Document:

dlti_ex101.htm

EXHIBIT 10.1

 
 
AGREEMENT

 
AND

 
PLAN OF REORGANIZATION

 
OF

 
DLT RESOLUTION INC.

 
AND

 
UNION STRATEGIES INC.

 
(STOCK FOR STOCK EXCHANGE)

  
	 
	 
	 

	 

 
TABLE OF CONTENTS

 
	 
	 
	Page

	 

	 
	 
	 
	 

	Table of Contents
	 
	 
	 

	 
	 
	 
	 

	Agreement
	 
	 
	 

			 
	 

	1. Recitals
	 
	2
	 

			 
	 

	2. Plan of Reorganization (Exchange of Shares)
	 
	2
	 

			 
	 

	3. Delivery of Shares
	 
	3
	 

			 
	 

	4. Representations of UNION STRATEGIES INC
	 
	3
	 

			 
	 

	5. Representations of DLT RESOLUTION
	 
	5
	 

			 
	 

	6. Closing Date
	 
	7
	 

			 
	 

	7. Conditions Precedent to the Obligations of DLT RESOLUTION
		7
	 

			 
	 

	8. Conditions Precedent to the Obligations of UNION STRATEGIES INC
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	9. Indemnification
	 
	9
	 

			 
	 

	10. Nature and Survival of Representations
	 
	9
	 

			 
	 

	11. Documents at Closing
	 
	9
	 

			 
	 

	12. Miscellaneous Provisions
	 
	9
	 

	 
	 
	 
	 

	SIGNATURE PAGE
	 
	 11
	 

	 
	 
	 
	 

	EXHIBITS
	 
	 Attached
	 

 
	 
	 
	 

	 

 
THIS AGREEMENT is entered into as of the 24th day of January, 2020 by, and between
 
DLT RESOLUTION INC., a NEVADA corporation 

(hereinafter "DLT RESOLUTION")
; 
 
-And-
 
UNION STRATEGIES INC., an ONTARIO corporation 

(hereinafter "UNION STRATEGIES").

 
R E C I T A L S:
 
DLT RESOLUTION desires to acquire ONE HUNDRED percent (100%) of the issued and outstanding common stock of UNION STRATEGIES. making UNION STRATEGIES, a subsidiary of DLT RESOLUTION, and owners of UNION STRATEGIES intend to exchange ONE HUNDRED percent (100%) of their shares in UNION STRATEGIES for shares of DLT RESOLUTION'S Common Stock, and the parties wish to agree to certain related terms and conditions, all as set forth herein;
 
NOW, THEREFORE, in consideration of the premises, mutual promises, covenants, terms and conditions contained herein and other good and valuable considerations, the receipt and sufficiency of which are acknowledged by the parties hereto, the parties agree, warrant, represent and covenant to one another as follows:
 
1. Recitals.
 The above recitals are true, correct, and complete.

2. Plan of Reorganization 
(Exchange of Shares). It shall be the responsibility of UNION STRATEGIES to deliver, on the closing of this Agreement (the "Closing") or within 10 days following the "Closing Date" (defined herein), 100% of the issued and outstanding Common Stock in UNION STRATEGIES hereinafter the "UNION STRATEGIES SHARES," to be deemed, in exchange, effective the Closing Date, solely for 1,500,000 common stock and a further 1,000,000 common stock subject to “2. a) Milestones” below of DLT RESOLUTION's Common Stock, hereinafter the "DLT RESOLUTION SHARES" (on the basis of an exchange of shares) with this transaction intended to qualify as a tax-free reorganization under the current Internal Revenue Code, of the United States of America, and related sections thereunder, including any amendments. 

a) Milestones for additional shares:

 
	 
	·

	1,000,000 Shares on January 15, 2021 subject to USI achieving gross sales of no less than CAD $3,100,000 with CAD $75,000 of EBITDA.

 
There is a 14 month time limit and there is full acceleration to allow for full vesting as quickly as the milestones are reached. Share issuances will be issued under reliance of appropriate exemptions from registration with the Securities & Exchange Commission and will contain substantial resale restrictions.

b) Board of Directors 
- on closing DLT Resolution will appoint 2 nominees to sit on the UNION STRATEGIES INC. 
  

	 
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3. Delivery of Shares. 
On or within 10 days following the Closing, DLT RESOLUTION shall deliver a Certificate to UNION STRATEGIES as to the DLT RESOLUTION SHARES, to distribute, following the Closing, to the stockholders of UNION STRATEGIES (as determined by UNION STRATEGIES). 
 
4. Representations of UNION STRATEGIES. 
UNION STRATEGIES hereby represents that, effective as of the date first written above and the Closing, the following representations in this Section are and will be true and correct, except as otherwise provided in any EXHIBIT:
 
a. the UNION STRATEGIES SHARES, to be delivered by the stockholders of UNION STRATEGIES INC., will constitute valid and legally issued shares of UNION STRATEGIES INC., be 100% of UNION STRATEGIES and such shares shall be fully paid, and non-assessable;
 
b. the UNION STRATEGIES SHARES are free of claims, liens or other encumbrances and the owners have the unqualified right to transfer such shares pursuant to the terms and conditions of this Agreement;
 
c. the stockholders of UNION STRATEGIES (as listed on the attached EXHIBIT herein and incorporated herein by reference), are owners of the issued and outstanding shares of common stock of UNION STRATEGIES, being the UNION STRATEGIES SHARES, and are "accredited investors," as such term is defined in Regulation D of the SEC;
 
d. the UNION STRATEGIES INC.SHARES represent 100% ownership interest in UNION STRATEGIES;
 
e. i) the attached financial statements for the period ending Dec 31, 2019 are a fair and accurate statement of the Company’s current financial position. and;

ii) UNION STRATEGIES will, no later than 80 days from the Closing Date, deliver to DLT RESOLUTION its most recent available audited, and prepared under US GAAP standards, financial statements (the financial statements and said statements are true, complete and accurate), audited, for fiscal 2018 and 2019 ending. As of the Closing there shall be no liabilities, either fixed, contingent, liquidated or unliquidated, not reflected in the attached financial statements. All financial statements: fairly and accurately reflect the financial condition of UNION STRATEGIES as of the dates thereof and the results of operations for the periods reflected therein, and were prepared in accordance with generally accepted accounting principles, consistently applied. 
 
f. as of this date and Closing there is no pledge, lien, or security interest upon any of the assets of UNION STRATEGIES, and UNION STRATEGIES has no accrued liabilities, whether or not contingent, fixed or liquidated, except as disclosed herein or in its financial statements , and there will not be any negative material changes in the conditions of UNION STRATEGIES from this date, except changes arising in the ordinary course of business;
 

