AMENDMENT NO. 18 TO LOAN AND SECURITY AGREEMENT
Exhibit 4.19
AMENDMENT NO. 18 TO LOAN AND
SECURITY AGREEMENT
AMENDMENT
NO. 18 TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of February
14, 2008, by and among Handy & Xxxxxx, a New York corporation (“Parent”),
OMG, Inc., a Delaware corporation formerly known as Olympic Manufacturing Group,
Inc. (“OMG”), Continental Industries, Inc., an Oklahoma corporation
(“Continental”), Maryland Specialty Wire, Inc., a Delaware corporation
(“Maryland Wire”), Handy & Xxxxxx Tube Company, Inc., a Delaware corporation
(“H&H Tube”), Camdel Metals Corporation, a Delaware corporation (“Camdel”),
Xxxxxxxx Metal Coating Corporation, a Delaware corporation (“Canfield”),
Micro-Tube Fabricators, Inc., a Delaware corporation (“Micro-Tube”), Indiana
Tube Corporation, a Delaware corporation (“Indiana Tube”), Xxxxx-Xxxxxxxx, Inc.,
a Wisconsin corporation (“Xxxxx”), Handy & Xxxxxx Electronic Materials
Corporation, a Florida corporation (“H&H Electronic”), Sumco Inc., an
Indiana corporation (“Sumco”), OMG Roofing, Inc., a Delaware corporation (“OMG
Roofing”), OMNI Technologies Corporation of Danville, a New Hampshire
corporation (“OMNI” and together with Parent, OMG, Continental, Maryland Wire,
H&H Tube, Camdel, Xxxxxxxx, Micro-Tube, Indiana Tube, Xxxxx, H&H
Electronic, Sumco and OMG Roofing, each individually, a “Borrower” and
collectively, “Borrowers”), Handy & Xxxxxx of Canada, Limited, an Ontario
corporation (“H&H Canada”), ele Corporation, a California corporation
(“ele”), Alloy Ring Service Inc., a Delaware corporation (“Alloy”), Xxxxxx
Radiator Corporation, a Texas corporation (“Xxxxxx”), H&H Productions, Inc.,
a Delaware corporation (“H&H Productions”), Handy & Xxxxxx Automotive
Group, Inc., a Delaware corporation (“H&H Auto”), Handy & Xxxxxx
International, Ltd., a Delaware corporation (“H&H International”), Handy
& Xxxxxx Peru, Inc., a Delaware corporation (“H&H Peru”), KJ-VMI Realty,
Inc., a Delaware corporation (“KVR”), Xxx-Xxxx Realty, Inc., a Delaware
corporation (“Xxx-Xxxx”), Platina Laboratories, Inc., a Delaware corporation
(“Platina”), Sheffield Street Corporation, a Connecticut corporation
(“Sheffield”), SWM, Inc., a Delaware corporation (“SWM”), Willing B Wire
Corporation, a Delaware corporation (“Willing” and together with H&H Canada,
ele, Alloy, Xxxxxx, H&H Productions, H&H Auto, H&H International,
H&H Peru, KVR, Xxx-Xxxx, Platina, Sheffield and SWM, each individually, a
“Guarantor” and collectively, “Guarantors”), Wachovia Bank, National
Association, a national banking association that is successor by merger to
Congress Financial Corporation, in its capacity as agent pursuant to the Loan
Agreement (as hereinafter defined) acting for the financial institutions party
thereto as lenders (in such capacity, together with its successors and assigns,
“Agent”), and the financial institutions party thereto as lenders (collectively,
“Lenders”).
W I T N E S S E T
H:
WHEREAS, Agent, Lenders, Borrowers
and Guarantors have entered into financing arrangements pursuant to which
Lenders (or Agent on behalf of Lenders) have made and provided and may hereafter
make and provide loans, advances and other financial accommodations to Borrowers
as set forth in the Loan and Security Agreement, dated March 31, 2004, by and
among Agent, Lenders, Borrowers and Guarantors, as amended by Consent and
Amendment No. 1 to Loan and Security Agreement, dated as of August 31, 2004,
Amendment No. 2 to Loan and Security Agreement, dated as of October 29, 2004,
Amendment No. 3 to Loan and Security Agreement, dated as of December 29, 2004,
Amendment No. 4 to Loan and Security Agreement, dated as of May 20, 2005,
Amendment No. 5 to Loan and Security Agreement, dated as of September 8,
2005, Amendment No. 6 and Waiver to Loan and Security
Agreement,
dated as of December 29, 2005, Consent and Amendment No. 7 to Loan and Security
Agreement, dated as of January 24, 2006, Consent and Amendment No. 8 to Loan and
Security Agreement, dated as of March 31, 2006, Amendment No. 9 to Loan and
Security Agreement, dated as of July 18, 2006, Amendment No. 10 to Loan and
Security Agreement, dated as of October 30, 2006, Amendment No. 11 and Waiver to
Loan and Security Agreement, dated as of December 28, 2006, Amendment No. 12 and
Consent to Loan and Security Agreement, dated as of December 28, 2006, Amendment
No. 13 and Waiver to Loan and Security Agreement, dated as of March 29, 2007,
Amendment No. 14 to Loan and Security Agreement, dated as of July 20, 2007,
Amendment No. 15 to Loan and Security Agreement, dated as of September 10, 1007,
Amendment No. 16 to Loan and Security Agreement, dated as of November 5, 2007,
and Amendment No. 17 to Loan and Security Agreement, dated as of January 11,
2008 (as the same may hereafter be further amended, modified, supplemented,
extended, renewed, restated or replaced, the “Loan Agreement”), and the other
agreements, documents and instruments referred to therein or at any time
executed and/or delivered in connection therewith or related thereto (all of the
foregoing, together with the Loan Agreement, as the same now exist or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced, being collectively referred to herein as the “Financing
Agreements”);
WHEREAS,
Borrowers have requested that Agent and Lenders make certain amendments to
the Loan Agreement and the other Financing Agreements, and Agent and Lenders are
willing to make such amendments, subject to terms and conditions set forth
herein;
WHEREAS,
by this Amendment, Borrowers, Guarantors, Agent and Lenders desire and intend to
evidence such amendments;
NOW
THEREFORE, in consideration of the foregoing, and the respective agreements and
covenants contained herein, the parties hereto agree as follows:
1. Definitions.
(a) Additional
Definitions. As used herein, the following terms shall have
the following meanings given to them below, and the Loan Agreement and the other
Financing Agreements are hereby amended to include, in addition and not in
limitation, the following:
(i) “Amendment
No. 18” shall mean Amendment No. 18 to Loan and Security Agreement, dated as of
February 14, 2008, by and among Borrowers, Guarantors, Agent and the Lenders, as
the same now exists or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced.
(ii) “Amendment
No. 18 Effective Date” shall mean the first date on which all of the conditions
precedent to the effectiveness of Amendment No. 18 shall have been satisfied or
shall have been waived by Agent.
