Document:

ex_262036.htm

Exhibit 10.1

 

 

 

 

Fourth Amendment To Amended and Restated Credit Agreement

 

 

 

 

By And Among

 

 

Escalade, Incorporated

 

And

 

Indian Industries, Inc.

 

And

 

The Other Loan Parties Hereto

 

And

 

The Lenders Party Hereto

 

And

 

JPMorgan Chase Bank, N.A.,

As Administrative Agent

 

 

 

 

Dated As Of July 7, 2021

 

 

 

 

 

 

 

 

 

 

Fourth Amendment To Amended and Restated 

Credit Agreement

 

 

This Fourth Amendment To Amended and Restated Credit Agreement (this “Fourth Amendment”) is made as of the 7th day of July, 2021, by and among Escalade, Incorporated, Indian Industries, Inc., the Other Loan Parties hereto, the Lenders party hereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”). The parties hereto agree as follows:

 

W I T N E S S E T H:

 

Whereas, as of January 21, 2019, the parties hereto entered into a certain Amended and Restated Credit Agreement (as amended, the “Agreement”); and

 

Whereas, the parties desire to amend the Agreement to, among other things, decrease the Revolving Commitment, extend the Revolving Credit Maturity Date, add a new Term Commitment, and to amend certain definitions and covenants, subject to and as provided in this Fourth Amendment;

 

Now, Therefore, in consideration of the premises, and the mutual promises herein contained, the parties agree that the Agreement shall be, and it hereby is, amended as provided herein and the parties further agree as follows:

 

Article I

 

Definitions

 

Section 1.01 Defined Terms. Section 1.01 of the Agreement is hereby amended by substituting the following definitions in lieu of the like existing definitions:

 

“Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan) and any Loan which bears interest at a fixed rate, the last day of each calendar month and the Revolving Credit Maturity Date or the Term Maturity Date, as applicable, (b) with respect to any Eurodollar Loan, the last day of each Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and the Revolving Credit Maturity Date, and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid and the Revolving Credit Maturity Date.

 

“Revolving Commitment” means, with respect to each Lender, the amount set forth on the Commitment Schedule opposite such Lender’s name, or in the Assignment and Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C), pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable, as such Revolving Commitment may be reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04; provided, that at no time shall the Revolving Exposure of any Lender exceed its Revolving Commitment. The initial aggregate amount of the Lenders’ Revolving Commitments is $50,000,000.

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 1

 

 

 

“Revolving Credit Maturity Date” means July 7, 2026 (if the same is a Business Day, or if not then the immediately next succeeding Business Day), or any earlier date on which the Revolving Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof.

 

Section 1.01 Defined Terms. Section 1.01 of the Agreement is hereby further amended by adding the following new definitions to the Agreement:

 

“Fourth Amendment Effective Date” means July 7, 2021.

 

“Payment” has the meaning assigned to it in Section 8.06(c).

 

“Payment Notice” has the meaning assigned to it in Section 8.06(c).

 

“Term Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make a Term Loan, expressed as an amount representing the maximum principal amount of the Term Loan to be made by such Lender, as such commitment may be reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Term Commitment is set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Term Commitment, as applicable. The aggregate amount of the Lenders’ Term Commitment on the Fourth Amendment Effective Date is $50,000,000.

 

“Term Lender” means a Lender having a Term Commitment or an outstanding Term Loan.

 

“Term Loan” means a Loan made pursuant to Section 2.23.

 

“Term Maturity Date” means July 7, 2026.

 

Article II

 

The Credits

 

SECTION 2.02. Loans and Borrowings. Section 2.02(b) of the Agreement is hereby amended and restated in its entirety as follows:

 

(b)         Subject to Section 2.14, each Revolving Borrowing and Term Loan Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower Representative may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the same extent as to such Lender); provided that any exercise of such option shall not affect the obligation of the Borrowers to repay such Loan in accordance with the terms of this Agreement.

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 2

 

 

 

SECTION 2.09. Termination of Commitments. Section 2.09 of the Agreement is hereby amended by adding new subsection “(d)” as follows:

 

(d)         Unless previously terminated, the Term Commitment shall terminate on the Term Maturity Date.