	 
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g. UNION STRATEGIES is not involved in any litigation or governmental investigation or proceeding not reflected herein, and no written litigation, claims, assessments, or governmental investigation or proceeding is threatened in writing against UNION STRATEGIES;
 
h. UNION STRATEGIES is in good standing in the jurisdiction identified for UNION STRATEGIES above;
 
i. UNION STRATEGIES has and will file all governmental, tax or related returns and reports due or required to be filed;
 
j. except as may be disclosed herein or in any EXHIBIT hereto, UNION STRATEGIES has not been advised in writing of any material breach of any agreement to which it is a party;
 
k. UNION STRATEGIES's representations apply to any subsidiary corporations;
 
l. the corporate financial records, minute book, and other corporate documents and records of UNION STRATEGIES are available for review by officers or representatives of DLT RESOLUTION prior to the Closing, but, in any event, do not contain anything whatsoever contrary to this Agreement or that would be deemed by DLT RESOLUTION as material ;
 
m. the execution of this Agreement will not materially violate or breach any agreement, contract, or commitment to which UNION STRATEGIES, or its stockholders is/are a party, and this Agreement has been, or will be prior to the Closing, duly authorized by appropriate corporate action of UNION STRATEGIES;
 
n. UNION STRATEGIES shall not change the number of shares of any class authorized, issued or outstanding. All outstanding shares in UNION STRATEGIES have been duly authorized, validly issued, and are fully paid and non-assessable and there are no outstanding or presently authorized securities, warrants, options or other similar commitments of any nature not described herein;
 
o. attached hereto is a true complete and correct list of all record stockholders of UNION STRATEGIES and said list shall remain true, correct and complete up to the Closing;
 
p. as to the UNION STRATEGIES SHARES, DLT RESOLUTION will have good and marketable title to such shares, free and clear of all liens, claims, and encumbrances whatsoever, and such shares shall be validly issued, fully paid and non-assessable shares of common stock under law, except such shares will be unregistered and will be transferred in a non-public offering, or isolated, private transaction, in compliance with applicable Federal securities laws.

	 
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q. the shareholders of UNION STRATEGIES recognize that there continued contribution is essential to the near term success of the Company and comprises significant value to the acquisition herein UNION STRATEGIES shareholders represent that they will not compete against the company and will continue to be fully committed to the company, providing a best efforts commitment to the continued growth and successful expansion, leveraging existing relationships to ensure short and long term growth and client loyalty to UNION STRATEGIES for a period of no less than 5 years as more fully described in the SERVICES contracts attached hereto. The UNION STRATEGIES principles will provide employment contracts and attach hereto in Exhibits.
 
r. as of the date of this Agreement, UNION STRATEGIES has, and at the Closing will have, disclosed all material events, conditions and facts materially affecting UNION STRATEGIES, and DLT RESOLUTION has not, and will not have as of the Closing Date, withheld disclosure of any material event, condition, matter, fact, or other information which has or may have a material adverse affect on UNION STRATEGIES or any subsidiary.
 
5. Representations of DLT RESOLUTION
 hereby represents that, effective as of the date first written above and the Closing, the following representations in this Section are and will be true and correct:
 
a. as of the Closing, the DLT RESOLUTION SHARES, to be delivered for the stockholders of UNION STRATEGIES, will constitute valid and legally issued, restricted (as described herein) shares of DLT RESOLUTION, and such shares shall be fully paid and non-assessable;
 
b. the President of DLT RESOLUTION is duly authorized to execute this Agreement, the Board of Directors of DLT RESOLUTION has, as of this date or by the Closing Date, approved this Agreement, and the execution hereof will not constitute a material breach of any agreement to which DLT RESOLUTION or any stockholder is a party or is otherwise bound;
 
c. DLT RESOLUTION has, or will, deliver to UNION STRATEGIES its most recent available financial statements and shall deliver all of its financial and other books and records (the financial statements are true, complete and accurate), and as of the Closing there shall be no liabilities, either fixed, contingent, liquidated or unliquidated, not reflected in the financial statements and the financial statements: (I) fairly and accurately reflect the financial condition of DLT RESOLUTION as of the dates hereof and the results of operations for the periods reflected therein, and (II) were prepared in accordance with generally accepted accounting principles, consistently applied. As of this date and Closing there is no pledge, lien, or security interest upon any of the assets of DLT RESOLUTION. At Closing, DLT RESOLUTION shall have no accrued liabilities, whether or not contingent, fixed or liquidated, except as disclosed herein or in its financial statements
 
d. Working together, DLT Resolution
 and UNION STRATEGIES will flush out a final expansion plan including new markets in the United States.
 
e. there shall not be any material adverse changes in the financial condition, or any change in the capitalization of DLT RESOLUTION,
 

	 
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f. DLT RESOLUTION is not involved in any pending litigation, claims or governmental investigations or proceedings, and there are no lawsuits, claims assessments, investigations, proceedings or similar matters threatened or contemplated against DLT RESOLUTION to the best knowledge of the management of DLT RESOLUTION except as disclosed herein or in its financial statements;
  
g. DLT RESOLUTION is duly organized, validly existing and in good standing under the laws of the jurisdiction identified above and is qualified to do business in every jurisdiction where such qualification is necessary and it has the corporate power to own its property and to carry on its business as now being conducted;
 
h. DLT RESOLUTION has filed, all material Federal, state, county and local income, excise, property and other tax returns, forms, and reports, which are due or required to be filed by DLT RESOLUTION or is in the process of so doing;
 
i. the capitalization of DLT RESOLUTION is 275,000,000 shares of authorized Common Stock, .001 par value per share, of which such number of said shares are approximately 21,000,000 issued and outstanding as of the date hereof, as reflected on the EXHIBIT hereto. DLT RESOLUTION shall not change the number of shares of any class authorized, issued or outstanding, except as of the Closing for the issuance of the UNION STRATEGIES INC.SHARES pursuant to this Agreement. All outstanding shares in DLT RESOLUTION have been duly authorized, validly issued, and are fully paid and non-assessable and there are no outstanding or presently authorized securities, warrants, options or other similar commitments of any nature not described herein or in the Company’s financial statements;
 
j. a true complete and correct list of all record stockholders of DLT RESOLUTION is attached hereto and said list shall remain true, correct and complete up to the Closing, prior to the issuance of stock to UNION STRATEGIES contemplated herein, and shall be certified by DLT RESOLUTION'S stock transfer agent;
 
l. the stockholders of UNION STRATEGIES will have, upon issuance of the UNION STRATEGIES SHARES by DLT RESOLUTION contemplated herein on the Closing, good and marketable title to such shares, free and clear of all liens, claims, and encumbrances whatsoever, and such shares shall be validly issued, fully paid and non-assessable shares of common stock under Nevada law, except such shares will be unregistered and will be issued under exemption from Registration or in a non-public offering, or isolated, private transaction, in compliance with applicable Federal securities laws, and shall contain the standard U. S. Securities and Exchange Commission, Rule 144 or Reg D, Reg S or similar restricted legend as counsel deems required (except, notwithstanding anything herein, it is the obligation of UNION STRATEGIES to comply with its own state or jurisdictional laws for its stockholders to receive the shares hereunder).
 

