Document:

exv10w73

 

EXHIBIT 10.73

SUBORDINATION AND INTERCREDITOR AGREEMENT

     THIS
SUBORDINATION AND INTECREDITOR AGREEMENT is executed this 31st day of March, 2006, by ROCKFORD CORPORATION, an Arizona corporation (“Rockford”), ADVANCED INTEGRATION, LLC, an
Oklahoma limited liability company (the “Borrower”) and STILLWATER NATIONAL BANK AND TRUST COMPANY
(“SNB”).

W I T N E S S E T H

     WHEREAS, the Borrower, Rockford and Audio Innovations, Inc. (“Audio”) have entered into that
certain Asset Purchase Agreement (the “Asset Purchase Agreement”) pursuant to which the Borrower is
acquiring all of the business assets of Audio, except as specifically set forth therein (the “Audio
Assets”); and

     WHEREAS, SNB and the Borrower have entered into a Loan Agreement of even date herewith (the
“SNB Loan Agreement”) pursuant to which SNB has loaned to the Borrower the sum of $750,000.00 (the
“SNB Loan”) as evidenced by a Promissory Note in the principal face amount of $750,000.00 dated
effective March 31, 2006, signed by the Borrower in favor of SNB (the “SNB Note”), which is
secured by a certain Security Agreement (the “SNB Security Agreement”) covering all of the
business assets of the Borrower, including but not limited to, the Audio Assets and any and all
other accounts, inventory, equipment and general intangibles now owned or hereafter acquired by the
Borrower (the “Collateral”); and

     WHEREAS, Rockford has extended credit to the Borrower in the amount of $1,000,000.00 (the
“Rockford Loan”) as evidenced by a certain Loan and Security Agreement between the Borrower and
Rockford (the “Rockford Agreement”), which sum is secured by the Collateral; and

     WHEREAS, this Agreement is executed and delivered to SNB by Rockford and the Borrower to
induce SNB to make the SNB Loan to the Borrower, and in satisfaction of a material condition
precedent thereto;

     WHEREAS, Rockford has heretofore collected the payments of the accounts and account
receivables of Audio, which accounts and account receivables (the “Accounts”) constitute a portion
of the Collateral; and

     WHEREAS, this Agreement is executed by SNB and Rockford in order to establish the relative
priorities of the security interests of SNB and Rockford with respect to the Collateral; and

     WHEREAS, this Agreement is also executed by SNB, Rockford and the Borrower to establish the
terms and conditions surrounding the receipt, transmittal and disposition of the proceeds of the
Accounts.

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     NOW THEREFORE, in consideration of the recitals, the making of the SNB Loan to the Borrower by
SNB, and the benefits to be derived by Rockford and the Borrower therefrom and other good and
valuable consideration, it is agreed as follows:

	 	1.	 	Subordination. Except as specifically set forth herein Rockford hereby
subordinates any and all liens and security interests held by Rockford in the
Collateral to the terms of the SNB Security Agreement, and all liens and security
interests granted thereunder by the Borrower in favor of SNB covering the Collateral.
Rockford agrees that except as specifically set forth herein, any and all liens and
security interests of Rockford in the Collateral will be junior and inferior in
priority to the liens and security interests created of SNB in the Collateral
regardless of the order of filing of financing statements by SNB and Rockford with
respect to the Collateral.
	 
	 	2.	 	Receipt and Transmittal of Account Proceeds. The Borrower shall notify
each existing account debtor and instruct each account debtor to send all payments on
the Accounts to SNB. Rockford agrees that upon any receipt by Rockford of any payments
on the Accounts, Rockford will:

	 	a.	 	if the payment is by instrument, mail such instrument and any
accompanying remittance materials to SNB at P.O. Box 819, Stillwater, Oklahoma
74076, within a reasonable time after receipt by Rockford, but no later than
five (5) business days after such receipt; or
	 
	 	b.	 	if the payment is by wire transfer, promptly transmit such
funds to SNB by wire transfer in accordance with wiring instructions to be
provided by SNB, and mail any associated remittance materials to SNB at P.O.
Box 819, Stillwater, Oklahoma 74076, within a reasonable time thereafter, but
no later than five (5) business days.

	 	3.	 	Best Buy Accounts. Notwithstanding paragraph 1 above, SNB hereby
subordinates any and all liens and security interests held by SNB in the accounts of
the Borrower arising out of transactions with Best Buy Co., Inc. (“Best Buy”) or any
successor or affiliate of Best Buy (including but not limited to accounts acquired as
part of the Audio Assets), whether now existing or arising as the result of
transactions occurring subsequent to the date of this Agreement (the “Best Buy
Accounts”) to the terms of the Rockford Agreement, and all liens and security interests
granted thereunder by the Borrower in favor of Rockford covering the Best Buy Accounts.
SNB agrees that any and all of the liens and security interests of SNB in the Best Buy
Accounts will be junior and inferior in priority to the liens and security interests of
Rockford in the Best Buy Accounts regardless of the order of filing of financing
statements by SNB and Rockford with respect to the Best Buy Accounts.
	 
