Document:

Exhibit

Exhibit 4.1

	
	
	 

	TELENET SUPPLEMENTAL DEED 
(CREDIT AGREEMENT & INTERCREDITOR AGREEMENT)

	 

	DATED                 August 10, 2017

	 

	BETWEEN

TELENET BVBA 
as Company
THE OBLIGORS
THE EXISTING DEBTORS
THE BELGIAN PLEDGORS
THE EFFECTIVE DATE EXISTING SECURITY PROVIDERS
THE EFFECTIVE DATE SECURITY GRANTORS
THE EXISTING INTRA-GROUP LENDERS
THE ACCEDING INTRA-GROUP LENDERS
THE EXISTING SUBORDINATED CREDITOR
THE BANK OF NOVA SCOTIA 
as Senior Agent
AND

KBC BANK NV
as Security Agent

CONTENTS
Clause    Page
		
	1.
	Interpretation    2

		
	2.
	Amendments    3

		
	3.
	Accession of Acceding Intra-Group Lenders as Intra-Group Lenders    3

		
	4.
	Representations: Obligors    3

		
	5.
	Representations: Effective Date Subordinated Creditor and Effective Date Intra-Group Lenders    5

		
	6.
	Confirmation, Guarantee and Security    5

		
	7.
	Maintenance Covenant Revolving Facility    6

		
	8.
	Miscellaneous    6

		
	9.
	Governing Law    6

Schedule    
		
	1.
	Conditions Precedent    8

		
	2.
	Amended Credit Agreement    10

		
	3.
	Amended Intercreditor Agreement    11

Signatories    2

	
			
	 

	0096349-0000001 BK:38990116.13
	 
	 

	
	
	 

THIS DEED is dated          August 10, 2017 and made
BETWEEN:
		
	(1)
	TELENET BVBA (formerly known as TELENET NV), a company registered in Belgium with the Crossroads Bank for Enterprises under number 0473.416.418 (RLP Antwerp, division Mechelen) (the Company);

		
	(2)
	THE OBLIGORS named as parties to this Deed in their capacity as Obligors under the Credit Agreement (each an Obligor);

		
	(3)
	THE EXISTING DEBTORS named as parties to this Deed in their capacity as Debtors under the Intercreditor Agreement (each an Existing Debtor); 

		
	(4)
	THE BELGIAN PLEDGORS named as parties to this Deed in their capacity as pledgors, mortgagors and/or security providers (as applicable) under the Belgian Law Security Documents (each a Belgian Pledgor);

		
	(5)
	THE EFFECTIVE DATE EXISTING SECURITY PROVIDERS named as parties to this Deed in their capacity as Existing Security Providers under the Credit Agreement (each an Effective Date Existing Security Provider);

		
	(6)
	THE EFFECTIVE DATE SECURITY GRANTORS named as parties to this Deed in their capacity as Security Grantors under the Intercreditor Agreement (each an Effective Date Security Grantor);

		
	(7)
	THE EXISTING INTRA-GROUP LENDERS named as parties to this Deed in their capacity as Intra-Group Lenders under the Intercreditor Agreement (each an Existing Intra-Group Lender); 

		
	(8)
	THE ACCEDING INTRA-GROUP LENDERS named as parties to this Deed (each an Acceding Intra-Group Lender and, together with the Existing Intra-Group Lenders, the Effective Date Intra-Group Lenders);

		
	(9)
	THE EXISTING SUBORDINATED CREDITOR named as a party to this Deed in its capacity as a Subordinated Creditor under the Intercreditor Agreement (the Existing Subordinated Creditor); 

		
	(10)
	THE BANK OF NOVA SCOTIA as the Senior Agent, under and as defined in the Intercreditor Agreement, and as the Agent, under and as defined in the Credit Agreement (in each such capacity, the Senior Agent); and 

		
	(11)
	KBC BANK NV as the Security Agent, for itself and on behalf of the Senior Lenders and Hedge Counterparties (the Security Agent). 

It is intended that this document takes effect as a deed notwithstanding that a Party may only execute it under hand.
BACKGROUND
		
	(A)
	We refer to the €2,300,000,000 credit agreement, originally dated 1 August 2007 and as amended and restated by supplemental agreements dated 22 August 2007, 11 September 2007, 8 October 2007, 23 June 2009, 25 August 2009, 4 October 2010 and 2 November 2015 and made between, amongst others, the Company as original borrower and The Bank of Nova Scotia as facility agent (the Credit Agreement), as further amended by this Deed (the Amended Credit Agreement).

	
			
	 

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	(B)
	We refer to the intercreditor deed originally dated 10 October 2007 as amended on 31 July 2009 and as amended and restated by a supplemental agreement dated 2 November 2015 and entered into between, among others, the Company, The Bank of Nova Scotia as facility agent and KBC Bank NV as security agent (the Intercreditor Agreement), as further amended by this Deed (the Amended Intercreditor Agreement).

		
	(C)
	We refer to the Belgian law receivables and securities pledge agreement dated 9 August 2002 between, among others, Telenet Group Holding NV as pledgor and KBC Bank NV as Security Agent (the Belgian Law Pledge Agreement) and each other Belgian law governed security document relating to the Credit Agreement and the Intercreditor Agreement (together with the Belgian Law Pledge Agreement, the Belgian Law Security Documents, as amended by this Deed (the Amended Belgian Law Security Documents).

		
	(D)
	This Deed is supplemental to and amends the Credit Agreement, the Intercreditor Agreement and the Belgian Law Security Documents.

		
	(E)
	Pursuant to clause 28 (Amendments and waivers) of the Credit Agreement, the Majority Lenders have consented to the amendments to the Credit Agreement and to the Belgian Law Security Documents contemplated by this Deed. Accordingly, the Senior Agent is authorised to sign this Deed on behalf of the Finance Parties.

		
	(F)
	Pursuant to clause 21 (Remedies, Waivers, Amendments and Consents) of the Intercreditor Agreement, the Majority Senior Secured Creditors have consented to the amendments to the Intercreditor Agreement and to the Belgian Law Security Documents contemplated by this Deed. Accordingly, the Security Agent is authorised to sign this Deed on behalf of the Majority Senior Secured Creditors.

IT IS AGREED as follows:
		
	1.
	INTERPRETATION

		
	1.1
	Definitions

Capitalised terms defined in the Credit Agreement and the Intercreditor Agreement (as applicable) have, unless expressly defined in this Deed, the same meaning in this Deed.
		
	1.2
	Construction

		
	(a)
	The provisions of clauses 1.2 (Construction) of the Credit Agreement apply to this Deed as though they were set out in full in this Deed except that references to the Credit Agreement are to be construed as references to this Deed.

		
	(b)
	Where paragraph or clause numbers have changed in the Amended Intercreditor Agreement or the Amended Credit Agreement as a result of the amendments to the Intercreditor Agreement or the Credit Agreement, and such paragraph and clause numbers are referred to in any other Finance Document in force on the Effective Date, such paragraph or clause numbers shall be read and construed in the Amended Intercreditor Agreement or the Amended Credit Agreement (as applicable), for the purposes of the relevant Finance Document only, so that the equivalent provision in the Amended Intercreditor Agreement or Amended Credit Agreement is instead referred to in each such Finance Document.

		
	(c)
	Subject to the Effective Date having occurred, notwithstanding any provision to the contrary in any Finance Document or Debt Document entered into prior to the Effective Date, in the case of any inconsistency or conflict between the terms of any Finance Document or Debt 

	
			
	 

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Document (as applicable) and the Amended Intercreditor Agreement, the terms and provisions of the Amended Intercreditor Agreement shall prevail.
		
	(d)
	The Effective Date means the date on which the Senior Agent notifies the Company, the Security Agent and the Senior Lenders that it has received all of the documents set out in Schedule 1 (Conditions Precedent) in form and substance satisfactory to the Senior Agent. The Senior Agent must give this notification as soon as reasonably practicable. 

