Document:

exv10w23

 

EXHIBIT 10.23

Loan No. 18

REVOLVING PROMISSORY NOTE

			
	$40,000,000.00

(or if less, the aggregate

unpaid principal amount of

all advances made hereunder)
	 	December 28, 2004

     FOR VALUE RECEIVED, Professional Veterinary Products, Ltd., a Nebraska corporation (“PVPL”),
ProConn, LLC, a Nebraska limited liability company (“ProConn”), Exact Logistics, LLC, a Nebraska
limited liability company (“Exact”, together with PVPL and ProConn, collectively and individually
herein referred to as “Borrower”), promises to pay, on or before January 1, 2005, to the order of
U.S. Bank National Association, a national banking association (the “Bank”) at the Bank’s office at
1700 Farnam Street, Omaha, NE 68102, or at such other address as the holder hereof may from time to
time designate in writing, the principal sum of FORTY MILLION AND NO/100 DOLLARS ($40,000,000.00)
or, if less, the aggregate unpaid principal amount of all Revolving Loans evidenced by this
Revolving Promissory Note (this “Note”) under the Amended and Restated Loan Agreement by and
between Borrower and Bank dated as of May 12, 2003, as amended by the First Amendment to Amended
and Restated Loan Agreement dated as of December 29, 2003, and as further amended by the Second
Amendment to Amended and Restated Loan Agreement of even date herewith (collectively herein, the
“Loan Agreement”), together with interest from the date the proceeds of the Revolving Loan are
initially disbursed until maturity on the principal balance from time to time remaining unpaid
hereon and remaining unpaid on January 1, 2008 at the rates, in the manner and on the dates
specified in the Loan Agreement.

     The obligations of PVPL, ProConn and Exact under this Note shall be joint and several. Each
of PVPL, ProConn and Exact hereby represent, warrant and covenant for the benefit of Bank that it
is the intention of each of PVPL, ProConn and Exact that this Note be fully enforceable against
each of them in accordance with its terms to the same extent as if such party had been the only
party identified as “Borrower” hereunder.

     The Bank shall record on its books or records or on the schedule to this Note which is a part
hereof the principal amount of each Revolving Loan made under Section 2.1 of the Loan Agreement,
all payments of principal and interest and the principal balances from time to time outstanding.
The record thereof, whether shown on such books or records or on the schedule to this Note, shall
be prima facie evidence as to all such amounts; provided, however, that the failure of the Bank to
record any of the foregoing shall not limit or otherwise affect the obligation of the undersigned
to repay all Revolving Loans made under Section 2.1 of the Loan Agreement together with accrued
interest thereon.

     This Note is the Revolving Note referred to in and issued under and subject to the Loan
Agreement. Prepayments may be made hereon and this Note may be declared due prior to the expressed
maturity hereof, all in the events, on the terms, and in the manner and amounts

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provided in said Loan Agreement. All capitalized terms used in this Note, except terms
otherwise defined herein, shall have the same meaning as such terms have in the Loan Agreement.

     This Note is secured by certain Collateral as set forth in a Security Agreements dated as of
May 12, 2003 executed by Borrower in favor of Bank, as amended, and certain other Collateral
Documents (as defined in the Loan Agreement), to which reference is hereby made for a description
of the Collateral and a statement of the terms and conditions upon which the Bank may exercise
rights with respect to such Collateral.

     All payments on this Note shall be made in lawful money of the United States and in
immediately available and freely transferable funds at the place of payment.

     If this Note is placed in the hands of an attorney for collection, Borrower agrees to pay
reasonable attorneys’ fees and costs incurred by the Bank in connection therewith, and in the event
suit or action is instituted to enforce or interpret this Note (including without limitation
efforts to modify or vacate any automatic stay or injunction), the prevailing party shall be
entitled to recover all expenses reasonably incurred at, before or after trial and on appeal,
whether or not taxable as costs, or in any the Bankruptcy proceeding, or in connection with
post-judgment collection efforts, including, without limitation, attorneys’ fees, witness fees
(expert and otherwise), deposition costs, copying charges and other expenses.

     This Note shall be governed and construed in accordance with the laws of the State of Nebraska
applicable to contracts made and to be performed therein (excluding choice-of-law principles).
Borrower hereby irrevocably submits to the jurisdiction of any state or federal court sitting in
Omaha, Nebraska in any action or proceeding brought to enforce or otherwise arising out of or
relating to this Note, and hereby waives any objection to venue in any such court and any claim
that such forum is an inconvenient forum.