(iii) “Applicable
Term B Loan Margin” shall mean, at any time, as to the Interest Rate for the
portion of the Term B Loan bearing interest at the Prime Rate and the Interest
Rate for the portion of the Term B Loan bearing interest at the Adjusted
Eurodollar Rate, the applicable percentage (on a per annum basis) set forth
below if the Senior Leverage Ratio for the immediately preceding fiscal quarter
is at or within the amounts indicated for such percentage as of the last day of
such period:
2
|
Tier
|
Senior Leverage
Ratio
|
Applicable Term B Loan Prime Rate
Margin
|
Applicable
Term B Loan
Eurodollar Rate
Margin
|
|
I
|
Greater
than or equal to 3.5 to 1
|
2.75%
|
5.50%
|
|
II
|
Less
than 3.5 to 1 but greater than or equal to 3.25 to 1
|
2.50%
|
5.25%
|
|
III
|
Less
than 3.25 to 1 but greater than or equal to 3.0 to 1
|
2.25%
|
5.00%
|
|
IV
|
Less
than 3.0 to 1
|
2.00%
|
4.75%
|
provided, that, (i) the
Applicable Term B Loan Margin shall be calculated and established once each
fiscal quarter (commencing with the fiscal quarter commencing on or about
April 1, 2008) and shall remain in effect until adjusted for the next
fiscal quarter, (ii) each adjustment of the Applicable Term B Loan Margin shall
be effective as of the first day of each fiscal quarter based on the Senior
Leverage Ratio for the immediately preceding fiscal quarter, and (iii) the
Applicable Term B Loan Margin through the fiscal quarter ending on or about
March 31, 2008 shall be the amount set forth in Tier I above. In the
event that at any time after the end of a fiscal quarter the Senior Leverage
Ratio for such fiscal quarter used for the determination of the Applicable
Term B Loan Margin is different than the actual amount of the Senior
Leverage Ratio for such fiscal quarter as a result of the inaccuracy of
information provided by or on behalf of Borrowers to Agent for the calculation
of Senior Leverage Ratio, the Applicable Term B Loan Margin for such prior
fiscal quarter shall be adjusted to the applicable percentage based on such
actual Senior Leverage Ratio and any difference in the amount of interest for
the applicable period as a result of such recalculation shall be, in the case of
additional interest to be paid, promptly paid to Agent, or in the case of excess
interest paid, reimbursed to Borrowers. The foregoing shall not be
construed to limit the rights of Agent and Lenders with respect to the amount of
interest payable after a Default or Event of Default whether based on such
recalculated percentage or otherwise.”
(iv) “PBGC
Security Agreements” shall mean, collectively, the PBGC Second Priority Security
Agreement, the PBGC Fourth Priority Security Agreement, and all other
agreements, documents and instruments at any time executed and/or delivered by
any Borrower or Guarantor with, to or in favor of the PBGC, the WHX Plan or
their respective subrogees which create (or purport to create) a lien upon any
Collateral securing the PBGC Debt, as all of the foregoing heretofore may have
been amended, modified, supplemented, extended, renewed, restated or
replaced.
(v) “Specified
OMNI EBITDA Amount” shall mean (a) $503,695 for the twelve (12) month
period ending on or about December 31, 2007; (b) $465,865 for the
twelve (12) month period ending on or about January 31, 2008; (c) $425,612
for the twelve (12) month period ending on or about February 29, 2008; (d)
$358,008 for the twelve (12) month period ending or about March 31, 2008; (e)
$303,502 for the twelve (12) month period ending on or about April 30, 2008; (f)
$212,673 for the twelve (12) month period ending on or about May 31,
2008; (g) $138,557 for the twelve (12) month period ending on or about June 30,
2008; (h) $85,131 for the twelve (12) month period ending on or about July 31,
2008; (i) $(69,671) for the twelve (12) month period ending on or about August
31, 2008; (j) $5,500 for the twelve (12) month period ending on or about
September 30, 2008, and (k) $0 for the twelve (12) month period ending on or
about October 31, 2008 and for each twelve (12) month period ending on the last
day of each month thereafter.
3
(vi) “WHX
Rights Offering” shall mean the rights offering by WHX pursuant to which WHX is
distributing to the holders of its common stock subscription rights to purchase
shares of Capital Stock of WHX for up to an aggregate purchase price of
$200,000,000, which offering shall be substantially on the terms described in
the Registration Statement on Form S-1 filed by WHX with the Securities and
Exchange Commission prior to the Amendment No. 18 Effective Date.
(vii) “WHX
Subordinated Note Documents” shall mean the subordinated promissory note by
Parent in favor of WHX in respect of the Indebtedness permitted under Section
9.9(j) hereof and all other agreements, documents and instruments at any time
executed and/or delivered by any Parent, any Borrower or any Guarantor with, to
or in favor of WHX in connection therewith or related thereto, as the same now
exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced.
(b) Amendments to
Definitions.
(i) The
definition of “Applicable Margin” in Section 1.8 of the Loan Agreement is hereby
amended by deleting such definition and replacing it with the
following:
“1.8 ‘Applicable
Margin’ shall mean, at any time, as to the Interest Rate for Prime Rate Loans
(other than the Term B Loan) and the Interest Rate for Eurodollar Rate Loans
(other than the Term B Loan), the applicable percentage (on a per annum basis)
set forth below if the Quarterly Average Excess Availability for the immediately
preceding fiscal quarter is at or within the amounts indicated for such
percentage:
|
Tier
|
Quarterly
Average
Excess Availability
|
Applicable Prime Rate
Margin
|
Applicable Eurodollar
Rate Margin
|
||||
|
Revolving Loans
|
Term
Loans and Equipment Purchase
Term
Loans
|
Supplemental
Term
Loans
|
Revolving Loans
|
Term
Loans and Equipment Purchase
Term
Loans
|
Supplemental
Term
Loans
|
||
|
I
|
$15,000,000
or more
|
.25%
|
.25%
|
2.25%
|
2.00%
|
2.00%
|
4.00%
|
|
II
|
Equal
to or greater than $10,000,000 but less than $15,000,000
|
.50%
|
.50%
|
2.50%
|
2.25%
|
2.25%
|
4.25%
|
|
III
|
Less
than $10,000,000
|
.75%
|
.75%
|
2.75%
|
2.50
|
2.50%
|
4.50%
|
4
provided, that, (i) the
Applicable Margin shall be calculated and established once each fiscal quarter
(commencing with the fiscal quarter commencing on or about April 1, 2008) and
shall remain in effect until adjusted for the next fiscal quarter, (ii) each
adjustment of the Applicable Margin shall be effective as of the first day of
each fiscal quarter based on the Quarterly Average Excess Availability for the
immediately preceding fiscal quarter, and (iii) the Applicable Margin
through the fiscal quarter ending on or about March 31, 2008 shall be the amount
set forth in Tier I above. In the event that at any time after the
end of a fiscal quarter the Quarterly Average Excess Availability for such
fiscal quarter used for the determination of the Applicable Margin is different
than the actual amount of the Quarterly Average Excess Availability for such
fiscal quarter as a result of the inaccuracy of information provided by or on
behalf of Borrowers to Agent for the calculation of Quarterly Average Excess
Availability, the Applicable Margin for such prior fiscal quarter shall be
adjusted to the applicable percentage based on such actual Quarterly Average
Excess Availability and any difference in the amount of interest for the
applicable period as a result of such recalculation shall be, in the case of
additional interest to be paid, promptly paid to Agent, or in the case of excess
interest paid, reimbursed to Borrowers. The foregoing shall not be
construed to limit the rights of Agent and Lenders with respect to the amount of
interest payable after a Default or Event of Default whether based on such
recalculated percentage or otherwise.”
