FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT LOAN AND SECURITY AGREEMENT
Exhibit 10.24
FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING
CREDIT LOAN AND SECURITY AGREEMENT
CREDIT LOAN AND SECURITY AGREEMENT
This Fourth Amendment to Second Amended and Restated Revolving Credit Loan and Security
Agreement (“Amendment”) is entered into as of the 30th day of May, 2008, by and among
KEYBANK NATIONAL ASSOCIATION (“Bank”) and BROOKWOOD COMPANIES INCORPORATED, XXXXXX INDUSTRIES,
INC., BROOKWOOD LAMINATING, INC., ASHFORD BROMLEY, INC. and STRATEGIC TECHNICAL ALLIANCE, LLC
(collectively, “Borrower”).
RECITALS:
WHEREAS, Bank and Borrower are parties to that certain Second Amended and Restated Revolving
Credit Loan and Security Agreement dated as of January 30, 2004, as amended by a First Amendment
thereto dated as of March 25, 2005, a Second Amendment thereto dated as of March 31, 2006, and a
Third Amendment thereto dated as of December 10, 2007 (“Loan Agreement”); and
WHEREAS, Bank and Borrower desire to further amend the Loan Agreement in the manner
hereinafter set forth;
NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree that the Loan Agreement is amended as follows:
1. Definitions. Unless otherwise defined herein, capitalized terms used herein shall
have the meanings ascribed to them in the Loan Agreement.
2. Distributions to Hallwood. Section 8.4 of the Loan Agreement is amended to permit
a one-time special dividend payment to Hallwood in the amount of $4,800,000.00. In partial
consideration for Bank’s consent as aforesaid, total dividend payments to Hallwood shall be capped
at $9,300,000.00 for 2008.
3. Total Debt:Tangible Net Worth Ratio: Section 9.2 of the Loan Agreement is amended
as follows:
(a) For the period ending 6/30/08 only, the Total Debt to Tangible Net Worth Ratio shall be
revised to a maximum of 1.75:1.00 (actual) and 1.50:1.00 (pro forma).
(b) For the period ending 9/30/08, said ratio shall return to 1.50:1.00 (actual and pro
forma).
4. Effective Date. This Amendment shall be become effective as of the date hereof.
5. Representations and Warranties; No Default. Borrower hereby ratifies and confirms
to the Bank that all representations and warranties set forth in the Loan Agreement are true,
complete and correct in all material respects as of the date hereof as if set forth herein in full
(except as to representations and warranties made as of a certain date which shall be true,
complete and correct only as of such date) and apply with equal force and effect to this Amendment.
Borrower hereby certifies that, after giving effect hereto, no Default or Event of Default exists
under the Loan Agreement.
6. Miscellaneous.
(a) Borrower agrees to pay on demand all of the Bank’s reasonable expenses in preparing,
executing and delivering this Amendment, and all related instruments and documents, including,
without limitation, the reasonable fees and out-of-pocket expenses of the Bank’s special counsel,
PretiFlaherty, LLP. Borrower agrees to indemnify and hold harmless the Bank (and its directors,
officers, employees and agents) against any damages, loss, liability, and reasonable costs or
expenses incurred with respect to any claim made against Bank by a third party arising out of the
financing contemplated hereby or the use or proposed use of the proceeds thereof (except to the
extent resulting from the gross negligence or willful misconduct of the Bank).
(b) Borrower acknowledges and agrees that: (i) as of the date hereof, it has no claim or cause
of action against the Bank (or its directors, officers, employees, agents, representatives,
affiliates or attorneys); (ii) as of the date hereof, it has no offset right, right of recoupment,
counterclaim or defense of any kind against any of the Obligations or any other obligation or
indebtedness of Borrower to the Bank; and (iii) Bank has heretofore properly performed and
satisfied in a timely manner all of its obligations to Borrower.
(c) For and in consideration of the agreements contained in the Loan Agreement, as amended
hereby, and other good and valuable consideration, Borrower unconditionally and irrevocably
releases, waives and forever discharges the Bank, together with its successors, assigns,
subsidiaries, affiliates, directors, officers, employees, agents and attorneys (collectively, the
“Released Parties”), from: (i) any and all liabilities, obligations, duties, promises or
indebtedness of any kind of the Released Parties to Borrower as a result of any matter occurring on
or prior to the date hereof, provided that the Bank shall continue to be bound by its express
obligations under the Loan Agreement, as amended hereby, in accordance with the terms hereof and
thereof, and (ii) all claims, offsets, rights of recoupment, causes of action, suits or defenses of
any kind whatsoever (if any) occurring on or prior to the date hereof, which Borrower might
otherwise have against the Released Parties or any of them, in either case (i) or (ii) on account
of any condition, act, omission, event, contract, liability, obligations, indebtedness, claim,
cause of action, defense, circumstance, or matter of any kind occurring on or prior to the date
hereof.
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(d) Except as expressly amended by this Amendment, all of the remaining terms and conditions
of the Loan Agreement shall continue in full force and effect and are hereby ratified and confirmed
by Borrower, and Borrower ratifies and confirms its prior grant and conveyance and grants and
conveys, to the extent not previously granted and conveyed, to the Bank a security interest in the
Collateral to the extent defined and described in the Loan Documents.
(e) In the event of a conflict between the terms and conditions of this Amendment and the
terms and conditions of the Loan Agreement, the terms and conditions of this Amendment shall
prevail, and the Loan Agreement shall be interpreted and construed so as to give maximum effect to
the purpose and intent of this Amendment.
(f) This Amendment shall be governed by and construed and enforced in accordance with the laws
of the State of Maine.
[Signature pages follow.]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as a sealed
instrument by their duly authorized officers as of the date first set forth above.
| BANK: KEYBANK NATIONAL ASSOCIATION |
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| By: | /s/ Xxxx Xxxxx | |||
| Name: | Xxxx X. Xxxxx, Xx. | |||
| Title: | Senior Vice President | |||
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as a sealed
instrument by their duly authorized officers as of the date first set forth above.
| BORROWER: BROOKWOOD COMPANIES INCORPORATED |
||||
| By: | /s/ Xxxxxxx X. Xxxx III | |||
| Name: | Xxxxxxx Xxxx | |||
| Title: | Chief Financial Officer | |||
| XXXXXX INDUSTRIES, INC. |
||||
| By: | /s/ Xxxxxx Xxxxxxxxx | |||
| Name: | Xxxxxx Xxxxxxxxx | |||
| Title: | Treasurer | |||
| BROOKWOOD LAMINATING, INC. |
||||
| By: | /s/ Xxxxxx Xxxxxxxxx | |||
| Name: | Xxxxxx Xxxxxxxxx | |||
| Title: | Treasurer | |||
| ASHFORD BROMLEY, INC. |
||||
| By: | /s/ Xxxxxx Xxxxxxxxx | |||
| Name: | Xxxxxx Xxxxxxxxx | |||
| Title: | Treasurer | |||
| STRATEGIC TECHNICAL ALLIANCE, LLC | ||||
| By: | Brookwood Companies Incorporated, Its Sole Member | |||
| By: | /s/ Xxxxxxx X. Xxxx III | |||
| Name: | Xxxxxxx Xxxx | |||
| Title: | Chief Financial Officer | |||
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