     This Note is given in a commercial transaction for business purposes.

     Borrower and all sureties, endorsers, guarantors and other parties now or hereafter liable for
the payment of this Note, in whole or in part, hereby severally (a) waive demand, notice of demand,
presentment for payment, notice of nonpayment, notice of default, protest, notice of protest,
notice of intent to accelerate, notice of acceleration and all other notices, and further waive
diligence in collecting this Note or in enforcing any of the security for this Note; (b) agree to
any substitution, subordination, exchange or release of any security for this Note or the release
of any party primarily or secondarily liable for the payment of this Note; (c) agree that the Bank
shall not be required to first institute suit or exhaust its remedies hereon against Borrower or
others liable or to become liable for the payment of this Note or to enforce its rights against any
security for the payment of this Note; and (d) consent to any extension of time for the payment of
this Note, or any installment hereof, made by agreement by the Bank with any person now or
hereafter liable for the payment of this Note, even if Borrower is not a party to such agreement.

     All agreements between Borrower and the Bank, whether now existing or hereafter

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arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of demand
or acceleration of the final maturity of this Note or otherwise, shall the interest contracted for, charged, received, paid or agreed to be paid to the Bank exceed the maximum
amount permissible under the applicable law. If from any circumstance whatsoever, interest would
otherwise be payable to the Bank in excess of the maximum amount permissible under applicable law,
the interest payable to the Bank shall be reduced to the maximum amount permissible under
applicable law; and if from any circumstance the Bank shall ever receive anything of value deemed
interest by applicable law in excess of the maximum amount permissible under applicable law, an
amount equal to the excessive interest shall be applied to the reduction of the principal hereof
and not to the payment of interest, or if such excessive amount of interest exceeds the unpaid
balance of principal hereof, such excess shall be refunded to Borrower. All interest paid or
agreed to be paid to the Bank shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full period (including any renewal or extension)
until payment in full of the principal so that the interest hereon for such full period shall not
exceed the maximum amount permissible under applicable law. The Bank expressly disavows any intent
to contract for, charge or receive interest in an amount which exceeds the maximum amount
permissible under applicable law. In determining the highest lawful rate, all fees and other
charges contracted for, charged or received by the Bank in connection with the Loan evidenced by
this Note which are either deemed interest by applicable law or required by applicable law to be
deducted from the principal balance of this Note to determine the rate of interest hereon shall be
taken into account. This paragraph shall control all agreements between Borrower and the Bank.

This Notice is Provided Pursuant to Nebraska Revised Statutes 45-1,112 et. seq.

NOTICE – WRITTEN AGREEMENTS. A credit agreement must be in writing to be enforceable under
Nebraska Law. To protect you and us from any misunderstandings or disappointments, any contract,
promise, undertaking, or offer to forebear repayment of money or to make any other financial
accommodation in connection with this loan of money or grant or extension of credit, or any
amendment of, cancellation of, waiver of, or substitution for any or all of the terms or provisions
of any instrument or document executed in connection with this loan of money or grant or extension
of credit, must be in writing to be effective.

[REMAINDER OF PAGE INTENTIONALLY BLANK;

EXECUTION PAGE FOLLOWS]

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     IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE
ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS
WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY
ANOTHER WRITTEN AGREEMENT.

     Executed as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Professional Veterinary Products, Ltd.,	 	 	 	 
	 	 	 	 	a Nebraska corporation	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Dr. Lionel L. Reilly
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Dr. Lionel L. Reilly, it President
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	ProConn, LLC, a Nebraska limited	 	 	 	 
	 	 	 	 	liability company	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Professional Veterinary Products, Ltd.,
	 	 	 	 	 	 	a Nebraska corporation, its Manager
	 	 	 	 	 	 	and sole Member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:
	 	/s/ Dr. Lionel L. Reilly	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	      Dr. Lionel L. Reilly, it President	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Exact Logistics, LLC, a Nebraska limited	 	 	 	 
	 	 	 	 	liability company	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Professional Veterinary Products, Ltd.,
	 	 	 	 	 	 	a Nebraska corporation, its Manager
	 	 	 	 	 	 	and sole Member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:
	 	/s/ Dr. Lionel L. Reilly	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	Dr. Lionel L. Reilly, it President	 	 	 	 	 	 

