Document:

Exhibit
10.2

 

FIRST
AMENDMENT 

TO CREDIT AGREEMENT

 

This
FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of August 13, 2002 (this “Amendment”)
by and between MWI VETERINARY SUPPLY CO., an Idaho corporation (the “Borrower”),
the Lenders (as defined below) and BANK OF AMERICA, N.A., as agent for the
Lenders (in its capacity as agent, the “Agent”), is made with reference
to that certain Credit Agreement, dated as of June 18, 2002 (the “Credit
Agreement”), by and between the Borrower, the financial institutions from
time to time party thereto (the “Lenders”), and the Agent.  Capitalized terms used herein without
definition shall have the same meanings herein as set forth in the Credit
Agreement.

 

RECITAL

 

WHEREAS,
pursuant to Section 11.1 of the Credit Agreement, the Borrower and the
Lenders desire to amend the Credit Agreement as set forth below;

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, the parties hereto agree as follows:

 

AGREEMENT

 

A.            Amendments.

 

1.             Amendment
to Section 7.23 of the Credit Agreement.  Section 7.23 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

 

Minimum Tangible
Net Worth.  The
Borrower shall maintain at the end of each month a Tangible Net Worth equal to
at least the sum of (a) ($4,250,000), plus (b) on and after
December 31, 2002, 50% of the positive Adjusted Net Earnings from Operations of
Holdings and its Subsidiaries on a consolidated basis for the period from the
Closing Date to September 30, 2002 (with no adjustment  to the covenant level under this Section
7.23 for losses), plus (without duplication) (c) on and after
December 31 of each year thereafter, 50% of the positive Adjusted Net Earnings
from Operations of Holdings and its Subsidiaries for each Fiscal Year ended
after the Closing Date (with no adjustment to the covenant level under this Section
7.23 for losses).

 

2.             Addition
of Pro Forma Balance Sheet.  Exhibit C
to the Credit Agreement, is hereby amended by the addition of the pro forma
balance sheet of the Borrower as of June 14, 2002 attached hereto as Exhibit A
(the “Pro Forma Balance Sheet”).

 

B.            Supplement
to Solvency Certificate.  The Pro
Forma Balance Sheet shall be made a part of, and the Borrower hereby directs
that it be incorporated as a supplement to Exhibit B of,

 

 

that certain Solvency Certificate by the Chief
Financial Officer of the Borrower dated as of June 18, 2002 and delivered in
connection with the Credit Agreement.

 

C.            Borrower’s
Representations and Warranties.  In
order to induce the Lenders to enter into this Amendment and thereby amend the
Credit Agreement in the manner provided herein, the Borrower represents and
warrants to the Lenders that the following statements are true, correct and
complete:

 

1.             Corporate
Power and Authority.  The Borrower
has all requisite corporate power and authority to enter into this Amendment
and to carry out the transactions contemplated by, and perform its obligations
under, the Credit Agreement as amended by this Amendment (the “Amended
Agreement”).

 

2.             Authorization
of Agreements.  The execution and
delivery of this Amendment and the performance of the Amended Agreement have
been duly authorized by all necessary corporate action on the part of the
Borrower.

 

3.             Binding
Obligation.  This Amendment and the
Amended Agreement are the legal, valid and binding obligation of the Borrower,
enforceable against it in accordance with their terms, except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors’ rights generally or by equitable
principles.

 

4.             Incorporation
of Representations and Warranties from Credit Agreement.  The representations and warranties contained
in Article 6 of the Credit Agreement are true, correct and complete in all
material respects, except to the extent such representations and warranties
specifically relate to an earlier date, in which case they were true, correct
and complete in all material respects on and as of such earlier date.

 

5.             Absence
of Default.  No event has occurred
and is continuing or will result from the consummation of this Amendment that
would constitute an Event of Default or a Default.

 

D.            Miscellaneous.

 

1.             Reference
to and Effect on the Credit Agreement and the other Transaction Documents.

 

a.             On
and after the date hereof, each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein,” or words of like import referring
to the Credit Agreement, and each reference in the other Transaction Documents
to the “Credit Agreement,” “thereunder,” “thereof” or words of like import
referring to the Credit Agreement, shall mean and be a reference to the Amended
Agreement.

