SECOND AMENDMENT TO CREDIT AGREEMENT
Exhibit 10.1
SECOND AMENDMENT TO CREDIT AGREEMENT
THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of March 12, 2008, is entered into by and among CORE-XXXX HOLDING COMPANY, INC. (“Holdings”), Core-Xxxx International, Inc. (“International”), CORE-XXXX HOLDINGS I, INC. (“Holdings I”), CORE-XXXX HOLDINGS II, INC. (“Holdings II”), CORE-XXXX HOLDINGS III, INC. (“Holdings III”), CORE-XXXX MIDCONTINENT, INC. (“Midcontinent”), CORE-XXXX INTERRELATED COMPANIES, INC. (“Interrelated”), HEAD DISTRIBUTING COMPANY (“Head”), XXXXXX-XXXXXXX CO. (“Xxxxxx-Xxxxxxx”; each of Holdings, International, Holdings I, Holdings II, Holdings III, Midcontinent, Interrelated, Head and Xxxxxx-Xxxxxxx shall be a “Borrower”, International shall be the “Canadian Borrower” and collectively such entities shall be the “Borrowers”), the parties hereto as lenders (each individually, a “Lender” and collectively, “Lenders”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, “Administrative Agent”).
RECITALS
A. Borrowers, Administrative Agent and Lenders have previously entered into that certain Credit Agreement dated as of October 12, 2005, as amended by that certain First Amendment to Credit Agreement dated as of December 4, 2007 (as so amended and as the same may be modified, supplemented or amended from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain loans and financial accommodations available to Borrowers. Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement.
B. Borrowers have requested that Administrative Agent and the Lenders amend the Credit Agreement and Administrative Agent and the Lenders are willing to amend the Credit Agreement pursuant to the terms and conditions set forth herein.
C. Each Borrower is entering into this Amendment with the understanding and agreement that, except as specifically provided herein, none of Administrative Agent’s or any Lender’s rights or remedies as set forth in the Credit Agreement are being waived or modified by the terms of this Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
1. Amendments to Credit Agreement.
(a) The clause (e) of the definition of “Permitted Acquisition” in Section 1.01 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
“(e) the aggregate purchase price (whether in cash, notes or any other form of non-equity consideration) of all Acquisitions made after the effective date of the Second Amendment to this Agreement shall not exceed $100,000,000; provided, however, that if at the effective date of any proposed Acquisition that otherwise meets the requirements of this definition of “Permitted Acquisitions”, the Borrowers have pro forma Availability (on both a 60-day look-back and a 60-day look-forward basis and including all non-equity consideration given in connection with such Acquisition as having been paid in cash at the time of making such Acquisition) not less than $125,000,000, such Acquisition shall not be counted against this $100,000,000 total basket;”
(b) Section 6.08(a)(v) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
“(v) the Borrowers may make stock repurchases in an aggregate amount during the term of this Agreement not to exceed $30,000,000, and”
2. Conditions Precedent to Effectiveness of this Amendment. This Amendment shall not become effective until all of the following conditions precedent shall have been satisfied in the sole discretion of Administrative Agent or waived by Administrative Agent:
(a) Amendment. Administrative Agent shall have received this Amendment fully executed in a sufficient number of counterparts for distribution to all parties.
(b) Representations and Warranties. The representations and warranties set forth herein and in the Credit Agreement must be true and correct in all material respects.
(c) Fees. Borrowers shall have paid all fees due and payable on the effective date of this Amendment, including without limitation, an amendment fee in an amount equal to 0.10% of the Commitments of each Lender that executes and delivers this Amendment.
(d) Other Required Documentation. Administrative Agent shall have received all other documents and legal matters in connection with the transactions contemplated by this Amendment and such documents shall have been delivered or executed or recorded and shall be in form and substance reasonably satisfactory to Administrative Agent.
3. Representations and Warranties. Each Borrower represents and warrants as follows:
(a) Authority. Each Borrower has the requisite corporate power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Loan Documents (as amended or modified hereby) to which it is a party. The execution, delivery and performance by each Borrower of this Amendment have been duly approved by all necessary corporate action, have received all necessary governmental approval, if any, and do not contravene (i) any law or (ii) any contractual restriction binding on such Borrower, except for contraventions of contractual restrictions which would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. No other corporate proceedings are necessary to consummate such transactions.
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(b) Enforceability. This Amendment has been duly executed and delivered by each Borrower. This Amendment and each Loan Document (as amended or modified hereby) (i) is the legal, valid and binding obligation of each Borrower, enforceable against each Borrower in accordance with its terms., subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law, and (ii) is in full force and effect.
(c) Representations and Warranties. The representations and warranties contained in each Loan Document (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof) are correct in all material respects on and as of the date hereof as though made on and as of the date hereof.
(d) No Default. No event has occurred and is continuing that constitutes a Default or Event of Default.
4. Choice of Law. The validity of this Amendment, the construction, interpretation, and enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto shall be determined under, governed by, and construed in accordance with the laws of the State of New York.
5. Counterparts. This Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by telefacsimile shall be effective as delivery of a manually executed counterpart of this Amendment.
6. Reference to and Effect on the Loan Documents.
(a) Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereof or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.
(b) Except as specifically amended in Section 1 of this Amendment, the Credit Agreement and all other Loan Documents, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of Borrowers to Administrative Agent and the Lenders without defense, offset, claim or contribution.
(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Administrative Agent or any Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
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7. Ratification. Each Borrower hereby restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement, as amended hereby, and the Loan Documents effective as of the date hereof.