[EXECUTION PAGE OF REVOLVING PROMISSORY NOTE]

4exv10w24

 

EXHIBIT 10.24

SECOND AMENDMENT TO

AMENDED AND RESTATED LOAN AGREEMENT

     THIS SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT (the “Amendment”) is made
this 28th day of December 2004 (the “Effective Date”), by and among Professional Veterinary
Products, Ltd., a Nebraska corporation (“PVPL”), ProConn, LLC, a Nebraska limited liability company
(“ProConn”), Exact Logistics, LLC, a Nebraska limited liability company (“Exact”, together with
PVPL and ProConn, collectively and individually herein referred to as “Borrower”) and U.S. Bank
National Association, a national banking association (“Lender”).

     WHEREAS, Borrower and Lender are parties to that certain Amended and Restated Loan Agreement
dated as of May 12, 2003 (the “Amended and Restated Loan Agreement”) pursuant to which Lender
agreed, among other things, to make a Revolving Loan to Borrower of up to $17,500,000.00;

     WHEREAS, on December 29, 2003, Borrower and Lender entered in to a First Amendment to Amended
and Restated Loan Agreement (the “First Amendment”, together with the Amended and Restated Loan
Agreement, as amended, collectively herein referred to as the “Loan Agreement”) pursuant to which
Lender and Borrower agreed, among other things, to increase the amount of the Revolving Loan to up
to $25,000,000.00, to amend certain provisions of the Loan Agreement and to extend the termination
date of the Revolving Note and Revolving Loan; and

     WHEREAS, Lender and Borrower have agreed to further amend certain provisions of the Loan
Agreement to, among other things, increase the amount of the Revolving Loan to up to
$40,000,000.00, adjust the interest rate of the Revolving Note, amend certain covenants of Borrower
and extend the termination date of the Revolving Note and Revolving Loan until January 1, 2008.

     NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

     Section 1. Definitions. Capitalized terms not otherwise defined in this Amendment
shall have the meanings ascribed thereto in the Loan Agreement.

     Section 2. Amendment of Loan Agreement. Effective as of the Effective Date, the Loan
Agreement is hereby amended in the following respects:

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     Section 2.1 Loan Agreement Definitions. Article I, Section 1.2 of the Loan
Agreement shall be amended by substituting the following definitions appearing in such
Section:

Revolving Loan means the conditional revolving line of credit facility in an
amount up to $40,000,000.00, as described in Section 2.1 of the Loan Agreement and
as provided in the revolving note, a copy of which is attached hereto as Exhibit 2.1
to this Amendment.

Article I, Section 1.2 of the Loan Agreement shall be further amended by adding the
following definitions to such Section:

Fiscal Quarter means each fiscal quarter of Borrower ending October 31, January 31,
April 30 and July 31, respectively, of each year.

Leverage Ratio means the ratio of Borrower’s Interest Bearing Debt to EBITDA
(calculated on a 4-quarter rolling average).

Section 2.2.
Revolving Loan. Article II, Sections 2.1, 2.1.1 and 2.1.3 of the
Loan Agreement shall be amended in their entirety to provide as follows:

     Section 2.1
Revolving Loan. Subject to the terms and conditions
hereof, Lender agrees to make Advances to Borrower
from time to time during the period from the date
hereof to and including the termination date, in an
aggregate amount at any time outstanding not to
exceed the lesser of (a) Forty Million Dollars
($40,000,000.00) or (b) the Borrowing Base, as
calculated from time to time (the “Maximum Revolving
Facility”). The Revolving Loan shall be a revolving
line of credit facility and it is contemplated that
Borrower will request Advances, make prepayments and
request additional Advances. The Revolving Loan will
terminate on January 1, 2008, if not terminated prior
thereto. Borrower’s obligation to repay all Advances
with interest thereon and additional terms under the
Revolving Loan shall be evidenced by a promissory
note in the form attached hereto and marked Exhibit
2.1 ( herein, together with any and all
extensions, renewals, modifications, and
substitutions thereof and exchanges therefore,
the “Revolving Note”). Any unpaid principal amount
of the Advances and all accrued but unpaid interest
thereon under the Revolving Loan shall be payable on
the termination date.