		
	2.
	AMENDMENTS

The parties hereto agree that with effect from the Effective Date: 
		
	(a)
	the Credit Agreement shall be supplemented and amended and restated by this Deed so that it shall then be in effect in the form set out at Schedule 2 (Amended Credit Agreement) to this Deed;

		
	(b)
	the Intercreditor Agreement shall be supplemented and amended and restated by this Deed so that it shall then be in effect in the form set out at Schedule 3 (Amended Intercreditor Agreement) to this Deed;

		
	(c)
	the Belgian Law Pledge Agreement will be amended so that the words “validly existing under the laws of Belgium” in clause 6.1(a) of that agreement will be deleted and replaced with the words “validly existing under the laws of its jurisdiction of incorporation”; and 

		
	(d)
	each other Belgian Law Security Document which contains a representation or undertaking regarding the jurisdiction of incorporation of the relevant Belgian Pledgor similar to clause 6.1(a) of the Belgian Law Pledge Agreement will be amended in the same manner as set out in paragraph (c) above.

		
	3.
	ACCESSION OF ACCEDING INTRA-GROUP LENDERS AS INTRA-GROUP LENDERS

		
	(a)
	In consideration of each Acceding Intra-Group Lender being accepted as an Intra-Group Lender for the purposes of the Intercreditor Agreement, each Acceding Intra-Group Lender confirms that, on and from the Effective Date, it intends to be party to the Intercreditor Agreement as Intra-Group Lenders, undertakes to perform all the obligations expressed in the Intercreditor Agreement to be assumed by Intra-Group Lenders and agrees that it shall be bound by all the provisions of the Intercreditor Agreement, as if it had been an original party to the Intercreditor Agreement as an Intra-Group Lender.

		
	(b)
	The Security Agent and each Acceding Intra-Group Lender agree that this Deed shall take effect as a Creditor Accession Undertaking (as such term is defined in the Amended Intercreditor Agreement) for the purpose of the Amended Intercreditor Agreement. The Security Agent’s signature to this Deed constitutes its acceptance on the Effective Date of such Creditor Accession Undertaking with respect to the Acceding Intra-Group Lenders.

		
	4.
	REPRESENTATIONS: OBLIGORS

		
	4.1
	Representations

The representations and warranties set out in this Clause are made on the Effective Date by each Obligor to each Finance Party.  Each Obligor makes the representations and warranties set out in this Clause in respect of itself and (where applicable) in respect of its Subsidiaries.

	
			
	 

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	4.2
	Legal Validity

		
	(a)
	The obligations expressed to be assumed by it in this Deed constitutes its legal, valid and binding obligations enforceable, subject to any relevant reservations or qualifications as to matters of law contained in any legal opinion referred to in paragraph 3 of Schedule 1 to this Deed in accordance with its terms.

		
	(b)
	Apart from paragraphs (c) and (d) of Clause 2 (Amendments) of this Deed, the choice of English law as the governing law of this Deed and its irrevocable submission to the jurisdiction of the courts of England in respect of any proceedings relating to this Deed will be recognised and enforced in its jurisdiction of incorporation, subject to any relevant reservation or qualification as to matters of law contained in any legal opinion referred to in paragraph (a) above.

		
	(c)
	Any judgment obtained in England in relation to this Deed will be recognised and enforced in its jurisdiction of incorporation, subject to any relevant reservation or qualification as to matters of law contained in any legal opinion referred to in paragraph (a) above.

		
	4.3
	Non-conflict

The execution and delivery by it of, this Deed, and its performance of the transactions contemplated thereby, will not violate: 
		
	(a)
	in any material respect, any law or regulation or official judgment or decree applicable to it;

		
	(b)
	in any material respect, its constitutional documents; or

		
	(c)
	any agreement or instrument to which it is a party or binding on any of its assets or binding upon any other member of the Group or any other member of the Group’s assets, where such violation would or is reasonably likely to have a Material Adverse Effect.

		
	4.4
	Power and authority

It has the power to enter into and comply with all obligations expressed on its part under this Deed and has taken all necessary actions to authorise the execution, delivery and performance of this Deed and the transactions contemplated by this Deed.
		
	4.5
	Authorisations

		
	(a)
	Subject to any relevant reservations or qualifications contained in any legal opinion referred to in paragraph (a) of Clause 4.2 (Legal Validity) above, all material and necessary authorisations, registrations, consents, approvals, licences, and filings required by it in connection with the execution, validity or enforceability of this Deed, and the performance of the transactions contemplated by this Deed have been obtained (or, if applicable, will be obtained within the required time period) and are validly existing.

		
	(b)
	The Licences are in full force and effect and each member of the Group is in compliance in all material respects with all provisions thereof such that the Licences are not the subject of any pending or, to the best of its knowledge, threatened attack, suspension or revocation by a competent authority except, in each case, to the extent that any lack of effect, non-compliance or attack, suspension or revocation of a Licence would not have or not be reasonably likely to have a Material Adverse Effect.

	
			
	 

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	(c)
	All the Necessary Authorisations are in full force and effect, each member of the Group is in compliance in all material respects with all provisions thereof and the Necessary Authorisations are not the subject of any pending or, to the best of its knowledge, threatened attack or revocation by any competent authority except, in each case, to the extent that any lack of effect, non-compliance or attack or revocation of a Necessary Authorisation would not have or not be reasonably likely to have a Material Adverse Effect.

		
	5.
	REPRESENTATIONS: EXISTING SUBORDINATED CREDITOR AND EFFECTIVE DATE INTRA-GROUP LENDERS

		
	(a)
	The representations and warranties set out in clause 10.9 (Subordinated Creditor Representations) of the Amended Intercreditor Agreement are made on the Effective Date by the Existing Subordinated Creditor. 

		
	(b)
	The representations and warranties set out in clause 11.10 (Representations: Intra-Group Lenders) of the Amended Intercreditor Agreement are made on the Effective Date by each Effective Date Intra-Group Lender.

		
	6.
	CONFIRMATION, GUARANTEE AND SECURITY

With effect from the Effective Date, each Obligor, each Existing Debtor, each Belgian Pledgor, each Effective Date Existing Security Provider, each Effective Date Security Grantor, each Effective Date Intra-Group Lender and each Existing Subordinated Creditor (as applicable):
		
	(a)
	confirms its acceptance of each of the Amended Credit Agreement, the Amended Intercreditor Agreement and the Amended Belgian Law Security Documents;

		
	(b)
	agrees that it is bound as an Obligor, a Debtor, a Belgian Pledgor, an Existing Security Provider, a Security Grantor, an Intra-Group Lender and a Subordinated Creditor; and

		
	(c)
	(if a Guarantor (under and as defined in the Amended Credit Agreement), an Existing Security Provider (under and as defined in the Amended Credit Agreement), a Belgian Pledgor (under the Amended Belgian Law Security Documents) or a Security Grantor (under and as defined in the Amended Intercreditor Agreement)) confirms and accepts that: 

		
	(i)
	any Security, guarantee and indemnity created or given by it under a Pre-Effective Date Security Document will: 

		
	(A)
	continue in full force and effect on the terms of the respective Finance Documents (including the Amended Credit Agreement and the Amended Intercreditor Agreement); and

		
	(B)
	continue to extend to the Secured Obligations, under and as defined in paragraph (a) of that definition in the Amended Intercreditor Agreement; and

		
	(ii)
	any guarantee or indemnity created or given by it under clause 17 (Guarantee and Indemnity) of the Credit Agreement will:

		
	(A)
	continue in full force and effect on the terms of the respective Finance Documents (including the Amended Credit Agreement); and

	
			
	 

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	(B)
	extend to the liabilities and obligations of the Obligors under the Finance Documents (including the Amended Credit Agreement and the Amended Intercreditor Agreement), 

in each case, as amended by the terms of this Deed and subject to any limitations set out in clause 17.9 (Limitations) of the Amended Credit Agreement and any Accession Agreement.
		