	 	4.	 	Best Buy Proceeds. SNB, Rockford and the Borrower agree that subject
to paragraph 5 below and notwithstanding the subordination of the liens and security
interests of

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	 	 	 	SNB in the Best Buy Accounts as set forth in paragraph 3 above, SNB may receive
payments associated with the Best Buy Accounts (the “Best Buy Proceeds”) in the
lockbox maintained by SNB pursuant to that certain Digital Lockbox Agreement by and
among SNB and the Borrower, and thereafter apply the Best Buy Proceeds in payment of
the SNB Note, or any other amount owing by the Borrower to SNB under the Loan
Documents (as that term is defined in the SNB Loan Agreement).
	 
	 	5.	 	Default Under Rockford Agreement; Delivery of Best Buy Proceeds. SNB,
Rockford and the Borrower agree that, upon receipt by SNB of written notice from
Rockford of the occurrence of an event of default under the Rockford Agreement, SNB
shall forward to Rockford any Best Buy Proceeds then in the possession of SNB and which
have not been previously applied in payment of the SNB Note, and thereafter forward to
Rockford any Best Buy Proceeds received by SNB. The manner of delivery of any such
Best Buy Proceeds shall be:

	 	a.	 	if the payment of the Best Buy Proceeds is by instrument, mail
such instrument and any accompanying remittance materials to Rockford at the
address set forth in paragraph 9 below, within a reasonable time after receipt
by SNB, but no later than five (5) business days after such receipt; or
	 
	 	b.	 	if the payment of the Best Buy Proceeds is by wire transfer,
promptly transmit such funds to Rockford by wire transfer in accordance with
wiring instructions to be provided by Rockford, and mail any associated
remittance materials to Rockford at the address set forth in paragraph 9 below,
within a reasonable time thereafter, but no later than five (5) business days.

	 	6.	 	Standard of Care; Interpleader. In the event of any dispute regarding
the Best Buy Proceeds, SNB shall be and is hereby authorized, but not obligated, to
deposit the Best Buy Proceeds into court and, upon such deposit, shall be discharged
and relieved of any further obligation under paragraph 5 above. SNB shall have no
obligation to take any action to enforce the Best Buy Accounts. The only
responsibility of SNB hereunder shall be the receipt and delivery of the Best Buy
Proceeds to Rockford in accordance with paragraph 5 above. Following an event of
default under the Rockford Agreement and written notice thereof to SNB as set forth in
paragraph 5 above. SNB’s only responsibility hereunder shall be the performance by SNB
of the duties imposed by paragraph 5. SNB shall have no responsibility or obligation
to determine any questions of fact or law
	 
	 	7.	 	Borrower’s Consent. The Borrower hereby consents to all of the terms
and conditions of this Agreement. The Borrower agrees that Borrower will do nothing
to revoke, alter or obstruct the performance of the terms and conditions of this
Agreement.
	 
	 	8.	 	Venue. SNB, Rockford and the Borrower each agree that the exclusive
venue for any action or proceeding of any kind by or against SNB, Rockford or Borrower
arising

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	 	 	 	out of or related to this Agreement, including but not limited to any interpleader
filed by SNB pursuant hereto, shall be any state or federal court sitting in
Oklahoma County, Oklahoma, as elected by SNB, and SNB, Rockford and Borrower each
hereby submit to the jurisdiction of such courts.
	 
	 	9.	 	Notices. Any notice, demand or communication required or permitted to
be given by any provision of this Agreement will be in writing and will be deemed to
have been given when delivered personally or by telefacsimile, receipt confirmed, to
the party designated to receive such notice or on the date following the day sent by
overnight courier or on the third (3rd) business day after the same is sent
by certified mail, postage and charges prepaid, directed to the following addresses or
to such other or additional addresses as any party might designate by written notice to
the other party:

	 	 	 	 	 
	 

	 	Borrower:
	 	Advanced Integration, LLC
	 

	 	 	 	2805 East 6th Avenue
	 

	 	 	 	Stillwater, Oklahoma 74074
	 
	 	 	 	 
	 

	 	SNB:
	 	Stillwater National Bank and Trust Company
	 

	 	 	 	608 South Main
	 

	 	 	 	Stillwater, Oklahoma 74074
	 

	 	 	 	Attn.: David Pitts, Senior Vice President
	 
	 	 	 	 
	 

	 	Rockford:
	 	Rockford Corporation
	 

	 	 	 	600 S. Rockford Drive
	 

	 	 	 	Tempe, Arizona 85281
	 

	 	 	 	Attn.: W. Gary Suttle, President
	 

	 	 	 	          Rich Vasek, CFO

	 	10.	 	Amendments. It is understood and agreed that the subordination
agreements provided for in paragraphs 1 and 3 hereof will apply to all documents
evidencing and securing the Rockford Loan and the SNB Indebtedness, together with all
extensions, renewals, amendments, modifications, and increases thereof, together with
all interest thereon.
	 
