TENTH AMENDMENT TO CREDIT AGREEMENT
EXHIBIT 10.26
TENTH AMENDMENT TO CREDIT AGREEMENT
THIS TENTH AMENDMENT TO CREDIT AGREEMENT (the “Amendment”), dated as of November 1, 2001, is entered into between MELLON BANK, N.A. (the “Bank”), with a place
of business at 000 Xxxx Xxxxx Xxxxxx, Xxx Xxxxxxx, Xxxxxxxxxx 00000, and KEYSTONE AUTOMOTIVE INDUSTRIES, INC., a California corporation (“Borrower”), with its chief executive office located at 000 Xxxx Xxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxx
00000.
RECITALS
A. Borrower and the Bank have previously entered into that certain Credit Agreement dated as of March 25, 1997, as amended by that
certain First Amendment to Credit Agreement dated as of August 25, 1997, that certain Second Amendment to Credit Agreement dated as of March 17, 1998, that certain Third Amendment to Credit Agreement dated as of June 29, 1998, that certain Fourth
Amendment to Credit Agreement dated as of September 18, 1998, that certain Fifth Amendment to Credit Agreement dated as of September 17, 1999, that certain Sixth Amendment to Credit Agreement dated as of September 6, 2000, that certain Seventh
Amendment to Credit Agreement dated as of October 30, 2000 and that certain Eighth Amendment to Credit Agreement dated as of June 28, 2001 and that certain Ninth Amendment to Credit Agreement dated as of October 30, 2001 (collectively, the
“Credit Agreement”), pursuant to which the Bank has made certain loans and other financial accommodations available to Borrower. Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement.
B. Borrower and the Bank wish to further
amend the Credit Agreement under the terms and conditions set forth in this Amendment. Borrower is entering into this Amendment with the understanding and agreement that, except as specifically provided herein, none of the Bank’s rights or
remedies as set forth in the Credit Agreement is being waived or modified by the terms of this Amendment.
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. Non-Recurring Expenses. The non-recurring
expenses incurred by Borrower during Borrower’s fiscal quarter ended September 28, 2001, in the aggregate amount of Six Million Seven Hundred Ninety Six Thousand Dollars ($6,796,000) (the “Non-Recurring Expenses”) shall be excluded
from the calculation of Borrower’s Consolidated Fixed Charge Coverage Ratio, as set forth in Section 6.2(a) of the Credit Agreement and Borrower’s Consolidated Ratio of Total Indebtedness to EBITDA, as set forth in Section 6.2(c) of the
Credit Agreement. Such exclusion of the Non-Recurring Expenses shall only apply to Sections 6.2(a) and 6.2(c) of the Credit Agreement and only for the following fiscal periods of Borrower: (i) fiscal quarter ended on September 28, 2001, (ii) fiscal
quarter ending on December 28, 2001, (iii) fiscal quarter ending on March 29, 2002, and (iv) fiscal quarter ending on June 28, 2002. |
2. Waiver of Defaults. As of September 28, 2001,
the Borrower is in default under (i) Section 6.2(a) of the Credit Agreement due to its failure to maintain a minimum Fixed Charge Coverage Ratio as set forth in such provision and (ii) Section 6.2(d) of the Credit Agreement due to its failure to
maintain a minimum Consolidated Net Income as set forth in such provision (collectively, the “Existing Defaults”). Upon the terms and subject to the conditions set forth in this Amendment, the Lender hereby waives the Existing Defaults.
This waiver shall be effective only in this specific instance and for the specific purpose for which it is given, and this waiver shall not entitle the Borrower to any other or further waiver in any similar or other circumstances.