 

SECTION 2.10. Repayment and Amortization of Loans; Evidence of Debt. Section 2.10(a) of the Agreement is hereby amended by adding new subsection “(f)” as follows:

 

(f)         The Borrowers hereby unconditionally promise to pay to the Administrative Agent for the account of each Term Lender on the last day of each calendar month, commencing on July 31, 2021, the aggregate principal amount of $595,238; provided, if any date set forth above is not a Business Day, then payment shall be due and payable on the Business Day immediately preceding such date. To the extent not previously paid, all unpaid Term Loans shall be paid in full in cash by the Borrowers on the Term Maturity Date.

 

SECTION 2.13. Interest. Section 2.13 of the Agreement is hereby amended by adding new subsection “(f)” as follows:

 

(f)         The Term Loan shall bear interest at a fixed rate of Two and Ninety-Seven Hundredths percent (2.97%) per annum.

 

SECTION 2.23. Term Commitment. The Agreement is hereby further amended by adding a new Section 2.23 as follows:

 

SECTION 2.23. Term Commitment. Subject to the terms and conditions set forth herein, each Term Lender severally (and not jointly) agrees to make a Term Loan in dollars to the Borrowers, commencing on the Fourth Amendment Effective Date, in a principal amount not to exceed such Lender’s Term Commitment. Amounts prepaid or repaid in respect of Term Loans may not be reborrowed.

 

Article V

 

Affirmative Covenants

 

 

SECTION 5.08. Use of Proceeds. The first sentence of Section 5.08(a) of the Agreement is hereby amended and restated in its entirety as follows:

 

(a)         The proceeds of the Loans will be used only (i) to repay the indebtedness, liability and obligations on the Effective Date of the Borrowers under the Existing Credit Agreement; (and (ii) to supplement working capital and for other general business purposes (not otherwise prohibited by this Agreement); provided, however, the proceeds of the Term Loan shall be used (x) first, to refinance the outstanding balance of the Revolving Commitment existing as of the Fourth Amendment Effective Date, and (y) following repayment of such outstanding Revolving Commitment balance, to supplement working capital and for other general business purposes.

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 3

 

 

 

Article VIII

 

The Administrative Agent

 

SECTION 8.06. Acknowledgements of Lenders and Issuing Banks. Section 8.06 of the Agreement is hereby amended and restated in its entirety as follows:

 

SECTION 8.06. Acknowledgements of Lenders and Issuing Banks.

 

(a)         Each Lender and each Issuing Bank represents and warrants that (i) the Loan Documents set forth the terms of a commercial lending facility, (ii) it is engaged in making, acquiring or holding commercial loans and in providing other facilities set forth herein as may be applicable to such Lender or Issuing Bank, in each case in the ordinary course of business, and not for the purpose of purchasing, acquiring or holding any other type of financial instrument (and each Lender and each Issuing Bank agrees not to assert a claim in contravention of the foregoing), (iii) it has, independently and without reliance upon the Administrative Agent, any Arranger, or any other Lender or Issuing Bank, or any of the Related Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder and (iv) it is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other facilities set forth herein, as may be applicable to such Lender or such Issuing Bank, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans or to provide such other facilities, is experienced in making, acquiring or holding such commercial loans or providing such other facilities. Each Lender and each Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent, any Arranger, or any other Lender or Issuing Bank, or any of the Related Parties of any of the foregoing, and based on such documents and information (which may contain material, non-public information within the meaning of the United States securities laws concerning the Borrowers and their Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

 

(b)         Each Lender, by delivering its signature page to this Agreement on the Effective Date, or delivering its signature page to an Assignment and Assumption or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date or the effective date of any such Assignment and Assumption or any other Loan Document pursuant to which it shall have become a Lender hereunder.

 

(c)         (i) Each Lender hereby agrees that (x) if the Administrative Agent notifies such Lender that the Administrative Agent has determined in its sole discretion that any funds received by such Lender from the Administrative Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a “Payment”) were erroneously transmitted to such Lender (whether or not known to such Lender), and demands the return of such Payment (or a portion thereof), such Lender shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect, and (y) to the extent permitted by applicable law, such Lender shall not assert, and hereby waives, as to the Administrative Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Payments received, including without limitation any defense based on “discharge for value” or any similar doctrine. A notice of the Administrative Agent to any Lender under this Section 8.06(c) shall be conclusive, absent manifest error.

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 4

 

 

 

(ii)         Each Lender hereby further agrees that if it receives a Payment from the Administrative Agent or any of its Affiliates (x) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by the Administrative Agent (or any of its Affiliates) with respect to such Payment (a “Payment Notice”) or (y) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment. Each Lender agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error, such Lender shall promptly notify the Administrative Agent of such occurrence and, upon demand from the Administrative Agent, it shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect.

