EXHIBIT 10.6
AMENDMENT NO. 3 TO
SUBORDINATED LOAN AND SECURITY AGREEMENT
AMENDMENT NO. 3 TO SUBORDINATED LOAN AND SECURITY AGREEMENT dated as of
October 28, 2002 among ROUGE STEEL COMPANY, a Delaware corporation (the
"BORROWER"), ROUGE INDUSTRIES INC., a Delaware corporation ("RII"), QS STEEL
INC., a Michigan corporation ("QS"), and EVELETH TACONITE COMPANY, a Minnesota
corporation ("EVELETH", and together with RII and QS, the "GUARANTORS"), and
FORD MOTOR COMPANY, a Delaware corporation (the "LENDER").
WITNESSETH:
WHEREAS, the Borrower, the Guarantors and the Lender have heretofore
entered into a Subordinated Loan and Security Agreement dated as of November 21,
2001, as amended on March 8, 2002 and on July 12, 2002 (the "AGREEMENT"); and
WHEREAS, the Lender has agreed to amend the Agreement as set forth
herein;
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1. Definitions; References. (a) Unless otherwise specifically
defined herein, each term used herein which is defined in the Agreement shall
have the meaning assigned to such term in the Agreement (as amended hereby).
Each reference to "hereof", "hereunder", "herein" and "hereby" and each other
similar reference and each reference to "this Agreement" and each other similar
reference contained in the Agreement shall from and after the date hereof refer
to the Agreement as amended hereby.
SECTION 2. Amendments to the Agreement. (a) The first sentence of
clause (a) of Article 1 is amended by replacing "December 31, 2002" with "June
30, 2004".
(b) Clause (b)(iii) of Article 5 is amended to read in its entirety as
follows:
All interest accrued up to and including December 31, 2002
shall be payable on July 1, 2003. Beginning on January 1,
2003, all interest accruing on and after such date shall be
payable monthly in arrears no later than the first Business
Day of the following calendar month, provided that all
interest accrued from June 1, 2004 up to and including the
Facility Termination Date shall be payable on the Facility
Termination Date. Interest shall be calculated on the basis of
a 360-day year for the actual days elapsed.
(c) The definition of "Interest Period" in clause (a) of Article 17 is
amended to read in its entirety as follows:
"INTEREST PERIOD" shall mean each period set forth below:
November 21, 2001 to December 31, 2001
January 1, 2002 to December 31, 2002
January 1, 2003 to March 31, 2003
April 1, 2003 to June 30, 2003
July 1, 2003 to September 30, 2003
October 1, 2003 to December 31, 2003
January 1, 2004 to March 31, 2004
April 1, 2004 to June 30, 2004
SECTION 3. Representations and Warranties of the Company. The Borrower
represents and warrants that as of the date hereof and after giving effect to
the transactions contemplated by this Amendment:
(a) no Default has occurred and is continuing; and
(b) each representation and warranty of the Borrower set forth in
the Agreement is true and correct, in all material respects (except to
the extent that such representations and warranties expressly relate to
an earlier date, in which case such representations and warranties are
true and correct, in all material respects, on and as of such earlier
date).
SECTION 4. Effectiveness. This Amendment shall become effective as of
the date when the Lender shall have received:
(a) duly executed counterparts hereof signed by the Borrower and
each Guarantor,
(b) a duly executed letter from Congress Financial Corporation,
as agent under the Incorporated Agreement, constituting the written consent of
the Required Lenders (as defined in the Incorporated Agreement) to this
Amendment and acknowledged and agreed to by the Lender, the Borrower and each
Guarantor and
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(c) a duly executed letter from Cleveland Cliffs Inc and The
Cleveland-Cliffs Iron Company consenting to this Amendment and acknowledged and
agreed to by the Lender, the Borrower and each Guarantor.
SECTION 5. Effect of Amendments and Consents. Except as expressly set
forth herein, the amendments and consents contained herein shall not constitute
a waiver or amendment of any term or condition of the Agreement or any other
Financing Agreement, and all such terms and conditions shall remain in full
force and effect and are hereby ratified and confirmed in all respects.
SECTION 6. Counterparts. This Amendment may be signed in any number of
counterparts, and such counterparts taken together shall constitute one and the
same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by facsimile shall be effective as delivery of a manually executed
counterpart of this Amendment.
SECTION 7. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED 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
duly executed by their respective authorized officers as of the day and year
first above written.
ROUGE STEEL COMPANY
By: /s/ Xxxx X. Xxxxxxxxxxx
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Name: Xxxx X. Xxxxxxxxxxx
Title: Vice Chairman & CFO
ROUGE INDUSTRIES INC.
By: /s/ Xxxx X. Xxxxxxxxxxx
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Name: Xxxx X. Xxxxxxxxxxx
Title: Vice Chairman & CFO
QS STEEL INC.
By: /s/ Xxxx X. Xxxxxxxxxxx
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Name: Xxxx X. Xxxxxxxxxxx
Title: President
EVELETH TACONITE COMPANY
By: /s/ Xxxx X. Xxxxxxxxxxx
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Name: Xxxx X. Xxxxxxxxxxx
Title: President
FORD MOTOR COMPANY
By: /s/ Xxxxx X. Xxxxxx
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Name: Xxxxx X. Xxxxxx
Title: Assistant Treasurer