	 
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m. as of the date of this Agreement, DLT RESOLUTION has, and at the Closing will have, disclosed all material events, conditions and facts materially affecting DLT RESOLUTION, and DLT RESOLUTION has not, and will not have as of the Closing Date, withheld disclosure of any material event, condition, matter, fact, or other information which has or may have a material adverse affect on DLT RESOLUTION;
 
n. DLT RESOLUTION trades on the OTC Markets under the symbol “DLTI” without any current known unusual restrictions or limitations in of its Common Stock. 
 
6. Closing Date and Status.
 The "Closing" of this Agreement shall occur on the "Closing Date," which shall be the date of this Agreement or such date as the parties shall agree to in writing. The Closing shall take place by fax , email or at such place as the parties agree to in writing, with the applicable law relating to the Closing, to be that of the State of West Virginia (if for any reason a court in West Virginia shall not enforce this provision, then Michigan shall apply) for all purposes without reference to conflict of law principles, with no party or related person or associated person or professional to be subject to the law of any other jurisdiction or service of process as to any other jurisdiction.
 
7. Conditions Precedent to the Obligations of DLT RESOLUTION
. All obligations of DLT RESOLUTION under this Agreement are subject to the fulfillment, prior to or as of the Closing, or such other date as the parties have agreed to in writing, of each of the following conditions precedent:
 
a. the representations by UNION STRATEGIES contained in this Agreement, or in any certificate or document delivered by UNION STRATEGIES pursuant to the provisions hereof, shall be true, correct and complete when made, and as of the Closing;
 
b. UNION STRATEGIES shall have performed and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by UNION STRATEGIES on or before the Closing;
 
c. all instruments and documents, including EXHIBITS, attached hereto, and delivered to DLT RESOLUTION pursuant to the provisions hereof, will be true, correct and complete;
 

	 
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d. UNION STRATEGIES is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation;
 
e. UNION STRATEGIES has the corporate power to carry on its business, as now being conducted, and is duly qualified to do business in any jurisdiction where so required;
 
f. this Agreement has been duly authorized, executed and delivered by UNION STRATEGIES and is a valid and binding obligation of UNION STRATEGIES enforceable in accordance with its terms;
 
g. UNION STRATEGIES, through its Board of Directors, has taken all corporate action necessary for the performance of all of its obligations under this Agreement; and
 
h. the documents executed and delivered to DLT RESOLUTION are valid and binding in accordance with their terms and, in respect of stock certificates, as to the UNION STRATEGIES SHARES to be transferred to DLT RESOLUTION, and vest in DLT RESOLUTION all rights, title and interest in and to the shares.
 
8. Conditions Precedent to the Obligations of UNION STRATEGIES
 All obligations of UNION STRATEGIES under this Agreement are subject to the fulfillment, prior to or on the Closing, or such other date as the parties have agreed to in writing, of each of the following conditions precedent:
 
a. the representations by DLT RESOLUTION contained in this Agreement or in any certificate or document delivered by DLT Resolution pursuant to the provisions hereof, shall be true, correct and complete when made, and at and as of the time of Closing as though such representations and warranties were made at and as of such time;
 
b. DLT RESOLUTION shall have performed and complied with its covenants, agreements, and conditions required by this Agreement to be performed or complied with by it prior to, following or at the Closing, including the delivery of the DLT RESOLUTION STOCK when required hereunder;
 
c. UNION STRATEGIES is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation;
 
d. this Agreement has been duly executed and delivered by DLT RESOLUTION;
 
e. the share certificates to be executed and delivered (DLT RESOLUTION SHARES) to the UNION STRATEGIES stockholders hereunder vest in them all of the right, title and interest in the stock and said stock is duly and validly issued, fully paid and non-assessable subject to 2. a) above;
 
f. DLT RESOLUTION shall have executed and delivered to UNION STRATEGIES the documents under EXHIBITS to be executed and delivered by DLT RESOLUTION; and
 

	 
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9. Indemnification
. As to each of DLT RESOLUTION and UNION STRATEGIES INC., each party to this Agreement shall indemnify and hold harmless each other party at all times after the date of this Agreement against and in respect of any liability, damage, deficiency, action, suit, proceeding, demand, assessment, judgment, cost and expense, including attorney's fees, resulting from any misrepresentation, breach of promise or nonfulfillment of any agreement on the part of any such party under this Agreement.
 
10. Nature and Survival Representations.
 All representations made by the parties in this Agreement shall survive the Closing, and the parties are carrying out the provisions of this Agreement in reliance solely on the representations, covenants and agreements contained in this Agreement, or made in writing at the Closing of the transaction herein provided for, and not upon any investigation which any such party may have made, or any representation, warranty, agreement, promise or information, written or oral, made by another person or firm other than as specifically set forth herein or in the EXHIBITS delivered in connection with this Agreement.
 
11. Documents at Closing.
 At Closing, in addition to what is required elsewhere herein, all EXHIBITS attached hereto, and the signature page hereto, shall be executed and or initialed, delivered by all appropriate parties, except the parties shall have such additional days as identified herein to perform as expressly provided herein, in which case such provision herein providing additional time beyond the Closing Date shall control notwithstanding anything to the contrary (provided, however, it shall be deemed that the Closing of this Agreement occurred on the Closing Date).
 
12. Miscellaneous Provisions.

 
A. Gender.
 Wherever the context shall require, all words herein in the masculine gender shall be deemed to include the feminine or neuter gender, all singular words shall include the plural, and all plural shall include the singular.
 
B. Severability.
 If any provision hereof is deemed unenforceable by a court of competent jurisdiction, the remainder of this Agreement, and the application of such provision in other circumstances shall not be affected thereby.
 