 

b.             Except
as specifically amended by this Amendment, the Credit Agreement and the other
documents entered into pursuant to the Credit Agreement shall remain in full
force and effect and are hereby ratified and confirmed.

 

 

c.             The
execution, delivery and performance of this Amendment shall not, except as
expressly provided herein, constitute a waiver of any provision of, or operate
as a waiver of any right, power or remedy of the Agent or any Lender under the
Credit Agreement or any of the other Loan Documents.

 

2.             Headings.  Section and subsection headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

3.             New
York Law.  This Amendment shall be
governed by, and shall be construed and enforced in accordance with, the
internal laws of the State of New York, without regard to conflicts of laws
principles.

 

4.             Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are physically
attached to the same document.

 

[Remainder of page
intentionally left blank]

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to Credit
Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first above written.

 

 

	
   

  	
  “BORROWER”

  
	
   

  	
   

  	
   

  
	
   

  	
  MWI VETERINARY SUPPLY CO.,

  an Idaho corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Pat B. Thompson

  	
   

  
	
   

  	
   

  	
  Mary Pat B. Thompson

  
	
   

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “AGENT”

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven W. Sharp

  	
   

  
	
   

  	
   

  	
  Steven W. Sharp

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “LENDERS”

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven W. Sharp

  	
   

  
	
   

  	
   

  	
  Steven W. Sharp

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FLEET CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kristina Lee

  	
   

  
	
   

  	
   

  	
  Kristina Lee

  
	
   

  	
   

  	
  Vice President

  
					

 

 

EXHIBIT A

PRO FORMA BALANCE
SHEET

[To be attached]Exhibit 10.3

 

MWI VETERINARY SUPPLY CO.

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This
SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of December 19,
2003 and entered in to by and among MWI VETERINARY SUPPLY CO., an Idaho
corporation (the “Borrower”), the financial institutions listed on the
signature pages hereof (the “Lenders”) and BANK OF AMERICA, N.A.,
as agent for the Lenders (in its capacity as agent, the “Agent”), and is
made with reference to that certain Credit Agreement dated as of June 18,
2002, and amended by that certain First Amendment to Credit Agreement dated as
of August 13, 2002 (as so amended, the “Credit Agreement”), by and
among the Borrower, the Lenders and the Agent. 
Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Credit Agreement.

 

RECITALS

 

WHEREAS,
in addition to the line of credit in an amount not to exceed $70,000,000 as
provided under the Credit Agreement, the Borrower has requested that the
Lenders make available to the Borrower a line of credit for Capital
Expenditures in an amount not to exceed $2,500,000; and

 

WHEREAS,
pursuant to Section 11.1 of the Credit Agreement, the Lenders have
agreed to such request, subject to the terms and conditions set forth in this
Amendment.

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, the parties agree as follows:

 

AGREEMENT

 

I.                                         AMENDMENTS TO THE CREDIT AGREEMENT

 

1.                                       Section 1.1
of the Credit Agreement is hereby amended by deleting the first sentence and
replacing it with the following:

 

“Total Facility.  Subject to all of the terms and conditions of
this Agreement, the Lenders agree to make available a total credit facility of
up to $72,500,000 (the “Total Facility”) to the Borrower from time to
time during the term of this Agreement. 
The Total Facility shall be composed of a revolving line of credit
consisting of Revolving Loans and Letters of Credit and CAPEX Loans as described
herein.”

 

2.                                       Section 1.2(a) of
the Credit Agreement is hereby amended by deleting it in its entirety and
replacing it with the following:

 

“(a)(i)                 Amounts.  Subject to the satisfaction of the conditions
precedent set forth in Article 8, each Lender severally, but not
jointly, agrees upon the Borrower’s request from time to time on any Business
Day during the period from the Closing Date to the Termination Date, to make
revolving loans (“Revolving Loans”) to the Borrowers in amounts not to
exceed such Lender’s Pro Rata Share of Availability and CAPEX Loans
(collectively with the Revolving

 

 

Loans, the “Loans”)
to the Borrowers in amounts not to exceed such Lender’s CAPEX Loan Commitment
except in each instance for Non-Ratable Loans and Agent Advances.  The Lenders, however, in their unanimous
discretion, may elect to make Revolving Loans or issue or arrange to have
issued Letters of Credit in excess of the Borrowing Base on one or more
occasions, but if they do so, neither the Agent nor the Lenders shall be deemed
thereby to have changed the limits of the Borrowing Base or to be obligated to
exceed such limits on any other occasion. 
If the Aggregate Revolver Outstandings would exceed Availability after
giving effect to any Borrowing, the Lenders may refuse to make or may otherwise
restrict the making of Revolving Loans as the Lenders determine until such
excess has been eliminated, subject to the Agent’s authority, in its sole
discretion, to make Agent Advances pursuant to the terms of Section 1.2(i).