(ii) EBITDA. The
definition of “EBITDA” in Section 1.32 of the Loan Agreement is hereby amended
by deleting such definition in its entirety and replacing it with the
following:
“1.32 ‘EBITDA’
shall mean, as to any Person, with respect to any period, an amount equal to:
(a) the Consolidated Net Income of such Person for such period, plus (b) depreciation
and amortization for such period (to the extent deducted in the computation of
Consolidated Net Income of such Person), all in accordance with GAAP, plus (c) Interest
Expense for such period (to the extent deducted in the computation of
Consolidated Net Income of such Person), plus (d) the
Provision for Taxes for such period (to the extent deducted in the computation
of Consolidated Net Income of such Person), plus (e) the
Specified OMNI EBITDA Amount (if any) for such period, plus (f) non cash
accruals for such period for environmental liabilities with respect to the
Shpack landfill site located in Attleboro, Massachusetts (to the extent that (1)
such accruals were deducted in the computation of Consolidated Net Income of
such Person for such period and (2) the aggregate amount of all such accruals
does not exceed $2,062,000), plus (g) losses
realized during such period in connection with the inventory hedging program of
such Person (to the extent that such losses were deducted in the computation of
Consolidated Net Income of such Person for such period), plus (h) non
cash accruals for such period for audit fees incurred in 2007 for the fiscal
year 2006 audit of such Person (to the extent that (1) such accruals were
deducted in the computation of
5
Consolidated
Net Income of such Person for such period and (2) the aggregate amount of
all such accruals does not exceed $1,000,000), plus (i) a one-time
non-cash charge incurred during fiscal year 2007 in connection with the redesign
of the post-retirement medical benefits owing to union employees of Xxxxxxxx (to
the extent that (1) such charge was deducted in the computation of Consolidated
Net Income of such Person for such period and (2) the amount of such charge
does not exceed $727,252), minus (j) gains
realized during such period in connection with the inventory hedging program of
such Person (to the extent that such gains were added in the computation of
Consolidated Net Income of such Person for such period), minus (k) cash
expenses incurred during such period in connection with environmental
liabilities with respect to the Shpack landfill site located in Attleboro,
Massachusetts, minus (l) cash
expenses incurred during such period in connection with the redesign of the
post-retirement medical benefits owing to union employees of Xxxxxxxx during
fiscal year 2007.”
(iii) Intercreditor
Agreement. The definition of “Intercreditor Agreement” in
Section 1.66 of the Loan Agreement is hereby amended by deleting such definition
in its entirety and replacing it with the following:
“1.66
‘Intercreditor Agreement’ shall mean the Amended and Restated Intercreditor
Agreement, dated December 28, 2006, as amended by Amendment No. 1 to Amended and
Restated Intercreditor Agreement, dated as of the Amendment No. 18 Effective
Date, by and among Agent, Tranche B Term Loan Agent and the PBGC, as
acknowledged and agreed by Borrowers and Guarantors, as the same now exists or
may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.”
(iv) Interest
Rate. The definition of “Interest Rate” in Section 1.69 of the
Loan Agreement is hereby amended by deleting clause (vii) of such definition in
its entirety and replacing it with the following:
“and
(vii) as to the portion of the Term B Loan which constitutes a Prime Rate Loan,
a rate per annum equal to the Applicable Term B Loan Margin in excess of
the Prime Rate, or as to the portion of the Term B Loan which constitutes a
Eurodollar Rate Loan, a rate per annum equal to the Applicable Term B Loan
Margin in excess of the Adjusted Eurodollar Rate (based on the Eurodollar Rate
applicable for the Interest Period selected by a Borrower, or by Administrative
Borrower on behalf of such Borrower, as in effect two (2) Business Days after
the date of receipt by Agent of the request of or on behalf of such 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 any Borrower or
Guarantor).”
6
(v) Maximum
Credit. The definition of “Maximum Credit” in
Section 1.82 of the Loan Agreement is hereby amended by deleting such
definition in its entirety and replacing it with the following:
“1.82 ‘Maximum
Credit’ shall mean $129,000,000.”
(vi) Required
Lenders. The definition of “Required Lenders” in
Section 1.118 of the Loan Agreement is hereby amended by deleting such
definition in its entirety and replacing it with the following:
“1.118
‘Required Lenders’ shall mean, at any time, those Lenders whose Pro Rata Shares
aggregate sixty-four (64%) percent or more of the aggregate of the Commitments
of all Lenders, or if the Commitments shall have been terminated, Lenders to
whom at least sixty-four (64%) percent of the then outstanding Obligations are
owing.”
(vii) Term B
Loan. The definition of “Term B Loan” in the Loan Agreement is
hereby amended by deleting such definition in its entirety and replacing it with
the following:
“ ‘Term B
Loan’ shall mean, collectively, (a) the term loan in the original principal
amount of $42,000,000 made by or on behalf of Term B Loan Lenders to
Borrowers on the Amendment No. 12 Effective Date as provided for in
Section 2.3C hereof and (b) the additional term loan in the original
principal amount of $4,000,000 made by or on behalf of certain Term B Loan
Lenders to Borrowers on the Amendment No. 18 Effective Date as provided for in
Section 2.3C hereof.”
(viii) Term B Loan
Lender. The definition of “Term B Loan Lender” in the Loan
Agreement is hereby amended by deleting such definition in its entirety and
replacing it with the following:
“ ‘Term B
Loan Lender’ shall mean, collectively, Ableco Finance LLC, a Delaware limited
liability company, Fortress Credit Funding III LP, Fortress Credit Funding II
LP, Fortress Credit Funding IV LP and Fortress Credit Opportunities II LP, and
the other financial institutions that are parties to the Loan Agreement as Term
B Loan Lenders from time to time, and their respective successors and assigns;
sometimes being referred to herein collectively as “Term B Loan
Lenders”.
(c) Interpretation. Capitalized
terms used herein which are not otherwise defined herein shall have the
respective meanings ascribed thereto in the Loan Agreement.
2. Term B
Loan.