C. Further Cooperation.
 From and after the date of this Agreement, each of the parties hereto agrees to execute whatever additional reasonable documentation or instruments as are necessary to carry out the intent and purposes of this Agreement or to comply with any law.
 

	 
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D. Waiver.
 No waiver of any provision of this Agreement shall be valid unless in writing and signed by the waiving party. The failure of any party at any time to insist upon strict performance of any condition, promise, agreement or understanding set forth herein, shall not be construed as a waiver or relinquishment of any other condition, promise, agreement or understanding set forth herein or of the right to insist upon strict performance of such waived condition, promise, agreement or understanding at any other time.
 
E. Expenses.
 Each party shall bear all expenses incurred by each such party in connection with this Agreement and in the consummation of the transactions contemplated hereby and in preparation thereof.
 
F. Amendment.
 This Agreement may only be amended or modified at any time, and from time to time, in writing, executed by the parties hereto.
 
G. Captions.
 Captions herein are for the convenience of the parties and shall not affect the interpretation of this Agreement.
 
H. Counterpart Execution and Fax. 
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and may be executed by fax.
 
I. Assignment.
 This Agreement is not assignable.
 
J. Parties in Interest.
 Provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and, their heirs, executors, administrators, other permitted successors and assigns, if any. Nothing contained in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party to this agreement, nor shall any provision give any third persons any right of subrogation or action against, any party to this Agreement.
 
K. Entire Agreement.
 This Agreement and the EXHIBITS attached hereto constitute the entire agreement and understanding of the parties on the subject matter hereof and supersede all prior agreements and understandings.
 
L. Construction. 
This Agreement shall be governed by the laws of the State of West Virginia without reference to conflict of laws and the venue for any action, claim or dispute in respect of this Agreement shall be such court of competent jurisdiction as is located in West Virginia , U.S.A. (if, for any reason a court fails to accept jurisdiction in West Virginia, then Michigan shall apply). The parties agree and acknowledge that each has reviewed this Agreement and the normal rule of construction that agreements are to be construed against the drafting party shall not apply in respect of this Agreement given the parties have mutually negotiated and drafted this Agreement.
 

	 
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M. Cooperation. 
The parties hereto agree to cooperate with one another in respect of this Agreement, including reviewing and executing any document necessary for the performance of this Agreement, to comply with law or as reasonably requested by any party hereto, or legal counsel to any party hereto.
 
N. Independent Legal Counsel. 
The parties hereto agree that (I) each has retained independent legal counsel as confirmed in writing in connection with the negotiation, preparation and execution of this Agreement, (II) each has been advised of the importance of retaining legal counsel, and (III) by the execution of this Agreement, each party who has not retained independent legal counsel acknowledges having waived such right.
 
The parties have executed this Agreement as of the date first written above.
 
DLT RESOLUTION INC.

 
By: /s/ John S. Wilkes
 
Its: President & Chief Executive Officer
 
UNION STRATEGIES INC.

 
By: /s/ Fred Vecchio
 
Its: Chief Executive Officer
 
UNION STRATEGIES INC.

 
By: /s/ Lina Vecchio
 
Its: Sole Shareholder
 

	 
	11avd-ex1018_683.htm

Exhibit 10.18

 

VDFOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") is entered into as of November 27, 2019  among AMVAC CHEMICAL CORPORATION, a California corporation (the "Company"), AMVAC NETHERLANDS B.V., a besloten vennootschap met beperkte aansprakelijkheid, organized under the law of the Netherlands ("AMVAC Netherlands"), AMVAC C.V., a commanditaire vennootschap, organized under the law of the Netherlands (collectively, with AMVAC Netherlands, the "Designated Borrowers"), AMERICAN VANGUARD CORPORATION, a Delaware corporation ("American Vanguard"), GEMCHEM, INC., a California corporation ("GemChem"), 2110 DAVIE CORPORATION, a California corporation ("2110 Davie"), AVD INTERNATIONAL LLC, a Delaware limited liability company (collectively, with the Designated Borrowers, American Vanguard, GemChem and 2110 Davie, the "Guarantors"), the Lenders party hereto, and BANK OF THE WEST, as Agent.

RECITALS

A.Pursuant to a Second Amended and Restated Credit Agreement dated as of June 17, 2013 (as amended by a First Amendment dated as of July 11, 2014, a Second Amendment dated as of April 14, 2015, and a Third Amendment dated as of June 30, 2017 the "Credit Agreement") among the Company, the Guarantors, the Designated Borrowers, the Lenders party thereto and the Agent, the Lenders extended and agreed to extend credit to the Borrowers.  Capitalized terms used herein which are not otherwise defined shall have the meanings given them in the Credit Agreement.

B.The Company, the Guarantors and the Lenders have agreed to amend certain terms of the Credit Agreement as further provided in this Amendment.

NOW, THEREFORE, in consideration of the above Recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

AGREEMENT

1.Amendments.  On the Amendment Effective Date (as defined in Section 3 below), immediately after giving effect to, and in reliance on the representations and warranties of the Borrowers set forth herein:

(a)Permitted Acquisitions. Clause (h) of the definition of "Permitted Acquisitions" in Section 1.01 of the Credit Agreement is amended and restated in its entirety to read as follows:

(h)The Acquisition Consideration for such Acquisition and all other Acquisitions made after the Closing Date is less than $225,000,000 in the aggregate; and 

(b)Investments.  Section 8.05(f) of the Credit Agreement is amended and restated in its entirety to read as follows:

(f)Investments made after the Closing Date in Foreign Wholly-Owned Subsidiaries (including, without limitation, the Guaranty by the Affiliate Domestic Guarantors of Loans made by the Lender to Designated Borrowers) in an aggregate amount that does not exceed $200,000,000; and 

(c)Compliance Certificate. The form of Compliance Certificate appearing as Exhibit D to the Credit Agreement is amended and restated in its entirety to read as set forth on Exhibit D to this Amendment.

 

	
1187805/LA
	
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(d)Administrative Changes.  Section 3.03 (Inability to Determine Rates) of the Credit Agreement is amended and restated and new Sections 10.13 (Certain ERISA Matters) and 11.24 are added immediately after Sections 9.12 and 11.23, respectively, of the Credit Agreement, each to read as follows:

3.03Inability to Determine Rates.

