK NATIONAL ASSOCIATION, Lender

By:    /s/ Patrick Jeffrey    
Name: Patrick Jeffrey
Title:   Vice President

S-7    PMLP 4th Amendment

SCHEDULE A
PMLP EXTENDING AND NON-EXTENDING LENDERS
EXTENDING LENDERS:
Bank of America, N.A.
Citibank, N.A.
Société Generalé
BNP Paribas
DNB Capital LLC
JPMorgan Chase Bank, N.A.
Mizuho Bank, Ltd.
Wells Fargo Bank, National Association
Bank of Montreal
Barclays Bank PLC
Canadian Imperial Bank of Commerce, New York Agency
Compass Bank
Morgan Stanley Bank, N.A.
Royal Bank of Canada
Sumitomo Mitsui Banking Corporation
SunTrust Bank
The Bank of Nova Scotia
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Deutsche Bank AG New York Branch
Fifth Third Bank
ING Capital LLC
PNC Bank, National Association
Regions Bank
U.S. Bank National Association

NON-EXTENDING LENDERS:
UBS AG, Stamford Branch

PMLP 4th  Amendmentpfsw-ex101_106.htm

 

Exhibit 10.1

SIXTH AMENDMENT TO LEASE AGREEMENT

 

THIS SIXTH AMENDMENT TO LEASE AGREEMENT (hereinafter referred to as this “Amendment”) is made this 14th day of August, 2017, by and between Western B South MS, LLC, a Delaware limited liability company (“Landlord”), and PRIORITY FULFILLMENT SERVICES, INC., a Delaware corporation (“Tenant”).

 

WITNESSETH:

 

WHEREAS, Landlord and Tenant are party to that certain Industrial Lease Agreement, dated as of August 19, 2004 (the “Original Lease”), as amended by that certain First Amendment to Industrial Lease Agreement, dated as of December 22, 2004 (the “First Amendment”), as further amended by that certain Second Amendment to Industrial Lease Agreement, dated as of December 28, 2007 (the “Second Amendment”), as further amended by that certain Third Amendment to Industrial Lease Agreement, dated as of August 14, 2008 (the “Third Amendment”), as further amended by that certain Fourth Amendment to Industrial Lease Agreement, dated as of December 31, 2010 (the “Fourth Amendment”), and as further amended by that certain Fifth Amendment to Industrial Lease Agreement, dated as of January 27, 2015 (the “Fifth Amendment”, and collectively with the Original Lease, the First Amendment, the Second Amendment, the Third Amendment, and the Fourth Amendment, the “Lease”, as may be further amended or modified from time to time), pursuant to which Landlord leases to Tenant certain premises consisting of approximately 434,900 rentable square feet with a common address of 8474 Market Place, Southaven, Mississippi 38671, as more particularly described in the Lease (the “Original Premises”), and located in the Building commonly known as Southaven Distribution Center, Building 2.  Capitalized terms used herein but not otherwise defined shall have the meanings ascribed thereto in the Lease.

WHEREAS, Tenant desires to reduce the Original Premises by approximately 194,400 rentable square feet, as more particularly shown on Exhibit A attached hereto (the “Reduction Premises”) such that the Premises for purposes of the Lease from and after the Remaining Premises Commencement Date (as hereinafter defined) shall consist of approximately 240,500 rentable square feet, as more particularly shown on Exhibit A attached hereto (the “Remaining Premises”).  

 

WHEREAS, Landlord has agreed to the requested changes set forth in the preceding recitals, subject to the entry into this Amendment and the modification of the Lease terms and conditions as set forth herein.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of ten dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, and the mutual covenants set forth herein, the parties hereto agree as follows:

 

1.Remaining Premises; Surrender of the Reduction Premises.  

 

(a)Remaining Premises.  

 

	
 
	
(i)
	
Effective solely for the period from and after September 15, 2017 (the “Remaining Premises Commencement Date”), the “Demised Premises” as defined in the Lease shall be deemed to be only the Remaining Premises, and all of the terms and conditions of the Lease with respect to the Demised Premises shall be deemed to apply solely to the Remaining Premises in all respects, except as otherwise set forth herein.  

 

	
 
	
(ii)
	
Notwithstanding Section 8 of the Original Lease, on or prior to the Remaining Premises Commencement Date, Tenant shall deliver revised insurance certificates as required pursuant to Section 8 of the Original Lease (as amended by the terms of this Amendment).

 

	
 
	
(iii)
	
From and after the Remaining Premises Commencement Date, solely for purposes of the Lease, “Tenant’s Operating Expense Percentage” as defined in the Lease shall be 39.92%.

