NINTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT
Exhibit 4.12 and 10.31
NINTH AMENDMENT TO CREDIT AND
SECURITY AGREEMENT
THIS NINTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Amendment”) executed as of June 28, 2013, is by and among Tandy Brands Accessories, Inc., a Delaware corporation (“Parent”), X.X. Xxxxxxx Canada Ltd., an Ontario corporation (“XX Xxxxxxx”; Parent and XX Xxxxxxx are herein collectively called “Company”), Xxxxx Fargo Bank, National Association (“Xxxxx Fargo”), acting through its Xxxxx Fargo Business Credit operating division, and TBAC Investment Trust, a Pennsylvania business trust, and TBAC-TOREL, Inc., a Delaware corporation, consenting to this Amendment and ratifying their respective Guaranties (as defined in the Credit Agreement) each dated of even date with the Credit Agreement (defined below).
W I T N E S S E T H:
WHEREAS, Company and Xxxxx Fargo entered into that certain Credit and Security Agreement dated as of August 25, 2011 (as heretofore amended, supplemented or otherwise modified, the “Original Credit Agreement”, and as amended hereby, the “Credit Agreement”), for the purposes and consideration therein expressed, pursuant to which Xxxxx Fargo became obligated to make loans to the Company as therein provided;
WHEREAS, the Company and Xxxxx Fargo desire to amend the Original Credit Agreement as provided herein.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein and in the Credit Agreement, in consideration of the loans made and which may hereafter be made by Xxxxx Fargo to Company, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Terms Defined in the Original Credit Agreement. Unless the context otherwise requires or unless otherwise expressly defined herein, the terms defined in the Credit Agreement shall have the same meanings whenever used in this Amendment.
ARTICLE II
AMENDMENTS TO ORIGINAL CREDIT AGREEMENT
Section 2.1 Amendment to Advance Rate on Inventory. Subclause (1)(A) of clause (iii) of Section 1.2(a) of the Original Credit Agreement is hereby amended to read as follows:
“(1) (A) during the months of January through May and December of calendar year 2012 and the months of January through August and December of any other calendar year, 39.0% (or such lesser percentage as Xxxxx Fargo in its Permitted Discretion may deem appropriate) of Eligible Inventory”
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Section 2.2 Amendment to Proof of Ownership of Real Property. The phrase “June 28, 2013” in the first line of Section 5.9 of the Original Credit Agreement is hereby amended to read “July 31, 2013”.
Section 2.3 Capital Contribution. The phrase “June 28, 2013” in the second line of Section 5.33 of the Original Credit Agreement is hereby amended to read “July 31, 2013”.
ARTICLE III
AMENDMENT FEE
Section 3.1 Amendment Fee. In consideration of Xxxxx Fargo’s agreement to enter into this Amendment, Company shall pay to Xxxxx Fargo an amendment fee equal to $25,000 (the “Ninth Amendment Fee”), which amount is fully earned as of the Effective Date and is payable in immediately available funds on or prior to July 31, 2013; provided that, Xxxxx Fargo hereby agrees to waive payment of the Ninth Amendment Fee if the Refinance/Contribution Date occurs on or prior to July 31, 2013.
ARTICLE IV
CONDITIONS OF EFFECTIVENESS
Section 4.1 Effective Date. This Amendment shall become effective as of the date first written above (the “Effective Date”) when and only when each of the following conditions precedent shall have been satisfied in full:
(a) Xxxxx Fargo shall have received, at Xxxxx Fargo’s office a duly executed counterpart by each of Parent and XX Xxxxxxx of this Amendment and a duly executed counterpart of the attached acknowledgement and consent by TBAC Investment Trust and TBAC-TOREL, Inc.;
(b) Company shall have paid to Xxxxx Fargo all outstanding fees and expenses owing to Xxxxx Fargo under the Loan Documents as of such date, in immediately available funds, including without limitation the remaining $100,000, amendment fee payable to Xxxxx Fargo pursuant to Section 4.1 of the Seventh Amendment to Credit and Security Agreement dated as of April 11, 2013, as amended by the Eighth Amendment to Credit and Security Agreement dated as of May 30, 2013;
(c) The representations and warranties contained herein and in the Credit Agreement and other Loan Documents are true and correct with the same effect as though such representations and warranties had been made on and as of the date hereof and after giving effect to the amendments and waiver contemplated hereby, except to the extent such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date) or changes resulting from transactions expressly permitted under the Credit Agreement or other Loan Documents; and
(d) No Event of Default or other event which with the giving of notice or passing of time, or both, would constitute an Event of Default, shall have occurred and be continuing, prior to their waiver hereof.
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ARTICLE V
REPRESENTATIONS AND WARRANTIES
Section 5.1 Representations and Warranties of Company. In order to induce Xxxxx Fargo to enter into this Amendment, each of Parent and XX Xxxxxxx hereby represents and warrants to Xxxxx Fargo that:
(a) After giving effect to this Amendment, the representations and warranties contained in the Original Credit Agreement are true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date hereof and after giving effect to the amendments contemplated hereby, except to the extent such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate in all material respects on and as of such earlier date) or changes resulting from transactions expressly permitted under the Credit Agreement or other Loan Documents.
