SEC Contract Filing

Filing Date: 2017-09-20

Document Content:
<DOCUMENT>
<TYPE>EX-10.39
<SEQUENCE>4
<FILENAME>exh10-39.htm
<DESCRIPTION>FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT BETWEEN THE REGISTRANT AND KEY BANK, DATED JUNE 29, 2016
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<TITLE>Form 10-K June 30, 2017 Exhibit 10.39</TITLE>
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<B><FONT SIZE=2><P ALIGN="RIGHT">Exhibit 10.39</P></B>

<P ALIGN="CENTER">FIRST AMENDMENT AGREEMENT</P>
<P ALIGN="JUSTIFY">This FIRST AMENDMENT AGREEMENT (this &quot;Amendment&quot;) is made as of the 29<SUP>th</SUP> day of June, 2016 between:</P>
<P ALIGN="JUSTIFY">(a)&#9;S&amp;W SEED COMPANY, a Nevada corporation (&quot;Borrower&quot;); and</P>
<P ALIGN="JUSTIFY">(b)&#9;KEYBANK NATIONAL ASSOCIATION, a national banking association (&quot;Lender&quot;).</P>
<P ALIGN="JUSTIFY">WHEREAS, Borrower and Lender are parties to that certain Credit and Security Agreement, dated as of September 22, 2015 (as the same may from time to time be amended, restated or
otherwise modified, the &quot;Credit Agreement&quot;);</P>
<P ALIGN="JUSTIFY">WHEREAS, Borrower and Lender desire to amend the Credit Agreement to modify certain provisions thereof and add certain provisions thereto;</P>
<P ALIGN="JUSTIFY">WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not otherwise defined herein, shall have the meaning given such term in the Credit Agreement; and</P>
<P ALIGN="JUSTIFY">WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement revised herein are amended effective as of the date of this Amendment;</P>
<P ALIGN="JUSTIFY">NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Borrower and Lender agree as follows:</P>

<P ALIGN="JUSTIFY">1.&#9;<U>Amendment to Definitions in the Credit Agreement</U>. Section 1.1 of the Credit Agreement is hereby amended to delete the definition of &quot;Borrowing Base&quot; therefrom and
to insert in place thereof the following:</P>

<P ALIGN="JUSTIFY">&quot;Borrowing Base&quot; means an amount equal to the total of the following:</P>

<DIR>

<P ALIGN="JUSTIFY">(a)&#9;up to eighty-five percent (85%) of the aggregate amount due and owing on Eligible Accounts Receivable (other than Eligible Insured Accounts Receivable) of Borrower; plus</P>
<P ALIGN="JUSTIFY">(b)&#9;up to ninety percent (90%) of the aggregate amount due and owing on Eligible Insured Accounts Receivable of Borrower; plus</P>
<P ALIGN="JUSTIFY">(c)&#9;up to sixty-five percent (65%) of the aggregate of the cost or market value (whichever is lower), as determined in accordance with GAAP, of the Eligible Inventory of Borrower; plus</P>
<P ALIGN="JUSTIFY">(d)&#9;during the Temporary Increase Period, the Temporary Increased Availability Amount; minus</P>

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<P ALIGN="JUSTIFY">(e)&#9;Reserves, if any;</P>

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<P ALIGN="JUSTIFY">provided that, anything herein to the contrary notwithstanding, Lender shall at all times have the right to modify or reduce such percentages or dollar amount caps or other components of the
Borrowing Base from time to time, in its Permitted Discretion.</P>
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<P ALIGN="JUSTIFY">2.&#9;<U>Additions to Definitions in the Credit Agreement</U>. Section 1.1 of the Credit Agreement is hereby amended to add the following new definitions thereto:</P>

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<P ALIGN="JUSTIFY">&quot;Temporary Increased Availability Amount&quot; means Four Million Dollars ($4,000,000).</P>
<P ALIGN="JUSTIFY">&quot;Temporary Increase Period&quot; means the period from June 30, 2016 through September 30, 2016.</P>
</DIR>

<P ALIGN="JUSTIFY">3.&#9;<U>Amendment to Financial Statements, Collateral Reporting and Information Covenant Provisions</U>. Section 5.3 of the Credit Agreement is hereby amended to delete subsections (f)
and (g) therefrom and to insert in place thereof, respectively, the following:</P>
<DIR>

<P ALIGN="JUSTIFY">(f)&#9;<U>Inventory Report</U>. Borrower shall deliver to Lender within twenty (20) days after the end of each calendar month, a summary of Inventory, in form and substance satisfactory to
Lender and signed by a Financial Officer, based upon month-end balances reconciled to the month-end balance sheet and the month-end Borrowing Base Certificates, and accompanied by an Inventory certification, in
form and substance reasonably acceptable to Lender and including a calculation of the Eligible Inventory (the calculation of Eligible Inventory reflecting the then most recent month-end balance). Borrower shall deliver
to Lender, after the end of each calendar month, Inventory records , in such detail as Lender shall deem reasonably necessary to determine the level of Eligible Inventory. In addition, during the Temporary Increase
Period, Borrower shall also deliver to Lender by no later than 5:00 P.M. (Eastern time) on each Tuesday of each calendar week (or the next Business Day if such Tuesday is not a Business Day), a summary of
Inventory (for the week ending on the Friday prior to the date such Inventory report is submitted), in form and substance satisfactory to Lender and signed by a Financial Officer, based upon week-end balances, and
accompanied by an Inventory certification, in form and substance reasonably acceptable to Lender and including a calculation of the Eligible Inventory (the calculation of Eligible Inventory reflecting the then most recent
week-end balance). The values shown on the Inventory reports shall be at the lower of cost or market value, determined in accordance with the usual cost accounting system of Borrower. Borrower shall provide such
other reports with respect to the Inventory of Borrower as Lender may reasonably request from time to time.</P>

<P ALIGN="JUSTIFY">(g)&#9;<A NAME="_GoBack"><U>Accounts Payable Aging Report</A></U>. Borrower shall deliver to Lender, within twe