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Exhibit 10.1 SIXTH AMENDMENT TO LOAN AND SECURITY
AGREEMENT THIS SIXTH
AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "
Amendment ") is dated as of January 6, 2009 (the "
Amendment Date "), by and between WACHOVIA BANK, NATIONAL
ASSOCIATION (formerly known as Congress Financial Corporation
(Southwest), a Texas corporation) (" Lender "), and
SUPPLIES DISTRIBUTORS, INC. , a Delaware corporation ("
Borrower "). RECITALS
WHEREAS, Borrower and Lender are
parties to that certain Loan and Security Agreement dated as of
March 29, 2002, as amended by each of the following (as so
amended, the " Loan Agreement "): (a) the First
Amendment to Loan and Security Agreement dated as of April 20,
2004; (b) the Second Amendment to Loan and Security Agreement
dated as of December 21, 2004; (c) the Third Amendment to Loan
and Security Agreement dated as of June 24, 2005; (d) the
Fourth Amendment to the Loan and Security Agreement dated as of
April 17, 2006; and (e) the Fifth Amendment to the Loan
and Security Agreement dated as of March 28, 2007.
WHEREAS, Borrower and Lender desire
to amend the Loan Agreement in the manner provided below.
NOW, THEREFORE, in consideration of
the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, do hereby amend the Loan
Agreement as follows. AGREEMENT ARTICLE I
DEFINITIONS 1.01
Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meaning as in the
Loan Agreement, as amended by this Amendment. ARTICLE II
AMENDMENTS TO THE LOAN AGREEMENT
Effective as of the Amendment Date,
the Loan Agreement is hereby amended and supplemented as follows:
2.01 Amendment to definition
of "Interest Rate" . Clause (a) of the definition of
"Interest Rate" contained in Section 1.1 of the Loan
Agreement shall be deleted in its entirety and the following new
clause (a) shall be substituted therefor: Sixth Amendment to
Loan and Security Agreement
"‘ Interest Rate
’ shall mean, (a) Subject to
clause (b) of this definition below:
(i) as to Prime Rate Loans, a rate
per annum equal to the greater of (x) three percent (3.00%) or
(y) sum of the "Applicable Prime Rate Margin" if the average
Excess Availability for the immediately preceding four
(4) fiscal quarters for the Borrower is at or within the
amounts indicated for such percentage (set forth below), plus the
Prime Rate, (ii) as to Eurodollar
Rate Loans, a rate per annum equal to the greater of (x) three
percent (3.00%) or (y) the sum of the corresponding
"Applicable Eurodollar Rate Margin" if the average Excess
Availability for the immediately preceding four (4) fiscal
quarters is at or within the amounts indicated for such percentage
(set forth below), plus the Adjusted Eurodollar Rate (in each case,
based on the Eurodollar Rate applicable for the Interest Period
selected by Borrower, as in effect three (3) Business Days
after the date of receipt by Lender of the request of Borrower for
such Eurodollar Rate Loans in accordance with the terms hereof,
whether such rate is higher or lower than any rate previously
quoted to Borrower).
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Applicable
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Applicable Prime
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Eurodollar
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Pricing Level
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Excess Availability
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Rate Margin
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Rate Margin
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I
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$3,000,001 or more
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0.25
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%
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2.50
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%
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II
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$1,000,000 to
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$3,000,000
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0.50
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%
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2.75
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%
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III
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less than $1,000,000
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0.75
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%
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3.00
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%
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Any increase or decrease in the Interest Rate resulting from a
change in average Excess Availability for the immediately preceding
four (4) fiscal quarters shall become effective as of the
first Business Day immediately following the end of a fiscal
quarter of Borrower; provided , however , that if
average Excess Availability for the immediately preceding four
(4) fiscal quarters cannot be determined, Pricing Level III
shall apply as of the first Business Day immediately following the
end of a fiscal quarter of Borrower until such time as average
Excess Availability is determined. In addition, at all times
(i) either (A) during the period on and after the date of
termination or non-renewal hereof until such time as all
Obligations are indefeasibly paid and satisfied in full in
immediately available funds, or (B) during the period from and
after the date of the occurrence of any Event of Default, and for
so long as such Event of Default is continuing as Sixth Amendment
to Loan and Security Agreement
2
determined by Lender and (ii) when the Revolving Loans are
outstanding in excess of the amounts available to Borrower under
Section 2 (whether or not such excess(es) arise or are
made with or without Lender’s knowledge or consent and
whether made before or after an Event of Default), Pricing Level
III shall apply." 2.02
Amendment to Section 3.3 . Section 3.3
of the Loan Agreement shall be deleted in its entirety and the
following shall be substituted therefor:
" Servicing Fee . Borrower
shall pay to Lender quarterly, a servicing fee in an amount equal
to $1,500 in respect of Lender’s services for each fiscal
quarter (or part thereof) while the Loan Agreement remains in
effect and for so long thereafter as any of the Obligations are
outstanding, which fee shall be fully earned as of and payable in
advance on the first day of every fiscal quarter hereafter."