	7.
	MAINTENANCE COVENANT REVOLVING FACILITY

The Company agrees that, with effect from the Effective Date, each of: 
		
	(a)
	the Revolving Loan Z Facility (as defined in the additional facility Z accession agreement dated 7 May 2015 between, among others, Telenet International Finance S.à r.l.as borrower, The Bank of Nova Scotia as facility agent and KBC Bank NV as security agent); and

		
	(b)
	the Revolving Loan AG Facility (as defined in the additional facility AG accession agreement dated 22 November 2016 between, among others, Telenet International Finance S.à r.l.as borrower, The Bank of Nova Scotia as facility agent and KBC Bank NV as security agent),

shall be designated as a Maintenance Covenant Revolving Facility under and as defined in the Amended Credit Agreement.
		
	8.
	MISCELLANEOUS 

		
	(a)
	Each of this Deed, the Amended Credit Agreement, the Amended Intercreditor Agreement and each Amended Belgian Law Security Document is a Finance Document. 

		
	(b)
	Subject to the terms of this Deed:

		
	(i)
	the Amended Credit Agreement will remain in full force and effect and, from the Effective Date, the Credit Agreement and this Deed will be read and construed as one document;

		
	(ii)
	the Amended Intercreditor Agreement will remain in full force and effect and, from the Effective Date, the Intercreditor Agreement and this Deed will be read and construed as one document; 

		
	(iii)
	each Amended Belgian Law Security Document will remain in full force and effect and, from the Effective Date, each Belgian Law Security Document and this Deed will be read and construed, in each case, as one document; and 

		
	(iv)
	except as otherwise provided in this Deed, the Finance Documents remain in full force and effect.

		
	(c)
	The provisions of clauses 34 (Counterparts) and 38 (Enforcement) of the Credit Agreement apply to this Deed as though they were set out in full in this Deed except that references to the Credit Agreement are to be construed as references to this Deed.

		
	9.
	GOVERNING LAW

		
	(a)
	Subject to paragraph (b) below, this Deed and any non-contractual obligations arising out of or in connection with it are governed by English law.

		
	(b)
	Paragraphs (c) and (d) of Clause 2 (Amendments) of this Deed and any non-contractual obligations arising out of or in connection with them are governed by Belgian law.

	
			
	 

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THIS DEED has been entered into as a deed on the date stated at the beginning of this Deed.

	
			
	 

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SCHEDULE 1
CONDITIONS PRECEDENT
		
	1.
	Corporate documents

		
	(a)
	A copy of the latest version on the date of this Deed of the articles of association or equivalent constitutional documents, as applicable, of each Obligor, Existing Debtor, Effective Date Existing Security Provider and Effective Date Security Grantor.

		
	(b)
	In relation to each Obligor, Existing Debtor, Effective Date Existing Security Provider and Effective Date Security Grantor incorporated under the laws of the United States, a certificate of good standing.

		
	(c)
	A copy of a resolution of the board of directors, or the board of managers (or equivalent), of each Obligor, each Existing Debtor, each Effective Date Existing Security Provider and each Effective Date Security Grantor approving the terms of, and the transactions contemplated by, this Deed and any other Finance Documents to which it is, or will become, a party.

		
	(d)
	A specimen of the signature of each person authorised on behalf of each Obligor, each Existing Debtor, each Effective Date Existing Security Provider and each Effective Date Security Grantor to execute or witness the execution of this Deed and any other Finance Document or to sign or send any document or notice in connection with this Deed and any other Finance Document.

		
	(e)
	An up-to-date extract from the Luxembourg Trade and Companies Register in respect of each Obligor and Existing Debtor incorporated in Luxembourg.

		
	(f)
	An up-to-date negative certificate (certificat de non-inscription d'une decision judiciaire) issued by the Luxembourg Trade and Companies Register in respect of each Obligor and Existing Debtor incorporated in Luxembourg.

		
	(g)
	A copy of the minutes of the shareholders' meeting of each Obligor and Existing Debtor incorporated in Belgium and each Effective Date Existing Security Provider and Effective Date Security Grantor incorporated in Belgium which is a limited liability company (naamloze vennootschap / société anonyme) (except for Telenet Group Holding NV):

		
	(i)
	approving for the purposes of article 556 of the Belgian Companies Act, the terms of and transactions contemplated by this Deed; and

		
	(ii)
	authorising named persons to fulfil the formalities with the Registry of the Commercial Court of the registered office of such Obligor, Existing Debtor, Effective Date Existing Security Provider or Effective Date Security Grantor following the decision taken in accordance with the above.

		
	(h)
	A certificate of an authorised signatory of the Company certifying that each copy document specified in this Schedule 1 (Conditions Precedent) is correct, complete and in full force and effect on the date of this Deed.

		
	2.
	Security confirmation 

A Luxembourg law confirmation and amendment agreement in relation to:

	
			
	 

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	(a)
	the share pledge agreement originally dated 4 October 2010, and amended on 2 November 2015,  and made between Telenet NV as pledgor, KBC Bank NV as pledgee and Telenet International Finance S.à r.l. as company; 

		
	(b)
	the account pledge agreement originally dated 4 October 2010, and as amended on 2 November 2015, and the account pledge agreement originally dated 6 February 2013, and as amended on 2 November 2015, and made between Telenet International Finance S.à r.l. as pledgor and KBC Bank NV as pledgee; 

		
	(c)
	the receivables pledge agreement originally dated 4 October 2010, and as amended on 2 November 2015, and made between Telenet International Finance S.à r.l. as pledgor and KBC Bank NV as pledgee and Telenet Luxembourg Finance Center S.à r.l. and Telenet NV as companies; 

		
	(d)
	the receivables pledge agreement originally dated 6 February 2013, and as amended on 2 November 2015, and the note pledge agreement originally dated 6 February 2013, and as amended on 2 November 2015, and made between Telenet International Finance S.à r.l. as pledgor, KBC Bank NV as pledgee and Finance Center Telenet S.à r.l. as company.

		
	3.
	Legal opinions

		
	(a)
	A legal opinion of Allen & Overy LLP, English legal advisers to the Senior Agent, addressed to the Finance Parties.

		
	(b)
	A legal opinion of Allen & Overy LLP, Belgian legal advisers to the Senior Agent, addressed to the Finance Parties.

		
	(c)
	A legal opinion of Allen & Overy, société en commandite simple,Luxembourg legal advisers to the Senior Agent, addressed to the Finance Parties.

		
	(d)
	A legal opinion of Ropes & Gray LLP, Delaware legal advisers to the Obligors and Security Guarantors, addressed to the Finance Parties.  

	
			
	 

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SCHEDULE 2
AMENDED CREDIT AGREEMENT

	
			
	 

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SCHEDULE 3
AMENDED INTERCREDITOR AGREEMENT

	
			
	 

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SIGNATORIES
THE COMPANY

EXECUTED as a DEED by
TELENET BVBA    
acting by    ) [Signature]                    [Signature]
acting under the authority of that    ) AUTHORIZED SIGNATORY             AUTHORIZED SIGNATORY
company, in the presence of:    )                 
Witness's Signature [Signature]
Name:        AUTHORIZED SIGNATORY
Address:    LIERSESTEENWEG 4
2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

OBLIGORS

EXECUTED as a DEED by
TELENET GROUP BVBA    
acting by    ) [Signature]                    [Signature]
acting under the authority of that    ) AUTHORIZED SIGNATORY        AUTHORIZED SIGNATORY
company, in the presence of:    )                 
Witness's Signature [Signature]
Name:        MICHAEL DE BRUYN
Address:    LIERSESTEENWEG 4
2800 MECHELEN

EXECUTED as a DEED by
TELENET BVBA    
acting by    ) [Signature]                    [Signature]
acting under the authority of that    ) AUTHORIZED SIGNATORY       AUTHORIZED SIGNATORY
company, in the presence of:    )                 
Witness's Signature [Signature]
Name:        AUTHORIZED SIGNATORY
Address:    LIERSESTEENWEG 4
2800 MECHELEN