(b) Each such Person is duly authorized to execute and deliver this Amendment and is and will continue to be duly authorized to perform its obligations under the Credit Agreement and the other Loan Documents to which it is a party and such Person is and will continue to be duly authorized to borrow under the Credit Agreement. Each such Person has duly taken all corporate action necessary to authorize the execution and delivery of this Amendment and to authorize the performance of their respective obligations hereunder.
(c) The execution and delivery by such Person of this Amendment, the performance by it of its obligations hereunder and the consummation of the transactions contemplated hereby do not and will not conflict with any provision of law, statute, rule or regulation or of its articles of incorporation or bylaws, or of any agreement, judgment, license, order or permit applicable to or binding upon it. Except for those which have been duly obtained and are in full force and effect, no consent, approval, authorization or order of any court or governmental authority or third party is required in connection with the execution and delivery by such Person of this Amendment or to consummate the transactions contemplated hereby.
(d) When duly executed and delivered, this Amendment will be a legal and binding instrument and agreement of Company, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency and similar laws applying to creditors’ rights generally and by principles of equity applying to creditors’ rights generally.
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ARTICLE VI
MISCELLANEOUS
Section 6.1 Ratification of Agreement. The Original Credit Agreement as hereby amended is hereby ratified and confirmed in all respects. This Amendment shall constitute a “Loan Document” under and as defined in the Credit Agreement in all respects and for all purposes. Any reference to the Credit Agreement in any Loan Document shall be deemed to refer to the Original Credit Agreement as amended by this Amendment also. 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 Xxxxx Fargo under the Credit Agreement or any other Loan Document nor constitute a waiver of any provision of the Credit Agreement or any other Loan Document.
Section 6.2 Survival of Agreements. All representations, warranties, covenants and agreements of Company herein shall survive the execution and delivery of this Amendment and the performance hereof, and shall further survive until all of the Indebtedness is paid in full. All statements and agreements contained in any certificate or instrument delivered by Company and any Guarantors hereunder or under the Credit Agreement to Xxxxx Fargo shall be deemed to constitute representations and warranties by, or agreements and covenants of, such Person or any such Guarantor, as applicable, under this Amendment and under the Credit Agreement.
Section 6.3 Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable; provided that the parties hereto shall endeavor in good faith to promptly replace any such invalid or unenforceable provisions with substantially similar provisions that are enforceable.
Section 6.4 Further Assurances. Each of Parent and XX Xxxxxxx hereby agrees to establish, make, prepare, execute, deliver, file, amend, authorize, ratify, affirm and/or approve any and all agreements, instruments, notes, waivers, consents, licenses, accounts and other documents, and take any and all other actions and do all other things necessary or desirable to consummate or otherwise give effect to the transactions and grant of security contemplated by this Amendment and the Credit Agreement.
Section 6.5 GOVERNING LAW; JURISDICTION, VENUE; WAIVER OF JURY TRIAL. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS (OTHER THAN CONFLICT LAWS) OF THE STATE OF TEXAS. THE PARTIES TO THIS AMENDMENT (A) CONSENT TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF TEXAS IN CONNECTION WITH ANY CONTROVERSY RELATED TO THIS AMENDMENT; (B) WAIVE ANY ARGUMENT THAT VENUE IN ANY SUCH FORUM IS NOT CONVENIENT; (C) AGREE THAT ANY LITIGATION INITIATED BY XXXXX FARGO OR COMPANY IN CONNECTION WITH THIS AMENDMENT OR THE OTHER LOAN DOCUMENTS MAY BE VENUED IN EITHER THE STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF DALLAS, STATE OF TEXAS; AND (D) AGREE THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION AT LAW OR IN EQUITY OR IN ANY OTHER PROCEEDING BASED ON OR PERTAINING TO THIS AMENDMENT.
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Section 6.6 Counterparts; Fax. This Amendment may be separately executed in counterparts and by the different parties hereto in separate counterparts, each of which when so executed shall be deemed to constitute one and the same Amendment. This Amendment may be duly executed and delivered by facsimile transmission, electronic mail or other electronic means.
Section 6.7 FINAL AGREEMENT. THIS AMENDMENT TOGETHER WITH THE OTHER LOAN DOCUMENTS COMPRISES THE COMPLETE AND INTEGRATED AGREEMENT OF THE PARTIES ON THE SUBJECT MATTER OF THIS AMENDMENT AND SUPERSEDES ALL PRIOR AGREEMENTS, WHETHER ORAL OR EVIDENCED IN A RECORD.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
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IN WITNESS WHEREOF, the undersigned by their respective duly authorized officers thereunto have executed and delivered this Amendment as of the date first above written.
TANDY BRANDS ACCESSORIES, INC.
By: _____________________________
Name:
Title:
X.X. XXXXXXX CANADA, LTD.
By: _____________________________
Name:
Title:
XXXXX FARGO BANK, NATIONAL ASSOCIATION
By: _____________________________
Name:
Title:
Signature Page to Consent and Ratification
Each of the undersigned by their respective signatures hereunto acknowledges its receipt and review of this Amendment and hereby consents to the execution and delivery of, and the terms of, this Amendment and hereby ratifies and confirms their respective Guaranty and the obligations guarantied thereunder in all respects and for all purposes.
TBAC INVESTMENT TRUST
By: _____________________________
not in his/her individual capacity, but solely as Trustee
TBAC-TOREL, INC.
By: _____________________________
Name: N. Xxxxxxxx XxXxxxxx, III
Title: President and Chief Executive Officer
Signature Page to Consent and Ratification