 

EXHIBIT B

 

1

 

 

(b)Surrender of Reduction Premises.  

 

	
 
	
(i)
	
From and after September 14, 2017 (the “Reduction Premises Termination Date”), any and all rights and obligations of Tenant, and obligations of Landlord, with respect to the Reduction Premises, including, without limitation, Tenant’s right to possession of the Reduction Premises, shall be terminated; provided, however, that such termination shall under no circumstances or in any way constitute a waiver or termination of the obligations of Tenant which exist or have accrued up to and including the Reduction Premises Termination Date and which may accrue or continue to accrue after the Reduction Premises Termination Date to the extent Tenant has failed to satisfy all of its obligations with respect to the Reduction Premises.  In the event Tenant fails to surrender the Reduction Premises to Landlord on or prior to the Reduction Premises Termination Date in accordance with the terms hereof, then the terms and conditions of Section 30(a) of the Original Lease shall apply in all respects with respect to the Reduction Premises without in any way affecting the obligations of Tenant with respect to the Remaining Premises, including the obligation to pay rent in accordance with the terms herein.  

 

	
 
	
(ii)
	
Tenant acknowledges and agrees that, on or prior to the Reduction Premises Termination Date, Tenant shall surrender the Reduction Premises to Landlord in accordance with the terms of Section 30(b) of the Original Lease, including, without limitation, performing the following repair work: (i) replace the burnt out T5 light bulbs, (ii) repair one (1) column pierced by a forklift, (iii) replace three (3) bottom panels of the dock door to the Reduction Premises, (iv) remove the striping on the floor of the warehouse portion of the Reduction Premises, and  (v) remove the racking systems and grind down the bolts in the floor of the Reduction Premises.  In the event Tenant shall fail to surrender the Reduction Premises as provided herein, Landlord shall have, in addition to all rights and remedies available to Landlord under the Lease, at law or in equity, the right, but not the obligation, to perform said work on Tenant’s behalf and at Tenant’s sole cost and expense.  In such event, the total cost of performing said repair work shall be paid by Tenant to Landlord immediately upon demand or, at Landlord’s option, Landlord may reduce the amount of the Moving Allowance (hereinafter defined) by the amount it cost to perform said repair work.

 

	
 
	
(iii)
	
In furtherance of the foregoing, Landlord and Tenant acknowledge Landlord inspected the Reduction Premises on or about August 4, 2017.  Landlord reserves the right, on or prior to Reduction Premises Termination Date, to perform a final walkthrough of the Reduction Premises for purposes of inspecting the Reduction Premises for any damages which are Tenant’s responsibility to repair, at Tenant’s sole cost and expense, in accordance with the terms of the Lease and this Amendment, including, without limitation, items outlined in Section 1(b)(ii) herein.  Landlord requires that such damage shall be cured by Tenant prior to the Reduction Premises Termination Date and any such failure to cure such damage or surrender the Reduction Premises in accordance with the terms of the Lease shall be an Event of Default under the Lease not subject to cure and Landlord shall be entitled to exercise any and all rights thereunder or at law.

 

2.Base Rent Schedule.  Effective as of, and solely with respect to the period after, the Remaining Premises Commencement Date, the monthly Base Rent schedule set forth in Section 2(b) of the Fifth Amendment shall be of no further force and effect and the monthly Base Rent for the Remaining Premises payable by Tenant to Landlord during the Term is as follows:

 

	
From:
	
To:
	
Base Rent (per month)

	
September 15, 2017 
	
September 30, 2017
	
$33,456.22

	
October 1, 2017
	
April 30, 2018
	
$62,730.42

 

Except as otherwise set forth in this Amendment, all other terms and conditions with respect to the payment of Base Rent, Operating Expenses, or any other sums due and payable by Tenant under the Lease shall remain as set forth thereunder.

 

EXHIBIT B

 

2

 

 

3.AS-IS Condition; Landlord’s Work; Moving Cost Allowance.

 

(a)AS-IS Condition. Tenant hereby acknowledges and agrees that it has accepted the Demised Premises as of the date hereof, and will accept the Remaining Premises as of the Remaining Premises Commencement Date, in AS-IS, WHERE-IS condition without any representation or warranty of any kind made by Landlord in favor of Tenant.

 

(b)Landlord’s Work. Notwithstanding the foregoing subsection (a), Landlord shall complete the work set forth on Exhibit B attached hereto in accordance with the terms and conditions set forth on such exhibit.