EXECUTED as a DEED by
TELENET INTERNATIONAL FINANCE S.À R.L.
acting by    ) [Signature]    
acting under the authority of that    )AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:      AUTHORIZED SIGNATORY
Address:  TELENET INTERNATIONAL FINANCE SARL
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXECUTED as a DEED by
TELENET FINANCING USD LLC
acting by    ) [Signature]
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]
Name:   AUTHORIZED SIGNATORY
Address:    LIERSESTEENWEG 4
2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXISTING DEBTORS

EXECUTED as a DEED by
TELENET GROUP BVBA    
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:   BART VAN SPRUNDEL
Address:  TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by
TELENET BVBA    
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:   AUTHORIZED SIGNATORY
Address:  TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by
TELENET INTERNATIONAL FINANCE S.À R.L.    
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:    AUTHORIZED SIGNATORY
Address:  TELENET INTERNATIONAL FINANCE SARL
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXECUTED as a DEED by
TELENET FINANCING USD LLC    
acting by    ) [Signature]    
acting under the authority of that    )  AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature   [Signature]    
Name:        AUTHORIZED SIGNATORY
Address:    LIERSESTEENWEG 4
2800 MECHELEN

EXECUTED as a DEED by
TELENET VLAANDEREN NV    
acting by    )  [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY 
company, in the presence of:    )
Witness's Signature   [Signature]
Name:    AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

BELGIAN PLEDGORS

EXECUTED as a DEED by
TELENET GROUP HOLDING NV    
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature   [Signature]
Name:    AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by
TELENET BVBA    
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY                       
company, in the presence of:    )
Witness's Signature   [Signature]
Name:    AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by
TELENET VLAANDEREN NV    
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature   [Signature]
Name:   AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXECUTED as a DEED by
TELENET GROUP BVBA
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature   [Signature]
Name:    AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EFFECTIVE DATE EXISTING SECURITY PROVIDERS

EXECUTED as a DEED by
TELENET GROUP BVBA
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY      
company, in the presence of:    )
Witness's Signature   [Signature]
Name:   AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by
TELENET BVBA    
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY                  
company, in the presence of:    )
Witness's Signature   [Signature]
Name:   AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

EXECUTED as a DEED by
TELENET INTERNATIONAL FINANCE S.À R.L.    
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:    AUTHORIZED SIGNATORY
Address:  TELENET INTERNATIONAL FINANCE SARL
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXECUTED as a DEED by
TELENET FINANCING USD LLC    
acting by    ) [Signature]
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]
Name:   AUTHORIZED SIGNATORY
Address:    LIERSESTEENWEG 4
2800 MECHELEN

EXECUTED as a DEED by
TELENET GROUP HOLDING NV    
acting by    ) [Signature]                           
acting under the authority of that    )AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature   [Signature]
Name:    AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

EXECUTED as a DEED by 
TELENET VLAANDEREN NV
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature   [Signature]
Name:    AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EFFECTIVE DATE SECURITY GRANTORS

EXECUTED as a DEED by
TELENET GROUP HOLDING NV    
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature   [Signature]
Name:   AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXISTING INTRA-GROUP LENDERS

EXECUTED as a DEED by 
TELENET BVBA    
acting by    ) [Signature]                           
acting under the authority of that    ) BIRGIT CONIX                          
company, in the presence of:    )
Witness's Signature   [Signature]
Name:    BART VAN SPRUNDEL
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

EXECUTED as a DEED by 
TELENET GROUP BVBA    
acting by    ) [Signature]                           
acting under the authority of that    ) AUTHORIZED SIGNATORY                        
company, in the presence of:    )
Witness's Signature   [Signature]
Name:   AUTHORIZED SIGNATORY
Address: TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
    2800 MECHELEN

EXECUTED as a DEED by 
TELENET INTERNATIONAL FINANCE S.À R.L.    
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:    AUTHORIZED SIGNATORY
Address:  TELENET INTERNATIONAL FINANCE SARL
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXECUTED as a DEED by 
TELENET FINANCING USD LLC    
acting by    ) [Signature]
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]
Name:   AUTHORIZED SIGNATORY
Address:    LIERSESTEENWEG 4
2800 MECHELEN

EXECUTED as a DEED by 
FINANCE CENTER TELENET S.À R.L.
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:    AUTHORIZED SIGNATORY
Address:  TELENET INTERNATIONAL FINANCE SARL
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by
ULANA BUSINESS MANAGEMENT LTD.
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:      AUTHORIZED SIGNATORY
Address: BUILDING P2, EASTPOINT BUSINESS PARK
  CLONTARF
  DUBLIN 3

Telenet ARA (ICA & SFA)

	
	
	 

ACCEDING INTRA-GROUP LENDERS

EXECUTED as a DEED by 
CODITEL BRABANT BVBA 
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:     AUTHORIZED SIGNATORY
Address:  TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by 
TELENET VLAANDEREN NV
acting by    )  [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY   
company, in the presence of:    )
Witness's Signature [Signature]    
Name:   AUTHORIZED SIGNATORY
Address:  TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by 
TELENET RETAIL BVBA
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY 
company, in the presence of:    )
Witness's Signature [Signature]    
Name:  AUTHORIZED SIGNATORY
Address:  TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXECUTED as a DEED by 
TELENET LUXEMBOURG FINANCE CENTER S.À R.L.
acting by    ) [Signature]    
acting under the authority of that    ) PETER VANDEN EYNDEN
company, in the presence of:    )
Witness's Signature [Signature]    
Name:    ROB GOYENS
Address:  TELENET INTERNATIONAL FINANCE SARL
   LIERSESTEENWEG 4
   2800 MECHELEN

EXECUTED as a DEED by 
TELENET SOLUTIONS LUXEMBOURG S.A.
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:    AUTHORIZED SIGNATORY
Address:  TELENET INTERNATIONAL FINANCE SARL
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

EXISTING SUBORDINATED CREDITOR

EXECUTED as a DEED by 
TELENET GROUP HOLDING NV
acting by    ) [Signature]    
acting under the authority of that    ) AUTHORIZED SIGNATORY
company, in the presence of:    )
Witness's Signature [Signature]    
Name:   AUTHORIZED SIGNATORY
Address:  TELENET GROUP HOLDING NV
   LIERSESTEENWEG 4
   2800 MECHELEN

Telenet ARA (ICA & SFA)

	
	
	 

SENIOR AGENT
THE BANK OF NOVA SCOTIA
By: [Signature]        AUTHORIZED SIGNATORY    MANAGING DIRECTOR
       [Signature]        AUTHORIZED SIGNATORY    MANAGING DIRECTOR
              

Telenet ARA (ICA & SFA)

	
	
	 

SECURITY AGENT
KBC BANK NV
By: [Signature]        AUTHORIZED SIGNATORY    AGENT SYNDICATED LOANS
       [Signature]       AUTHORIZED SIGNATORY    AGENT SYNDICATED LOANS
              

Telenet ARA (ICA & SFA)ex10-1.htm

Exhibit 10.1

 

 

FORBEARANCE AND FOURTH LOAN MODIFICATION AGREEMENT

 

THIS FORBEARANCE AND FOURTH LOAN MODIFICATION AGREEMENT (this “Agreement”) is by and between ART’S WAY MANUFACTURING CO., INC., a Delaware corporation (the “Borrower”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association (the “Bank”) and is made as of the date shown opposite the Bank’s signature on the signature page (the “Agreement Date”).