(a) Section
2.3C(a) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
7
“(a) Making of the Term B
Loan. Subject to and upon the terms and conditions contained
herein, (i) Term B Loan Lenders agree to make a term loan to Borrowers on the
Amendment No. 12 Effective Date in the original principal amount of $42,000,000
and (ii) certain Term B Loan Lenders agree to make an additional term loan to
Borrowers on the Amendment No. 18 Effective Date in the original principal
amount of $4,000,000.”
(b) Section
2.3C(c) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(c) Repayment of Term B
Loan. The principal amount of the portion of the Term B Loan
made on the Amendment No. 18 Effective Date shall be repaid in twelve (12)
consecutive monthly installments of $333,333.33 each payable on the first day of
each month commencing on May 1, 2008, to the extent not otherwise prepaid as
provided herein. The remaining portion of the Term B Loan shall be
repaid in full on the Termination Date (or if earlier, upon an Event of Default
as provided in Section 10.2 hereof). Borrowers may make a voluntary
prepayment, without premium or penalty, in whole or in part of the outstanding
principal amount of the Term B Loan so long as each of the following conditions
is satisfied: (i) as of the date of any such prepayment and after giving
effect thereto, no Default or Event of Default shall exist or have occurred and
be continuing, (ii) for each of the thirty (30) consecutive days prior to
any such prepayment, Excess Availability shall have been not less than
$15,000,000 and immediately after giving effect to any such prepayment, Excess
Availability shall be not less than $15,000,000, and (iii) Borrowers shall
provide Agent with at least one (1) but no more than five (5) Business Days’
prior written notice of such voluntary prepayment. Any principal
amount of the Term B Loan which is repaid or prepaid may not be
reborrowed.”
3. Mandatory
Prepayments.
(a) Section
2.4(b) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(b) (i)
Upon the issuance or sale by any Borrower or any of its Subsidiaries of Capital
Stock of such Borrower or Subsidiary as permitted in Sections 9.7(b)(iii)
and (iv) hereof, or the issuance or incurrence by any Borrower or any of its
Subsidiaries of any Indebtedness of the type described in Section 9.9(e)
hereof, Borrowers shall immediately prepay the Obligations in an amount equal to
100% of the Net Cash Proceeds received by such Borrower or Subsidiary in
connection therewith as follows: first, to the
outstanding principal amount of the Term Loans, second, to the
outstanding principal amount of the Equipment Purchase Term Loans, third, to the
outstanding principal amount of the Supplemental Term Loans, and fourth, at Borrowers’
option, to either (A) the outstanding principal amount of the Term B Loan
or (B) the outstanding principal amount of the Revolving Loans so long as (in
the case of this clause (B) only) Agent establishes and maintains a permanent
Reserve in an amount equal to the amount of such Net Cash Proceeds that are so
applied by the prepayment of the Revolving Loans.
8
(ii) Upon
the issuance or incurrence by Parent or any of its Subsidiaries of any
Indebtedness of the type described in Section 9.9(j) hereof or the receipt
by Parent or any of its Subsidiaries of a capital contribution from WHX with
proceeds from the WHX Rights Offering, Borrowers shall immediately prepay the
Obligations in an amount equal to the first $5,000,000 of the Net Cash Proceeds
received by Parent or any of its Subsidiaries in connection therewith as
follows: first,
to the outstanding principal amount of the Revolving Loans, second, to the
outstanding principal amount of the Term Loans, third, to the
outstanding principal amount of the Equipment Purchase Term Loans, fourth, to the
outstanding principal amount of the Supplemental Term Loans, and fifth, to the
outstanding principal amount of the Term B Loan.
(iii)
Within thirty (30) days following the issuance or incurrence by Protechno France
of Indebtedness of the type permitted in Section 9.9(n) hereof, Borrowers
shall prepay the Obligations in an amount equal to the first $500,000 of the Net
Cash Proceeds received by Parent or any of its Subsidiaries in connection
therewith as follows: first, to the
outstanding principal amount of the Term B Loan until the outstanding principal
amount thereof is less than or equal to $42,000,000, second, to the
outstanding principal amount of the Term Loans, third, to the
outstanding principal amount of the Equipment Purchase Term Loans, fourth, to the
outstanding principal amount of the Supplemental Term Loans, and fifth, at Borrowers’
option, to either (A) the outstanding principal amount of the Term B Loan,
or (B) the outstanding principal amount of the Revolving Loans so long as (in
the case of this clause (B) only) Agent establishes and maintains a permanent
Reserve in an amount equal to the amount of such Net Cash Proceeds that are so
applied by the prepayment of the Revolving Loans.
(iv) The
provisions of this subsection (b) shall not be deemed to be implied consent to
any such issuance, incurrence or sale otherwise prohibited by the terms and
conditions of this Agreement.”
(b) Section
2.4(c) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(c) (i)
Upon the sale or disposition of any Collateral by any Borrower or any of its
Subsidiaries as permitted in Section 9.7(b)(ii) or (vi) hereof or upon the sale
or disposition of any Collateral by any Borrower or any of its Subsidiaries not
otherwise permitted by the terms of this Agreement but consented to by the
Required Lenders, Borrowers shall immediately prepay the Obligations as set
forth below, in an amount equal to 100% of the Net Cash Proceeds received by
such Borrower or such Subsidiary in connection with such sale or
disposition:
(A) if
such sale or disposition is of Inventory or Accounts, then such Net Cash
Proceeds shall be applied, first, to the
outstanding principal amount of the Revolving Loans, second, to the
outstanding principal amount of the Term Loans, third, to the
outstanding principal amount of the Equipment Purchase Term Loans, fourth, to the
outstanding principal amount of the Supplemental Term Loans, and fifth, to the
outstanding principal amount of Term B Loan; and
9
(B) if
such sale or disposition is of any Collateral (other than Inventory or
Accounts), then such Net Cash Proceeds shall be applied, first, to the
outstanding principal amount of the Term Loans, second, to the
outstanding principal amount of the Equipment Purchase Term Loans, third, to the
outstanding principal amount of the Supplemental Term Loans, and fourth, at Borrowers’
option, to either (x) the outstanding principal amount of the Term B Loan
or (y) the outstanding principal amount of the Revolving Loans so long as (in
the case of this clause (y) only) Agent establishes and maintains a permanent
Reserve in an amount equal to the amount of such Net Cash Proceeds that are so
applied by the prepayment of the Revolving Loans.
(ii) Upon
the sale or other disposition by Parent of the Capital Stock of Indiana Tube
Denmark as permitted in Section 9.7(b)(v) hereof, Borrowers shall immediately
prepay the Obligations in an amount equal to 100% of the Net Cash Proceeds
received by Parent or any of its Subsidiaries in connection with such sale or
disposition as follows: first, to the
outstanding principal amount of the Term B Loan until the outstanding principal
amount thereof is less than or equal to $42,000,000, second, to the
outstanding principal amount of the Term Loans, third, to the
outstanding principal amount of the Equipment Purchase Term Loans, fourth, to the
outstanding principal amount of the Supplemental Term Loans, and fifth, at Borrowers’
option, to either (x) to the outstanding principal amount of the Term B Loan, or
(y) the outstanding principal amount of the Revolving Loans so long as (in the
case of this clause (y) only) Agent establishes and maintains a permanent
Reserve in an amount equal to the amount of such Net Cash Proceeds that are so
applied by the prepayment of the Revolving Loans.”