(a)If in connection with any request for a Eurocurrency Rate Loan or a conversion to or continuation thereof,(i) the Agent determines that (A) deposits (whether in Dollars or an Alternative Currency) are not being offered to banks in the applicable offshore interbank market for such currency for the applicable amount and Interest Period of such Eurocurrency Rate Loan, or (B) (1) adequate and reasonable means do not exist for determining the Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative Currency) or in connection with an existing or proposed Alternate Base Rate Loan and (2) the circumstances described in Section 3.03(c)(i) do not apply or (C) a fundamental change has occurred in the foreign exchange or interbank markets with respect to such Alternative Currency (including, without limitation, changes in national or international financial, political or economic conditions or currency exchange rates or exchange controls) (in each case with respect to this clause (i),"Impacted Loans"), or (ii) the Agent or the Required Lenders determine that for any reason Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Agent will promptly so notify the Company and each Lender. Thereafter, (x) the obligation of the Lenders to make or maintain Eurocurrency Rate Loans in the affected currency or currencies shall be suspended (to the extent of the affected Eurocurrency Rate Loans or Interest Periods), and (y) in the event of a determination described in the preceding sentence with respect to the Eurocurrency Rate component of the Alternate Base Rate, the utilization of the Eurocurrency Rate component in determining the Alternate Base Rate shall be suspended, in each case until the Agent (or, in the case of a determination by the Required Lenders described in clause (ii ) of this Section 3.03(a) , until the Agent upon instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrowers may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans in the affected currency or currencies (to the extent of the affected Eurocurrency Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Alternate Base Rate Loans in Dollars in the amount specified therein.

(b)Notwithstanding the foregoing, if the Agent has made the determination described in clause (a)(i) of this Section 3.03, the Agent in consultation with the Company, may establish an alternative interest rate for the Impacted Loans, in which case, such alternative rate of interest shall apply with respect to the Impacted Loans until (i) the Agent revokes the notice delivered with respect to the Impacted Loans under clause (a)(i) of this Section 3.03, (ii) the Agent or the Required Lenders notify the Agent and the Borrowers that such alternative interest rate does not adequately and fairly reflect the cost to such Lenders of funding the Impacted Loans, or (iii) any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to such alternative rate of interest or to determine or charge interest rates based upon such rate or any Governmental Authority has imposed material restrictions on the authority of such Lender to do any of the foregoing and provides the Agent and the Company written notice thereof.

(c)Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, but without limiting Sections 3.01(a) and (b) above, if the Agent determines (which determination shall be conclusive and binding upon all parties hereto absent manifest error), or the Company or Required Lenders notify the Agent (with, in the case of the Required Lenders, a copy to the Borrowers) that the Borrowers or Required Lenders (as applicable) have determined (which determination likewise shall be conclusive and binding upon all parties hereto absent manifest error) that:

 

	
1187805/LA
	
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(i)adequate and reasonable means do not exist for ascertaining LIBOR Rate for any requested Interest Period, including, without limitation, because the LIBOR quote on the applicable screen page or other commercially available source providing such quotations designated by Agent (the "LIBOR Screen Rate") is not available or published on a current basis and such circumstances are unlikely to be temporary; or

(ii)the administrator of the LIBOR Screen Rate or a Governmental Authority having or purporting to have jurisdiction over the Agent has made a public statement identifying a specific date after which LIBOR Rate  or the LIBOR Screen Rate shall no longer be made available, or used for determining the interest rate of loans in the applicable currency (such specific date, the " Scheduled Unavailability Date "), or

(iii)syndicated loans currently being executed, or that include language similar to that contained in this Section 3.03, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace the LIBOR Rate,

(iv)then, reasonably promptly after such determination by the Agent or receipt by the Agent of such notice, as applicable, the Agent and the Company may amend this Agreement to replace LIBOR Rate with an alternate benchmark rate (including any mathematical or other adjustments to the benchmark (if any) incorporated therein), giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks (any such proposed rate, a "LIBOR Successor Rate"), together with any proposed LIBOR Successor Rate Conforming Changes (as defined below) and any such amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Agent shall have posted such proposed amendment to all Lenders and the Borrowers unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Agent written notice that such Required Lenders do not accept such amendment. Such LIBOR Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Agent, such LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Agent.

(d)If no LIBOR Successor Rate has been determined and the circumstances under clause (c)(i) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Agent will promptly so notify the Company and each Lender. Thereafter, (i) the obligation of the Lenders to make or maintain Eurocurrency Rate Loans shall be suspended, (to the extent of the affected Eurocurrency Rate Loans or Interest Periods), and (ii) the Eurocurrency Rate component shall no longer be utilized in determining the Alternate Base Rate. Upon receipt of such notice, the Borrowers may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans (to the extent of the affected Eurocurrency Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Alternate Base Rate Loans (subject to the foregoing clause (ii )) in the amount specified therein.

(e)Notwithstanding anything else herein, any definition of LIBOR Successor Rate shall provide that in no event shall such LIBOR Successor Rate be less than zero for purposes of this Agreement.

(f)For purposes hereof, "LIBOR Successor Rate Conforming Changes" means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Alternate Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other administrative matters as may be appropriate, in the discretion of the Agent in consultation with the Company, to reflect the adoption of such LIBOR Successor Rate and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Agent determines is reasonably necessary in connection with the administration of this Agreement).

 

	
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10.13Certain ERISA Matters.

(a)Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agent and not, for the avoidance of doubt, to or for the benefit of the Company or any other Loan Party, that at least one of the following is and will be true:

(i)such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more employee benefit plans (as defined in ERISA) that is subject to Title I of ERISA, plans as defined in and subject to 4975 of the Code or any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code the assets of any such employee benefit plan or plan (each a "Benefit Plan") with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments, or this Agreement,

(ii)the transaction exemption set forth in one or more prohibit transactions class exemptions issued by the U.S. Department of Labor, as any such exemption may be amended from time to time (each a "PTE"), such as PTE 84–14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95–60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90–1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91–38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96–23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,

(iii)such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84–14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84–14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84–14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

(iv)such other representation, warranty and covenant as may be agreed in writing between the Agent, in its sole discretion, and such Lender.

(b)In addition, unless either (1) clause (i) in the immediately preceding clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agent and not, for the avoidance of doubt, to or for the benefit of the Borrowers or any other Loan Party, that the Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

 

	
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11.24Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for swap or hedging agreements or any other agreement or instrument that is a qualified financial contract, as used in and interpreted in accordance with 12 U.S.C. 5390(c)(8)(D) (a "QFC"; such support, "QFC Credit Support " and each such QFC a "Supported QFC "), the parties acknowledge and agree with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U.S. Special Resolution Regimes") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of California and/or of the United States or any other state of the United States) that in the event a Covered Entity that is party to a Supported QFC (each, a "Covered Party") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or an "affiliate' (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 184(k)) (a "BHC Act Affiliate") of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, the default rights (as such term is used in, and interpreted in accordance with 12 C.R.F. Sections 252.81, 47.2 or 382.1, as applicable) under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.  As used herein, "Covered Entity" means any of the following:  (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. Section 252.82(b); (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. Section 47.3(b); or (iii) a "covered FSI" as that term is defined in, and interprented in accordance with, 12 C.F.R. Section 382.2(b).