8. Estoppel. To induce Administrative Agent and the Lenders to enter into this Amendment and to induce Administrative Agent and the Lenders to continue to make advances to Borrowers under the Credit Agreement, each Borrower hereby acknowledges and agrees that, after giving effect to this Amendment, as of the date hereof, there exists no Default or Event of Default and no right of offset, defense, counterclaim or objection in favor of any Borrower as against Administrative Agent or any Lender with respect to the Obligations.
9. Integration. This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.
10. Severability. In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
11. Submission of Amendment. The submission of this Amendment to the parties or their agents or attorneys for review or signature does not constitute a commitment by Administrative Agent or any Lender to waive any of their respective rights and remedies under the Loan Documents, and this Amendment shall have no binding force or effect until all of the conditions to the effectiveness of this Amendment have been satisfied as set forth herein.
[Remainder of Page Left Intentionally Blank]
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IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.
| BORROWERS: | ||||
| CORE-XXXX HOLDING COMPANY, INC. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | VP Finance, Treasurer, & Asst Secretary | |||
| CORE-XXXX INTERNATIONAL, INC. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | VP Finance, Treasurer & Asst Secretary | |||
| CORE-XXXX HOLDINGS I, INC. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | Treasurer & Secretary | |||
| CORE-XXXX HOLDINGS II, INC. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | Treasurer & Secretary | |||
| CORE-XXXX HOLDINGS III, INC. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | Treasurer & Secretary | |||
| CORE-XXXX MIDCONTINENT, INC. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | Treasurer & Secretary | |||
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| CORE-XXXX INTERRELATED COMPANIES, INC. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | Treasurer & Secretary | |||
| HEAD DISTRIBUTING COMPANY | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | Treasurer & Secretary | |||
| XXXXXX-XXXXXXX CO. | ||||
| By | /s/ Xxxxxxx X Xxxxxxxxxx | |||
| Name: | Xxxxxxx X Xxxxxxxxxx | |||
| Title: | Treasurer & Secretary | |||
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| LENDERS: | ||||
| JPMORGAN CHASE BANK, N.A., as Administrative Agent and a Revolving Lender | ||||
| By | /s/ Xxxxxxxx Jeans | |||
| Name: | Xxxxxxxx Jeans | |||
| Title: | Vice President | |||
| JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as a Canadian Lender | ||||
| By | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | Senior Vice President | |||
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| GENERAL ELECTRIC CAPITAL CORPORATION, as a Revolving Lender | ||||
| By | /s/ Xxxxxx X. Xxxxx | |||
| Name: | Xxxxxx X. Xxxxx | |||
| Title: | Duly Authorized Signatory | |||
| GE CANADA FINANCE HOLDING COMPANY, as a Canadian Lender | ||||
| By | /s/ Xxxx Xxxxxx | |||
| Name: | Xxxx Xxxxxx | |||
| Title: | Duly Authorized Signatory | |||
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| WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN), as a Revolving Lender | ||||
| By | /s/ Xxxxxx Xxxxxx | |||
| Name: | Xxxxxx Xxxxxx | |||
| Title: | Director | |||
| WACHOVIA CAPITAL FINANCE CORPORATION (CANADA), as a Canadian Lender | ||||
| By | /s/ Xxxx Xxxxxxxx | |||
| Name: | Xxxx Xxxxxxxx | |||
| Title: | Director | |||
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| BANK OF AMERICA, N.A., as a Revolving Lender | ||||
| By | /s/ Xxxxxxx Xxxx | |||
| Name: | Xxxxxxx Xxxx | |||
| Title: | SVP | |||
| BANK OF AMERICA, N.A., CANADIAN BRANCH, as a Canadian Lender | ||||
| By | /s/ Xxxxxx Xxx | |||
| Name: | Xxxxxx Xxx | |||
| Title: | Vice President | |||
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| XXXXX FARGO FOOTHILL, LLC, as a Revolving Lender | ||||
| By | /s/ Xxxx Xxxxxxx | |||
| Name: | Xxxx Xxxxxxx | |||
| Title: | Vice President | |||
| XXXXX FARGO FINANCIAL CORPORATION CANADA, as a Canadian Lender | ||||
| By | /s/ Xxxx Xxxxxx | |||
| Name: | Xxxx Xxxxxx | |||
| Title: | Vice President | |||
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| XXXXX XXXX XX XXXXXXXXXX, N.A., as a Revolving Lender | ||||
| By | /s/ Xxxx Xxxxxxx | |||
| Name: | Xxxx Xxxxxxx | |||
| Title: | Vice President | |||
| UNION BANK OF CALIFORNIA, CANADA BRANCH, as a Canadian Lender | ||||
| By | /s/ Xxxx Xxxxxxx | |||
| Name: | Xxxx Xxxxxxx | |||
| Title: | Vice President | |||
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| XXX XXXX XX XXXX XXXXXX, as a Revolving Lender and a Canadian Lender | ||||
| By | /s/ Xxxxx Xxxxxxx | |||
| Name: | Xxxxx Xxxxxxx | |||
| Title: | Director | |||
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| XXXXXX X.X., as a Revolving Lender | ||||
| By | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | Vice President | |||
| BANK OF MONTREAL, as a Canadian Lender | ||||
| By | /s/ Xxxxxx X. Xxxxxxxx | |||
| Name: | Xxxxxx X. Xxxxxxxx | |||
| Title: | Director | |||
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