 

(iii)         Each Borrower and each other Loan Party hereby agrees that (x) in the event an erroneous Payment (or portion thereof) are not recovered from any Lender that has received such Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights of such Lender with respect to such amount and (y) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by any Borrower or any other Loan Party.

 

(iv)         Each party’s obligations under this Section 8.06(c) shall survive the resignation or replacement of the Administrative Agent or any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Loan Document.

 

(d)         Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or on behalf of the Administrative Agent; (ii) the Administrative Agent (A) makes no representation or warranty, express or implied, as to the completeness or accuracy of any Report or any of the information contained therein or any inaccuracy or omission contained in or relating to a Report and (B) shall not be liable for any information contained in any Report; (iii) the Reports are not comprehensive audits or examinations, and that any Person performing any field examination will inspect only specific information regarding the Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel and that the Administrative Agent undertakes no obligation to update, correct or supplement the Reports; (iv) it will keep all Reports confidential and strictly for its internal use, not share the Report with any Loan Party or any other Person except as otherwise permitted pursuant to this Agreement; and (v) without limiting the generality of any other indemnification provision contained in this Agreement, (A) it will hold the Administrative Agent and any such other Person preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw from any Report in connection with any extension of credit that the indemnifying Lender has made or may make to the Borrowers, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a Loan or Loans; and (B) it will pay and protect, and indemnify, defend, and hold the Administrative Agent and any such other Person preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorneys’ fees) incurred by the Administrative Agent or any such other Person as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 5

 

 

 

Article IX

 

Miscellaneous

 

SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution. Section 9.06(b) of the Agreement is hereby amended and restated in its entirety as follows:

 

(b)         Delivery of an executed counterpart of a signature page of (x) this Agreement, (y) any other Loan Document and/or (z) any document, amendment, approval, consent, information, notice (including, for the avoidance of doubt, any notice delivered pursuant to Section 9.01), certificate, request, statement, disclosure or authorization related to this Agreement, any other Loan Document and/or the transactions contemplated hereby and/or thereby (each an “Ancillary Document”) that is an Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement, such other Loan Document or such Ancillary Document, as applicable. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Agreement, and any other Loan Document and/or any Ancillary Document shall be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic form (including deliveries by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be; provided that nothing herein shall require the Administrative Agent to accept Electronic Signatures in any form or format without its prior written consent and pursuant to procedures approved by it; provided, further, without limiting the foregoing, (i) to the extent the Administrative Agent has agreed to accept any Electronic Signature, the Administrative Agent and each of the Lenders shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of any Borrower or any other Loan Party without further verification thereof and without any obligation to review the appearance or form of any such Electronic Signature and (ii) upon the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by a manually executed counterpart. Without limiting the generality of the foregoing, each Borrower and each Loan Party hereby (A) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders, the Borrowers and the Loan Parties, Electronic Signatures transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page and/or any electronic images of this Agreement, any other Loan Document and/or any Ancillary Document shall have the same legal effect, validity and enforceability as any paper original, (B) the Administrative Agent and each of the Lenders may, at its option, create one or more copies of this Agreement, and other Loan Document and/or any Ancillary Document in the form of an imaged electronic record in any format, which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document (and all such electronic records shall be considered an original for all purposes and shall have the same legal effect, validity and enforceability as a paper record), (C) waives any argument, defense or right to contest the legal effect, validity, or enforceability of this Agreement, and any other Loan Document and/or any Ancillary Document based solely on the lack of paper original copies of this Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with respect to any signature pages thereto and (D) waives any claim against any Lender-Related Person for any Liabilities arising solely from the Administrative Agent’s and/or any Lender’s reliance on or use of Electronic Signatures and/or transmissions by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page, including any Liabilities arising as a result of the failure of any Borrower and/or any Loan Party to use any available security measures in connection with the execution, delivery or transmission of any Electronic Signature.

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 6

 

 

 

Part II. Continuing Effect

 

Except as expressly modified herein:

 

(a)         All terms, conditions, representations, warranties and covenants contained in the Agreement shall remain the same and shall continue in full force and effect, interpreted, wherever possible, in a manner consistent with this Fourth Amendment; provided, however, in the event of any irreconcilable inconsistency, this Fourth Amendment shall control;

 

(b)         The representations and warranties contained in the Agreement shall survive this Fourth Amendment in their original form as continuing representations and warranties of Borrowers; and

 

(c)         Capitalized terms used in this Fourth Amendment, and not specifically herein defined, shall have the meanings ascribed to them in the Agreement.