 

RECITALS

 

WHEREAS, the Borrower has executed and delivered to the Bank an Installment or Single Payment Note dated May 10, 2012 in the original principal amount of $880,000 (as amended, restated, supplemented or otherwise modified from time to time, the “2012 Term Note”); 

 

WHEREAS, the Borrower has executed and delivered to the Bank a Revolving Credit Note dated May 1, 2013 in the original principal amount of $8,000,000 (as amended, restated, supplemented or otherwise modified from time to time, the “Revolving Note”);

 

WHEREAS, the Borrower has executed and delivered to the Bank Term Notes each dated May 1, 2013 in the original principal amounts of (i) $1,006,500, (ii) 1,143,600 and (iii) 1,833,510.26 (each as amended, restated, supplemented or otherwise modified from time to time, collectively, the “2013 Term Notes”); 

 

WHEREAS, the Borrower has executed and delivered to the Bank a Term Note dated May 29, 2014 in the original principal amount of $1,000,000 (as amended, restated, supplemented or otherwise modified from time to time, the “2014 Term Note”; together with the 2012 Term Note, the Revolving Note, and the 2013 Term Notes, collectively, the “Notes”);

 

WHEREAS, the Revolving Note is subject to the terms and conditions set forth in the Revolving Credit Agreement dated as of May 1, 2013 between the Borrower and the Bank (as amended, restated, supplemented or otherwise modified from time to time, “Revolving Credit Agreement”);

 

WHEREAS, the 2013 Term Notes are subject to the terms and conditions set forth in the Term Loan Agreement dated as of May 1, 2013 between the Borrower and the Bank (as amended, restated, supplemented or otherwise modified from time to time, “2013 Term Loan Agreement”);

 

WHEREAS, the 2014 Term Note is subject to the terms and conditions set forth in the Term Loan Agreement dated as of May 29, 2014 between the Borrower and the Bank (as amended, restated, supplemented or otherwise modified from time to time, “2014 Term Loan Agreement”; together with the Revolving Credit Agreement and the 2013 Term Loan Agreements, collectively, the “Loan Agreements”);

 

WHEREAS, all indebtedness evidenced by the Notes and the Loan Agreements, and any extensions, renewals, restatements and modifications thereof and all principal, interest, fees and expenses relating thereto, however arising, whether liquidated or unliquidated, whether absolute or contingent, and of whatever nature, including without limitation, costs and expenses of collection and enforcement of the Loan Documents (as defined below), including without limitation attorneys’ fees of both inside and outside counsel, and all other indebtedness, obligations and liabilities of any kind owing by the Borrower or any Guarantor (as defined below) to the Bank or any of its affiliates are referred to in this Agreement as the “Obligations”;

 

 

1

 

 

WHEREAS, the Obligations are secured by the real and personal property (together with all substitutions and replacements for and products and proceeds of any of the foregoing, the “Collateral”) in which the Bank has been granted a lien pursuant to any of the following documents (together with any additional agreement or document entered into by the Borrower, any Guarantor or other Person for the benefit of the Bank to secure payment of the Obligations or otherwise relating to any Collateral, each as amended, restated or otherwise modified from time to time, collectively, the “Collateral Documents”): 

 

	 	
(i)
	
a Business Security Agreement dated May 1, 2013 by the Borrower in favor of the Bank;

 

	 	
(ii)
	
a Business Security Agreement dated May 1, 2013 by Art’s-Way Scientific, Inc., an Iowa corporation (“Scientific”), in favor of the Bank;

 

	 	
(iii)
	
a Business Security Agreement dated May 1, 2013 by the Borrower (as successor by merger to Art’s Way Vessels, Inc. (“Vessels”)) in favor of the Bank;

 

	 	
(iv)
	
a Business Security Agreement dated October 25, 2013 by Ohio Metal Working Products/Art’s-Way, Inc., an Ohio corporation (“Ohio Metal”; together with Scientific, the “Guarantors”), in favor of the Bank;

 

	 	
(v)
	
a Pledge Agreement dated May 1, 2013 by Scientific in favor of the Bank;

 

	 	
(vi)
	
a Pledge Agreement dated May 1, 2013 by the Borrower (as successor by merger to Vessels) in favor of the Bank;

 

	 	
(vii)
	
a Pledge Agreement dated June 4, 2014 by Ohio Metal in favor of the Bank;

 

	 	
(viii)
	
a Mortgage, Security Agreement and Assignment of Rents of Iowa Real Estate dated May 1, 2013 by the Borrower in favor of the Bank and recorded in the Office of the Clayton County Recorder on May 16, 2013 as Document No. 2013R02019;

 

	 	
(ix)
	
a Mortgage, Security Agreement and Assignment of Rents of Iowa Real Estate dated May 1, 2013 by the Borrower (as successor by merger to Vessels) in favor of the Bank and recorded in the Office of the Dubuque County Recorder on May 16, 2013 as Document No. 007687140008; and

 

	 	
(x)
	
a Mortgage, Security Agreement and Assignment of Rents of Iowa Real Estate dated August 30, 2013 by the Borrower in favor of the Bank and recorded in the Office of the Emmet County Recorder on September 23, 2013 as Document No. 2013-01380; and

 

	 	
(xi)
	
an Open-End Mortgage, Security Agreement and Assignment of Rents and Leases (Including Fixture Filing Under Uniform Commercial Code) (Ohio) dated May 29, 2014 by Ohio Metal in favor of the Bank and recorded in the Office of the Stark County Recorder on June 13, 2014 as Document No. 201406130021758.

 

WHEREAS, the Obligations of the Borrower are guaranteed pursuant to the following guaranties (each as amended, restated or otherwise modified from time to time, collectively, the “Guaranties”) in favor of the Bank:

 

	 	
(i)
	
a Continuing Guaranty (Unlimited) dated May 1, 2013 by Scientific in favor of the Bank; and

 

	 	
(ii)
	
a Continuing Guaranty (Unlimited) dated October 25, 2013 by Ohio Metal in favor of the Bank.

 

 

2

 

 

WHEREAS, the Notes, the Loan Agreements, the Collateral Documents and the Guaranties, as well as any other loan documents executed by the Borrower or any Guarantor pursuant thereto or in connection therewith, as the same may be amended from time to time, are referred to collectively in this Agreement as the “Loan Documents”;

 

WHEREAS, a certain default exists under the Loan Documents; and

 

WHEREAS, the Borrower has requested that the Bank forbear from exercising its rights and remedies as a result of the Identified Default (defined below) and has also requested certain modifications to the terms of the Loan Documents, and the Bank has so agreed, subject in all respects to the terms and conditions of this Agreement.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the above recitals, the agreements set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree:

 

1.             Recitals; Capitalized Terms. The Borrower acknowledges that the recitals set forth above are true and correct, and are made a part of this Agreement. Capitalized terms used and not defined in this Agreement have the meanings assigned to such terms in the Loan Documents.

 

2.             Acknowledgements. The Borrower acknowledges and agrees as follows:

 

a.     The outstanding indebtedness under the Notes as of July 27, 2017 is:

 

	
Note
	 	
Principal
	 	 	
Interest
	 	 	
Fees and Late 

Charges
	 	 	
Total Due
	 
	
2012 Term Note
	 	$	249,905.48	 	 	$	678.57	 	 	$	0.00	 	 	$	250,584.05	 
	
2013 Term Note
	 	$	555,991.73	 	 	$	2,308.91	 	 	$	0.00	 	 	$	558,300.64	 
	
2013 Term Note
	 	$	628,980.80	 	 	$	2,612.02	 	 	$	0.00	 	 	$	631,592.82	 
	
2013 Term Note
	 	$	600,232.34	 	 	$	2,492.63	 	 	$	0.00	 	 	$	602,724.97	 
	
Revolving Note
	 	$	3,734,114.05	 	 	$	15,506.95	 	 	$	0.00	 	 	$	3,749,621.00	 
	
2014 Term Note
	 	$	878,563.23	 	 	$	280.66	 	 	$	0.00	 	 	$	878,843.89	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
TOTALS
	 	$	6,647,787.63	 	 	$	23,879.74	 	 	$	0.00	 	 	$	6,671,667.37	 

 

b.     The Borrower is in default under the Loan Documents as a result of the failure to maintain a Year-To-Date EBITDA as of May 31, 2017 for the fiscal year to date then ended of not less than $1 (collectively, the “Identified Default”), as required by the Loan Documents; and, as a result of the Identified Default, the Bank is entitled to demand immediate payment of all Obligations, without restriction, offset, deduction or counterclaim of any kind or character whatsoever, and to exercise various rights and remedies pursuant to the Loan Documents and applicable law. 

 

c.     The Borrower waives the right, if any, to receive notice from the Bank of the Identified Default. All grace periods, if any, applicable to the cure of the Identified Default have expired or are hereby waived by the Borrower.

