Exhibit 4.2
FOURTH AMENDMENT TO CREDIT AGREEMENT
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THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as
of November 12, 2001 (the "Fourth Amendment Effective Date"), is by and among
CORRPRO COMPANIES, INC., an Ohio corporation (the "Company"), CSI COATING
SYSTEMS INC. (the "Canadian Borrower" and, together with the Company, the
"Borrowers"), the lenders set forth on the signature pages hereof (collectively,
the "Lenders") and BANK ONE, MICHIGAN, a Michigan banking corporation, as agent
for the Lenders (in such capacity, the "Agent").
RECITALS
A. The Borrowers, the Agent and the Lenders are parties to an Amended
and Restated Credit Agreement dated as of June 9, 2000 (as now and hereafter
amended, the "Credit Agreement"), pursuant to which the Lenders agreed, subject
to the terms and conditions thereof, to extend credit to the Borrowers.
B. The Credit Agreement was amended by a First Amendment to Credit
Agreement dated as of October 19, 2000 (the "First Amendment") among the
Borrowers, the Lenders and the Agent, pursuant to which the parties agreed to
modify certain terms and conditions of the extension of credit to the Borrowers.
C. Prior to May 29, 2001, certain Defaults occurred under the Credit
Agreement due to breaches of Sections 6.19.1 and 6.19.2 of the Credit Agreement
as of the fiscal quarter ending March 31, 2001 (the "Existing Defaults"). Based
upon the request of the Borrowers and the Guarantors, the Agent and the Lenders
temporarily waived the Existing Defaults subject to the terms and conditions set
forth in a certain letter dated May 29, 2001 (the "Waiver Letter").
D. Prior to the expiration of the temporary waiver set forth in the
Waiver Letter, the Borrowers requested, notwithstanding the occurrence of the
Existing Defaults, that the Agent and the Lenders (i) continue to advance
Revolving Credit Loans to the Borrowers under certain modified terms and
conditions of lending, (ii) extend the waiver of the Existing Defaults and (iii)
forbear from exercising remedies available under the Loan Documents or at law or
in equity, all in order to (a) permit the Borrowers to develop and implement a
business plan and financial strategy to improve their business operations and
financial condition and (b) permit the Borrowers to develop and implement a
potential financial restructuring plan and strategy that would address, inter
alia, repayment of the indebtedness owed to the Lenders. Pursuant to such
request, the Credit Agreement was further amended by a Second Amendment to
Credit Agreement dated as of June 29, 2001 (the "Second Amendment") among the
Borrowers, the Lenders and the Agent. The Second Amendment, among other things,
granted to the Borrowers a "Restructuring Period" during which the Borrowers
would be permitted to develop and implement their business improvement and
financial restructuring plan.
E. Prior to August 10, 2001, the Borrowers requested that the Agent and
the Lenders extend the Facility Termination Date and agree to certain other
modifications to the provisions of the Credit Agreement. Pursuant to such
request, the Credit Agreement was further amended by a Third Amendment to Credit
Agreement dated as of August 10, 2001 (the "Third Amendment") among the
Borrowers, the Lenders and the Agent.
F. The Credit Agreement (as modified by the First Amendment, the Second
Amendment and the Third Amendment), all promissory notes executed by either
Borrower in favor of the Agent and/or the Lenders, and any and all of the
Collateral Documents executed by any Loan Party (including without limitation
all Security Agreements, Mortgages, Guaranties, pledges of stock and other
instruments, documents or agreements of any kind evidencing or securing the
indebtedness of either Borrower in favor of the Lenders) are sometimes referred
to collectively as the "Loan Documents."
G. The Borrowers have requested that the Agent and the Lenders further
extend the Facility Termination Date. Additionally, the Borrowers have requested
that the Agent and the Lenders continue to permit the Borrowers to develop and
implement their business improvement and financial restructuring plan under the
terms and conditions set forth in this Amendment.
H. Based upon the foregoing recitals, and without waiving any existing
or future rights or remedies which the Agent and/or the Lenders may have against
the Borrowers or any Guarantor, the Agent and the Lenders are willing to amend
the terms of the Credit Agreement (including the Second Amendment and the Third
Amendment) under the terms and conditions expressly set forth herein.
TERMS
In consideration of the premises and of the mutual agreements herein
contained, the parties agree as follows:
ARTICLE 1.
DEFAULT AND RESTRUCTURING PROVISIONS
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1.1 AFFIRMATION OF RECITALS. The Borrowers and the Guarantors hereby
acknowledge and affirm the accuracy of the foregoing recitals.
1.2 RESTRUCTURING CONDITIONS. Section 1.3 of the Second Amendment set forth
certain "restructuring conditions" governing the Borrowers' implementation of
their business improvement and financial restructuring plan. Such "restructuring
conditions" were amended and restated in Section 1.2 of the Third Amendment and
are hereby further amended and restated in their entirety as set forth below in
this Section 1.2. Nothing contained herein, however, shall be deemed to modify
or retract the terms and conditions that were applicable under the Second
Amendment and/or the Third Amendment during the period from and including the
Second Amendment Effective Date through and including the date immediately
preceding the Fourth Amendment Effective Date. All actions performed by or on
behalf of the Borrowers during such period in furtherance of their obligations
under the Second Amendment and/or the Third Amendment are hereby confirmed and
ratified, and the Agent and the Lenders shall be entitled to retain the full
benefit of such performance. There shall be no disgorgement, refund or
rescission with respect to any payment made by or on behalf of the Borrowers and
received by the Agent or the Lenders pursuant to the terms of the Second
Amendment and/or the Third Amendment. Except to the extent expressly modified by
the terms set forth below, each of the terms and conditions set forth in the
Second Amendment and/or the Third Amendment is hereby confirmed and ratified and
shall remain in full force and effect as provided therein. From and after the
Fourth Amendment Effective Date, subject to strict compliance with the terms and
conditions set forth herein, the Lenders agree to forbear from enforcing their
rights and remedies based on the Existing Defaults while the Borrowers and their
consultants continue to develop and implement their plan for improvement of the
Borrowers' business and financial condition, provided that (i) the Lenders'
waiver of the Existing Defaults shall be solely in accordance with
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the terms and conditions set forth in the Second Amendment and the Third
Amendment (as modified herein) and (ii) such agreement to forbear shall not
create a waiver of the right of the Agent or the Lenders, upon the occurrence of
a default hereunder or a Default (other than the Existing Defaults) under the
Loan Documents, to enforce available rights and remedies at any time, in their
sole discretion, in accordance with the Credit Agreement (as previously modified
and as modified herein) and the other Loan Documents. Absent an earlier default
hereunder or Default (other than the Existing Defaults) under the Loan
Documents, the period during which the Lenders shall forbear is from the Second
Amendment Effective Date through February 28, 2002 (the "Restructuring Period").
