Exhibit 10.31
FOURTH AMENDMENT, effective as of December 30, 1999 (entered into on
March 28, 2000) (this "Amendment), to the Credit Agreement, dated as of October
9, 1997 (as amended by the First Amendment, dated as of Feberuary 12, 1999,
the Second Amendment, effective as of December 31, 1998 (entered into on April
15, 1999) the Third Amendment, dated as of April 23, 1999, this Amendment, and
as the same may be further amended, supplemented or otherwise modified from time
to time, the "Credit Agreement"), among CPI AEROSTRUCTURES, INC., a New York
corporation ("Holdings"), XXXXX, INC., a Delaware corporation (the "Borrower"),
the several banks and other financial institutions from time to time parties
thereto (collectively, the "Lenders"), and THE CHASE MANHATTAN BANK, a New York
banking corporation, as administrative agent for the Lenders (in such capacity,
the "Administrative Agent").
W I T N E S S E T H :
WHEREAS, Holdings, the Borrower, the Lenders and the Administrative
Agent are parties to the Credit Agreement; and
WHEREAS, Holdings and the Borrower have requested that the Lenders amend
certain terms in the Credit Agreement and in the manner provided for herein; and
WHEREAS, the Administrative Agent and the Lenders are willing to agree
to the requested amendments;
NOW, THEREFORE, in consideration of the premises contained herein, the
parties hereto agree as follows:
1. Defined Terms. Unless otherwise defined herein, terms which are
defined in the Credit Agreement and used herein (and in the recitals
hereto) as defined terms are so used as so defined.
2. Amendment to Subsection 6.1(b). Subsection 6.1(b) of the Credit
Agreement is hereby amended by deleting such subsection in its entirety and
substituting in lieu thereof the following:
(b) Liquidity Ratio. Permit the Liquidity Ratio at any time
during any period set forth below to be less than the ratio set forth
below opposite such period:
Period Liquidity Ratio
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12/31/99 and thereafter 1.00:1.00
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3. Representations and Warranties. On and as of the date hereof,
Holdings and the Borrower hereby jointly and severally confirm, reaffirm and
restate the representations and warranties set forth in Section 3 of the Credit
Agreement mutatis mutandis. To the extent that any of the representations and
warranties set forth in Section 3 of the Credit Agreement expressly 4relate to a
specific earlier date, Holdings and the Borrower jointly and severally hereby
confirm, reaffirm and restate such representations and warranties as of such
earlier date.
4. Effectiveness. This Amendment shall be effective upon receipt by
the Administrative Agent of counterparts of this Amendment duly executed by
Holdings, the Borrower and all the Lenders.
5. Continuing Effect; No Other Amendments, Waivers or Consents. Except
as expressly provided herein, all of the terms and provisions of the Credit
Agreement are and shall remain in full force and effect. The amendments
provided for herein are limited to the specific subsections of the Credit
Agreement specified herein and shall not constitute a consent, waiver or
amendment of, or an indication of the Administrative Agent's or the Lenders'
willingness to consent to any action requiring consent under any other
provisions of the Credit Agreement or the same subsection for any other date or
time period.
6. Expenses. Holdings and the Borrower agree to pay and reimburse the
Administrative Agent for all its reasonable costs and out-of-pocket expenses
incurred in connection with the preparation and delivery of this Amendment,
including, without limitation, the reasonable fees and disbursements of counsel
to the Administrative Agent.
7. Counterparts. This Amendment may be executed in any number of
counterparts by the parties hereto (including by facsimile transmission), each
of which counterparts when so executed shall be an original, but all the
counterparts shall together constitute one and the same instrument.
8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
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IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed and delivered by their respective duly authorized
officers as of the date written next to the signature of each party.
Dated: March 28, 2000 CPI AEROSTRUCTURES, INC.
/s/ Xxxxxx X. Xxxx
By____________________________
Name: Xxxxxx X. Xxxx
Title: VP & CFO
Dated: March 28, 2000 XXXXX, INC.
/s/ Xxxxxx X. Xxxx
By____________________________
Name: Xxxxxx X. Xxxx
Title: VP
Dated: March 28, 2000 THE CHASE MANHATTAN BANK,
as Administrative Agent and as a Lender
/s/ Xxxxxx X. Xxxxxx
By____________________________
Name: Xxxxxx X. Xxxxxx
Title: Vice President
Dated: March 28, 2000 MELLON BANK, N.A.,
as a Lender
/s/ Xxxxxxxxx X. Xxxxxxx
By____________________________
Name: Xxxxxxxxx X. Xxxxxxx
Title: First Vice President
Mellon Financial Services Corporation,
Attorney-in-Fact for Mellon Bank, N.A.