2.Conditions Precedent to Effectiveness.  This Amendment shall be effective as of the date (the "Amendment Effective Date") when the Agent determines that the following conditions have been satisfied:

(a)Agent shall have received, by original or electronic transmission (promptly followed by originals), Executed counterparts of this Amendment from each of the Loan Parties and the Lenders.

(b)all acts and conditions required to be done and performed and to have happened precedent to the execution, delivery and performance of this Amendment and to constitute the same a legal, valid and binding obligation of the parties, enforceable in accordance with its terms shall have been done and performed and shall have happened in due and strict compliance with all applicable laws; 

(c)all documentation shall be reasonably satisfactory in form and substance to the Agent and its counsel;

(d)any fees and expenses of counsel required by the Agent to be paid on or before the Amendment Effective Date shall have been paid,

(e)there shall not have occurred and be continuing a Default or Event of Default; and

(f)to the extent that any Borrower qualifies as a "legal entity customer" under 31 C.R.F. Section 1010.230 (the "Beneficial Ownership Regulation"), the Borrower shall have delivered to each Lender that so requests a certification regarding beneficial ownership required by the Beneficial Ownership Regulation.

 

	
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3.Miscellaneous Provisions.  

(a)Representations and Warranties.  Each Loan Party hereby represents and warrants to the Agent and each Lender that each of the representations and warranties of the Company and each other Loan Party contained in Article VI of the Credit Agreement and in any other Loan Document shall be 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.

(b)Ratification.  The Credit Agreement and each of the other Loan Documents, as amended hereby, is hereby ratified and remains in full force and effect.

(c)Confirmation. Each Loan Party hereby confirms and agrees that:

(i)at the time of the entering into the Security Documents governed by Dutch law, it was their intention (and it is still their intention and agreement) that any security right created under such Security Document was intended to secure the obligations as amended, novated, supplemented, extended, restated (however fundamentally and whether or not more onerously) or replaced and includes any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under that Loan Document or other agreement or instrument of the Borrowers and the other obligors under the Loan Documents;

(ii)any security right created under the Security Documents governed by Dutch law shall extend to, and shall secure, the liabilities and obligations of the Loan Parties under the Credit Agreement as amended by and in accordance with the terms of this Amendment; and

(iii)any amount owed by the Loan Parties under the Credit Agreement as amended by and in accordance with the terms of this Amendment are part of the definition of (a) "Secured Obligations" (as defined in the Security Documents governed by Dutch law), (b) "Parallel Debt" (as defined in the Credit Agreement) and (c) "Corresponding Obligations" (as defined in the Credit Agreement); 

(d)Entire Agreement.  This Amendment embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof and thereof.

(e)Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of California, without giving effect to choice of law rules.  

(f)Counterparts.  This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement and any of the parties hereto may execute this Amendment by signing any such counterpart.

[Remainder of page intentionally left blank.]

 

 

 

	
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year first above written.  

 

	
AMVAC CHEMICAL CORPORATION, as the Company

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Timothy J. Donnelly

	
Name:
	
 
	
 Timothy J. Donnelly

	
Title:
	
 
	
 CAO, General Counsel and Secretary

	
 
	
 
	
 

 

 

 

Signature Page to Fourth Amendment to Second Amended and Restated Credit Agreement

			
	
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AMERICAN VANGUARD CORPORATION, as a Guarantor

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Timothy J. Donnelly

	
Name:
	
 
	
 Timothy J. Donnelly

	
Title:
	
 
	
 CAO, General Counsel and Secretary

	
 
	
 
	
 

	
 
	
 
	
 

	
GEMCHEM, INC., as a Guarantor

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Timothy J. Donnelly

	
Name:
	
 
	
 Timothy J. Donnelly

	
Title:
	
 
	
 CAO, General Counsel and Secretary

	
 
	
 
	
 

	
 
	
 
	
 

	
2110 DAVIE CORPORATION, as a Guarantor

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Timothy J. Donnelly

	
Name:
	
 
	
 Timothy J. Donnelly

	
Title:
	
 
	
 CAO, General Counsel and Secretary

	
 
	
 
	
 

	
 
	
 
	
 

	
AVD INTERNATIONAL LLC, as a Guarantor

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Timothy J. Donnelly

	
Name:
	
 
	
 Timothy J. Donnelly

	
Title:
	
 
	
 CAO, General Counsel and Secretary

	
 
	
 
	
 

	
 
	
 
	
 

	
AMVAC NETHERLANDS B.V., as a Designated Borrower

and as a Guarantor

	
 
	
 
	
 

	
 
	
 
	
/s/ Peter Eilers

	
Name:
	
 
	
Peter Eilers

	
Title:
	
 
	
Managing Director

 

	
AMVAC C.V., as a Designated Borrower and as a Guarantor

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
AMVAC Chemical Corporation, General Partner

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 /s/ Timothy J. Donnelly

	
 
	
 
	
Name:
	
 Timothy J. Donnelly

	
 
	
 
	
Title:
	
 CAO, General Counsel and Secretary

 

 

 

Signature Page to Fourth Amendment to Second Amended and Restated Credit Agreement

			
	
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BANK OF THE WEST, as Agent

	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Daryl R. Krause

	
Name:
	
 
	
Daryl R. Krause

	
Title:
	
 
	
Managing Director

	
 
	
 
	
 

	
 
	
 
	
 

	
BANK OF THE WEST, as a Lender, L/C Issuer and Swing Line Lender

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Shikha Rehman

	
Name:
	
 
	
 Shikha Rehman

	
Title:
	
 
	
 Director

	
 
	
 
	
 

 

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BMO HARRIS FINANCING, INC., as Lender

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Andrew Gagle

	
Name:
	
 
	
Andrew Gagle

	
Title:
	
 
	
Director

	
 
	
 
	
 

 

Signature Page to Fourth Amendment to Second Amended and Restated Credit Agreement

	
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WELLS FARGO BANK, N.A., as Lender

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Mackenzie Collins

	
Name:
	
 
	
Mackenzie Collins

	
Title:
	
 
	
Vice President

	
 
	
 
	
 

 