The Lenders' forbearance shall be governed by and subject to the following terms
and conditions:
a. The Borrowers shall keep the Agent, the Lenders
and their consultants apprised of the Borrowers' business and
financial operations and of any material discussions and
negotiations (other than discussions or negotiations in the
ordinary course of the Borrowers' business) pertaining to
lessors, vendors, suppliers, customers, other creditors, joint
venture partners or potential purchasers of any business
segments or significant assets of any Borrowers. Reports on
such matters shall be provided periodically and not less
frequently than monthly.
b. Notwithstanding any prior practice, the Borrowers
shall strictly comply with the financial reporting
requirements under the Loan Documents, as modified herein. In
addition to the reporting requirements set forth in Section
6.1 of the Credit Agreement (as modified herein), (i) not
later than Wednesday of each week during the Restructuring
Period, the Borrowers and their financial advisors will
deliver to the Agent and the Lenders, in form and detail
satisfactory to the Agent, weekly updates to the detailed
13-week rolling cash flow forecast as required under Section
4.4 of this Amendment; (ii) not later than the twentieth
(20th) day of each month during the Restructuring Period, the
Borrowers and their financial advisors will deliver to the
Agent and the Lenders, in form and detail satisfactory to the
Agent, (x) a summary of agings of accounts payable and
accounts receivable for the Borrowers as of the end of the
prior month, (y) a duly-executed Borrowing Base Certificate as
of the last Business Day of the prior month, together with
supporting information as required by the Credit Agreement,
and (z) a duly-executed Compliance Certificate with respect to
the cash flow restrictions set forth in subparagraph f below;
(iii) the Company shall, immediately upon receipt thereof,
deliver to the Agent copies of any correspondence, letters of
intent, agreements or similar documents pertaining in any
manner to any proposed sale or other disposition of any assets
of the Company or its Subsidiaries other than in the ordinary
course of business; and (iv) the Company shall provide to the
Agent, within five (5) business days following any request by
the Agent, a current listing of correct names and addresses of
account debtors (together with periodic updates to such
listing upon request by the Agent). If requested by the Agent,
the Borrowers promptly shall provide detailed backup for the
monthly summary of agings of accounts payable and accounts
receivable.
c. The Borrowers shall pay when due all amounts owed
to the Agent and the Lenders under the Loan Documents.
d. The aggregate outstanding amount of the Revolving
Credit Loans, together with the face amount of any Facility
LCs, shall not exceed the maximum amount described in Article
2 of the Second Amendment.
e. All representations and warranties made by the
Borrowers under the Second Amendment and under this Amendment
shall be true and correct.
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f. (i) There shall be no change having a Material
Adverse Effect on the financial performance or condition of
the Borrowers as compared with the projections submitted to
and approved by the Agent and the Lenders in the Accepted
Forecast pursuant to Section 4.4 of this Amendment.
(ii) For each "Measuring Period" (defined below)
during the Restructuring Period, the actual cumulative "Net
Cash Flow" (defined below) of the Company and its domestic
Subsidiaries on a consolidated basis during such Measuring
Period shall equal or exceed the projected cumulative Net Cash
Flow for such Measuring Period as set forth in the Accepted
Forecast, within a negative variance of $1,500,000 for each
Measuring Period. The term "Net Cash Flow" shall mean the
excess (if any) of the consolidated aggregate cash receipts of
the Company and its domestic Subsidiaries during the relevant
period (excluding (a) any advances of Loans under the Credit
Agreement and (b) the amount of Net Cash Proceeds generated by
any transaction and distributed to the Lenders as required by
the Credit Agreement) compared to the consolidated aggregate
cash disbursements of the Company and its domestic
Subsidiaries during such period for operating expenses, taxes
and debt service (but excluding principal repayments and
interest payments to the Lenders and to the Noteholders), all
as shown on the reports required pursuant to Section 4.4 of
this Amendment and prepared in a manner consistent with the
presentation set forth in the Accepted Forecast. The
cumulative Net Cash Flow of the Company and its domestic
Subsidiaries shall be measured as of the end of each calendar
month, for the cumulative period commencing July 1, 2001 and
ending on the last day of each successive month (each a
"Measuring Period") (i.e., the first Measuring Period shall be
a one-month period commencing July 1, 2001 and ending July 31,
2001, the second Measuring Period shall be a two-month period
commencing July 1, 2001 and ending August 31, 2001, etc.).
(iii) The Borrowers shall not, absent the prior
written consent of the Required Lenders, (a) disburse any
funds for purposes other than those set forth in the Accepted
Forecast or (b) disburse any funds in an amount that would
cause a violation of the net cash flow restrictions set forth
above, and shall not in any event disburse any funds in a
manner inconsistent with any other restrictions set forth in
this Amendment or the Loan Documents.
g. The Company will not permit the Consolidated
EBITDA of the Company and its Subsidiaries (less the sum of
(w) the fee required under subparagraph 1.3t of the Second
Amendment, subparagraph 1.2t of the Third Amendment and
subparagraph t below, (x) any fee required under the amendment
referenced in Section 5.10(g) of the Second Amendment, Section
5.9(h) of the Third Amendment and Section 5.9(h) hereof, (y)
any fees and disbursements of professionals retained by the
Agent, the Lenders or the Noteholders for which the Company is
responsible to reimburse the Agent or the Lenders and (z) any
fees and disbursements incurred by the Company during the
Restructuring Period, up to a maximum of $500,000, to any
lawyer or consultant referenced in subparagraph q below) to be
less than (i) $6,687,000 for the four consecutive fiscal
quarters ending June 30, 2001, (ii) $8,628,000 for the four
consecutive fiscal quarters ending September 30, 2001, (iii)
$8,860,000 for the four consecutive fiscal quarters ending
December 31, 2001, (iv) $14,598,000 for the four consecutive
fiscal quarters ending March 31, 2002, (v) $15,372,900 for the
four consecutive fiscal quarters ending June 30, 2002, or (vi)
$15,402,000 for the four consecutive fiscal quarters ending
September 30, 2002.
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h. No action or proceeding shall be commenced against
any Borrower that would, if adversely determined, cause a
Material Adverse Effect or prevent, impair or delay the
completion of the Borrowers' business improvement plan. With
respect to those actions or proceedings currently pending (as
listed on Schedule 1.2h hereof), there shall be no event that
would cause a Material Adverse Effect or prevent, impair or
delay the completion of the Borrowers' business improvement
plan.
i. Absent prior approval on behalf of the Agent and
the Lenders, no Borrower shall (i) file with any bankruptcy
court or be the subject of any petition under title 11 of the
United States Code (the "Bankruptcy Code"), (ii) be the
subject of any order for relief issued under the Bankruptcy
Code, (iii) file or be the subject of any petition seeking any
liquidation, reorganization, adjustment, protection,
arrangement, composition, dissolution or similar relief under
any present or future federal or state act or law relating to
bankruptcy, insolvency, reorganization or other relief for
debtors, (iv) have sought or consented to or acquiesced in the
appointment of any receiver, trustee, conservator, liquidator,
custodian or other similar official, or (v) be the subject of
any order, judgment or decree entered by any court of
competent jurisdiction approving a petition filed against such
party for any liquidation, reorganization, adjustment,
protection, arrangement, composition, dissolution or similar
relief under any present or future federal or state act or law
relating to bankruptcy, insolvency, reorganization or other
relief for debtors.
j. The Agent, the Lenders or their representatives or
consultants shall be permitted to conduct field examinations
of the Company and its Subsidiaries and audits of any
collateral securing the obligations of the Borrowers to the
Lenders. The Borrowers shall compensate the Agent or the
Lenders for such audits in accordance with the Agent's or each
Lender's schedule of fees, as applicable, and as such
schedules may be amended from time to time. The foregoing
permission to conduct audits shall not restrict or impair the
right of the Agent or the Lenders to inspect the collateral
and any records pertaining thereto at such times and at such
intervals as the Agent or the Required Lenders may require.
