EX-10.H 2 g70517a1ex10-h.txt 7TH AMENDMENT/FINANCING & SECURITY AGREEMENT 1 EXHIBIT 10(H) SEVENTH AMENDMENT TO FINANCING AND SECURITY AGREEMENT THIS SEVENTH AMENDMENT TO FINANCING AND SECURITY AGREEMENT, dated as of July 30, 1999, is by and among FIRST UNION COMMERCIAL CORPORATION ("Lender"), ELLETT BROTHERS, INC. ("Ellett"), LEISURE SPORTS MARKETING, INC. ("Leisure"), EVANS SPORTS, INC., ("Evans"), SAFESPORT MANUFACTURING COMPANY ("Safesport"), and VINTAGE EDITIONS, INC. ("Vintage") (hereinafter Ellett, Leisure, Evans, Safesport and Vintage may be referred to collectively as the "Borrower"). RECITAL A. The Lender and the Borrower have entered into that certain Financing and Security Agreement, dated June 10, 1994, as amended (the "Financing Agreement"). B. The Borrower and the Lender have agreed to amend the Financing Agreement as set forth herein. NOW, THEREFORE, the parties hereto agree as follows: 1. Section 2.A. is amended in its entirety so that such Section now reads as follows: 2.A. "Applicable Margin" means for any calendar quarter, the following margins for the following Loans based upon the Leverage Ratio of Borrower as of the last day of the prior calendar quarter and the net income of Borrower for the four fiscal quarterly periods ending as of the last day of the prior calendar quarter:
Applicable Applicable Applicable Margins for Margins for Margins for Loans Based Loans Based Loans Based on One Month on Three Month the Prime Rate LIBOR Rate LIBOR Rate Category 1 ---------- Net income is equal to or less than $2,000,000.00 or the Leverage Ratio is equal to or greater than 3.0 to 1.0 .375% 2.25% 2.25%
1 2 Category 2 ---------- Net income is greater than $2,000,000.00 but equal to or less than $3,000,000.00 and the Leverage Ratio is less than. 3.0 to 1.0 but greater than or equal to 2.25 to a.0 .125% 2.0% 2.0% Category 3 ---------- Net income is greater than $3,000,000.00 but equal to or less than $3,500,000.00 and the Leverage Ratio is less than 2.25 to 1.0 but greater than or equal to 1.75 to 1.0 0.0% 1.75% 1.75% Category 4 ---------- Net income is greater than $3,500,000.00 but equal to or less than $4,000,00.00 and the Leverage Ratio is less than 1.75 to 1.0 but greater than or equal to 1.25 to 1.0 0.0% 1.50% 1.50% Category 5 ---------- Net income is greater than $4,500,000.00 and the Leverage Ratio is less than 1.25 to 1.0 0.0% 1.25% 1.25%
2. This Seventh Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and it shall not be necessary in making proof of this Seventh Amendment to produce or account for more than one counterpart. 3. THIS SEVENTH AMENDMENT AND THE OTHER DOCUMENTS AND AGREEMENTS EXECUTED IN CONNECTION HEREWITH (UNLESS SPECIFICALLY STIPULATED TO THE CONTRARY IN SUCH DOCUMENT OR AGREEMENT), AND THE RIGHTS AND OBLIGATIONS OF 2 3 THE PARTIES HEREUNDER AND THEREUNDER, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. IN WITNESS WHEREOF, the parties hereto have caused this Seventh Amendment to be executed by their duly authorized corporate officers as of the day and year first above written. ELLETT BROTHERS, INC. By: /s/George S. Loney CFO -------------------------------- (Title) EVANS SPORTS, INC., a South Carolina corporation By: /s/George S. Loney CFO -------------------------------- (Title) LEISURE SPORTS MARKETING, INC., a South Carolina corporation By: /s/George S. Loney CFO -------------------------------- (Title) SAFESPORT MANUFACTURING COMPANY, a South Carolina corporation By: /s/George S. Loney CFO -------------------------------- (Title) VINTAGE EDITIONS, INC., a South Carolina corporation By: /s/George S. Loney CFO -------------------------------- (Title) FIRST UNION COMMERCIAL CORPORATION By: /s/Bruce K. Rhodes, VP ----------------------------- (Title) 3