 

3.                                       Section 1.2(a) of
the Credit Agreement is hereby amended by deleting Subparagraph 1.2(a)(ii) in
its entirety and replacing it with the following:

 

“(ii)                            CAPEX Loans.  Subject to the satisfaction of the conditions
precedent set forth in Article 8, each Lender severally, but not
jointly, agrees, upon the Borrower’s request from time to time on any Business
Day during the period from the Second Amendment Effective Date to the
Termination Date, to make to the Borrowers each CAPEX Advance in amounts not to
exceed such Lender’s CAPEX Loan Commitment to be used for purposes of making
Capital Expenditures.  The principal
amount of each CAPEX Advance shall not (1) exceed an amount equal to 80%
of the Net Invoice Cost of all Capital Expenditures incurred on or after October 1,
2003 to be paid with the proceeds of such CAPEX Advance or (2) be less
than $100,000, and the aggregate amount of all CAPEX Advances shall not exceed
the aggregate CAPEX Loan Commitments. 
Amounts borrowed under this Subparagraph 1.2(a)(iii) and
prepaid may not be reborrowed.”

 

4.                                       Section 1.2(a) of
the Credit Agreement is hereby amended by adding new Subparagraph 1.2(a)(iii):

 

“(a)(iii)                                   Notes.  If requested by any Lender, the Borrower
shall execute and deliver to each Lender a note evidencing the Revolving Loan
or the CAPEX Loan, as applicable, of that Lender.  Each note shall be in the principal amount of
the Lender’s Pro Rata Share of the Revolving Loan Commitments, dated the date
hereof and substantially in the form of Exhibit A or, with respect
to the CAPEX Loan Commitment, a CAPEX Note dated December 19, 2003 and
substantially in the form of Exhibit A-1 (each a “Note”
and collectively, the “Notes”). 
Each Note shall represent the obligation of Borrowers to pay the amount
of the applicable Lender’s Pro Rata Share of the Revolving Loan Commitments or
CAPEX Loan Commitments, as applicable, or if less, such Lender’s Pro Rata Share
of the aggregate outstanding unpaid principal amount of all Revolving Loans and
CAPEX Loans to Borrowers, together with interest thereon as prescribed in Section 1.2.  The entire unpaid balance of the Loans and
all other non-contingent Obligations shall be immediately due and payable in
full in immediately available funds on the Termination Date.”

 

5.                                       Section 1.2(b) of
the Credit is hereby amended by deleting Subparagraph 1.2(b)(1) in its entirety and replacing it with the
following:

 

2

 

“(1)                            Each
Borrowing shall be made upon the Borrower’s irrevocable written notice
delivered to the Agent substantially in the form attached hereto as Exhibit D
(“Notice of Borrowing”), which must be received by the Agent prior to (i) 12:00
noon (California time) three Business Days prior to the requested Funding Date,
in the case of LIBOR Rate Loans and (ii) 10:00 a.m. (California time)
on the requested Funding Date, in the case of Base Rate Loans, specifying:

 

(A)                              the
amount of the Borrowing, which in the case of a LIBOR Rate Loan must equal or
exceed $2,000,000 (and increments of $1,000,000 in excess of such amount), and
which in the case of a CAPEX Advance, must equal or exceed $100,000;

 

(B)                                the requested Funding Date, which must be a Business Day;

 

(C)                                whether the Loans requested are to be Base Rate Loans or
LIBOR Rate Loans (and if not specified, it shall be deemed a request for a Base
Rate Loan);

 

(D)                               the duration of the Interest Period for LIBOR Rate Loans
(and if not specified, it shall be deemed a request for an Interest Period of
one month); and

 

(E)                                 in the case of a CAPEX Advance, a description in reasonable
detail of the Capital Expenditures made with such CAPEX Advance, together with
a breakdown of the Net Invoice Cost and such other documentation as the Agent
shall reasonably request.