 

 

3

 

 

d.     Notwithstanding any provision in any of the Loan Documents or this Agreement to the contrary, as of the Agreement Date the Bank has no further obligation or commitment to loan, advance or re-advance any additional funds to the Borrower under the Loan Documents or otherwise. 

 

3.             Limited Forbearance. Effective as of the Closing Date (defined below), the Bank agrees that it will forbear from exercising any of its rights or remedies under the Loan Documents as the result of the Identified Default until the earliest to occur of the following:

 

a.     any default or event of default occurs or is continuing under the Loan Documents, other than the Identified Default; 

 

b.     the Borrower’s failure to make any payment due under any Loan Documents;

 

c.     any representation or warranty of the Borrower made herein or in the Loan Documents shall prove to be false, misleading or incorrect in any respect;

 

d.     the Borrower shall fail to perform any of its covenants or obligations under this Agreement;

 

e.     the occurrence after the Agreement Date of any material adverse change to the business, management or operations of the Borrower;

 

f.     any judicial, administrative, or arbitration proceeding against the Bank is initiated or joined by the Borrower or any Guarantor;

 

g.     the Borrower’s failure to pay, when due, any statutory claim or other claim which would result in a lien or other interest having priority over any security granted to secure the Obligations except to the extent such lien or other interest is permitted under the Loan Documents; or

 

h.     September 25, 2017. 

 

(each a “Forbearance Termination Event,” and the time period between the Agreement Date and the date on which a Forbearance Termination Event occurs being the “Forbearance Period”).

 

The foregoing agreement to forbear is for the limited purpose set forth herein, shall be limited to the precise meaning of the words as written herein, and shall not be deemed to (x) be a consent to any waiver or modification of any term or condition of the Loan Documents, except as otherwise expressly set forth herein, or (y) prejudice any right or remedy that the Bank may now have or may have in the future under or in connection with the Loan Documents. The Borrower acknowledges that the Bank has no obligation to extend the Forbearance Period, or to grant any other forbearance.

 

4.             Effect of Termination of Forbearance Period. Upon the occurrence of a Forbearance Termination Event, the Bank shall be entitled to exercise any and all rights and remedies available under the Loan Documents, under this Agreement, and under any other agreement between the Borrower and the Bank, at law or in equity, in each case without further notice to the Borrower. Nothing in this Agreement limits the right of the Bank at any time on or after the occurrence of a Forbearance Termination Event to foreclose on any collateral that secures the Obligations. 

 

 

4

 

 

5.           Loan Modifications. As of the Agreement Date, the Loan Documents are amended and supplemented as follows, so long as the conditions to effectiveness set forth in Section 6 are satisfied or waived as provided in Section 6:

 

a.     Change in Interest Rate. The amount “1.5%” with respect to the annual interest rate in each Note is hereby deleted and the amount “2.0%” is inserted in substitution therefor in each instance.

 

b.     Change in Financial Covenants. The financial covenant entitled “Year-To-Date EBITDA” in each Loan Agreement or Addendum thereto, as applicable, is hereby deleted and the financial covenant shown below is inserted in substitution therefor in each instance: 

 

“EBITDA as of August 31, 2017 for the fiscal quarter then ended of not less than $411,000.

 

c.     Miscellaneous. All references in the Loan Documents to a Loan Document means such Loan Document as modified and supplemented by this Agreement. Except as expressly set forth herein, all terms of the Loan Documents remain in full force and effect.

 

6.           Conditions to Effectiveness of Limited Forbearance and Loan Modifications. The forbearance provided in Section 3 and the loan modifications set forth in Section 5 shall be effective only if the Bank has received each of the following, each in form and substance acceptable to the Bank in its sole discretion: 

 

a.     an original of this Agreement, duly executed by the Borrower;

 

b.     an original ratification and consent to this Agreement (“the “Ratification”), in form and content acceptable to the Bank, duly executed by each Guarantor; 

 

c.     a certificate of the secretary or other appropriate officer of the Borrower, certifying (i) that the execution and delivery of this Agreement and the performance by the Borrower of this Agreement and the Loan Documents as amended hereby have been duly approved by all necessary action of the board of directors of the Borrower, and attaching true, correct and complete copies of the applicable resolutions granting such approval; (ii) that the articles of incorporation and bylaws of the Borrower, which were certified and delivered to the Bank pursuant to the most recent officer’s certificate given by the Borrower to the Bank, continue in full force and effect and have not been amended or otherwise modified except as otherwise attached to the certificate to be delivered; and (iii) that the officers and agents of the Borrower who have been certified to the Bank pursuant to the most recent officer’s certificate given by the Borrower to the Bank as being authorized to sign and to act on behalf of the Borrower continue to be so authorized or setting forth the sample signatures of each of the officers and agents of the Borrower authorized to execute and deliver this Agreement and all other documents, agreements and certificates on behalf of the Borrower; the Bank may conclusively rely on such certificate until the Bank receives a further certificate of the secretary or other appropriate office of the Borrower canceling or amending the prior certificate and submitting the signatures of the officers named in such further certificate.

 

 

5

 

 

d.     a certificate of the secretary or other appropriate officer of each Guarantor certifying (i) that the execution and delivery of the Ratification, and the performance by such Guarantor of the Ratification and the Guaranty to which such Guarantor is a party have been duly approved by all necessary action of the board of directors of such Guarantor, and attaching true, correct and complete copies of the applicable resolutions granting such approval; (ii) that the articles of incorporation and bylaws of such Guarantor, which were certified and delivered to the Bank pursuant to the most recent officer’s certificate given by such Guarantor to the Bank, continue in full force and effect and have not been amended or otherwise modified except as otherwise attached to the certificate to be delivered; and (iii) that the officers and agents of such Guarantor who have been certified to the Bank pursuant to the most recent officer’s certificate given by such Guarantor to the Bank as being authorized to sign and to act on behalf of such Guarantor continue to be so authorized or setting forth the sample signatures of each of the officers and agents of such Guarantor authorized to execute and deliver the Ratification and all other documents, agreements and certificates on behalf of such Guarantor; the Bank may conclusively rely on such certificate until the Bank receives a further certificate of the secretary or other appropriate office of such Guarantor canceling or amending the prior certificate and submitting the signatures of the officers named in such further certificate;

 

e.     payment of all fees and costs of the Bank in immediately available funds, including all attorney’s fees, incurred in connection with the drafting and preparation of this Agreement and any related documents; and

 

f.     such additional information or documentation as the Bank may require.

 

The later of (x) the date on which the last of the conditions and requirements in this Section 6 has been satisfied, or waived in writing by the Bank; and (y) the Agreement Date is called the “Closing Date.” The provisions of this Section 6 are solely for the Bank’s benefit and protection. 

 

7.             Borrower’s Covenants. 

 

a.     The Borrower covenants and agrees, without limitation of anything contained in the Loan Documents, to deliver to the Bank written notice of the occurrence of any Forbearance Termination Event promptly, and in any event within one (1) business day, after the Borrower has obtained actual knowledge of such event.

 

b.     The Borrower further covenants and agrees, without limitation of anything contained in the Loan Documents, to deliver to the Bank, not later than August 11, 2017, a fully executed Engagement Agreement, evidencing the engagement of a Consultant in accordance with Section 2.16 of the Revolving Credit Agreement; provided, however, that the Borrower will not be required to engage a Consultant if, not later than August 5, 2017, the Borrower delivers to the Bank a copy of a bona fide commitment letter from a financial institution or other Person to refinance or otherwise pay in full all outstanding Obligations.