Signature Page to Fourth Amendment to Second Amended and Restated Credit Agreement

	
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UMPQUA BANK, as Lender

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Stacy E. Pizzuti

	
Name:
	
 
	
Stacy E. Pizzuti

	
Title:
	
 
	
SVP

	
 
	
 
	
 

 

Signature Page to Fourth Amendment to Second Amended and Restated Credit Agreement

	
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AGSTAR FINANCIAL SERVICES, PCA, as Lender

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Graham J. Dee

	
Name:
	
 
	
Graham J. Dee

	
Title:
	
 
	
Director, Capital Markets

	
 
	
 
	
 

 

 

 

Signature Page to Fourth Amendment to Second Amended and Restated Credit Agreement

	
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GREENSTONE FARM CREDIT SERVICES, ACA, as Lender

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 /s/ Bradley K. Hibbert

	
Name:
	
 
	
Bradley K. Hibbert

	
Title:
	
 
	
VP of Capital Markets

	
 
	
 
	
 

 

 

 

Signature Page to Fourth Amendment to Second Amended and Restated Credit Agreement

			
	
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CERTIFICATE OF AUTHORIZED OFFICER

The undersigned hereby certifies to the Agent that (1) each of the Loan Parties has previously delivered to the Agent a true, correct and  complete copy of its Organization Documents (collectively, the "Delivered Organization Documents"), (2) since such delivery, there has been no change in the Delivered Organization Documents except for those changes attached, and no such document has been repealed, revoked, rescinded or amended in any respect, and each remains in full force and effect, (3) each of the Loan Parties remains in good standing in the jurisdiction of its organization, (4) the resolutions (the "Delivered Resolutions") previously delivered to the Agent by the Loan Parties authorize the execution, delivery and performance of the foregoing Amendment, (5) the Delivered Resolutions authorize the Person(s) holding the office(s) indicated above or, if none, the office(s) held by the Person(s) executing the foregoing (the "Authorized Executing Office") to execute the foregoing on behalf of the respective Loan Parties, (6) each Person executing the foregoing Amendment on behalf of a Loan Party has been duly elected and now holds the Authorized Executing Office set forth below his(her) name, and the signature set forth above is his(her) true signature, (7) the undersigned is authorized to deliver this Certificate on behalf of each of the Loan Parties, and (8) the Agent may conclusively rely on this Certificate unless and until superseding documents shall be delivered to the Agent.

 

	
 
	
 
	
 

	
 
	
 
	
 

	
Type/Print Name:
	
 
	
Tim J. Donnelly

	
 
	
 
	
 

	
 
	
 
	
 

 

 

 

Certificate of Authorized Officer

 

	
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EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date: _____________________________________

To:Bank of the West, as Agent

Ladies and Gentlemen:

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of June 17, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the "Agreement"; the terms defined therein being used herein as therein defined), among AMVAC Chemical Corporation, a California corporation (the "Company"), the Designated Borrowers from time to time party thereto, the other Loan Parties and Lenders from time to time party thereto, and Bank of the West, as Agent, L/C Issuer and Swing Line Lender.

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the _________________________________ of the Company, and that, as such, he/she is authorized to execute and deliver this Certificate to Agent on the behalf of the Company, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

1.The Company has delivered the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of American Vanguard ended, as of the above date, together with the report and opinion of an independent certified public accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

1.The Company has delivered the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of the Company ended as of the above date.  Such financial statements fairly present the financial condition, results of operations and cash flows of American Vanguard and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

2.The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of American Vanguard and its Subsidiaries during the accounting period covered by such financial statements.

3.A review of the activities of American Vanguard and its Subsidiaries during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period each of the Borrowers performed and observed all its Obligations under the Loan Documents, and

Form of Compliance Certificate

 

	
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[select one:]

[to the best knowledge of the undersigned during such fiscal period each of the Borrowers performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]

--or--

[to the best knowledge of the undersigned, during such fiscal period the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

4.The representations and warranties of (i) the Loan Parties contained in Article VI of the Agreement and (ii) each Loan Party contained in each other Loan Documents or in any document furnished at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 6.01 of the 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 Agreement, including the statements in connection with which this Compliance Certificate is delivered.

5.The financial covenant analyses and information set forth on Schedules 1 and 2 attached hereto are true and accurate on and as of the date of this Certificate.

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of ____________ ______, ______.

 

	
AMVAC CHEMICAL CORPORATION

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

	
 
	
 
	
 

 

 

 

Form of Compliance Certificate

 

	
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SCHEDULE 1

to the Compliance Certificate

[attach financial statements]

 

 

Schedule 1 to Form of Compliance Certificate

 

	
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SCHEDULE 2

to the Compliance Certificate

For the Quarter/Year ended __________________________ ("Statement Date")

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
($ in 000's)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
I.
	
 
	
Section 8.08(a) — Consolidated Funded Debt Ratio
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
A.
	
 
	
Consolidated Funded Indebtedness

(incl.  Letters of Credit, Capitalized Leases, Amounts Outstanding Under Product Acquisition Agreements, etc.)
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
1.
	
 
	
Consolidated Funded Indebtedness:
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
B.
	
 
	
Consolidated EBITDA for the four fiscal quarters just ended:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
1.
	
 
	
Consolidated Net Income:
	
$
	
 

	
 
	
 
	
 
	
 
	
2.
	
 
	
Consolidated Interest Expense:
	
$
	
 

	
 
	
 
	
 
	
 
	
3.
	
 
	
Provision for taxes:
	
$
	
 

	
 
	
 
	
 
	
 
	
4.
	
 
	
Depreciation and amortization:
	
$
	
 

	
 
	
 
	
 
	
 
	
5.
	
 
	
Nonrecurring non-cash charges and up to $5,000,000 in related cash charges subject to consent of Agent:
	
$
	
 

	
 
	
 
	
 
	
 
	
6.
	
 
	
Losses (gains) on the sale of fixed assets:
	
$
	
 

	
 
	
 
	
 
	
 
	
7.
	
 
	
Non-cash stock based compensation expenses:
	
$
	
 

	
 
	
 
	
 
	
 
	
8.
	
 
	
Extraordinary losses (gains):
	
$
	
 

	
 
	
 
	
 
	
 
	
9.
	
 
	
Losses (gains) from Dispositions of assets and discontinued operations outside of the ordinary course of business:
	
$
	
 

	
 
	
 
	
 
	
 
	
10.
	
 
	
EBITDA subject to consent of Agent related to Acquisitions pursuant to Permitted Acquisitions under the Credit Agreement
	
$
	
 

	
 
	
 
	
 
	
 
	
11.
	