 

6.                                       Section 1.3
of the Credit Agreement is deleted in its entirety and replaced with the
following:

 

“1.3                           CAPEX
Loan Repayment Terms.  Each
CAPEX Advance shall be repayable in equal monthly installments based on a 48
month straight line amortization, payable on the first day of each month,
commencing with the first month after such CAPEX Advance was made,
and with the outstanding principal principal balance due and payable in full on
the Termination Date.  Each such
installment shall be payable to the Agent for the account of the applicable
Lenders.”

 

7.                                       Section 2.1
of the Credit Agreement is hereby amended by deleting Sections 2.1(a)(i) and 2.1(a)(ii) in their entirety and
replacing them with the following, as well as adding new Section 2.1(a)(iii):

 

“(i)                               For
all Revolving Loans which are Base Rate Loans and all other Obligations (other
than LIBOR Rate Loans and CAPEX Loans) at a fluctuating per annum rate equal to
the Base Rate plus the Applicable Margin;

 

(ii)                                  For
all Revolving Loans which are LIBOR Rate Loans at a per annum rate equal to the
LIBOR Rate plus the Applicable Margin; and.

 

(iii)                               For all CAPEX Loans at a
per annum rate equal to the Base Rate or LIBOR Rate as set forth in clause (i) or
clause (ii) above, as applicable, plus the Applicable
Margin plus an additional margin of 0.50%.”

 

3

 

8.                                       Section 2.5
of the Credit Agreement is hereby amended by deleting the first sentence in its
entirety and replacing it with the following:

 

“2.5                           Unused
Line Fee.  On the first day of
each month prior to the Termination Date and on the Termination Date the
Borrowers agree to pay to the Agent, for the account of the Lenders, in
accordance with their respective Pro Rata Shares, an unused line fee (the “Unused
Line Fee”) equal to the sum of (i) three-eighths of one percent
(0.375%) per annum multiplied by the amount by which the Maximum Revolver
Amount exceeded the sum of the average daily outstanding amount of Revolving
Loans and the average daily undrawn face amount of outstanding Letters of
Credit during the immediately preceding month or shorter period if calculated
for the first month hereafter or on the Termination Date and (ii) three-eighths
of one percent (0.375%) per annum multiplied by the amount by which the CAPEX
Loan Commitments exceeded the average daily outstanding amount of the CAPEX
Loans during the immediately preceding month or shorter period if calculated
for the first month after the Second Amendment Effective Date or on the
Termination Date.”

 

9.                                       The
second sentence of Section 3.1 of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

 

“The Borrowers may prepay Revolving Loans at any time,
and reborrow subject to the terms of this Agreement.”

 

10.                                 Section 3.2(b) of
the Credit Agreement is hereby amended by deleting the schedule determining
the early termination fee and replacing it with the following:

 

	
  “Period during which

  early termination

  occurs

  	
   

  	
  Early Termination

  Fee

  
	
   

  	
   

  	
   

  
	
  On or prior to
  the first Anniversary Date

  	
   

  	
  2% of the Total Facility

  
	
   

  	
   

  	
   

  
	
  After the first
  Anniversary Date but on or prior to the second Anniversary Date

  	
   

  	
  1% of the Total Facility”

  

 

11.                                 Section 3.3
of the Credit Agreement is hereby deleted in its entirety and replaced with the
following:

 

“3.3                           Repayment
of the CAPEX Loans.  The
Borrowers shall repay the principal of the CAPEX Loans to the Agent, for the
account of the Lenders, as set forth in Section 1.3.”