4. Use of
Proceeds. Section 6.6 of the Loan Agreement is hereby amended
by inserting the following sentence after the second sentence of such
Section:
“Notwithstanding
anything to the contrary set forth in the immediately preceding sentence,
Borrowers shall use the proceeds of the portion of the Term B Loan provided by
certain Term B Loan Lenders to Borrowers on the Amendment No. 18 Effective
Date only for the costs, expenses and fees in connection with the preparation,
negotiation, execution and delivery of Amendment No. 18 and the other Amendment
Documents (as defined in Amendment No. 18) and for general operating, working
capital and other proper corporate purposes of Borrowers not otherwise
prohibited by the terms hereof.”
5. Financial Statements and
Other Information. Section 9.6(a) of the Loan Agreement is
hereby amended by deleting subsections (iii), (iv) and (v) from such Section in
their entirety and replacing them with the following:
10
“(iii) within
ninety (90) days after the end of each fiscal year (other than the fiscal years
ended December 31, 2003, December 31, 2004, December 31, 2005, December 31,
2006, December 31, 2007 and December 31, 2008), audited consolidated financial
statements of Parent and its Subsidiaries (including balance sheets, statements
of income and loss, statements of cash flow and statements of shareholders’
equity) and unaudited consolidating financial statements of Parent and its
Subsidiaries (including balance sheets and statements of income and loss), and
the accompanying notes thereto, all in reasonable detail, fairly presenting in
all material respects the financial position and the results of the operations
of Parent and its Subsidiaries as of the end of and for such fiscal year,
together with the unqualified opinion of independent certified public
accountants with respect to the audited consolidated financial statements, which
accountants shall be an independent accounting firm selected by Borrowers and
acceptable to Agent, that such audited consolidated financial statements have
been prepared in accordance with GAAP, and present fairly in all material
respects the results of operations and financial condition of Parent and its
Subsidiaries as of the end of and for the fiscal year then ended;
(iv) within
one hundred fifty (150) days after the end of the fiscal years ended
December 31, 2007 and December 31, 2008, annual unaudited consolidated
financial statements of Parent and its Subsidiaries (including balance sheets,
statements of income and loss, statements of cash flow, and statements of
shareholders' equity) and annual unaudited consolidating financial statements of
Parent and its Subsidiaries (including balance sheets and statements of income
and loss), all in reasonable detail, fairly presenting in all material respects
the financial position and the results of the operations of Parent and its
Subsidiaries as of the end of and for the fiscal year then ended, all of which
unaudited consolidated financial statements and unaudited consolidating
financial statements (other than the statement of federal deferred tax assets
and liabilities) shall be certified to be correct by the chief financial officer
of Parent, subject to normal year-end adjustments and the absence of footnotes;
and
(v) within
one hundred fifty (150) days after the end of each fiscal year, audited
consolidated financial statements of WHX and its Subsidiaries (including balance
sheets, statements of income and loss, statements of cash flow and statements of
shareholders’ equity) and unaudited consolidating financial statements of WHX
and its Subsidiaries (including balance sheets and statements of income and
loss), and the accompanying notes thereto, all in reasonable detail, fairly
presenting in all material respects the financial position and the results of
the operations of WHX and its Subsidiaries as of the end of and for such fiscal
year, together with the unqualified opinion of independent certified public
accountants with respect to the audited consolidated financial statements, which
accountants shall be an independent accounting firm selected by WHX and
acceptable to Agent, that such audited consolidated financial statements have
been prepared in accordance with GAAP, and present fairly in all material
respects the results of operations and financial condition of WHX and its
Subsidiaries as of the end of and for the fiscal year then ended.”
11
6. Sale of Assets,
Consolidation, Merger, Dissolution, Etc. Section 9.7(b)(v) of
the Loan Agreement is hereby amended by deleting such Section in its entirety
and replacing it with the following:
“(v) the
sale or other disposition by Parent to WHX of all of the issued and outstanding
shares of Capital Stock in Indiana Tube Denmark; provided, that, (A)
as of the date of such sale or disposition and after giving effect thereto, no
Event of Default shall exist or have occurred and be continuing and (B) the Net
Cash Proceeds (if any) from such sale or disposition shall promptly be remitted
to Agent for application to the Obligations in the order and manner set forth in
Section 2.4(c)(iii) hereof,”.
7. Encumbrances. Section
9.8(n) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(n) [Intentionally
Deleted].”
8. Indebtedness.
(a) Section
9.9(f)(iii) of the Loan Agreement is hereby amended by deleting such Section in
its entirety and replacing it with the following:
“(iii)
Borrowers and Guarantors shall not, directly or indirectly, make, or be required
to make, any payments in respect of such Indebtedness, except, as permitted by
the Intercreditor Agreement;”.
(b) Section
9.9(j) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(j) unsecured
Indebtedness of Parent to WHX after the Amendment No. 18 Effective Date in
respect of a subordinated loan made by WHX to Parent with proceeds from the WHX
Rights Offering evidenced by or arising under the WHX Subordinated Note
Documents, provided, that:
(i) Agent
shall have received true, correct and complete copies of the WHX Subordinated
Note Documents and all other documents, instruments and agreements related
thereto, as duly authorized, executed and delivered by the parties thereto,
which shall be in form and substance satisfactory to Agent;
(ii) such
Indebtedness shall be unsecured and shall be subject and subordinate in right of
payment to the right of Agent and Lenders to receive the prior indefeasible
payment and satisfaction in full of all Obligations pursuant to a subordination
agreement, in form and substance satisfactory to Agent, between WHX and Agent,
as acknowledged by Borrowers and Guarantors,
(iii) subject
to Section 2.4(b)(ii) hereof, the Net Cash Proceeds of such Indebtedness may be
used to make a voluntary prepayment in respect of the Tranche B Term Loan Debt,
provided, that, such prepayment
shall be made within three (3) Business Days of the receipt of such Net
Cash Proceeds; provided, further, that, if an Event of
Default shall exist or shall have occurred and be continuing, such Net Cash
Proceeds shall be applied in the order and manner provided for in
Section 2.4(b)(ii) hereof,
12
(iv) Borrowers
and Guarantors shall not, directly or indirectly, make, or be required to make,
any payments in respect of such Indebtedness, except, that, Parent may make
regularly scheduled non-cash capitalized interest payments in respect of such
Indebtedness in accordance with the terms of the WHX Subordinated Note Documents
in the form of additional indebtedness having substantially the same
terms,
(v) Borrowers
and Guarantors shall not, directly or indirectly, (A) amend, modify, alter
or change in any material respect any of the terms of such Indebtedness or any
of the WHX Subordinated Note Documents, except, that, Parent may, after prior
written notice to Agent, amend, modify, alter of change the terms thereof so as
to extend the maturity thereof or defer the timing of any payments in respect
thereof, or to forgive or cancel any portion of such Indebtedness other than
pursuant to payments thereof, or to reduce the interest rate or any fees in
connection therewith, or (B) redeem, retire, defease, purchase or otherwise
acquire such Indebtedness, or set aside or otherwise deposit or invest any sums
for such purpose, and
(vi) Borrowers
and Guarantors shall furnish to Agent all notices or demands in connection with
such Indebtedness either received by such Borrower or Guarantor or on its behalf
promptly after the receipt thereof, and all notices or demands sent by any
Borrower or Guarantor or on its behalf concurrently with the sending thereof, as
the case may be;”.