 

8.             General Release.

 

a.     In consideration for the accommodations made by the Bank in this Agreement, the Borrower, for and on behalf of itself and its legal representatives, successors and assigns, waives, releases, relinquishes and forever discharges the Bank, its parents, subsidiaries, and affiliates, its and their respective past, present and future directors, officers, managers, agents, employees, insurers, attorneys, representatives and all of their respective heirs, successors and assigns, (collectively, the “Released Parties”), of and from any and all manner of action or causes of action, suits, claims, demands, judgments, damages, levies and executions of whatsoever kind, nature and/or description arising on or before the Closing Date, including, without limitation, any claims, losses, costs or damages, including compensatory and punitive damages, in each case whether known or unknown, asserted or unasserted, liquidated or unliquidated, fixed or contingent, direct or indirect, which the Borrower, or its legal representatives, successors or assigns, ever had or now has or may claim to have against any of the Released Parties, with respect to any matter whatsoever, including, without limitation, the Loan Documents the administration of any Loan Documents, the negotiations relating to this Agreement and the other Loan Documents executed in connection herewith and any other instruments and agreements executed by the Borrower in connection therewith or herewith, arising on or before the Closing Date. The Borrower agrees not to sue any Released Party or in any way assist any other person or entity in suing a Released Party with respect to any claim released herein.

 

 

6

 

  

b.     The Borrower irrevocably waives, to the extent permissible under law, any and all rights of redemption under the Uniform Commercial Code or other laws of any state.

 

 9.        Representations and Warranties. The Borrower represents and warrants that on and as of the Agreement Date and after giving effect to this Agreement, other than the Identified Default there will exist no default under any Loan Document, or any other instruments executed by the Borrower in connection herewith or therewith, or circumstances that with the giving of notice, the passage of time or both will constitute an event of default under any Loan Document on such date. The Borrower further represents and warrants that the Borrower has the power and legal right and authority to enter into, deliver and perform this Agreement, and that neither this Agreement, nor the agreements contained herein, contravene or constitute a default under any agreement, instrument or indenture to which the Borrower is a party or signatory or any provision of the Borrower’s articles of incorporation or bylaws or any other agreement or requirement of law. This Agreement has been duly executed and delivered by the Borrower and constitutes the legal, valid and binding obligation of the Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity; and no consent, approval or authorization of or registration or declaration with any party, including but not limited to any governmental authority, is required in connection with the execution and delivery by the Borrower of this Agreement, or the performance of the obligations of the Borrower herein described except for those which the Borrower has previously obtained or provided.

 

10.       Ratification of Loan Documents. The parties acknowledge that the Notes, the Loan Agreements, the Guaranties and each other Loan Document, subject to the terms of this Agreement, remain in full force and effect. Without limiting the generality of the foregoing, the Borrower represents and warrants that the Collateral Documents continue to secure the obligations of the Borrower under the Notes and the other Loan Documents.

 

11.        Notices. Any notice or other communication to any party in connection with this Agreement or any Loan Document shall be in writing and shall be sent by manual delivery, facsimile transmission, overnight courier or United States mail (postage prepaid) addressed to such party at the address specified below, or at such other or additional address as such party shall have specified to the other party in writing. All periods of notice (if any) shall be measured from the date of delivery thereof if manually delivered, from the date of sending thereof if sent by facsimile transmission, from the first business day after the date of sending if sent by overnight courier, or from four days after the date of mailing if mailed. Each notice or other communication should be addressed as follows: 

 

If to the Bank:                  U.S. Bank National Association

9900 W. 87th Street

Overland Park, KS 66212

Attn: Michael Gloviak

Fax: (913) 652-5122

 

 

7

 

 

If to the Borrower:           Art’s-Way Manufacturing Company, Inc.

5556 Highway 9 West

Armstrong, Iowa 50514

Attn: Amber Murra, Chief Financial Officer

Fax: (712) 864-3154

 

If to the Guarantors:        Art’s-Way Scientific, Inc.

5556 Highway 9 West

Armstrong, Iowa 50514

Attn: Amber Murra, Chief Financial Officer

Fax: (712) 864-3154

 

and

 

Ohio Metal Working Products/Art’s-Way, Inc.

5556 Highway 9 West

Armstrong, Iowa 50514

Attn: Amber Murra, Chief Financial Officer

Fax: (712) 864-3154

 

The parties agree that the notice addresses set forth in this Agreement supersede and replace all prior notice addresses. 

 

12.          No Duress or Reliance. The Borrower acknowledges and agrees that the Borrower has received the advice of independent counsel, appraisers and accountants selected by the Borrower, or the opportunity to obtain such advice, before entering into this Agreement and the other Loan Documents referred to herein, and has not relied upon the Bank or any of its officers, directors, employees, agents or attorneys concerning any aspect of the transactions contemplated by this Agreement and the other Loan Documents referred to herein. The Borrower executed and delivered this Agreement of the Borrower’s own free will and will execute and deliver the other instruments required herein of the Borrower’s own free will. The Borrower further acknowledges that the Bank has not taken advantage of the Borrower by threats, overreaching, unconscionable conduct or other activities, and that the Borrower is proceeding in all transactions contemplated hereby as a volunteer and in what the Borrower perceives to be the Borrower’s own best interest. 

 

13.          No Further Commitment to Extend, Restructure or Forbear. EXCEPT AS SPECIFICALLY PROVIDED IN THIS AGREEMENT, THE BANK IS NOT COMMITTED, AND IS NOT COMMITTING AT THIS TIME, TO EXTEND THE MATURITY DATE OF ANY LOAN OR OTHERWISE RESTRUCTURE ANY LOAN, OR FORBEAR FROM EXERCISING ANY OF ITS RIGHTS OR REMEDIES UNDER THE LOAN DOCUMENTS. NO PRIOR COURSE OF DEALING, NO USAGE OF TRADE, AND NO ORAL STATEMENTS OR COMMENTS BY THE BANK OR ITS OFFICERS, EMPLOYEES, ATTORNEYS OR OTHER AGENTS WILL BE DEEMED TO BE A COMMITMENT BY BANK TO FORBEAR FROM EXERCISING ANY OF ITS RIGHTS OR REMEDIES, EXCEPT AS EXPRESSLY SET FORTH HEREIN, OR UNLESS THE SAME SHALL BE REDUCED IN WRITING AND SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE BANK. 

 

 

8

 

 

14.          Waiver of Jury Trial; Judicial Reference. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE LOAN DOCUMENTS AND ANY OTHER INSTRUMENTS OR AGREEMENTS EXECUTED BY ANY PARTY IN CONNECTION HEREWITH OR THEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY AND REAFFIRMS ANY PRIOR JUDICIAL REFERENCE PROVISION OR AGREEMENT BETWEEN THE BANK AND ANY OR ALL OF THE PARTIES HERETO. Nothing in this Agreement limits, modifies or alters the provisions of any Judicial Reference Agreement by and between the Bank and the Borrower, and such agreement shall remain in full force and effect following the execution of this Agreement, shall be binding upon and apply to all parties to this Agreement, and shall also apply to any claims arising from or related to this Agreement.

 

15.          Borrower’s Understanding. THE BORROWER ACKNOWLEDGES THAT: (A) THIS AGREEMENT CONTAINS A COMPLETE RELEASE OF CLAIMS AND WAIVERS OF CERTAIN RIGHTS; (B) THE BORROWER HAS READ AND UNDERSTOOD THIS AGREEMENT IN ITS ENTIRETY PRIOR TO SIGNING AND FULLY AGREES TO EACH, ALL AND EVERY PROVISION HEREOF; AND (C) THE BORROWER HAS RECEIVED A COPY HEREOF.