     Section 2.1.1 Interest Rate and Payments. All accrued interest
on any unpaid principal amount of the Advances shall be due and payable on
the 1st day of each month. The principal amount of the Advances outstanding
from time to time on the Revolving Loan during any month shall bear interest
(computed on the basis of actual days elapsed in a 360-day year) at a
variable rate, subject to change each Fiscal Quarter, equal to the

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LIBOR Rate as determined by Lender on a rolling four quarter average, plus the percentage provided below:

from 1/1/05 through 1/31/05 — LIBOR plus 1.90%

from 2/1/05 through 4/30/05 — LIBOR plus 1.50%

and for each Fiscal Quarter thereafter:

if the Leverage Ratio for the last previously completed Fiscal
Quarter is greater than or equal to 3.5 to 1.0 — LIBOR plus 2.40%;

if the Leverage Ratio for the last previously completed Fiscal
Quarter is greater than 3.0 to 1.0 but less than 3.5 to 1.0 — LIBOR
plus 2.15%;

if the Leverage Ratio for the last previously completed Fiscal
Quarter is greater than 2.5 to 1.0 but less than 3.0 to 1.0 — LIBOR
plus 1.90%;

if the Leverage Ratio for the last previously completed Fiscal
Quarter is greater than 2.0 to 1.0 but less than 2.5 to 1.0 — LIBOR
plus 1.65%; and

if the Leverage Ratio for the last previously completed Fiscal
Quarter is less than 2.0 to 1.0 — LIBOR plus 1.50%;

provided, however, upon an Event of Default, at the LIBOR
Rate as determined by Lender plus 7.5% (the “Default Rate”) that is in
effect; provided, further, that in any event no rate change
shall be put into effect which would result in a rate greater than the
highest rate permitted by law. Interest accruing on the principal balance
of the Advances outstanding from time to time shall be payable on the first
day of each month and on the termination date. Borrower agrees that Lender
may at any time or from time to time, without the request by Borrower, make
an Advance to Borrower, or apply the proceeds of any Advance, for the
purpose of paying all such interest when due. As clarification with respect
to calculation of the applicable interest rate, the Leverage Ratio shall be
determined on a lagging Fiscal Quarter basis and shall be based upon
Borrower’s Quarterly Compliance Certificate for the last previously
completed Fiscal Quarter. For example, calculation of the applicable
interest rate for the Fiscal Quarter of 5/1/05 through 7/31/05 shall be
based upon the Leverage Ratio of the Fiscal Quarter ending 1/31/05.

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     Section 2.1.3 Revolving Loan Facility Fee. Borrower shall pay to
Lender an annual revolving loan facility fee as follows:

$45,000.00 due on 1/1/05

$52,500.00 due on 1/1/06

$60,000.00 due on 1/1/07.

     Section 2.3 Form of Borrowing Base Certificate. The form of the Borrowing Base
Certificate at Exhibit 2.1.4 of the Loan Agreement shall be replaced by the form of the Borrowing
Base Certificate attached to this Amendment as Exhibit 2.1.4

     Section 2.4 Financial Covenants. Article VI, Section 6.1 of the Loan Agreement shall
be amended in its entirety to provide as follows:

     Section 6.1 Financial Covenants. Borrower shall not, without the prior
written consent of Lender:

	 	(a)  	permit Tangible Net Worth to be less than
$14,000,000.00 as of the end of any Fiscal Quarter;
	 
	 	(b)  	permit the Fixed Charge Coverage Ratio to be less than
1.25 to 1.00 as of the end of any Fiscal Quarter; and
	 
	 	(c)  	permit the Leverage Ratio to be greater than 3.50 to
1.00 as of the end of any fiscal year (Borrower’s fiscal year ends July
31).

With respect to the foregoing financial covenants, Borrower shall provide Lender
with a Quarterly Compliance Certificate of Borrower in the form attached hereto and
marked Exhibit 5.1. At any time after the first anniversary date of the Effective
Date, Lender in its sole and absolute discretion upon 30 days written notice to
Borrower may amend the financial covenants contained in Sections 6.1 (a), (b) and
(c) above to adjust (either increase or decrease) the amounts, ratios and timing of
the application of a particular test or to add additional financial covenants to the
Loan Agreement and Borrower shall thereafter comply with such amended financial
covenants.