 
	
Consolidated EBITDA

(Sum of 1+2+3+4+5+/-6+7+/-8+/-9+10):
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
C.
	
 
	
Consolidated Funded Debt Ratio (Ratio of 1.A.1 to 1.B.11):
	
 
	
 

 

Not to exceed   3.25 to 1.00 from March 31, 2016 and thereafter

 

	
Applicable Rate

	
Pricing Level
	
Consolidated Funded Debt Ratio
	
Unused fee
	
Eurocurrency Rate +
	
Alternate

Base Rate +

	
Standby Letter of Credit Fees            Daily One-Month LIBOR+*

	
I
	
>3.00:1.00
	
0.30%
	
2.25%
	
1.25%

	
II
	
<3.00:1.00 but
>2.25:1.00
	
0.25%
	
2.00%
	
1.00%

	
III
	
<2.25:1.00 but
>1.50:1.00
	
0.20%
	
1.75%
	
0.75%

	
IV
	
<1.50:1.00
	
0.15%
	
1.50%
	
0.50%

 

	
Applicable Rate based on the most recently submitted Compliance Certificate:
	
 
	
Level               

	
 
	
 
	
 

	
Applicable Rate based on current Compliance Certificate:
	
 
	
Level               

Schedule 2 to Form of Compliance Certificate

 

	
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II.
	
 
	
Section 8.08(b) — Consolidated Fixed Charge Coverage Ratio
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
A.
	
 
	
Adjusted Consolidated EBITDA:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
1.
	
 
	
Consolidated EBITDA (I.B.11 above):
	
$
	
 

	
 
	
 
	
 
	
 
	
2.
	
 
	
Maintenance Capital Expenditures up to 2% of book value:
	
$ 
	
 

	
 
	
 
	
 
	
 
	
3.
	
 
	
Adjusted Consolidated EBITDA (1 minus 2):
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
B.
	
 
	
The sum of:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
1.
	
 
	
Consolidated Interest Expense paid in cash:
	
$
	
 

	
 
	
 
	
 
	
 
	
2.
	
 
	
Principal payments paid or payable on Consolidated Funded Indebtedness (other than Loans and L/C Obligations):
	
$
	
 

	
 
	
 
	
 
	
 
	
3.
	
 
	
Federal, state, local and foreign income taxes paid in cash:
	
$
	
 

	
 
	
 
	
 
	
 
	
4.
	
 
	
Distributions made:
	
$
	
 

	
 
	
 
	
 
	
 
	
5.
	
 
	
Total (sum of 1+2+3+4):
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
C.
	
 
	
Ratio of II.A.3 to II.B.5:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Not to be less than 1.25 to 1.00.
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
III.
	
 
	
Section 8.09 — Capital Expenditures
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
A.
	
 
	
Capital Expenditures fiscal year to date:
	
$ 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Not to exceed $30,000,000 in any fiscal year plus not more than $10,000,000 carried over from the immediately preceding fiscal year.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
B.
	
 
	
Carried Over Capital Expenditures from prior fiscal year:
	
$ 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IV.
	
 
	
Section 7.14 — Material Subsidiaries
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
A.
	
 
	
5% of consolidated net assets of American Vanguard:
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
B.
	
 
	
Consolidated net assets of Subsidiaries who were not Guarantors or Material Subsidiaries as of the end of the immediately preceding fiscal quarter:
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
C.
	
 
	
If B is greater than A, identity of Subsidiary (Subsidiaries) whose net assets increased (or which was acquired or created) and caused such excess:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
D.
	
 
	
10% of consolidated gross revenues of American Vanguard for 4 fiscal quarters most recently ended:
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
E.
	
 
	
Consolidated gross revenues of Subsidiaries who were not Guarantors for the 4 fiscal quarters most recently ended.
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
F.
	
 
	
If D is greater than E, identity of Subsidiary (Subsidiaries) whose gross revenues increased (or which was acquired or created) and caused such excess.
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
G.
	
 
	
Subsidiary(ies) included in C and F  that are not Guarantors:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
H.
	
 
	
Identity of any Subsidiary acquiring Equity Interests in Designated Borrower or Material Subsidiary during most recent fiscal quarter:
	
 
	
 

 

Schedule 2 to Form of Compliance Certificate

 

	
1187805/LA
	
-2-
	
 

 

 

Domestic Subsidiaries included in Line G are Material Domestic Subsidiaries.  Material Domestic Subsidiaries and Domestic Subsidiaries holding Equity Interests in Material Subsidiaries (Line H) are required to be Affiliate Domestic Guarantors.

Foreign Subsidiaries included in Line G are Material Foreign Subsidiaries.  Material Foreign Subsidiaries and Foreign Subsidiaries holding Equity Interests in Material Subsidiaries (Line H) are required to be Affiliate Foreign Guarantors.

 

	
V.
	
 
	
Section 8.05 — Investments
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
A.
	
 
	
Acquisition Consideration for Acquisitions made after the Closing Date
	
$ 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Aggregate Acquisition Consideration for all Acquisitions made after the Closing Date not to exceed $225,000,000.

	
 

	
 
	
 
	
B.
	
 
	
Consolidated outstanding investments of American Vanguard in Foreign Wholly-Owned Subsidiaries
	
 $
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Such Investments made after the Closing Date not to exceed $200,000,000.

	
 

	
 
	
 
	
C.
	
 
	
Consolidated outstanding Investments of American Vanguard in Joint Ventures and other Investments
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
 

	
Such Investments made after the Closing Date not to exceed $30 Million

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
VI.
	
 
	
Section 8.16 - Distributions

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
A.
	
 
	
Consolidated Net Income for 4 quarters ending with quarter prior to current quarter
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
B.
	
 
	
Dividends declared in current quarter for payment in subsequent quarter
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
C.
	
 
	
Cash dividends paid in current fiscal quarter and in two prior fiscal quarters
	
$
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
D.
	
 
	
Sum of VI.B. plus VI.C (not to exceed VI.A)
	
$
	
 

 

Cash dividends declared in any fiscal quarter and paid in subsequent fiscal quarter not to exceed, when aggregated with cash dividends paid or payable during the fiscal quarter in which such cash dividend is declared and cash dividends paid during the two fiscal quarters prior to the quarter in which such declaration is paid, Consolidated Net Income for the four fiscal quarters ending prior to the fiscal quarter in which such cash dividends are declared.

Schedule 2 to Form of Compliance Certificate

 

	
1187805/LA
	
-3-

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