 

(c)Moving Cost Allowance. Landlord shall contribute up to a maximum amount of $100,000.00 towards Tenant’s moving costs and expenses directly related to Tenant’s removal and repositioning of Tenant’s inventory and equipment out of the Reduction Premises and into the Remaining Premises (the “Moving Cost Allowance”).  The Moving Cost Allowance may be used to pay for any equipment removal or replacement, tenant improvements, alterations, trade fixtures, furniture, racking, equipment, cabling, telephone systems or any other item of personal property located in the Remaining Premises, cost associated with Tenant’s obligations to repair the Reduction Premises as set forth in Section 1(b)(ii), as well as internal and external labor and project management costs related to the foregoing.  Payment of the Moving Cost Allowance shall be made by Landlord to Tenant within thirty (30) days following the last to occur of (i) Tenant’s surrender of the Reduction Premises to Landlord in accordance with the terms of the Lease, (ii) Landlord’s receipt of Tenant’s invoice substantiating the costs related thereto, and (iii) if any invoice relates to work performed by contractors or subcontractors who have lien rights for such work, Landlord’s receipt of the final lien waivers from such contractors or subcontractors.  Landlord shall be under no obligation to pay for any of Tenant’s moving costs and expenses in excess of the Moving Cost Allowance.  Further, Landlord shall only be obligated to reimburse Tenant for the amount of the Moving Cost Allowance for invoices submitted to Landlord pursuant to the terms of this Section 3(c) on or before April 30, 2018, at which time Tenant hereby waives any and all rights to any unused portion of the Moving Cost Allowance.  

4.Notice.  Landlord and Tenant’s notice addresses, as set forth in Section 1(m) of the Original Lease, and Section 27 of the Original Lease are hereby deleted in their entirety and Section 27 of the Original Lease is hereby replaced with the following:

 

	
 
	
“27.
	
Notices. All notices required or permitted to be given under this Lease shall be in writing and shall be sent by registered or certified mail, return receipt requested, or by a reputable national overnight courier service, postage prepaid, or by hand delivery addressed to the parties at their addresses set forth below.  Except where otherwise expressly provided to the contrary, notice shall be deemed given upon delivery.
	
 

 

		
	
Tenant:

 

Priority Fulfillment Services, Inc.

8474 Market Place Drive

Southaven, MS 38671

Attention: General Manager

 

With a copy to:

 

Priority Fulfillment Services, Inc.

505 Millennium Drive

Allen, TX 75013

Attention: Chief Financial Officer
	
Landlord:

c/o GLP US Management LLC
Two North Riverside Plaza, Suite 2350
Chicago, IL  60606
Attention: Lease Administration

With a copy to:

c/o GLP US Management LLC
50 Old Ivy, Suite 250
Atlanta, GA 30342
Attention: Regional Director

Either party may by notice given aforesaid change its address for all subsequent notices.” 

 

EXHIBIT B

 

3

 

 

5.Limitation of Liability.  Any obligation or liability whatsoever of Landlord which may arise at any time under this Lease or any obligation or liability which may be incurred by it pursuant to any other instrument, transaction, or undertaking contemplated hereby shall not be personally binding upon, nor shall resort for the enforcement thereof be had to the property of, its trustees, directors, shareholders, officers, employees or agents, regardless of whether such obligation or liability is in the nature of contract, tort, or otherwise.

 

6.Additional Changes.  

 

(a)Section 2(j) to the Fifth Amendment, Section 8 of the Fourth Amendment, and Section 7 of the Second Amendment are hereby deemed null and void and of no further force and effect.

 

(b)Tenant represents to Landlord that the LEGO Agreement (as defined in Section 12 of the Fourth Amendment) has been terminated, that Landlord is no longer required to provide any written notice to LEGO (as defined in Section 12 of the Fourth Amendment) pursuant to Section 12 of the Fourth Amendment or otherwise, and that all of LEGO’s rights under Section 12 of the Fourth Amendment are null and void and of no force or effect. Tenant shall and hereby does indemnify Landlord (including predecessors and successors-in-interest of Landlord) and hold Landlord harmless from and against any and all expense, loss, and liability suffered by Landlord by reason of the inaccuracy of the foregoing representation by Tenant.

 

7.Guaranty.  Tenant hereby acknowledges and agrees that, as a condition to the effectiveness of this Amendment, Tenant shall cause PFSWEB, INC., a Delaware corporation,  as the unconditional guarantor of the Lease pursuant to that certain Guaranty, dated as of August 19, 2004, to, on or before the date hereof, execute the acknowledgement paragraph set forth on the signature page attached hereto.