Further, the Borrowers acknowledge and agree that the Agent,
on behalf of itself and the Lenders, reserves the right to
engage the services of one or more appraisers to evaluate the
properties of the Company and its Subsidiaries. The Borrowers
acknowledge their responsibility to reimburse the Agent for
the fees and disbursements incurred by such parties in
connection with such engagements.
k. Neither the Company nor any of its Subsidiaries
shall take any action or fail to take any action within its
reasonable control that would cause a material adverse change
in the ability of the Company and its Subsidiaries to obtain
supplies or other assets to continue their operations. Upon
the occurrence of any event not within the reasonable control
of the Company or its Subsidiaries that would cause a material
adverse change in the ability of the Company and its
Subsidiaries to obtain supplies or other assets to continue
their operations, the Company shall immediately initiate and
diligently complete such actions as may be necessary to avoid
any impairment or delay in the operations of the Company and
its Subsidiaries.
l. Notwithstanding anything in the Credit Agreement
to the contrary (including without limitation the provisions
of Section 6.11 of the Credit Agreement), during the
Restructuring Period, absent the prior written consent of the
Required Lenders, the Company shall not, and shall not permit
or cause any of its Subsidiaries to, create, incur, assume or
suffer to exist any Indebtedness other than Indebtedness as
permitted under subsections 6.11(i), (ii), (iii), (iv), (v),
(vii) and (viii) of the Credit Agreement (with respect
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to clause (vii), only to the extent that such Indebtedness is
in existence immediately prior to the Fourth Amendment
Effective date as described in Schedule 1.2l, provided that no
increase in the amount thereof shall be permitted).
m. During the Restructuring Period, absent the prior
written consent of the Required Lenders, the Company shall
not, and shall not permit or cause any of its Subsidiaries to,
create, incur or suffer to exist any Lien other than Liens as
permitted under Section 6.15 of the Credit Agreement.
n. Notwithstanding anything in the Credit Agreement
to the contrary (including without limitation the provisions
of Section 6.13 of the Credit Agreement), during the
Restructuring Period, neither the Company nor any of its
Subsidiaries shall agree to or consummate the sale,
assignment, lease, conveyance, transfer or other disposition
of any of its assets, except for (i) sales of inventory in the
ordinary course of business, (ii) the disposition in the
ordinary course of business of assets no longer required for
business operations, provided that such assets shall not have
a value exceeding $10,000 per item and $300,000 in the
aggregate on a cumulative basis during the Restructuring
Period, or (iii) the disposition of other assets under terms
approved by the Required Lenders as evidenced by the prior
written consent of the Agent (provided that such consent shall
require the approval of all of the Lenders in the event of any
proposed disposition of all or substantially all of the
Collateral).
o. Notwithstanding anything in the Credit Agreement
to the contrary (including without limitation the provisions
of Sections 6.12 and 6.14 of the Credit Agreement), during the
Restructuring Period, absent the consent of the Required
Lenders, neither the Company nor any of its Subsidiaries shall
agree to or consummate, or make or suffer to exist, any
Investment or Acquisition, or extend credit to any other
Person, or extend any credit to any other Person, or enter
into any merger or consolidation, or enter into any similar
business arrangement or combination, except for transactions
permitted under subsections 6.14 (i) and (ii) of the Credit
Agreement (with respect to clause (ii), only to the extent in
existence immediately prior to the Fourth Amendment Effective
Date).
p. Notwithstanding anything in the Credit Agreement
to the contrary, during the Restructuring Period neither the
Company nor any of its Subsidiaries shall advance any loans or
credit to any officer, director, stockholder or other
Affiliate of the Company or any of its Subsidiaries, or
otherwise enter into any similar transaction (provided that
the Company may continue to implement intercompany
transactions with its Wholly-Owned Subsidiaries consistent
with past practice), nor shall the Company or any of its
Subsidiaries forgive or defer any payment of principal or
interest with respect to any existing loan or advance to any
such officer, director, stockholder or other Affiliate.
q. The Borrowers shall continue to engage for at
least the duration of the Restructuring Period, at the
Borrowers' sole cost and expense, one or more financial
consultants acceptable to the Agent and the Required Lenders.
The scope of the engagement of any financial consultants shall
be acceptable to the Agent and the Required Lenders.
r. Notwithstanding anything in the Credit Agreement
to the contrary (including without limitation the provisions
of Sections 6.10 of the Credit Agreement), during the
Restructuring Period, absent the prior written consent of the
Required Lenders, the Company shall not, and shall not permit
or cause any of its Subsidiaries to declare or pay any
dividends or make any distributions on its Capital Stock or
redeem, repurchase or
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otherwise acquire or retire any of its Capital Stock, provided
that any Subsidiary may continue to declare and pay dividends
or make distributions to the Company or to a Wholly-Owned
Subsidiary consistent with past practice.
s. During the Restructuring Period, neither the
Company nor any of its Subsidiaries shall pay any
discretionary bonus or similar compensation award to any of
their respective officers or employees except pursuant to a
comprehensive plan approved by the Required Lenders. The
preceding sentence shall not limit the right of the Company or
its Subsidiaries to pay any bonus (i) required under any
written employment agreement, incentive plan or similar
"guaranteed" bonus plan in existence immediately prior to the
Second Amendment Effective Date or (ii) negotiated as part of
a recruitment "signing bonus" consistent with past practice.
Upon request, the Company shall deliver to the Lenders and the
Agent copies of any applicable employment agreements,
incentive plans or similar "guaranteed" bonus plans.
t. Upon execution of this Amendment, the Company
shall pay to the Agent, for the benefit of the Lenders, an
amendment fee in the amount of $100,000.00.
u. Commencing on the Second Amendment Effective Date
and thereafter, there shall be no principal payments made to
the Noteholders in respect of the Noteholder Obligations
unless, simultaneously with the making of any such payment,
the Borrowers pay to the Lenders the "Reduction Amount" (as
such term is defined in Article 2 of the Second Amendment).