 

In consideration hereof, each Borrower represents, warrants, covenants and agrees that:

 

(aa)         Each representation and warranty set forth in the Agreement, as hereby amended, remains true and correct as of the date hereof in all material respects, except to the extent that such representation and warranty is expressly intended to apply solely to an earlier date and except changes reflecting transactions permitted by the Agreement;

 

(bb)         There currently exist no offsets, counterclaims or defenses to the performance of the Obligations (such offsets, counterclaims or defenses, if any, being hereby expressly waived);

 

(cc)         Except as expressly waived in this Fourth Amendment, there does not exist any Default or Event of Default; and

 

(dd)         After giving effect to this Fourth Amendment and any transactions contemplated hereby, no Default or Event of Default is or will be occasioned hereby or thereby.

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 7

 

 

 

Part III. Independent Credit Decision

 

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender, based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Fourth Amendment.

 

Part IV. Commitment Schedule

 

Subject to Part V hereof, the Agreement is hereby amended by substituting the Commitment Schedule attached hereto in lieu of the Commitment Schedule attached to the Agreement. 

 

 

Part V. Conditions Precedent

 

Notwithstanding anything contained in this Fourth Amendment to the contrary, this Fourth Amendment shall not become effective until each of the following conditions precedent have been fulfilled to the satisfaction of the Administrative Agent:

 

(a)         The Administrative Agent shall have received counterparts of this Fourth Amendment, duly executed by the Administrative Agent, Borrowers, the Loan Guarantors and the Lenders;

 

(b)         The Administrative Agent shall have received a Replacement Revolving Note, duly executed by Borrowers;

 

(c)         The Administrative Agent shall have received a Term Note, duly executed by Borrowers;

 

(d)         The Administrative Agent shall have received a duly executed certificate of the Secretary of each Borrower (A) certifying as to the authorizing resolutions of such Borrower, and (B) certifying as complete and correct as to attached copies of its Articles of Incorporation and By‐Laws or certifying that such Articles of Incorporation or By‐Laws have not been amended (except as shown) since the previous delivery thereof to the Administrative Agent;

 

(e)         The Administrative Agent shall have received such documentation and other information requested in connection with applicable “know your customer” and anti-money laundering rules and regulations, including the USA Patriot Act;

 

(f)         Borrowers shall have paid to Administrative Agent a non-refundable upfront fee in the amount of $25,000.00; and

 

(g)         All legal matters incident to this Fourth Amendment shall be reasonably satisfactory to the Administrative Agent and its counsel.

 

 

Part V. Expenses

 

The Borrowers agree to pay or reimburse the Administrative Agent for all reasonable expenses of the Administrative Agent (including, without limitation, reasonable attorneys’ fees) incurred in connection with this Fourth Amendment; provided, however, that the Administrative Agent agrees to pay all LIBOR breakage or termination fees arising in connection with the repayment of the outstanding balance of the Revolving Commitment from the proceeds of the Term Loan on the Fourth Amendment Effective Date.

 

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 8

 

 

 

Part VI. Counterparts

 

This Fourth Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Fourth Amendment by telefacsimile or other electronic method of transmission shall have the same force and delivery of an original executed counterpart of this Fourth Amendment. Any party delivering an executed counterpart of this Fourth Amendment by telefacsimile or other electronic method of transmission shall also deliver an original executed counterpart of this Fourth Amendment, but the failure to do so shall not affect the validity, enforceability, and binding effect of this Fourth Amendment.

 

In Witness Whereof, the parties hereto have caused this Fourth Amendment to be executed by their respective officers duly authorized as of the date first above written.

 

 

[This Space Intentionally Left Blank]

 

 

 

 

 

 

 

 

 

 

 

 

	Fourth Amendment to Amended and Restated Credit Agreement	Page 9

 

 

 

Signature Page Of

Escalade, Incorporated

To Fourth Amendment to Amended and Restated Credit Agreement

 

 

 

	
			 

				
			Escalade, Incorporated

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Stephen Wawrin 

				
			 

			
	
			 

				
			 

				
			Stephen Wawrin

				
			 

			
	 	Title:	Chief Financial Officer	 

 

 

 

 

Signature Page Of

Indian Industries, Inc.