 

12.                                 Section 3.4
of the Credit Agreement is hereby deleted in its entirety and replaced with the
following:

 

4

 

3.4                                 Prepayment
of the CAPEX Loan.

 

(a)                                  The
Borrower may prepay the principal of the CAPEX Loans in whole or in part, at
any time and from time to time upon at least five (5) Business Days’
prior written notice to the Agent and the Lenders.  All voluntary prepayments of the principal of
the CAPEX Loans shall be accompanied by the payment of all accrued but unpaid
interest on the CAPEX Loans to the date of prepayment and, with respect to
LIBOR Rate Loans, the payment of the amounts due under Section 4.4,
if any.  Any voluntary prepayment of less
than all of the outstanding principal of the CAPEX
Loans shall be applied to the installments of principal of the CAPEX Loans in
the inverse order of maturity.  Amounts
prepaid in respect of the CAPEX Loans may not be reborrowed.

 

(b)                                 Immediately
upon receipt by Borrower or its Subsidiaries of proceeds of any disposition of
assets acquired with the proceeds of a CAPEX Advance, Borrower shall prepay the
CAPEX Loans in an amount equal to all such proceeds, net of (A) commissions
and other reasonable and customary transaction costs, fees and expenses
properly attributable to such transaction and payable by the Borrower in
connection therewith (in each case, paid to non-Affiliates), (B) transfer
taxes, and (C) an appropriate reserve for income taxes in accordance with
GAAP in connection therewith (“Net Proceeds”).  Any such prepayment shall be applied to
scheduled installments of the CAPEX Loans, in inverse order of maturity.

 

13.                                 Section 3.7
of the Credit Agreement is hereby deleted in its entirety and replaced with the
following:

 

“3.7                           Payments
as Revolving Loans.  At the
election of Agent, all payments of principal, interest, reimbursement
obligations in connection with Letters of Credit, CAPEX Loans and Credit
Support for Letters of Credit, fees, premiums, reimbursable expenses  and other sums payable hereunder, may
be paid from the proceeds of Revolving Loans made hereunder.  The Borrowers hereby irrevocably authorize
the Agent to charge the Loan Account for the purpose of paying all amounts from
time to time then due hereunder and agrees that all such amounts charged shall
constitute Revolving Loans (including Non-Ratable Loans and Agent Advances).”

 

14.                                 Section 12.15(a) of
the Credit Agreement is hereby amended by deleting Subsection 12.15(a)(vi) in its entirety and replacing it with the
following:

 

“(a)                            (vi) 
Unless the Agent has received written notice from a Lender to the contrary, the
Agent may assume that the applicable conditions precedent set forth in Article 8
have been satisfied and that the Aggregate Revolver Outstandings will not
exceed Availability after giving effect to any Borrowing on any Funding Date
for a Loan or a Non-Ratable Loan.”

 

15.                                 Annex
A to Credit Agreement is hereby amended by deleting and replacing in their entirety
the following definitions:

 

“Aggregate Revolver Outstandings” means, at any
date of determination:  the sum of (a) the
unpaid balance of Revolving Loans, (b) the aggregate amount of Pending
Revolving Loans, (c) one hundred percent (100%) of the aggregate undrawn
face amount of all outstanding

 

5

 

Letters of Credit, and (d) the
aggregate amount of any unpaid reimbursement obligations in respect of Letters
of Credit.”

 

“Obligations” means all present and future
loans, advances, liabilities, obligations, covenants, duties, and debts owing
by Holdings or any of its Subsidiaries to the Agent and/or any Lender and/or
any Lender’s Affiliate, arising under or pursuant to this Agreement or any of
the other Loan Documents, whether or not evidenced by any note, or other
instrument or document, whether arising from an extension of credit, opening of
a letter of credit, acceptance, loan, guaranty, indemnification or otherwise,
whether direct or indirect, absolute or contingent, due or to become due,
primary or secondary, as principal or guarantor, and including all principal,
interest, charges, expenses, fees, attorneys’ fees, filing fees and any other
sums chargeable to Holdings or any of its Subsidiaries hereunder or under any
of the other Loan Documents.  “Obligations”
includes, without limitation, (a) all debts, liabilities, and obligations
now or hereafter arising from or in connection with the Letters of Credit and (b) all
debts, liabilities and obligations now or hereafter arising from or in
connection with Bank Products provided to Holdings or any of its Subsidiaries.”

 

16.                                 Annex
A to Credit Agreement is hereby amended by adding the following new
definitions:

 

“CAPEX Advance” means each advance made under
the CAPEX Loan Commitment pursuant to Subsection 1.2(a), and
includes any Non-Ratable Loan made in lieu of a CAPEX Advance.”