Upon payment to the Lenders of the Reduction Amount, the
Borrowing Base and the Aggregate Commitments shall be
permanently reduced by such amount, which may not be
reborrowed.
v. Notwithstanding anything in the Credit Agreement
to the contrary, the Borrowers shall not, and shall not permit
any Subsidiary to, make any Capital Expenditures that exceed
in the aggregate for the Borrowers and their Subsidiaries (a)
$1,750,000 during the fiscal year ending March 31, 2002, or
(b) $1,000,000 during the six-month period ending September
30, 2002.
w. There shall be no other Default or Unmatured
Default under the Credit Agreement (as modified herein) or the
other Loan Documents (except for the Existing Defaults
expressly acknowledged and waived in this Amendment through
the effective date hereof).
Notwithstanding the provisions of this Section 1.2, all indebtedness of the
Borrowers to the Lenders shall be due and payable on demand in the discretion of
the Required Lenders upon expiration or termination of the Restructuring Period
as provided in Section 1.6 hereof or any failure of any one or more of the
conditions set forth in this Section 1.2. Further, any failure of any one or
more of the conditions set forth in this Section 1.2 shall constitute a Default
under the Loan Documents (without the necessity of any notice or cure period).
1.3 NO COURSE OF DEALING; REVIEW OF THE BORROWERS' BUSINESS PLAN. The
Borrowers and the Guarantors acknowledge and agree that notwithstanding any
course of dealing between the Borrowers and the Lenders prior to the date
hereof, the Lenders shall have no obligation to make Loans to the Borrowers
outside of the strict conditions and requirements of the Credit Agreement (as
modified herein) nor to forbear from exercising available remedies except as
expressly set forth herein. Notwithstanding any past practice, the Borrowers and
the Guarantors agree that (i) the Agent and the Lenders shall not be obligated
or expected to honor any "overdrafts" or items for which funds of the Borrowers
are not immediately available, and (ii) the Agent and the Lenders shall not be
obligated or expected to provide
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any credit references on behalf of the Borrowers, and any inquiries in this
regard may be referred back to the Borrowers or their advisors. The Agent and
the Lenders shall be under no obligation whatsoever to consent to the Borrowers'
updated and revised business plan as the same may be further revised from time
to time, and instead the Agent's and the Lenders' consideration of the
Borrowers' updated and revised business plan shall be undertaken by the Agent
and the Lenders in their sole and absolute discretion. The Agent's and the
Lenders' consideration of the Borrowers' updated and revised business plan shall
be without prejudice to (i) the possibility that the Agent or the Lenders may
conclude that such business plan, as further revised from time to time, does not
adequately address the Borrowers' defaults under the Loan Documents and/or the
potential erosion of collateral supporting the Borrowers' indebtedness to the
Lenders, or (ii) the right of the Agent or the Lenders, in accordance with the
terms hereof, to exercise rights or remedies available due to defaults under the
Loan Documents (as modified herein).
1.4 DEFAULTS. In addition to any events of default specified in the Loan
Documents, the following shall constitute a Default under this Amendment and
under the Loan Documents:
a. Any Borrower or any Guarantor shall fail to comply with, perform or
observe any term, condition, covenant or agreement set forth in this Amendment;
b. Any representation or warranty of Borrowers or Guarantors contained
in this Amendment shall be untrue in any material respect when made or shall,
during the term of this Amendment, become impaired, untrue or misleading;
c. With the exception of the Existing Defaults waived as set forth in
the Second Amendment, the occurrence of any new or further violation of the
sections of the Credit Agreement implicated by any of the Existing Defaults;
d. The occurrence of any default under the Senior Note Agreement;
e. Any further change having a Material Adverse Effect shall occur in
business, properties, operations or condition (financial or otherwise) of any
Borrower or any Guarantor; or
f. The Aggregate Total Outstandings of all Lenders shall on any date
exceed the Borrowing Base as of such date, and the Borrowers shall fail to pay
on such date not less than the amount of such excess for application against the
Aggregate Total Outstandings.
1.5 EXPIRATION; NO FURTHER EXTENSION IMPLIED. The Borrowers and the
Guarantors acknowledge that the Agent and the Lenders have no obligation to
extend the term of the Restructuring Period or further extend the Facility
Termination Date, or forbear from enforcing their rights and remedies before the
end of the Restructuring Period in the event of any failure of any one or more
of the terms and conditions expressed herein, that no course of dealing that
would permit arguing for further extensions contrary to the Lenders' wishes
exists or is capable of being inferred, and that nothing contained herein or
otherwise is intended to be a promise or agreement to continue to extend the
term of the Restructuring Period beyond February 28, 2002 or the Facility
Termination Date beyond October 31, 2002 or to extend any further credit to the
Borrowers. Furthermore, no future agreement by the Agent and the Lenders to
continue to extend the term of the Restructuring Period beyond February 28, 2002
or the Facility Termination Date beyond October 31, 2002 or any other agreement
shall be valid or enforceable unless it is contained in a final written
agreement signed by authorized representatives of the Agent and the Required
Lenders (or, to the extent required by Section 8.2 of the Credit Agreement, all
of the Lenders). Preliminary understandings or agreements on one or more issues
during the course of any negotiations and prior to the finalization thereof
shall not be binding unless and until such a final written agreement is executed
on behalf of the applicable parties.
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1.6 REMEDIES UPON DEFAULT OR TERMINATION. The Restructuring Period shall
expire automatically upon the earlier to occur of (a) a further Default or a
default under this Amendment or any document or agreement comprising the Loan
Documents, and without notice or an opportunity to cure such Default or default
under this Amendment, or (b) February 28, 2002 in the absence of a further
written agreement among the Borrowers, the Agent and the Required Lenders
pertaining to the repayment of the Borrowers' obligations. Upon the expiration
of the Restructuring Period and in the absence of (i) a further written
agreement among the Borrowers, the Agent and the Required Lenders pertaining to
the repayment of the Borrowers' obligations or (ii) the Borrowers then being in
full compliance with all provisions of the Loan Documents (as amended by this
Amendment but without the benefit of any waiver of defaults except as expressly
provided in Section 5.3 of the Second Amendment), upon the election of the
Required Lenders but without further notice, all of the Borrowers' obligations
to the Lenders shall be immediately due and payable (to the extent not already
due and payable), all undertakings of the Agent and the Lenders hereunder,
including without limitation the Agent's and the Lenders' forbearance, shall
terminate without notice to the Borrowers and without the requirement of any
further action by or on behalf of the Agent or the Lenders, the waiver of the
Existing Defaults as set forth in the Second Amendment shall be deemed rescinded
ab initio, and the Agent or the Lenders shall have the right to exercise any
remedies provided in this Amendment or any of the Loan Documents, or under
applicable law or in equity. All rights and remedies of the Agent and the
Lenders shall be cumulative and not exclusive, and the Agent or the Lenders
shall be entitled to pursue one or more rights and/or remedies simultaneously or
sequentially without the necessity of an election of remedies.