To Fourth Amendment to Amended and Restated Credit Agreement

 

 

 

	
			 

				
			Indian Industries, Inc.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			 

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

 

 

CONSENT AND REAFFIRMATION

 

Each of the undersigned Loan Guarantors hereby consents to the foregoing Fourth Amendment, and further agrees that the execution and delivery of such Fourth Amendment shall in no way affect, impair, discharge, relieve or release the obligations of the undersigned under its Loan Guaranty, which obligations are hereby ratified, confirmed and reaffirmed in all respects and shall continue in full force and effect, until all obligations of the Borrowers to the Lenders, the Issuing Bank and the Administrative Agent are fully, finally and irrevocably paid and performed. Each Loan Guarantor further acknowledges that the failure to consent to any subsequent amendment shall not affect the liability of such Loan Guarantor under its Loan Guaranty. Capitalized terms used herein and not defined have the meanings ascribed thereto in the Agreement.

 

 

	
			 

				
			BEAR ARCHERY, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			 EIM COMPANY, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			ESCALADE INSURANCE, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			ESCALADE SPORTS PLAYGROUND, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			HARVARD SPORTS, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			 

				
			Stephen Wawrin

				
			 

			
	
			 

				
			 

				
			Chief Financial Officer

				
			 

			

 

 

 

 

	
			 

				
			 SOP SERVICES, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			U.S. WEIGHT, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			WEDCOR HOLDINGS, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			GOALSETTER SYSTEMS, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN 

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			LIFELINE PRODUCTS, LLC

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			VICTORY MADE, LLC

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

	
			 

				
			VICTORY TAILGATE, LLC 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN

				
			 

			
	
			 

				
			Name:

				
			Stephen Wawrin

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

 

 

 

Signature Page Of

JPMorgan Chase Bank, N.A.

To Fourth Amendment to Amended and Restated Credit Agreement

 

 

 

 

	
			 

				
			JPMORGAN CHASE BANK, N.A., individually and

			as Administrative Agent, Swingline Lender and

			Issuing Bank

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			  /s/  THOMAS W. HARRISON 

				
			 

			
	
			 

				
			 

				
			Name: Thomas W. Harrison

				
			 

			
	
			 

				
			 

				
			Title:    Executive Director

				
			 

			

 

 

 

 

 

COMMITMENT SCHEDULE

 

	
			Lender

				
			Revolving

			Commitment

				
			Swingline

			Commitment

				
			Term

			Commitment

			
	
			JPMorgan Chase Bank, N.A.

				
			$50,000,000

				
			zero (0)

				
			$50,000,000

			
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
			Total

				
			$50,000,000

				
			$-0-

				
			$50,000,000Document

Exhibit 10.1

Amended and Restated Expense Limitation Agreement

This Amended and Restated Expense Limitation Agreement (the “Agreement”) is entered into this 7th day of July 2021, by and between Prospect Flexible Income Fund, Inc. (the “Fund”) and Prospect Capital Management L.P. (the “Adviser”).

WHEREAS, the Fund is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”);

WHEREAS, the Adviser serves as the Fund’s investment advisor pursuant to that certain Investment Advisory Agreement, dated as of April 20, 2021 (the “Investment Advisory Agreement”); 

WHEREAS, the Adviser and the Fund entered into an expense limitation agreement on April 20, 2021;

WHEREAS, the Adviser may waive a portion or all of the investment advisory fees that it is entitled to receive pursuant to the Investment Advisory Agreement in order to limit the Fund’s Operating Expenses (as defined below) to an annual rate, expressed as a percentage of the Fund’s average quarterly net assets, equal to 8.00% (the “Annual Limit”); 

WHEREAS, the Adviser wishes to extend the time where it will be required to waive its fee as necessary in order to limit the Fund’s Operating Expenses (as defined below) to the Annual Limit; and

WHEREAS, the Fund and the Adviser have determined that it is appropriate and in the best interest of the Fund for the Fund to reimburse the Adviser for any previously waived investment advisory fees in accordance with the terms of this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

In the event that the current Operating Expenses of the Fund, as accrued each quarter, exceed the Annual Limit (the amount of such excess, the “Excess Amount”), the Advisor will, commencing on April 20, 2021 and through June 30, 2022, waive the investment advisory fees to which it is entitled pursuant to the Investment Advisory Agreement (an “Excess Amount Waiver”), up to the Excess Amount.  For fiscal quarters commencing after June 30, 2022, in the event that an Excess Amount exists, the Advisor may, at its option and in its sole discretion on a quarterly basis, waive advisory fees to which it is entitled pursuant to the Investment Advisory Agreement so that there is an Excess Amount Waiver, in any amount up to the Excess Amount.