 

“CAPEX Loan” means the outstanding balance of
all CAPEX Advances.”

 

“CAPEX Loan Commitment” means, at any time with
respect to a Lender, the principal amount set beside such Lender’s name under
the heading “CAPEX Loan Commitment” on Schedule 1.2 attached hereto, as such CAPEX Loan Commitment may be adjusted from
time to time in accordance with the provisions of Section 11.2.”

 

“CAPEX Note” means each promissory note
executed and delivered by Borrower at any Lender’s request to evidence the
CAPEX Loan of that Lender as set forth in Subparagraph 1.2(a)(iii).”

 

“Net Invoice Cost” means, with respect to
Capital Expenditures, the invoice cost incurred by the Borrower with respect
thereto, less the aggregate amount of all freight charges, installation
and preparation costs and taxes included therein.”

 

“Pending Revolving Loans” means, at any time,
the aggregate principal amount of all Revolving Loans requested in any Notice
of Borrowing received by the Agent which have not yet been advanced.

 

“Revolving Loan Commitment” at any time with
respect to a Lender, the principal amount set beside such Lender’s name under
the heading “Revolving Loan Commitment” on Schedule 1.2 attached
hereto, as such Revolving Loan Commitment may be adjusted from time to time in
accordance with the provisions of Section 11.2.”

 

6

 

“Revolving Loans” has the meaning specified in Section 1.2
and includes each Agent Advance and Non Ratable Loan.”

 

“Second Amendment Effective Date” shall mean
the effectiveness date of the Second Amendment to Credit Agreement.

 

“Total Facility” has the meaning specified in Section 1.1.

 

17.                                 Schedule 1.2
to the Credit Agreement is hereby deleted in its entirety and replaced with Schedule 1.2
attached hereto.

 

18.                                 Exhibit A
to the Credit Agreement is hereby amended by adding new Exhibit A-1
attached hereto.

 

II.                                     CONDITIONS TO EFFECTIVENESS

 

1.                                       Section 1
of this Amendment shall become effective only upon the satisfaction of all of
the following conditions precedent (the date of satisfaction of such conditions
being referred to herein as the “Second Amendment Effective Date”):

 

a.                                       On
or before the Second Amendment Effective Date, the Borrower and each Lender
shall deliver to the Agent (with sufficient original executed copies, where
appropriate, for each party hereto and its respective counsel) executed copies
of this Amendment.

 

b.                                      On
or before the Second Amendment Effective Date, all corporate and other
proceedings taken or to be taken by the Borrower in connection with the
transactions contemplated hereby and all documents incidental thereto shall be
satisfactory in form and substance to the Agent and its counsel, and the Agent
and such counsel shall have received all such counterpart originals or
certified copies of such documents as the Agent may reasonably request.

 

c.                                       The
Borrower shall have paid to the Agent any fees referenced in Section IV.5
hereof (to the extent invoiced).

 

d.                                      The
Agent and the Lenders shall have received such opinions of counsel for the
Borrower and its Subsidiaries as the Agent or any Lender shall request, each
such opinion to be in a form, scope and substance satisfactory to the Agent,
the Lenders, and their respective counsel.

 

III.                                 BORROWER’S REPRESENTATIONS AND WARRANTIES

 

In order to induce the Lenders to enter into this
Amendment and thereby amend the Credit Agreement in the manner provided herein,
the Borrower represents and warrants to the Lenders that the following
statements are true, correct and complete:

 

1.                                       Corporate
Power and Authority.  The Borrower
has all requisite corporate power and authority to enter into this Amendment
and to carry out the transactions contemplated by,

 

7

 

and perform its obligations
under, the Credit Agreement as amended by this Amendment (the “Amended
Agreement”).

 

2.                                       Authorization
of Agreements.  The execution and
delivery of this Amendment and the performance of the Amended Agreement have
been duly authorized by all necessary corporate action on the part of the
Borrower.

 

3.                                       Binding
Obligation.  This Amendment and the
Amended Agreement are the legal, valid and binding obligation of the Borrower,
enforceable against it in accordance with their terms, except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors’ rights generally or by equitable
principles.