1.7 RESERVATION OF RIGHTS; NO WAIVER BY CONDUCT. The Second Amendment, as
modified by the Third Amendment and as further modified by this Amendment,
grants a limited forbearance until February 28, 2002 only, or until an earlier
Default, upon the terms and conditions set forth in the Second Amendment, the
Third Amendment and this Amendment. Excepting only the waiver of the Existing
Defaults as set forth in the Second Amendment, nothing herein shall be deemed to
constitute a waiver of any new Unmatured Defaults or Defaults of any other
provision of any of the documents referred to herein, and nothing herein shall
in any way prejudice the rights and remedies of the Agent and/or the Lenders
under any of the documents referred to herein or applicable law. Further, the
Agent and the Lenders shall have the right to waive any conditions set forth in
this Amendment and/or such documents, in their sole discretion, and any such
waiver shall not prejudice, waive or reduce any other right or remedy which the
Agent or the Lenders may have against the Borrowers or the Guarantors. No waiver
of the rights or any condition of this Amendment and/or any other document by
the Agent or the Lenders shall be effective unless the same shall be contained
in a writing signed by authorized representatives of the Agent or the Lenders,
as the case may be, in the manner required by Section 8.2 of the Credit
Agreement. No course of dealing on the part of the Agent or the Lenders, nor any
delay or failure on the part of the Agent or the Lenders in exercising any
right, power or privilege hereunder shall operate as a waiver of such right,
power or privilege, nor shall any single or partial exercise thereof preclude
any further exercise thereof or the exercise of any other right, power or
privilege.
1.8 LIMITATIONS ON CERTAIN ADVANCES. Pursuant to Section 1.12 of the Second
Amendment, the Borrowers agreed that, notwithstanding the provisions of Sections
2.7 and 2.8 of the Credit Agreement, during the Restructuring Period (and,
absent a further written agreement among the Borrowers and the Lenders to the
contrary, thereafter until the Facility Termination Date) the Lenders would not
be obligated to advance any Eurocurrency Loan and the Borrowers would not
request new Eurocurrency Advances, and that any existing Eurocurrency Loans
would, at the end of the applicable Interest Period therefor, automatically be
converted into a Floating Rate Loan. The Borrowers have now requested the
ability to obtain Eurocurrency Advances on a limited basis. Based upon such
request, the Lenders agree that, from and after the Fourth Amendment Effective
Date, the Borrowers may request Eurocurrency Advances pursuant to Sections 2.3,
2.7 and 2.8 of the Credit Agreement, provided that, with
9
respect to any such Eurocurrency Advance, (a) the Applicable Margin for purposes
of calculating the Eurocurrency Rate shall, notwithstanding the Pricing Schedule
attached to the Credit Agreement as modified by the Second Amendment, be 5.00%
and (b) the Interest Period shall not exceed one month.
1.9 SURVIVAL. All representations, warranties, covenants, agreements,
releases and waivers made by or on behalf of the Borrowers or any Guarantor
under this Amendment shall survive and continue after the expiration or
termination of the Restructuring Period.
ARTICLE 2.
AMENDMENTS
----------
Effective as of the Fourth Amendment Effective Date, the Credit Agreement
shall be amended as follows:
2.1 The definition of "Facility Termination Date" in Section 1.1 of the
Credit Agreement is restated in its entirety as follows:
"Facility Termination Date" means October 31, 2002, or any
earlier date on which the Aggregate Commitment is reduced to
zero or otherwise terminated pursuant to the terms hereof.
2.2 A new definition of "Fourth Amendment Effective Date" is added to
Section 1.1 of the Credit Agreement in appropriate alphabetical order, stating
as follows:
"Fourth Amendment Effective Date" shall mean November 12,
2001.
2.3 The Aggregate Commitments shall be reduced to $40,000,000 as of the
Fourth Amendment Effective Date. Schedule 1.1 annexed to the Credit Agreement is
amended and restated by substituting therefor Schedule 1.1 annexed to this
Amendment, showing the respective Canadian Commitments and U.S. Commitments of
each Lender as of the Fourth Amendment Effective Date, and the corresponding
definitions in Section 1.1 of the Credit Agreement for "Aggregate Canadian
Commitments," "Aggregate Commitments," "Aggregate U.S. Commitments," "Canadian
Commitment," "Commitment" and "U.S. Commitment" shall be modified accordingly.
2.4 Section 6.19 of the Credit Agreement, as previously amended by the
Second Amendment and the Third Amendment, is further amended by deleting
Sections 6.19.1 and 6.19.2 and inserting the following in place thereof:
6.19.1 CONSOLIDATED FIXED CHARGE COVERAGE RATIO. The Company
will not permit the Consolidated Fixed Charge Coverage Ratio of the
Company and its Subsidiaries, determined as of the end of each of its
fiscal quarters to be less than (i) 0.75 to 1.0 for the quarter ending
June 30, 2001, (ii) 0.87 to 1.0 for the quarter ending September 30,
2001, (iii) 0.85 to 1.0 for the quarter ending December 31, 2001, (iv)
1.18 to 1.0 for the quarter ending March 31, 2002, (v) 1.10 to 1.0 for
the quarter ending June 30, 2002 and (vi) 1.05 to 1.0 for the quarter
ending September 30, 2002.
6.19.2 LEVERAGE RATIO. The Company will not permit the
Consolidated Leverage Ratio of the Company and its Subsidiaries,
determined as of the end of each of its fiscal quarters, to be greater
than (i) 9.82 to 1.0 for the period ending June 30, 2001,
10
(ii) 8.12 to 1.0 for the period ending September 30, 2001, (iii) 7.83
to 1.0 for the period ending December 31, 2001, (iv) 4.08 to 1.0 for
the period ending March 31, 2002, (v) 4.19 to 1.0 for the period
ending June 30, 2002 and (vi) 4.14 to 1.0 for the period ending
September 30, 2002.
ARTICLE 3.
REPRESENTATIONS
---------------
Each Borrower represents and warrants to the Agent and the Lenders
that:
3.1 The execution, delivery and performance by it of this Amendment are
within its powers, have been duly authorized by all necessary action and are not
in contravention with any law, rule or regulation, or any judgment, decree,
writ, injunction, order or award of any arbitrator, court or governmental
authority, of the terms of its Articles of Incorporation or By-laws, or any
contract or undertaking to which it is a party or by which it or its property is
or may be bound.
3.2 This Amendment is its legal, valid and binding obligation, enforceable
against it in accordance with the terms hereof.
3.3 No consent, approval or authorization of or declaration, registration
or filing with any governmental authority or any nongovernmental person or
entity, including, without limitation, any of its creditors or stockholders, is
required on its part in connection with the execution, delivery and performance
of this Amendment or as a condition to the legality, validity or enforceability
of this Amendment.
3.4 After giving effect to the amendments herein contained, the
representations and warranties contained in Article V of the Credit Agreement
are true on and as of the date hereof with the same force and effect as if made
on and as of the date hereof.