(c) Section
9.9(l) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(l) [Intentionally
Deleted];”.
(d) Section
9.9 of the Loan Agreement is hereby amended by (a) deleting the period appearing
at the end of clause (m) of such Section and replacing it with “; and” and
(b) adding the following new clause as the end of such
Section:
“(n) unsecured
Indebtedness of Protechno France arising after the Amendment No. 18 Effective
Date to any third person (but not to any other Borrower or Guarantor), provided, that, each of the
following conditions is satisfied as determined by Agent: (1) in no event shall
the aggregate principal amount of such Indebtedness incurred during the term of
this Agreement exceed $1,500,000, (2) no Borrower or Guarantor shall guarantee
or otherwise be liable in respect of any of such Indebtedness, (3) Agent shall
have received not less than five (5) days prior written notice of the intention
of Protechno France to incur such Indebtedness, which notice shall set forth in
reasonable detail satisfactory to Agent the amount of such Indebtedness, the
person or persons to whom such Indebtedness will be owed, the interest rate, the
schedule of repayments and maturity date with respect thereto and such other
information as Agent may request with respect thereto, (4) promptly following
Agent’s request, Agent shall have received true, correct and complete copies of
all agreements, documents and instruments evidencing or
13
otherwise
related to such Indebtedness, (5) the proceeds of the loans or other financial
accommodations giving rise to such Indebtedness shall be paid to Agent for
application to the Obligations in the order and manner set forth in
Section 2.4(b)(iii) hereof, (6) as of the date of incurring such
Indebtedness and after giving effect thereto, no Default or Event of Default
shall exist or have occurred, (7) no Borrower or Guarantor shall, directly or
indirectly, redeem, retire, defease, purchase or otherwise acquire such
Indebtedness or set aside or otherwise deposit or invest any sums for such
purpose, and (8) Protechno France or Administrative Borrower shall furnish to
Agent all notices or demands in connection with such Indebtedness either
received by Protechno France or any Borrower or Guarantor or on its behalf
promptly after the receipt thereof, or sent by Protechno France or any Borrower
or Guarantor or on its behalf concurrently with the sending thereof, as the case
may be”.
9. Loans, Investments,
Etc. Section 9.10(k) of the Loan Agreement is hereby amended
by deleting such Section in its entirety and replacing it with the
following:
“(k) unsecured
loans by Parent to WHX on or after the Amendment No. 13 Effective Date
for purposes other than those described in Section 9.10(j) hereof, provided, that, (i) the
aggregate outstanding amount of such loans shall not exceed the principal amount
of $7,000,000 at any time, (ii) within thirty (30) days after the end
of each fiscal month, Parent shall provide to Agent a report in form and
substance satisfactory to Agent of the outstanding amount of such loans as of
the last day of the immediately preceding month and indicating any payments
received during the immediately preceding month, (iii) the Indebtedness
arising pursuant to such loans shall be evidenced by a promissory note and the
single original of such note shall be promptly delivered to Agent to hold as
part of the Collateral, with such endorsement and/or assignment by WHX as Agent
may require, (iv) as of the date of such loans and after giving effect thereto,
Parent shall be Solvent, (v) as of the date of such loans and after giving
effect thereto, no Default or Event of Default shall exist or have occurred and
be continuing, (vi) the average Excess Availability for the thirty (30)
consecutive days immediately preceding such loans shall not have been less than
$5,000,000, (vii) on the date of such loans and after giving effect thereto,
Excess Availability shall not be less than $4,000,000, and (viii) such loans
shall be repaid in full on the Termination Date.”
10. Financial
Covenants.
(a) Section
9.17(a) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(a) EBITDA. Parent
and its Subsidiaries shall not permit EBITDA of Parent and its Subsidiaries
(other than the Specified Subsidiaries), on a consolidated basis, for the twelve
(12) consecutive fiscal months ending on the last day of each fiscal quarter to
be less than $30,000,000.”
14
(b) Section
9.17(d) of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:
“(d) Senior Leverage
Ratio. Parent and its Subsidiaries shall not permit the Senior
Leverage Ratio as of the last day of each fiscal month to be greater than 4.125
to 1.”
11. Term. Section
13.1(a) of the Loan Agreement is hereby amended by deleting the first sentence
from such Section in its entirety and replacing it with the
following:
“This
Agreement and the other Financing Agreements shall become effective as of the
date set forth on the first page hereof and shall continue in full force and
effect for a term ending on June 30, 2009 (the “Termination Date”), unless
sooner terminated pursuant to the terms hereof.”
12. Schedules to Loan
Agreement. The Loan Agreement is hereby amended by deleting
Schedule 1.24 thereto and replacing it with the Schedule set forth on Schedule 1
attached to this Amendment.
13. Amendment
Fee. In addition to all other fees, charges, interest and
expenses payable by Borrowers and Guarantors to Agent and Lenders under the Loan
Agreement and the other Financing Agreements, (a) Borrowers and Guarantors shall
pay to Agent, for the ratable benefit of Revolving Loan Lenders, an amendment
fee in the amount of $332,000, which fee shall be fully earned as of and payable
on the Amendment No. 18 Effective Date and may be charged to any loan account of
Borrowers, and (b) Borrowers and Guarantors shall pay to Agent, for the
ratable benefit of Term B Loan Lenders, an amendment fee in the amount of
$460,000, which fee shall be fully earned as of and payable on the Amendment No.
18 Effective Date and may be charged to any loan account of
Borrowers.
14. Conditions
Precedent. The provisions contained herein shall only be
effective upon the satisfaction of each of the following conditions precedent in
a manner satisfactory to Agent:
(a) Agent
shall have received this Amendment, duly authorized, executed and delivered by
Borrowers, Guarantors and the Lenders;
(b) Agent
shall have received, in form and substance satisfactory to Agent, Amendment No.