 

4.                                       Incorporation
of Representations and Warranties from Credit Agreement.  The representations and warranties contained
in Article 6 of the Credit Agreement are true, correct and complete
in all material respects, except to the extent such representations and
warranties specifically relate to an earlier date, in which case they were
true, correct and complete in all material respects on and as of such earlier
date.

 

5.                                       Absence
of Default.  No event has occurred
and is continuing or will result from the consummation of this Amendment that
would constitute an Event of Default or a Default.

 

IV.                                MISCELLANEOUS

 

1.                                       Reference
to and Effect on the Credit Agreement and the other Transaction Documents.

 

a.                                       On
and after the date hereof, each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein,” or words of like import referring
to the Credit Agreement, and each reference in the other Transaction Documents
to the “Credit Agreement,” “thereunder,” “thereof” or words of like import
referring to the Credit Agreement, shall mean and be a reference to the Amended
Agreement.

 

b.                                      Except
as specifically amended by this Amendment, the Credit Agreement and the other
documents entered into pursuant to the Credit Agreement shall remain in full
force and effect and are hereby ratified and confirmed.

 

c.                                       The
execution, delivery and performance of this Amendment shall not, except as
expressly provided herein, constitute a waiver of any provision of, or operate
as a waiver of any right, power or remedy of the Agent or any Lender under the
Credit Agreement or any of the other Loan Documents.

 

2.                                       Headings.  Section and subsection headings in
this Amendment are included herein for convenience of reference only and shall
not constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

8

 

3.                                       New
York Law.  This Amendment shall be
governed by, and shall be construed and enforced in accordance with, the
internal laws of the State of New York, without regard to conflicts of laws
principles.

 

4.                                       Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are
physically attached to the same document.

 

5.                                       Fees
and Expenses.  The Borrower
acknowledges that all costs, fees and expenses as described in Section 13.7
of the Credit Agreement incurred by the Agent and its counsel with respect to
this Amendment and the documents and transactions contemplated hereby shall be
for the account of the Borrower.

 

6.                                       Severability.  The illegality or unenforceability of any
provision of this Amendment or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the
remaining provisions of this Amendment or any instrument or agreement required
hereunder.

 

7.                                       Binding
Effect.  The provisions of this
Amendment shall be binding upon and inure to the benefit of the respective
representatives, successors and assigns of the parties hereto.

 

 

[Remainder of page intentionally
left blank]

 

9

 

IN WITNESS WHEREOF, the parties hereto have caused
this Second Amendment to Credit Agreement to be duly executed and delivered by
their respective officers thereunto duly authorized as of the date first above
written.

 

 

	
   

  	
  “BORROWER”

  
	
   

  	
   

  	
   

  
	
   

  	
  MWI VETERINARY SUPPLY
  CO.,

  an Idaho Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Pat B.
  Thompson

  	
   

  
	
   

  	
   

  	
  Mary Pat B. Thompson

  
	
   

  	
   

  	
  Vice President and
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “AGENT”

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven W. Sharp

  	
   

  
	
   

  	
   

  	
  Steven W. Sharp

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “LENDERS”

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven W. Sharp

  	
   

  
	
   

  	
   

  	
  Steven W. Sharp

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FLEET CAPITAL
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kristina Lee

  	
   

  
	
   

  	
   

  	
  Kristina Lee

  
	
   

  	
   

  	
  Vice President

  

 

 

Second Amendment
to Credit Agreement

 

 

SCHEDULE 1.2

 

LENDER’S
COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving Loan Commitment

  	
   

  	
  CAPEX Loan Commitment

  	
   

  	
  Commitment

  	
   

  	
  Pro Rata Share

  (3 decimals)

  	
   

  
	
  Bank of America

  	
   

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  $

  	
  1,250,000

  	
   

  	
  $

  	
  36,250,000

  	
   

  	
  50.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fleet National Bank

  	
   

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  $

  	
  1,250,000

  	
   

  	
  $

  	
  36,250,000

  	
   

  	
  50.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
  $

  	
  70,000,000

  	
   

  	
  $

  	
  2,500,000

  	
   

  	
  $

  	
  72,500,00

  	
   

  	
  100.000

  	
  %

  

 

 

Exhibit A-1

 

CAPEX NOTE

 

[To be attached]

 

1

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