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3. Effectiveness of this Amendment. Each of the
following is a condition precedent to the effectiveness of this Amendment and to the Bank’s obligation to extend any credit to Borrower as provided for by this Amendment: |
(a) Amendment. The Bank shall have received, in form and substance satisfactory to the
Bank, this Amendment and the attached Guarantor’s Consent fully executed in a sufficient number of counterparts for distribution to the Bank and Borrower. |
(b) Authorizations. The Bank shall have received evidence, in form and substance
satisfactory to the Bank, that the execution, delivery and performance by Borrower and each Guarantor and any instrument or agreement required under this Amendment have been duly authorized. |
(c) Representations and
Warranties. The Representations and Warranties set forth in the Credit Agreement must be true and correct as of the date of this Amendment as if made as of such date. |
(d) No Event of
Default. As of the date hereof, no Event of Default, or event which with notice or passage of time or both would constitute an Event of Default, exists or has occurred and is continuing. |
(e) Other Required
Documentation. All other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered or executed or recorded and shall be in form and substance satisfactory to
the Bank. |
4. Representations and Warranties. The Borrower
represents and warrants as follows: |
(a) Authority. 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). The execution, delivery and performance by the Borrower of this Amendment and each Loan Document (as amended or modified
hereby) have been duly approved by all necessary corporate action of Borrower and no other corporate proceedings on the part of Borrower are necessary to consummate such transactions. |
(b) Enforceability. This Amendment has been duly executed and delivered by Borrower. This
Amendment and each Loan Document (as amended or modified hereby) is the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, and is in full force and effect. |
(c) No
Default. As of the date hereof, no event has occurred and is continuing that constitutes, or would with notice or passage of time or both would constitute, an Event of Default. |
5. Choice of Law. The validity of this Amendment,
its construction, interpretation and enforcement, the rights of the parties hereunder, shall be determined under, governed by, and construed in accordance with the internal laws of the State of California governing contracts only to be performed in
that State. |
6. 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. |
7. Due Execution. The execution, delivery and
performance of this Amendment are within the power of Borrower, have been duly authorized by all necessary corporate action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual restrictions
binding on Borrower. |
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8. Reference to and Effect on the Loan Documents.
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(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 above,
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 Borrower to
the Bank. |
(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 any the Bank or the Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
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(d) To the extent that any terms and
conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to
reflect the terms and conditions of the Credit Agreement as modified or amended hereby. |
9. Ratification. 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. |
10. Estoppel. To induce the Bank to enter into
this Amendment and to continue to make advances to Borrower under the Credit Agreement, Borrower hereby acknowledges and agrees that, after giving effect to this Amendment, as of the date hereof, there exists no Event of Default and no right of
offset, defense, counterclaim or objection in favor of Borrower as against the Bank with respect to the Obligations. |
IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.
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YSTONE AUTOMOTIVE INDUSTRIES, INC., |
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alifornia corporation |
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LLON BANK, N.A., |
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ational association |
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GUARANTORS’ CONSENT
Each of the undersigned hereby acknowledges and consents to the terms, conditions and provisions of the
Tenth Amendment to Credit Agreement dated as of November 1, 2001 entered into by and among Keystone Automotive Industries, Inc. (“Borrower”) and Mellon Bank, N.A. (the “Bank”), and to the transactions contemplated by such
amendment. In addition, each of the undersigned hereby reaffirms its obligations under its respective Continuing Guaranty delivered to Lender in connection with the Credit Agreement as of the date noted beside each such Guarantor’s signature
block, and agrees that it is and shall remain responsible for the obligations of Borrower under such Credit Agreement as amended by the Tenth Amendment to Credit Agreement.
| CAR BODY CONCEPTS, INC., a Minnesota corporation By:
Name:
Title:
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Date of Continuing Guaranty: March 17, 1997 | |
| INTEURO PARTS DISTRIBUTORS, INC. , a Florida corporation By:
Name:
Title:
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Date of Continuing Guaranty: March 17, 1997 | |
| NORTH STAR PLATING COMPANY, a Minnesota corporation By:
Name:
Title:
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Date of Continuing Guaranty: Xxxxx 00, 0000 | |
| XXXXXXXX AUTOMOTIVE PARTS, INC., a Delaware corporation By:
Name:
Title:
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Date of Continuing Guaranty: June 29, 1998 | |
| FENDERS & MORE, INC., a Tennessee corporation By:
Name:
Title:
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Date of Continuing Guaranty: June 29, 1998 |
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