2.03 Amendment to
Section 3.4 . Section 3.4 of the Loan
Agreement shall be deleted in its entirety and the following shall
be substituted therefor: " Unused
Line Fee . Borrower shall pay to Lender monthly an unused line
fee at a rate equal to three-eighths of one percent (0.375%) per
annum calculated upon the amount by which $17,500,000 exceeds the
average daily principal balance of the outstanding Revolving Loans
during the immediately preceding month (or part thereof) while this
Agreement is in effect and for so long thereafter as any of the
Obligations are outstanding, which fee shall be payable on the
first day of each month in arrears."
2.04 Amendment to Section 9.9 . The amount
"$5,000,000" contained in Section 9.9(g) of the Loan
Agreement shall be deleted and the amount "$4,250,000" shall be
substituted therefor. 2.05
Amendment to Section 9.11(c) . Subsection
(c) of Section 9.11 shall be deleted in its
entirety and the following new subsection (c) shall be
substituted therefor: "(c) the aggregate amount of all such
dividends does not exceed (i) $1,500,000 per year, plus
(ii) an amount equal to any cash dividends received by
Borrower from Business Supplies Distributors Europe BV, plus
(iii) an amount equal to any cash dividends received by
Borrower from Supplies Distributors SA, plus (iv) an amount
equal to any cash dividends received by Borrower from Supplies
Canada." 2.06 Amendment to
Section 9.16(f) . The amount "$850.00" contained in
Section 9.16(f) of the Loan Agreement shall be deleted and
the amount "$1,000" shall be substituted therefor.
2.07 Amendment to
Section 12.1 . Amendment to Section 12.1(a)(i)
of the Loan Agreement . Effective as of the date hereof,
Section 12.1(a)(i) of the Loan Agreement is hereby
amended and restated in its entirety as follows: Sixth Amendment to
Loan and Security Agreement
3
"(i) March 29, 2011, or"
ARTICLE III.
NO WAIVER 3.01
No Waiver . Nothing contained in this Amendment shall be
construed as a waiver by Lender of any covenant or provision of the
Loan Agreement, the other documents and agreements relating hereto
or thereto (hereinafter individually referred to as a " Loan
Document " and collectively referred to as the " Loan
Documents "), this Amendment, or of any other contract or
instrument between Borrower and Lender, and the failure of Lender
at any time or times hereafter to require strict performance by
Borrower of any provision thereof shall not waive, affect or
diminish any right of Lender to thereafter demand strict compliance
therewith. Lender hereby reserves all rights granted under the Loan
Agreement, the other Loan Documents, this Amendment and any other
contract or instrument between Borrower and Lender. ARTICLE
IV.
CONDITIONS PRECEDENT
4.01 Conditions to Effectiveness. The effectiveness
of this Amendment is subject to the satisfaction of the following
conditions precedent, in a manner satisfactory to Lender, unless
specifically waived in writing by Lender:
(a) Lender shall have received a
closing fee the amount of $20,000, which shall be fully earned and
payable on the Amendment Date. (b)
Lender shall have received, in form and substance satisfactory to
Lender in its sole discretion, (i) this Amendm
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