 

16.          Entire Agreement; Modification; Additional Provisions. TIME IS OF THE ESSENCE WITH RESPECT TO ALL PROVISIONS OF THIS AGREEMENT. No amendment, modification or waiver of the provisions of this Agreement or any Loan Document shall be effective unless the same shall be in writing and signed by the party against whom it is to be enforced, and then such amendment, modification or waiver shall be effective only in the specific instance and for the specific purpose for which given. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER AND IN ACCORDANCE WITH THE LAWS OF THE STATE OF IOWA. THE BORROWER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITUATED IN THE COUNTY OR FEDERAL JURISDICTION OF BANK'S BRANCH WHERE THE LOAN FACILITY OR OTHER EXTENSION OF CREDIT WAS ORIGINATED, AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS AGREEMENT, THE COLLATERAL, ANY OTHER LOAN DOCUMENT, OR ANY TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR INTERPRETATION OF ANY OF THE FOREGOING. The Loan Documents as modified by this Agreement, and this Agreement, shall represent the entire agreement among the Borrower, the Guarantors and the Bank with respect to the modification of the Notes and the Loan Agreements, shall supersede any prior oral negotiations or agreements, and shall be binding upon the parties hereto and their respective legal representatives, successors and assigns. In the event of any conflict between the provisions of this Agreement and the provisions of any Loan Document, the provisions of this Agreement shall govern. If any part of this Agreement is held to be illegal, invalid or unenforceable, (i) the remainder of this Agreement shall continue in full force and effect, notwithstanding such illegality, invalidity or unenforceability; and (ii) the judge or arbiter holding that part illegal, invalid or unenforceable shall attempt to reform that part so as to give effect to the original intent of the parties. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. This Agreement may be executed in different counterparts with the same effect as if the signatures thereon were on the same instrument, and will be effective upon delivery of all such counterparts to the Bank. Facsimiles or other photocopies or images of executed signature pages to this Agreement shall be considered originals. 

 

[The next page is the signature page.]

 

 

9 

 

 

Exhibit 10.1

 

IN WITNESS WHEREOF, the parties to this Agreement have caused it to be duly executed as of the Agreement Date.

 

	
Date: August 10, 2017
	
Borrower:

	 	 
	 	
ART’S-WAY MANUFACTURING COMPANY, INC.,

a Delaware corporation

	 	 
	 	 
	 	By: 	/s/ Amber Murra	 

	 	Name:	Amber Murra	 
	 	Title:	CFO	 

 

 

	
 
	
BANK:

	 	 
	DATE: August 10, 2017	
U.S. BANK NATIONAL ASSOCIATION,

	(the “Agreement Date”)	a national banking association
	 	 
	 	By: 	/s/ Michael Gloviak	 

	 	Name:	Michael Gloviak	 
	 	Title:	Vice President	 

 

 

ACKNOWLEDGMENT

 

	
STATE OF IOWA
	
)

	 	) ss.
	COUNTY OF EMMET	)

 

The foregoing instrument was acknowledged before me this 10th day of August, 2017, by Amber Murra, the CFO of Art’s-Way Manufacturing Company, Inc., a Delaware corporation, on behalf of the corporation.

 

 

	
 
	
/s/ Brittany Paulsen     (Notarial Seal) 
	 
	
 
	
Notary Public
	 

 

 

S-1

 

 

RATIFICATION OF GUARANTY, ACKNOWLEDGMENT AND CONSENT

 

All capitalized terms contained in this Ratification of Guaranty, Acknowledgment and Consent (this “Ratification”) that are not otherwise defined shall have the definition contained in the Forbearance and Fourth Loan Modification Agreement (the “Forbearance Agreement”) by and between ART’S-WAY MANUFACTURING COMPANY, INC., a Delaware corporation (the “Borrower”), and U.S. Bank National Association (the “Bank”) and dated as of the date shown opposite the Bank’s signature on the signature page of the Forbearance Agreement.

 

Each of the undersigned has unconditionally guaranteed the payment in full when due of all of the Borrower’s indebtedness to the Bank. 

 

FOR VALUE RECEIVED, as of the date shown in the notary block attesting to such undersigned’s signature (the “Ratification Date”), each of the undersigned with respect to its Guaranty: 

 

(i)     ratifies, confirms, acknowledges and agrees to perform in accordance with their terms each and every provision, covenant, condition, obligation, right and power contained in and under, or existing in connection with, the Guaranty;

 

(ii)     acknowledges that the obligations of the Borrower to the Bank are evidenced by the Notes and the Loan Agreements, as the same may be amended by the Forbearance Agreement; 

 

(iii)      acknowledges that the “Obligations” (as that term may be defined in the Guaranty) or similar term, includes, but is not limited to, the indebtedness evidenced by the Notes and the Loan Agreements as modified by the Forbearance Agreement; 

 

(iv)     acknowledges that there are no existing offsets, defenses and/or counterclaims assertable by the undersigned relating to the obligations under the Guaranty; 

 

(v)     consents to the Borrower’s execution and delivery of the Forbearance Agreement, and to each and every term, covenant, condition and provision in the Forbearance Agreement, and agrees that the address for the undersigned set forth in Section 11 of the Forbearance Agreement is correct;

 

(vi)     agrees, confirms and acknowledges that any indebtedness of the Borrower to the undersigned, if any, is and at all times shall remain subordinate to the indebtedness of the Borrower now or hereafter to the Bank; and

 

(vii)     ACKNOWLEDGES THAT: (A) THIS RATIFICATION CONTAINS A COMPLETE RELEASE OF CLAIMS AND WAIVERS OF CERTAIN RIGHTS; (B) THE UNDERSIGNED HAS READ AND UNDERSTANDS THIS INSTRUMENT IN ITS ENTIRETY AND FULLY AGREES TO EACH, ALL AND EVERY PROVISION OF THIS RATIFICATION; AND (C) THE UNDERSIGNED HAS RECEIVED A COPY OF THIS RATIFICATION.

 

Each of the undersigned waives, releases, relinquishes and forever discharges the Bank, its parents, subsidiaries, and affiliates, and their respective past, present and future directors, officers, managers, agents, employees, insurers, attorneys, representatives, successors and assigns, and each and all of such persons (collectively, the “Released Parties”), of and from any and all manner of action or causes of action, suits, claims, demands, judgments, damages, levies and executions of whatsoever kind, nature and/or description arising on or before the Ratification Date, including, without limitation, any claims, losses, costs or damages, including compensatory and punitive damages, in each case whether known or unknown, liquidated or unliquidated, fixed or contingent, direct or indirect, which the undersigned, or any legal representative, successor or assign, ever had or now has or may claim to have against any of the Released Parties, with respect to any matter whatsoever, including, without limitation, the Guaranty, this Ratification, or any course of conduct or obligations prior to the date of this instrument; and agrees not to sue any Released Party or in any way assist any other person or entity in suing a Released Party with respect to any claim released in this Ratification. 

 

 

1

 

 

Each of the undersigned acknowledges (x) receipt of the advice of independent counsel, or the opportunity to obtain such advice, before entering into this instrument and (y) no reliance upon the Bank or any of its officers, directors, employees, agents or attorneys concerning any aspect of this instrument. 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

2

 

 

IN WITNESS WHEREOF, each of the undersigned has executed and delivered this Ratification of Guaranty, Acknowledgment and Consent as of the Ratification Date.

 

	
Date: August 10, 2017
	
ART’S-WAY SCIENTIFIC, INC.,

an Iowa corporation

	 	 
	 	 
	 	By: 	/s/ Amber Murra	 

	 	Name:	Amber Murra	 
	 	Title:	CFO	 

 

 

 

	
Date: August 10, 2017
	
Ohio Metal Working Products/Art’s-Way,

Inc.,

an Ohio corporation

	 	 
	 	 
	 	By: 	/s/ Amber Murra	 

	 	Name:	Amber Murra	 
	 	Title:	CFO	 

 

 

ACKNOWLEDGMENT

 

	
STATE OF IOWA
	
)

	 	) ss.
	COUNTY OF EMMET	)

 

The foregoing instrument was acknowledged before me this 10th day of August, 2017, by Amber Murra, the CFO of Art’s-Way Scientific, Inc., an Iowa corporation, on behalf of the corporation.

 

 

 

	
 
	
/s/ Brittany Paulsen     (Notarial Seal) 
	 
	
 
	
Notary Public
	 

 
	
STATE OF IOWA
	
)

	 	) ss.
	COUNTY OF EMMET	)

 

The foregoing instrument was acknowledged before me this10th day of August, 2017, by Amber Murra, the CFO of Ohio Metal Working Products/Art’s-Way, Inc. an Ohio corporation, on behalf of the corporation.

 

 

 
	
 
	
/s/ Brittany Paulsen     (Notarial Seal) 
	 
	
 
	
Notary Public
	 

 

 

S-1

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