     Section 3. Affirmation of Loan Agreement. Except as specifically modified herein, the
Loan Agreement, Notes and Collateral Agreements are hereby reaffirmed in all respects. All
representations, warranties and covenants contained in this Amendment, the Loan Agreement, the
Notes and the Collateral Agreements are hereby specifically incorporated herein as if fully set
forth herein. Each Borrower, jointly and severally, represents and warrants to Lender that: (a)
such representations and warranties are correct on and as of the Effective Date as though

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made on and as of such Effective Date, except to the extent that such representations and warranties relate
solely to an earlier date; and (b) Borrower is not currently default of, and since May 12, 2003
has not at any time been in default of, any covenant on its part to be performed or observed in
this Amendment, the Loan Agreement, the Notes or the Collateral Agreements.

     Section 4. Obligations Joint and Several. The obligations of PVPL, ProConn and Exact
under this Amendment, the Loan Agreement and under the Notes shall be joint and several. For the
convenience of the parties hereto, this Amendment has been prepared for execution by multiple
borrowers, each of which is a “Borrower” for all purposes hereunder. Each of PVPL, ProConn and
Exact hereby represent, warrant and covenant for the benefit of Lender that it is the intention of
each of PVPL, ProConn and Exact that this Amendment, the Loan Agreement and the Notes be fully
enforceable against each of them in accordance with its terms to the same extent as if such party
had been the only party identified as “Borrower” hereunder or thereunder.

     Section 5. Further Assurances. Borrower will, at its expense execute, deliver, file,
and record (in such manner and form as Lender may require) any financing statement, specific
assignment, or other paper and take any other action that may be necessary, or that Lender may
reasonably request, in order to protect, preserve, perfect, or validate the security interest in
all or any portion of the Collateral or to enable Lender to exercise and enforce its rights in the
Collateral.

     Section 6. Conditions Precedent to Effectiveness of Amendment. The effectiveness of
this Amendment and the funding of any Advance under the Loan Agreement shall be subject to the
condition precedent that Lender shall have received all of the following, which, if existing, are
hereby ratified and confirmed by Borrower:

  (a) a new Revolving Note, properly executed;

  (b) a signed certificate of the Secretary of PVPL and the signed written consents of the
manager and sole member of ProConn and Exact which shall (i) evidence the authorization of
the Board of Directors of PVPL or the manager and member of ProConn and Exact, as the case
may be, to enter into this Amendment and to execute all documents related hereto; (ii)
certify the officer of PVPL, or other party on behalf of PVPL, ProConn and Exact, authorized
to sign this Amendment and any document securing the obligations of Borrower under the Loan
Agreement, this Amendment or otherwise, and (iii) contain the true signature of any such
officer or designated party (and Lender may conclusively rely on the certificate until it
shall receive a further certificate of the Secretary of PVPL canceling or amending the prior
certificate); and

  (c) such other documents, instruments and certificates as Lender, in its sole discretion,
may require.

Section 7. Miscellaneous.

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     Section 7.1 Costs and Expenses. Borrower agrees to pay on demand all costs and
expenses of Lender in connection with the preparation, interpretation, administration, amendment
and enforcement of this Amendment and any of the other instruments and documents to be delivered
hereunder and thereunder including, but not limited to, reasonable fees and out-of-pocket expenses of counsel for Lender with respect thereto, as well as all
out-of-pocket expenses incurred by Lender.

     Section 7.2 Amendments, Etc. No amendment, modification, termination or waiver of any
provision of this Amendment, the Loan Agreement, the Collateral Agreements, nor consent to any
departure by Borrower therefrom shall in any event be effective unless the same shall be in writing
and signed by Lender and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given. No notice to or demand on any Borrower in
any case shall entitle any Borrower to any other or further notice or demand in similar or other
circumstances.

     Section 7.3 Binding Effect and Assignment. This Amendment shall be binding upon and
inure to the benefit of each Borrower and Lender, and their respective successors and assigns,
including any subsequent holder or holders of any of the Notes or any participation interest
therein except that Borrower may not assign or transfer its rights hereunder without the prior
written consent of Lender.

     Section 7.4 Severability. In the event any one or more of the provisions contained in
this Amendment, the Loan Agreement, any of the Collateral Agreements or any other documents given
in connection with this transaction shall for any reason be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any
other provisions of this Amendment, the Loan Agreement or the Collateral Agreements, nor shall it
affect the validity, legality or enforceability of such provision in other states.