ARTICLE 4.
ADDITIONAL COVENANTS OF THE BORROWERS
-------------------------------------
Each Borrower shall:
4.1 Promptly perform and observe, and cause each Guarantor to perform and
observe, its respective obligations set forth in this Amendment.
4.2 Cause each of the Guarantors to execute the Consent and Agreement at
the end of this Amendment.
4.3 Upon request by the Agent, promptly prepare and deliver to the Agent
and the Lenders an updated and detailed business plan (which may consist of
updates and revisions to the plan submitted to the Lenders in May, 2001 and
September, 2001), viability analysis and financial strategy to improve the
Borrowers' business operations and financial condition, which plan and strategy
shall cover the period at least through October 31, 2002 and shall address,
inter alia, repayment of the indebtedness owed to the Lenders.
11
4.4 Upon request by the Agent, promptly prepare and deliver to the Agent
and the Lenders an updated and detailed budget forecast for the remainder of the
Restructuring Period and thereafter through October 31, 2002, including
financial and cash flow projections based upon Borrowers' business improvement
plan, and such budget forecast and projections shall be acceptable to the
Required Lenders (upon such acceptance, such budget forecast and projections
shall be referred to as the "Accepted Forecast"). The cash flow projections
shall be based on a rolling thirteen (13) week period through March 31, 2002 and
on a monthly basis thereafter. Projected capital expenditures shall be shown in
the projections as a separate line item. Not later than Wednesday of each week
(commencing November 21, 2001), the Borrowers shall update all applicable line
items of the Accepted Forecast and cash flow projections to reflect actual
results from the prior week and on a cumulative basis, and shall prepare and
deliver to the Agent and the Lenders such update and a report of any variances
between actual results and the Accepted Forecast originally approved by the
Required Lenders.
4.5 Promptly deliver to the Lenders such information as has previously been
requested in writing by the Lenders, the Agent or the Agent's financial
consultant.
4.6 To the extent requested by the Agent and to the extent not cost
prohibitive (as determined by the Agent), promptly (within five (5) days after
such request) cause each of its Foreign Subsidiaries to execute and deliver to
the Agent one or more guarantees (in form and substance satisfactory to the
Agent) of the Borrowers' indebtedness in favor of the Lenders.
4.7 To the extent requested by the Agent and to the extent not cost
prohibitive (as determined by the Agent), promptly (within five (5) days after
such request) cause each of its Foreign Subsidiaries to complete the execution
and delivery of the Collateral Documents as required by the Agent.
4.8 Upon request by the Agent, promptly complete all matters required by
the Agent for full implementation of the dominion of funds arrangement between
the Borrowers and the Agent and otherwise cooperate with the implementation of
such arrangement.
4.9 Promptly execute and deliver, and cause each Guarantor to execute and
deliver, such other documents as the Agent or the Lenders may reasonably
request.
ARTICLE 5.
MISCELLANEOUS.
--------------
5.1 CROSS REFERENCES. References in the Credit Agreement or in any note,
certificate, instrument or other document to the "Credit Agreement" shall be
deemed to be references to the Credit Agreement as amended hereby and as further
amended from time to time.
5.2 EXPENSES AND COSTS. Each Borrower, jointly and severally, agrees to pay
and to save the Agent and the Lenders harmless for the payment of all fees,
out-of-pocket disbursements, and other costs and expenses incurred by or on
behalf of the Agent or any Lender arising in any way in connection with this
Amendment, or any other document relating to indebtedness described in the
recitals to this Amendment, including the fees and expenses of Xxxxxxxxx Xxxxxx
PLLC, counsel to the Agent, and Xxx Xxxx & Associates, Inc., consultant to the
Agent, and specifically including, without limitation, (a) the cost of any
financial audit or inquiry conducted by the Agent, any Lender or their
consultants, (b) the fees and expenses of counsel for the Agent or any Lender
for the work performed as a result of the Borrowers' defaults or financial
problems, and for the preparation, examination and approval of this Amendment or
any documents in connection with this Amendment, (c) for the payment of all fees
and out-of-pocket disbursements incurred
12
by the Agent or any Lender, including attorneys' fees, in any way arising from
or in connection with any action taken by the Agent or any Lender to monitor,
advise, enforce or collect the obligations described in the recitals hereto or
to enforce any obligations of the Borrowers or any Guarantor under this
Amendment or the other documents referred to herein, including any actions to
lift the automatic stay or to otherwise in any way participate in any
bankruptcy, reorganization or insolvency proceeding of any Borrower or Guarantor
or in any trial or appellate proceedings, and (d) any expenses or fees
(including attorneys' fees) incurred in relation to or in defense of any
litigation instituted by any Borrower, any Guarantor or any third party against
the Agent or any Lender arising from or relating to the obligations described in
the recitals hereto or this Amendment, including any so-called "lender
liability" action. All of these expenses and fees (including attorneys' fees)
shall be part of the Obligations owing under the Credit Agreement, and shall be
secured by all of the collateral described in the Collateral Documents. In the
event the Borrowers fail to pay any such fees, expenses and costs within five
(5) days of being invoiced therefor, the Agent or the Lenders, as the case may
be, shall be permitted to charge the accounts of any Borrower for such fees,
expenses and costs, without prejudice to any other rights or remedies of the
Agent or the Lenders. The rights and remedies of the Agent and the Lenders
contained in this paragraph shall be in addition to, and not in lieu of, the
rights and remedies contained in the Credit Agreement, the Collateral Documents
and as otherwise provided by law.
5.3 RELEASE. Each Borrower and each Guarantor represents and warrants that
it is not aware of any claims or causes of action against the Agent or any
Lender, any participant lender or any of their successors or assigns, and that
it has no defenses, offsets or counterclaims with respect to the indebtedness
owed by the Borrowers to the Lenders. Notwithstanding this representation and as
further consideration for the agreements and understandings herein, the
Borrowers and Guarantors, on behalf of themselves and their respective
employees, agents, executors, heirs, successors and assigns, hereby release the
Agent and the Lenders, their respective predecessors, officers, directors,
employees, agents, attorneys, affiliates, subsidiaries, successors and assigns,
from any liability, claim, right or cause of action which now exists or
hereafter arises as a result of acts, omissions or events occurring on or prior
to the date hereof, whether known or unknown, including but not limited to
claims arising from or in any way related to the Credit Agreement or the
business relationship among the Borrowers, the Guarantors, the Agent and the
Lenders.