 

8.Roof.  Notwithstanding anything to the contrary in the Lease, Landlord may elect, in its sole discretion and from time to time, to install (or permit the installation of) telecommunication equipment, solar equipment and panels, and any other equipment for any other uses on the roof of the Demised Premises.

 

9.OFAC.  Tenant hereby represents and warrants that, to the best of its knowledge, neither Tenant, nor any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury (“OFAC”); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App. § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC:  “List of Specially Designated Nationals and Blocked Persons.”  If the foregoing representation is untrue at any time during the Term, an Event of Default will be deemed to have occurred, without the necessity of notice to the defaulting party.

 

10.Tenant’s Broker.  Tenant represents and warrants that it has dealt with no broker, agent or other person in connection with this transaction and that no broker, agent or other person brought about this transaction other than Cushman & Wakefield. Tenant agrees to indemnify and hold Landlord harmless from and against any claims by any other broker, agent or other person claiming a commission or other form of compensation by virtue of having dealt with Tenant with regard to this leasing transaction.

 

11.No Offer.  Submission of this Amendment by Landlord is not an offer to enter into this Amendment, but rather is a solicitation for such an offer by Tenant.  Landlord shall not be bound by this Amendment until Landlord and Tenant have fully executed and delivered this Amendment. 

 

12.Authority.  Tenant represents and warrants to Landlord that Tenant has been and is qualified to do business in the state in which the Demised Premises is located, that the entity has the full right and authority to enter into this Amendment, and that all persons signing on behalf of the entity were authorized to do so by appropriate actions.

 

EXHIBIT B

 

4

 

 

13.Severability.  If any clause or provision of this Amendment is illegal, invalid or unenforceable under present or future laws, then and in that event, it is the intention of the parties hereto that the remainder of this Amendment shall not be affected thereby.  It is also the intention of the parties to this Amendment that in lieu of each clause or provision of this Amendment that is illegal, invalid or unenforceable, there be added, as a part of this Amendment, a clause or provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may be possible and be legal, valid and enforceable.

 

14.Counterparts and Delivery.  This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one Amendment.  Execution copies of this Amendment may be delivered by facsimile or email, and the parties hereto agree to accept and be bound by facsimile signatures or scanned signatures transmitted via email hereto, which signatures shall be considered as original signatures with the transmitted Amendment having the binding effect as an original signature on an original document.  Notwithstanding the foregoing, Tenant shall, upon Landlord’s request, deliver original copies of this Amendment to Landlord at the address set forth in such request.  Neither party may raise the use of a facsimile machine or scanned document or the fact that any signature was transmitted through the use of a facsimile machine or email as a defense to the enforcement of this Amendment.

 

15.Conflict; Ratification.  Insofar as the specific terms and provisions of this Amendment purport to amend or modify or are in conflict with the specific terms, provisions and exhibits of the Lease, the terms and provisions of this Amendment shall govern and control.  Landlord and Tenant hereby agree that (a) this Amendment is incorporated into and made a part of the Lease, (b) any and all references to the Lease hereinafter shall include this Amendment, and (c) the Lease, and all terms, conditions and provisions of the Lease, are in full force and effect as of the date hereof, except as expressly modified and amended hereinabove.

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

 

EXHIBIT B

 

5

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly authorized, executed and delivered as of the day and year first set forth above.

 

	
TENANT:
	
 
	
LANDLORD:

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PRIORITY FULFILLMENT SERVICES, INC.,
	
 
	
Western B South MS, LLC,

	
a Delaware corporation
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
 
	
 
	
By:
	
GLP US Management LLC,

	
Name:
	
Cheryl Downing
	
 
	
 
	
 
	
a Delaware limited liability company,

	
Title:
	
Vice President of Financial Planning
	
 
	
 
	
 
	
as agent for Landlord

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
 
	
 
	
Name: 
	
 

	
 
	
 
	
 
	
 
	
 
	
Title:
	
 

 

GUARANTOR:

PFSWEB, INC., a Delaware corporation (the “Guarantor”), hereby acknowledges and agrees (i) to the terms of this Amendment, (ii) that the liability of Guarantor pursuant to that certain Guaranty, dated as of August 19, 2004 (the “Guaranty”), extends to and includes the modification and Extended Term set forth in this Amendment, including, without limitation, any and all monetary and non-monetary obligations which may accrue hereunder or under the Lease, and (iii) that the Guaranty is hereby ratified in full.

PFSWEB, INC., 

a Delaware corporation

 

	
By:
	
 
	
 

	
Name:
	
 
	
Travis Hess

	
Title:
	
 
	
EVP & Chief Revenue Officer

 

EXHIBIT B

 

6

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