1 to the Intercreditor Agreement, duly authorized, executed and delivered by
Tranche B Term Loan Agent and the PBGC and acknowledged by Borrowers and
Guarantors, which Intercreditor Agreement shall be in full force and
effect;
(c) Agent
shall have received, in form and substance satisfactory to Agent, Amendment No.
14 to Loan and Security Agreement (the “Tranche B Amendment”), duly authorized,
executed and delivered by Tranche B Term Loan Agent, Tranche B Term Loan
Lenders, Borrowers and Guarantors, which Tranche B Amendment shall be in full
force and effect;
15
(d) Agent
shall have received, in form and substance satisfactory to Agent, an amendment
to each of the Mortgages relating to the Real Property of Borrowers and
Guarantors located in the States of Indiana, Delaware, Ohio, Wisconsin,
Connecticut and Massachusetts, duly authorized, executed and delivered by the
applicable Borrower or Guarantor;
(e) Agent
shall have received, in form and substance satisfactory to Agent, a true and
correct copy of any consent, waiver or approval to or of this Amendment which
any Borrower or Guarantor is required to obtain from any other Person;
and
(f) no
Default or Event of Default shall have occurred and be continuing immediately
before and after giving effect hereto.
15. Representations, Warranties
and Covenants. Each Borrower and Guarantor hereby represents
and warrants to Agent and Lenders the following (which shall survive the
execution and delivery of this Amendment), the truth and accuracy of
which representations and warranties are a continuing condition of
the making of Loans and providing Letter of Credit Accommodations to
Borrowers:
(a) within
sixty (60) days following the Amendment No. 18 Effective Date (or such longer
period as Agent may agree in its sole discretion), Borrowers shall deliver to
Agent, in form and substance satisfactory to Agent, an endorsement (or a
commitment to issue an endorsement) to the existing title insurance policies
relating to Mortgages encumbering the Real Property of Borrowers and Guarantors
located in the States of Indiana, Delaware, Ohio and Wisconsin, (i) insuring the
priority and amount of such Mortgages (as so amended) and (ii) containing
any legally available endorsements, assurances or affirmative coverage requested
by Agent for the protection of its interest with respect to such Mortgages (as
so amended);
(b) as
of the date hereof (i) all of the PBGC Debt (including without limitation, the
Waiver Amount and the Termination Amount) has been indefeasibly paid and
satisfied in full, (ii) the PBGC Security Agreements have been terminated,
cancelled and are of no further force and effect, (iii) Borrowers and
Guarantors have no other or further payment obligations or liabilities under the
PBGC Settlement Agreement or any of the PBGC Security Agreements, other than
indemnification and other obligations that expressly survive the termination
thereof, (iv) any and all security interests in and liens upon properties
and assets of Borrowers and Guarantors heretofore granted pursuant to the PBGC
Security Agreements have been terminated and released, and (v) the
$125,000,000 limitation on the Indebtedness permitted to be incurred by
Borrowers and Guarantors under the Loan Agreement set forth in Section 4 of the
PBGC Settlement Agreement is no longer in effect;
(c) each
Borrower and Guarantor is a corporation duly organized and in good standing
under the laws of its jurisdiction of incorporation and is duly qualified as a
foreign corporation and in good standing in all states, provinces or other
jurisdictions where the nature and extent of the business transacted by it or
the ownership of assets makes such qualification necessary, except for those
jurisdictions in which the failure to so qualify would not have a Material
Adverse Effect;
16
(d) this
Amendment and each other agreement or instrument to be executed and delivered by
Borrowers and Guarantors in connection herewith (collectively, together with
this Amendment, the “Amendment Documents”), have been duly authorized, executed
and delivered by all necessary action on the part of each of the Borrowers and
Guarantors which is a party hereto and thereto and, if necessary, their
respective stockholders and is in full force and effect as of the date hereof,
and the agreements and obligations of each of the Borrowers and Guarantors
contained herein and therein constitute the legal, valid and binding obligations
of each of the Borrowers and Guarantors, enforceable against them in accordance
with their terms, except as enforceability is limited by bankruptcy, insolvency,
moratorium or other similar laws affecting creditors’ rights generally and by
general equitable principles;
(e) the
execution, delivery and performance of this Amendment and the other Amendment
Documents (a) are all within each Borrower’s and Guarantor’s corporate powers
and (b) are not in contravention of law or the terms of any Borrower’s or
Guarantor’s certificate or articles of incorporation, by laws, or other
organizational documentation, or any indenture, agreement or undertaking
(including, without limitation, the Tranche B Term Loan Agreement) to which any
Borrower or Guarantor is a party or by which any Borrower or Guarantor or its
property are bound;
(f) neither
the execution and delivery of this Amendment or the other Amendment Documents,
nor the consummation of the transactions contemplated hereby or thereby, nor
compliance with the provisions hereof or thereof (i) has resulted in or
shall result in the creation or imposition of any Lien upon any of the
Collateral, except in favor of Agent, or as expressly permitted by Section 9.8
of the Loan Agreement, (ii) has resulted in or shall result in the
incurrence, creation or assumption of any Indebtedness of any Borrower or
Guarantor, except as expressly permitted under Section 9.9 of the Loan
Agreement; (iii) has violated or shall violate any applicable laws or
regulations or any order or decree of any court or Governmental Authority in any
respect; (iv) does or shall conflict with or result in the breach of, or
constitute a default in any respect under any material mortgage, deed of trust,
security agreement, agreement or instrument to which any Borrower or Guarantor
is a party or may be bound (including without limitation the Tranche B Term Loan
Agreement), and (v) violates or shall violate any provision of the
Certificate of Incorporation or By-Laws of any Borrower or
Guarantor;
(g) No
action of, or filing with, or consent of any Governmental Authority, and no
consent, waiver or approval of any other third party (including without
limitation the PBGC) is required to authorize, or is otherwise required in
connection with, the execution, delivery and performance of this Amendment or
the other Amendment Documents;
(h) all
of the representations and warranties set forth in the Loan Agreement and the
other Financing Agreements, each as amended hereby, are true and correct in all
material respects on and as of the date hereof as if made on the date hereof,
except to the extent any such representation or warranty is made as of a
specified date, in which case such representation or warranty shall have been
true and correct in all material respects as of such date;
(i) the
Tranche B Amendment has been executed and delivered by all parties thereto and
is in full force and effect; and
(j) no
Default or Event of Default exists or has occurred and is continuing on the date
hereof.