For purposes of this Agreement, the term “Operating Expenses” with respect to the Fund, is defined to include all expenses necessary or appropriate for the operation of the Fund, including but not limited to the Advisor’s base management fees detailed in Section 3(a) the Investment Advisory Agreement, any and all costs and expenses that qualify as line item “operating” expenses in the financial statements of the Fund as the same are filed with the U.S. Securities and Exchange Commission and other expenses described in the Investment Advisory Agreement, but does not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront 

shareholder transaction expenses (such as sales commissions, dealer manager fees, and similar items) are not Operating Expenses.

Any Excess Amount Waiver made by the Adviser is subject to repayment (a “Reimbursement”) by the Fund within three years of the date on which the Excess Amount Waiver was made by the Adviser. If this Agreement is terminated or expires pursuant to its terms, the Adviser shall maintain its right to repayment for any Excess Amount Waiver it has made under this Agreement, subject to the Repayment Limitations.

Any Reimbursement shall be made solely in the event that that the Fund has sufficient excess cash on hand at the time of any proposed Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such quarter over the Fund’s actual Operating Expenses for such quarter and (ii) the amount of Reimbursement which, when added to the Fund’s expenses for such quarter, permits the Fund to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Fund shares) (the “Distribution”) from the sum of (x) the Fund’s net investment income (loss) for such quarter plus (y) the Fund’s net realized gains (losses) for such quarter (collectively, the “Repayment Limitations”). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any Reimbursement will be treated as an expense of the Fund for such quarter, without regard to the GAAP treatment of such expense.  In the event that the Fund is unable to make a full payment of any Reimbursements due for any applicable quarter because the Fund does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Fund for accounting purposes and shall be paid when the Fund has sufficient excess cash on hand (subject to the Repayment Limitations); provided, that in the case of any Reimbursements, such payment shall be made no later than the date that is three years after the date on which the applicable Excess Amount Waiver was made by the Adviser. 

This Agreement shall be effective as of the date hereof, and continue until the first month end following the one-year anniversary thereof (the “Initial Term”). Following the Initial Term of this Agreement, the Adviser may elect, in its sole and absolute discretion, to offer to continue this Agreement for successive annual periods. Any such continuance must be approved by a majority of the Board of Directors of the Fund (the “Board”), including a majority of the directors that are not “interested persons” of the Fund, as such term is defined under the 1940 Act.

This Agreement may be terminated at any time, without the payment of any penalty and without notice, by the Fund. This Agreement may be terminated by the Adviser upon written notice to the Fund. This Agreement will automatically terminate if (i) the Fund provides the Adviser with notice of the Fund’s intent to terminate the Investment Advisory Agreement, and such termination of this Agreement will be effective upon the date that the Adviser receives such notice or (ii) the Investment Advisory Agreement is terminated for any reason.  

Miscellaneous

(a)This Agreement shall be governed by and construed in accordance with the laws of the State of New York (without reference to its conflicts of laws provisions) and the applicable provisions of the 1940 Act and the Investment Advisers Act of 1940, as amended (the “Advisers Act”). To the extent that the applicable laws of the State of New York, or any of the provisions herein, conflict with the applicable provisions of the 1940 Act or the Advisers Act, the latter two, as applicable, shall control. Further, nothing herein contained shall be deemed to require the Fund to take any action contrary to the Fund’s Articles of Incorporation or Bylaws, as each may be amended or 
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restated from time to time, or to relieve or deprive the Board of its responsibility for and control of the conduct of the affairs of the Fund.

(b)If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of this Agreement shall not be affected thereby and, to this extent, the provisions of this Agreement shall be deemed to be severable.

(c)The Fund shall not assign this Agreement or any right, interest or benefit under this Agreement without the prior written consent of the Adviser.

(d)This Agreement may only be amended in writing, and by mutual consent of the parties. This Agreement may be executed by the parties on any number of counterparts, delivery of which may occur by facsimile or as an attachment to an electronic communication, each of which shall be deemed an original, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

PROSPECT FLEXIBLE INCOME FUND, INC.

By: .s. M. Grier Eliasek_______________
Name: M. Grier Eliasek
Title: Chief Executive Officer & President

PROSPECT CAPITAL MANAGEMENT L.P.

By: /s/ John F. Barry III_______________
Name: John F. Barry III
Title: Managing Member

[Signature Page to Expense Limitation Agreement]

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