	 	11.	 	Governing Law. The laws of the State of Oklahoma will govern the
enforceability and interpretation of this Agreement.
	 
	 	12.	 	Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto concerning the subject matter hereof, and supersedes and
replaces all prior written and oral negotiations, understandings and agreements between
the parties hereto with respect to the subject matter hereof.
	 
	 	13.	 	Binding Effect. This Agreement will be binding on and inure to the
benefit of Rockford, SNB, and the Borrower, and on their respective heirs, personal

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	 	 	 	representatives, successors and assigns. This Agreement has been executed effective
the day first above written.

	 	 	 	 	 	 	 	 	 
	 	 	ROCKFORD CORPORATION, an Arizona corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	          /s/ W. Gary Suttle
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	          W. Gary Suttle	 	 
	 

	 	 	 	Title:
	 	          President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(“Rockford”)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	STILLWATER NATIONAL BANK AND TRUST COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	          /s/ David Pitts	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	          David Pitts	 	 
	 

	 	 	 	Title:
	 	          Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(“SNB”)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	ADVANCED INTEGRATION, LLC, an Oklahoma	 	 
	 	 	 	 	limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	          /s/ Steven E. Frazier	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	STEVEN E. FRAZIER, Member-Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	          /s/ Tommy D. Smith	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	TOMMY D. SMITH, Member-Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(the “Borrower”)	 	 

5Exhibit 10.1

    EXHIBIT
      10.1

    

    NATIONAL
      PENN BANCSHARES, INC. CAPITAL ACCUMULATION PLAN

    (Amended
      and Restated Effective January 1, 1997)

    

    (Revised
      2001)

    

    Amendment
      No. 13

    

    National
      Penn Bancshares, Inc. (the "Company") adopted the National Penn Bancshares,
      Inc.
      Capital Accumulation Plan (Amended and Restated Effective January 1, 1997)
      (Revised 2001)(the "Plan") for the benefit of certain of its Employees (as
      defined in the Plan) and its subsidiaries' Employees. The Company subsequently
      amended the Plan by Amendment Nos. 1-12 thereto. 

    

    The
      Company hereby further amends the Plan as hereinafter set forth effective April
      1, 2006.

    

    
      	    1. 
              	
              Schedule
                A to the Plan is amended to add "Nittany Financial Corp. and subsidiaries"
                under the heading "Entity" and to add across from it the date

              "January
                26, 2006" under the heading "Date".

            

    

    

    
      	    2. 
              	
              Employees
                of the Nittany Bank Division of National Penn Bank shall become eligible
                to participate with respect to the payroll period for which payment
                is
                made on April 6, 2006. The following special rules shall apply with
                respect to participation of such Employees for the 2006 Plan
                Year.

            

    

    

    (a)
      All
      Employees of the Nittany Bank Division of National Penn Bank that have satisfied
      the Plan's eligibility requirements on April 6, 2006 shall be eligible to
      participate on that date. Employees who have not then satisfied the requirements
      shall become eligible on the Entry Date that they satisfy the Plan's eligibility
      requirements. 

    

    (b)
      Subsection 4(d) shall apply with respect to Compensation paid on or after April
      6, 2006, and any year-end adjustment in matching contribution shall be made
      with
      respect to elective contributions from and after April 6, 2006 and the matching
      contribution rate under this Plan. No consideration shall be given to elective
      contributions or matching contributions made under the plan sponsored by Nittany
      Bank. 

    

    (c)
      For
      purposes of subsection 4(n), "Compensation" shall only include amounts paid
      on
      or after the later of April 6, 2006, and the Entry Date on which an Employee
      of
      the Nittany Bank Division becomes eligible to participate in the
      Plan.

    

    Executed
      this 8th day of May, 2006.

    

    

    
      	 Attest:	NATIONAL
              PENN BANCSHARES, INC.
	 	 	 	 
	By:	
              /s/
                H. Anderson Ellsworth

            	By:	
              /s/
                Earl J. Houseknecht

            
	Name:	
              H.
                Anderson Ellsworth, Esq.

            	Name:	
              Earl
                J. Houseknecht

            
	Title:	
              Senior
                Vice President

            	Title:	
              Executive
                Vice President, 

            
	 	 	 	
              Human
                Resources Director

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