17
16. General
Release. Each Borrower and Guarantor may have certain Claims
(as hereinafter defined) against the Released Parties (as hereinafter defined)
regarding or relating to the Loan Agreement or the other Financing
Agreements. Agent, Lenders, Borrowers and Guarantors desire to
resolve each and every one of such Claims in conjunction with the execution of
this Amendment and thus each Borrower and Guarantor makes the release contained
in this Section. In consideration of Agent’s and Lenders’ entering
into this Amendment and agreeing to the substantial concessions as set forth
herein, each Borrower and Guarantor hereby fully and unconditionally releases
and forever discharges Agent and each Lender and their respective directors,
officers, employees, subsidiaries, branches, affiliates, attorneys, agents,
representatives, successors and assigns and all persons, firms, corporations and
organizations acting on any of their behalves (collectively, the “Released
Parties”), of and from any and all claims, allegations, causes of action, costs
or demands and liabilities, of whatever kind or nature, from the beginning of
the world to the date on which this Amendment is executed, whether known or
unknown, liquidated or unliquidated, fixed or contingent, asserted or
unasserted, foreseen or unforeseen, matured or unmatured, suspected or
unsuspected, anticipated or unanticipated, which such Borrower or Guarantor has,
had, claims to have had or hereafter claims to have against the Released Parties
by reason of any act or omission on the part of the Released Parties, or any of
them, occurring prior to the date on which this Amendment is executed, including
on account of or in any way affecting, concerning or arising out of or founded
upon this Amendment up to and including the date on which this Amendment is
executed, including all such loss or damage of any kind heretofore sustained or
that may arise as a consequence of the dealings among the parties up to and
including the date on which this Amendment is executed, including the
administration or enforcement of the Loans, the Obligations, the Loan Agreement
or any of the other Financing Agreements (collectively, all of the foregoing are
the “Claims”). Each Borrower and Guarantor represents and warrants
that it has no knowledge of any claim by it against the Released Parties or of
any facts or acts or omissions of the Released Parties which on the date hereof
would be the basis of a claim by such Borrower or Guarantor against the Released
Parties which is not released hereby. Each Borrower and Guarantor
represents and warrants that the foregoing constitutes a full and complete
release of all Claims.
17. Effect of this
Agreement. Except as expressly amended pursuant hereto, no
other changes, waivers or modifications to the Financing Agreements are intended
or implied, and in all other respects the Financing Agreements are hereby
specifically ratified, restated and confirmed by all parties hereto as of the
date hereof. To the extent that any provision of the Loan Agreement
or any of the other Financing Agreements are inconsistent with the provisions of
this Amendment, the provisions of this Amendment shall control.
18. Further
Assurances. Borrowers and Guarantors shall execute and deliver
such additional documents and take such additional action as may be requested by
Agent to effectuate the provisions and purposes hereof.
19. Governing
Law. The validity, interpretation and enforcement of this
Amendment and the other Financing Agreements (except as otherwise provided
therein) and any dispute arising out of the relationship between the parties
hereto, whether in contract, tort, equity or otherwise, shall be governed by the
internal laws of the State of New York but excluding any principles of conflicts
of law or other rule of law that would cause the application of the law of any
jurisdiction other than the laws of the State of New York.
18
20. Binding
Effect. This Amendment shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and
assigns.
21. Headings. The
headings listed herein are for convenience only and do not constitute matters to
be construed in interpreting this Amendment.
22. Counterparts. This
Amendment may be executed in any number of counterparts, each of which shall be
an original, but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of this Amendment by
telefacsimile or other electronic method of transmission shall have the same
force and effect as the delivery of an original executed counterpart of this
Amendment. Any party delivering an executed counterpart of this
Amendment by telefacsimile or other electronic method of transmission shall also
deliver an original executed counterpart, but the failure to do so shall not
affect the validity, enforceability or binding effect of this
Amendment.
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]
19
IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
on the day and year first above written.
|
AGENT
|
|
|
WACHOVIA
BANK, NATIONAL ASSOCIATION, as Agent
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
|
LENDERS
|
|
|
WACHOVIA
BANK, NATIONAL ASSOCIATION
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
|
TEXTRON
FINANCIAL CORPORATION
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
|
BANK
OF AMERICA, N.A.
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
|
ABLECO
FINANCE LLC, on behalf of itself and its Affiliate
assigns
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
|
FORTRESS
CREDIT FUNDING III LP
|
||
|
By:
|
Fortress
Credit Funding III GP LLC, its General
Partner
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
[SIGNATURE
PAGES CONTINUE ON NEXT PAGE]
[SIGNATURE
PAGES CONTINUED FROM PREVIOUS PAGE]
|
FORTRESS
CREDIT FUNDING II LP
|
||
|
By:
|
Fortress
Credit Funding II GP LLC, its General
Partner
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
| FORTRESS CREDIT FUNDING IV LP | ||
|
By:
|
Fortress
Credit Funding II GP LLC, its General
Partner
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
|
FORTRESS
CREDIT OPPORTUNITIES II LP
|
||
|
By:
|
Fortress
Credit Opportunities II GP LLC, its General
Partner
|
|
|
By:
|
/s/ | |
| Name: | ||
|
|
Title:
|
[SIGNATURE
PAGES CONTINUE ON NEXT PAGE]
[SIGNATURE
PAGES CONTINUED FROM PREVIOUS PAGE]
|
BORROWERS
|
||
|
HANDY
& XXXXXX
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
OMG,
INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
CONTINENTAL
INDUSTRIES, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
MARYLAND
SPECIALTY WIRE, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
HANDY
& XXXXXX TUBE COMPANY, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
CAMDEL
METALS CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
XXXXXXXX
METAL COATING CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
[SIGNATURE
PAGES CONTINUE ON NEXT PAGE]
[SIGNATURE
PAGES CONTINUED FROM PREVIOUS PAGE]
|
MICRO-TUBE
FABRICATORS, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
INDIANA
TUBE CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
XXXXX-XXXXXXXX,
INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
HANDY
& XXXXXX ELECTRONIC MATERIALS CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
SUMCO
INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
OMG
ROOFING, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
OMNI
TECHNOLOGIES CORPORATION OF DANVILLE
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
[SIGNATURE
PAGES CONTINUE ON NEXT PAGE]
[SIGNATURE
PAGES CONTINUED FROM PREVIOUS PAGE]
|
GUARANTORS
|
||
|
HANDY
& XXXXXX OF CANADA, LIMITED
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
ELE
CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
ALLOY
RING SERVICE INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
XXXXXX
RADIATOR CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
H&H
PRODUCTIONS, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
HANDY
& XXXXXX AUTOMOTIVE GROUP, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
HANDY
& XXXXXX INTERNATIONAL, LTD.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
[SIGNATURE
PAGES CONTINUE ON NEXT PAGE]
[SIGNATURE
PAGES CONTINUED FROM PREVIOUS PAGE]
|
HANDY
& XXXXXX PERU, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
KJ-VMI
REALTY, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
XXX-XXXX
REALTY, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
PLATINA
LABORATORIES, INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
SHEFFIELD
STREET CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
SWM,
INC.
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
|
WILLING
B WIRE CORPORATION
|
||
|
By:
|
/s/
|
|
|
Name:
|
||
|
Title:
|
||
SCHEDULE
1
TO
AMENDMENT
NO. 18 TO LOAN AND SECURITY AGREEMENT
SCHEDULE
1.24
TO
LOAN AND
SECURITY AGREEMENT