5.4 PERFORMANCE BY LENDERS AND AGENT; NO AGENCY; BORROWERS REMAIN IN
CONTROL. Each Borrower and each Guarantor acknowledges and agrees that the Agent
and the Lenders have fully performed all of their obligations under the Credit
Agreement and all documents executed in connection with the Credit Agreement,
and that all actions taken by the Agent and the Lenders are reasonable and
appropriate under the circumstances and within their rights under the Credit
Agreement and all other documents executed in connection therewith and otherwise
available. The actions of the Agent and the Lenders taken pursuant to this
Amendment and the documents referred to herein are in furtherance of the efforts
of the Agent and the Lenders as secured lenders seeking to collect the
obligations owed to the Lenders. Nothing contained in this Amendment shall be
deemed to create a partnership, joint venture or agency relationship of any
nature among the Borrowers and the Lenders or the Agent. The Borrowers, the
Guarantors, the Agent and the Lenders agree that notwithstanding the provisions
of this Amendment, each Borrower remains in control of its business operations
and determines the business plans (including employment, management and
operating directions) for its business.
5.5 ENTIRE AGREEMENT; SEVERABILITY. The Credit Agreement, as previously
amended and as amended by this Amendment, constitutes the entire understanding
of the parties with respect to the subject matter hereof and may only be
modified or amended by a writing signed by the party to be charged. If any
provision of this Amendment is in conflict with any applicable statute or rule
of law or otherwise unenforceable, such offending provision shall be null and
void only to the extent of such conflict or unenforceability, but shall be
deemed separate from and shall not invalidate any other provision of this
Amendment.
13
5.6 NO OTHER PROMISES OR INDUCEMENTS. There are no promises or inducements
which have been made to any signatory hereto to cause such signatory to enter
into this Amendment other than those which are set forth in this Amendment. Each
Borrower and each Guarantor acknowledges that its authorized officers have
thoroughly read and reviewed the terms and provisions of this Amendment and are
familiar with same, that the terms and provisions contained herein are clearly
understood by the Borrower or Guarantor and have been fully and unconditionally
consented to by the Borrower or Guarantor, and that the Borrower or Guarantor
has had full benefit and advice of counsel of its own selection, or the
opportunity to obtain the benefit and advice of counsel of its own selection, in
regard to understanding the terms, meaning and effect of this Amendment, and
that this Amendment has been entered into by the Borrower and Guarantor freely,
voluntarily, with full knowledge, and without duress, and that in executing this
Amendment, the Borrower and Guarantor is relying on no other representations,
either written or oral, express or implied, made by any other party hereto, and
that the consideration hereunder received by the Borrower has been actual and
adequate.
5.7 SUFFICIENCY OF RESTRUCTURING PERIOD. Each Borrower represents that: (a)
it has no intention to file or acquiesce in the filing of any bankruptcy or
insolvency proceeding hereafter, absent approval on behalf of the Agent and the
Lenders of such proceeding; and (b) the Restructuring Period and forbearance
allowed by the Second Amendment and the Third Amendment (as modified herein) are
sufficient for the Borrowers to accomplish the commitments they have undertaken
in the Second Amendment and the Third Amendment (as modified herein).
5.8 RATIFICATION. The Borrowers agree that the Credit Agreement, the
Collateral Documents and all other documents and agreements executed by the
Borrowers or the Guarantors in connection with the Credit Agreement in favor of
the Agent, the Collateral Agent or any Lender are ratified and confirmed and
shall remain in full force and effect as amended hereby, and that there is no
set off, counterclaim or defense with respect to any of the foregoing. Terms
used but not defined herein shall have the respective meanings ascribed thereto
in the Credit Agreement.
5.9 COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in any
number of counterparts with the same effect as if the signatures thereto and
hereto were upon the same instrument. Facsimile copies of signatures shall be
treated as original signatures for all purposes under this Amendment. This
Amendment shall become effective as of November 12, 2001 when each of the
following has been satisfied:
(a) Receipt by the Agent of counterparts of this Amendment duly executed by
each Borrower and each Lender, and counterparts of the Consent and Agreement
annexed hereto duly executed by each Guarantor.
(b) With respect to any interest, fees or other charges previously required
to be paid by either Borrower under the terms of any waiver letter, extension
letter, amendment or other agreement, receipt by the Agent of full payment of
such interest, fees or other charges.
(c) Payment of the amendment fee required under this Amendment. In the
event such fee is not received immediately upon execution of this Amendment by
the Borrowers, the Agent is authorized at any time thereafter to charge the
Company's account(s) in the amount of such fee.
(d) Receipt by the Agent of copies, certified by the Secretary or Assistant
Secretary of each Borrower and each Guarantor, of its Board of Directors'
resolutions and of resolutions or actions of any other body authorizing the
execution of this Amendment and all Collateral Documents to be executed in
connection herewith to which such Borrower or such Guarantor, as applicable, is
a party.
14
(e) Receipt by the Agent of an incumbency certificate, executed by the
Secretary or Assistant Secretary of each Borrower and each Guarantor, which
shall identify by name and title and bear the signatures of the Authorized
Officers and any other officers of each Borrower and each Guarantor authorized
to sign this Amendment and all Collateral Documents to be executed in connection
herewith to which each Borrower and each Guarantor is a party, upon which
certificate the Agent and the Lenders shall be entitled to rely until informed
of any change in writing by such Borrower and such Guarantor.
(f) Receipt by the Agent of a written opinion of the general counsel of
the Borrowers and the Guarantors, addressed to the Agent and Lenders and in form
and substance satisfactory to the Agent.
(g) Receipt by the Agent of executed copies of all Collateral Documents
and other documents in connection therewith requested by the Agent, together
with all necessary consents and other related documents in connection therewith,
insurance certificates, financing statements, environmental reports, opinions of
foreign counsel, original stock certificates and related transfer powers, UCC,
judgment and other lien and encumbrance searches, title searches and insurance,
surveys and other documents required by the Agent, provided that certain items
may be delivered within 30 days of the date hereof pursuant to the terms of any
post closing letter agreement approved by the Agent.
(h) The Company and the Noteholders shall have executed an amendment to
the Senior Note Agreement, which amendment shall be satisfactory in form and
substance to the Agent.
(i) Delivery of such other agreements and documents, and the
satisfaction of such other conditions as may be reasonably required by the
Agent, including without limitation a solvency certificate of each Borrower, and
such evidence of the perfection and priority of all liens and security interests
as required by the Agent, all of which shall be satisfactory to the Agent and
its counsel to the extent required by the Agent.
5.10 OTHER DOCUMENTS. Each Borrower and each Guarantor agrees to execute
and deliver any and all documents reasonably deemed necessary or appropriate by
the Agent or the Lenders to carry out the intent of and/or to implement this
Amendment.
5.11 GOVERNING LAW. This Amendment shall be governed by and construed in
accordance with the laws of the State of Michigan without giving effect to
choice of law principles of such State.
5.12 MISCELLANEOUS. This Amendment is made for the sole benefit and
protection of the Borrowers, the Agent and the Lenders and their respective
successors and permitted assigns (provided that the Borrowers shall not be
permitted, absent the prior written consent of all of the Lenders, to assign any
of their respective rights or obligations under this Amendment). No other person
or entity shall have any rights whatsoever under this Amendment. Time shall be
of the strictest essence in the performance of each and every one of the
Borrowers' obligations hereunder.