     Section 7.5 Governing Law. This Agreement shall be construed in accordance with the
laws of the State of Nebraska.

     Section 7.6 Counterparts. This Amendment may be executed in two or more counterparts
and such counterparts shall be deemed originals and all such counterparts shall constitute one and
the same instrument.

     Section 7.7 Waiver. EACH BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY AND ALL ISSUES
PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY ANY ONE OF THE PARTIES HERETO
AGAINST THE OTHER OR ITS SUCCESSORS WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH
THIS AMENDMENT, THE LOAN AGREEMENT OR ANY DOCUMENT CONTEMPLATED HEREIN OR RELATED HERETO. THIS
WAIVER BY THE PARTIES HERETO TO ANY

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RIGHT ANY ONE OF THEM MAY HAVE TO A TRIAL BY JURY HAS BEEN NEGOTIATED AND IS AN ESSENTIAL ASPECT OF THEIR BARGAIN. FURTHERMORE, BORROWER AND LENDER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT THEY MAY HAVE TO SEEK PUNITIVE,
CONSEQUENTIAL AND INDIRECT DAMAGES FROM THE OTHER WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN
ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY ANY ONE OF THE PARTIES HERETO AGAINST THE OTHER OR ITS SUCCESSORS WITH
RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AMENDMENT, THE LOAN AGREEMENT OR
ANY DOCUMENT CONTEMPLATED HEREIN OR RELATED HERETO. THE RECIPROCAL WAIVERS OF BORROWER AND LENDER
OF ANY RIGHT THEY MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL OR INDIRECT DAMAGES AS SET FORTH ABOVE
HAS BEEN NEGOTIATED BY THE PARTIES HERETO AND AS AN ESSENTIAL ASPECT OF THEIR BARGAIN.

     Section 7.8 Construction. This document is an agreement between parties who are
experienced in sophisticated and complex matters similar to the transaction contemplated by this
Amendment and is entered into by both parties in reliance upon the economic and legal bargains
contained herein and shall be interpreted and construed in a fair and impartial manner without
regard to such factors as the party which prepared the instrument, the relative bargaining powers
of the parties or the domicile of any party. Lender and Borrower were each represented by legal
counsel competent in advising them of their obligations and liabilities hereunder.

     Section 7.9 Notice – Written Agreements. This Notice is Provided Pursuant to Nebraska
Revised Statutes 45-1,112 et. seq. This Amendment is a credit agreement. A credit agreement must
be in writing to be enforceable under Nebraska Law. To protect you and us from any
misunderstandings or disappointments, any contract, promise, undertaking, or offer to forebear
repayment of money or to make any other financial accommodation in connection with this loan of
money or grant or extension of credit, or any amendment of, cancellation of, waiver of, or
substitution for any or all of the terms or provisions of any instrument or document executed in
connection with this loan of money or grant or extension of credit, must be in writing to be
effective.

[REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURE PAGE FOLLOWS.]

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     IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first set
forth above.

	 	 	 	 	 	 	 
	 	 	Professional Veterinary Products, Ltd.,

a Nebraska corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Dr. Lionel L. Reilly
	 	 	 	 	 
	 	 	 	 	Dr. Lionel L. Reilly, it President
	 
	 	 	 	 	 	 
	 	 	ProConn, LLC, a Nebraska limited

liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	Professional Veterinary Products, Ltd.,
	 	 	 	 	a Nebraska corporation, its Manager
	 	 	 	 	and sole Member
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Dr. Lionel L. Reilly
	

	 	 	 	 	 	 
	

	 	 	 	 	 	     Dr. Lionel L. Reilly, it President
	 
	 	 	 	 	 	 
	 	 	Exact Logistics, LLC, a Nebraska limited

liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	Professional Veterinary Products, Ltd.,
	 	 	 	 	a Nebraska corporation, its Manager
	 	 	 	 	and sole Member
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Dr. Lionel L. Reilly
	

	 	 	 	 	 	 
	

	 	 	 	 	 	     Dr. Lionel L. Reilly, it President
	 
	 	 	 	 	 	 
	 	 	U.S. Bank National Association, a
national banking association
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/
	 	 	 	 	 
	

	 	Name:	 	 	 	 
	 	 	 	 	 
	

	 	Title:	 	 	 	 
	 	 	 	 	 

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