5.13 CONSTRUCTION. This Amendment shall not be construed more strictly
against the Lenders or the Agent merely by virtue of the fact that the same has
been prepared by the Lenders and the Agent or their counsel, it being recognized
that the Borrowers, the Guarantors, the Agent and the Lenders have contributed
substantially and materially to the preparation of this Amendment, and each of
the parties hereto waives any claim contesting the existence and the adequacy of
the consideration given by any of the other parties hereto in entering into this
Amendment.
5.14 HEADINGS. The headings of the various paragraphs in this Amendment are
for convenience of reference only and shall not be deemed to modify or restrict
the terms or provisions hereof.
15
5.15 WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION. (a) The Borrowers, each
Guarantor, each Lender and the Agent hereby specifically ratifies and confirms
the waiver of jury trial set forth in Section 16.2 of the Credit Agreement.
Without limiting the generality of the preceding ratification and confirmation,
the Borrowers, each Guarantor, each Lender and the Agent, after consulting or
having had the opportunity to consult with counsel, knowingly, voluntarily and
intentionally waives any right any of them may have to a trial by jury in any
litigation or proceeding based upon or arising out of this Amendment or any
related instrument or agreement or any of the transactions contemplated by this
Amendment or any conduct, dealing, statements (whether oral or written) or
actions of any of them. None of the Borrowers, the Guarantors, the Lenders or
the Agent shall seek to consolidate, by counterclaim or otherwise, any such
action in which a jury trial has been waived with any other action in which a
jury trial cannot be or has not been waived. These provisions shall not be
deemed to have been modified in any respect or relinquished by any party hereto
except by a written instrument executed by such party.
(b) Each Borrower and each Guarantor agrees that any legal action or
proceeding with respect to this Amendment or any related instrument or
agreement, including the Credit Agreement as previously amended and as amended
hereby, or with respect to the transactions contemplated hereby, may be brought
in any court of the State of Michigan, sitting in or having jurisdiction over
the County of Wayne, Michigan, or in any federal court located within the
Eastern District of Michigan, and Borrowers and Guarantors hereby submit to and
accept generally and unconditionally the non-exclusive jurisdiction of those
courts with respect to their person and property and irrevocably consent to
service of process in connection with any such action or proceeding by mailing
such service of process (certified or registered, if capable of certification or
registration) to Borrowers and/or Guarantors at the address they may have from
time to time provided to the Agent. Borrowers and Guarantors hereby irrevocably
waive any objection based upon jurisdiction, improper venue or FORUM NON
CONVENIENS in any such suit or proceeding in the above-described courts. Nothing
contained herein shall limit the right of the Agent or the Lenders to serve
process in any other manner permitted by law or limit the right of the Agent or
the Lenders to commence any such action or proceeding in the courts of any other
jurisdiction. Any judicial proceeding by any Borrower or any Guarantor against
the Agent or any Lender involving this Amendment shall be brought only in a
court in Xxxxx County, Michigan or federal court located within the Eastern
District of Michigan.
[signatures next page]
16
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered as of the date and year first above written.
CORRPRO COMPANIES, INC.
By: /s/Xxxx X. Xxxxxx
-------------------------------
Title: Executive Vice President
-------------------------------------
CSI COATING SYSTEMS INC.
By: /s/Xxxx X. Xxxxxx
-------------------------------
Title: Authorized Signatory
-------------------------------------
BANK ONE, MICHIGAN, AS AGENT AND AS A LENDER
By: /s/Xxxxxx X. Xxxxx
----------------------------------------
Title: First Vice President
-------------------------------------
PNC BANK, NATIONAL ASSOCIATION
By: /s/Xxxxxxxx X. Xxxxxxxx
----------------------------------------
Title: Vice President
-------------------------------------
KEY BANK
By: /s/L. Xxxxx Xxxxxxx
----------------------------------------
Title: Vice President
-------------------------------------
FIRSTMERIT BANK
By: /s/Xxxxxx Xxxxxxxx
----------------------------------------
Title: Vice President
-------------------------------------
17
COMERICA BANK
By: /s/Xxxxx Xxxxxxxx
-------------------------------
Title: Vice President
-------------------------------------
FIFTH THIRD BANK, NORTHEASTERN OHIO
By: /s/Xxxxx Xxxxxxxx
----------------------------------------
Title: Vice President
-------------------------------------
18
CONSENT AND AGREEMENT OF GUARANTORS
-----------------------------------
As of the date and year first above written, each of the undersigned
hereby:
(a) fully consents to the terms and provisions of the above Amendment and
the consummation of the transactions contemplated thereby and agrees to all
terms and provisions of the above Amendment applicable to it;
(b) agrees that each Guaranty, Collateral Document and all other agreements
executed by any of the undersigned in connection with the Credit Agreement or
otherwise in favor of the Agent or the Lenders (collectively, the "Guarantor
Documents") are hereby ratified and confirmed and shall remain in full force and
effect, and each of the undersigned acknowledges that it has no setoff,
counterclaim or defense with respect to any Guarantor Document; and
(c) acknowledges that its consent and agreement hereto is a condition to
the Lenders' obligation under this Amendment and it is in its interest and to
its financial benefit to execute this consent and agreement.
GOOD-ALL ELECTRIC, INC.
By: Xxxx X. Xxxxxx
-----------------------------------
Its: Vice President
--------------------------------
BASS SOFTWARE, INC.
By: Xxxx X. Xxxxxx
-----------------------------------
Its: Vice President
--------------------------------
CATHODIC PROTECTION SERVICES
COMPANY
By: Xxxx X. Xxxxxx
-----------------------------------
Its: Vice President
--------------------------------
OCEAN CITY RESEARCH CORP.
By: Xxxx X. Xxxxxx
-----------------------------------
Its: Vice President
--------------------------------
19
CCFC, INC.
By: Xxxx X. Xxxxxx
-----------------------------------
Its: Vice President
--------------------------------
XXXXXXXX COSASCO SYSTEMS, INC.
By: Xxxx X. Xxxxxx
-----------------------------------
Its: Vice President
--------------------------------
20
SCHEDULE 1.1
------------
COMMITMENTS
-----------
(IN US DOLLARS)
BANK U.S. COMMITMENT CANADIAN COMMITMENT TOTAL COMMITMENT PRO-RATA SHARE
---- --------------- ------------------- ---------------- --------------
Bank One, Michigan $2,350,000 $6,400,000 $8,750,000 21.875%
PNC Bank, National Association $7,500,000 $7,500,000 18.750%
Key Bank $7,500,000 $7,500,000 18.750%
FirstMerit Bank, N.A. $7,500,000 $7,500,000 18.750%
Comerica Bank $5,000,000 $5,000,000 12.500%
Fifth Third Bank, $3,750,000 $3,750,000 9.375%
Northeastern Ohio
TOTAL: $33,600,000 $6,400,000 $40,000,000 100.000%
21
